AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - Euronext Milan - US00206R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1T. 1T was compared to 32 industry peers in the Diversified Telecommunication Services industry. 1T has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1T has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1T had positive earnings in the past year.
In the past year 1T had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1T reported negative net income in multiple years.
In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
1T has a Return On Assets of 2.96%. This is comparable to the rest of the industry: 1T outperforms 43.75% of its industry peers.
The Return On Equity of 1T (11.32%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.31%, 1T is doing worse than 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 7.75%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
1.3 Margins
Looking at the Profit Margin, with a value of 9.55%, 1T is in line with its industry, outperforming 59.38% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.84%, 1T is doing good in the industry, outperforming 65.63% of the companies in the same industry.
1T's Operating Margin has improved in the last couple of years.
1T's Gross Margin of 59.90% is in line compared to the rest of the industry. 1T outperforms 43.75% of its industry peers.
1T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
1T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for 1T has been increased compared to 1 year ago.
The number of shares outstanding for 1T has been reduced compared to 5 years ago.
1T has a better debt/assets ratio than last year.
2.2 Solvency
1T has an Altman-Z score of 0.90. This is a bad value and indicates that 1T is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1T (0.90) is worse than 71.88% of its industry peers.
The Debt to FCF ratio of 1T is 6.47, which is on the high side as it means it would take 1T, 6.47 years of fcf income to pay off all of its debts.
1T has a Debt to FCF ratio of 6.47. This is in the better half of the industry: 1T outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that 1T has dependencies on debt financing.
1T has a Debt to Equity ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.74
WACC7.14%
2.3 Liquidity
A Current Ratio of 0.70 indicates that 1T may have some problems paying its short term obligations.
1T's Current ratio of 0.70 is in line compared to the rest of the industry. 1T outperforms 40.63% of its industry peers.
1T has a Quick Ratio of 0.70. This is a bad value and indicates that 1T is not financially healthy enough and could expect problems in meeting its short term obligations.
1T's Quick ratio of 0.65 is on the low side compared to the rest of the industry. 1T is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -5.93% in the last year.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
The Revenue has been growing slightly by 0.50% in the past year.
1T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
3.2 Future
Based on estimates for the next years, 1T will show a small growth in Earnings Per Share. The EPS will grow by 4.72% on average per year.
Based on estimates for the next years, 1T will show a small growth in Revenue. The Revenue will grow by 2.27% on average per year.
EPS Next Y-7.95%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
EPS Next 5Y4.72%
Revenue Next Year1.31%
Revenue Next 2Y1.35%
Revenue Next 3Y1.44%
Revenue Next 5Y2.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1T is valuated correctly with a Price/Earnings ratio of 12.67.
Compared to the rest of the industry, the Price/Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 68.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. 1T is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.23, 1T is valued correctly.
1T's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1T is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
1T's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1T.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.82%
EPS Next 3Y4.32%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.02%, which is a nice return.
1T's Dividend Yield is comparable with the industry average which is at 4.30.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of 1T decreases each year by -10.97%.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1T pays out 70.36% of its income as dividend. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
BIT:1T (5/19/2025, 7:00:00 PM)
24.825
+1.31 (+5.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.96%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap178.63B
Analysts78.92
Price Target24.24 (-2.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1.01
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)-6.33%
PT rev (3m)0.53%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-12.08%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-8.1%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 12.23 | ||
| P/S | 1.64 | ||
| P/FCF | 10.37 | ||
| P/OCF | 5.02 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.13 |
EPS(TTM)1.96
EY7.9%
EPS(NY)2.03
Fwd EY8.18%
FCF(TTM)2.39
FCFY9.64%
OCF(TTM)4.95
OCFY19.92%
SpS15.1
BVpS12.74
TBVpS-11.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
ROICexc(3y)5.26%
ROICexc(5y)4.86%
ROICexgc(3y)12.3%
ROICexgc(5y)11.29%
ROCE(3y)6.83%
ROCE(5y)6.27%
ROICexcg growth 3Y10.1%
ROICexcg growth 5Y-1.63%
ROICexc growth 3Y4.68%
ROICexc growth 5Y2.35%
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
F-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.9 |
F-Score8
WACC7.14%
ROIC/WACC0.74
Cap/Depr(3y)100.82%
Cap/Depr(5y)90.95%
Cap/Sales(3y)15.8%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.95%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
EPS Next 5Y4.72%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.31%
Revenue Next 2Y1.35%
Revenue Next 3Y1.44%
Revenue Next 5Y2.27%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.88%
EBIT Next 3Y28.35%
EBIT Next 5Y17.72%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%