1TEF Fundamental Analysis - TELEFONICA SA

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to 1TEF. 1TEF was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of 1TEF have multiple concerns. 1TEF is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

1TEF had positive earnings in the past year.

In the past year 1TEF had a positive cash flow from operations.

In multiple years 1TEF reported negative net income over the last 5 years.

In the past 5 years 1TEF always reported a positive cash flow from operatings.

1.2 Ratios

1TEF has a worse Return On Assets (-2.17%) than 80.00% of its industry peers.

Looking at the Return On Equity, with a value of -10.91%, 1TEF is doing worse than 80.00% of the companies in the same industry.

The Return On Invested Capital of 1TEF (2.48%) is worse than 76.67% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.83%.

		Industry Rank	Sector Rank
ROA	-2.17%
ROE	-10.91%
ROIC	2.48%

ROA(3y)0.08%

ROA(5y)1.74%

ROE(3y)0.1%

ROE(5y)9.53%

ROIC(3y)3.26%

ROIC(5y)3.34%

1.3 Margins

1TEF has a worse Operating Margin (6.11%) than 66.67% of its industry peers.

1TEF's Operating Margin has improved in the last couple of years.

1TEF has a worse Gross Margin (50.52%) than 60.00% of its industry peers.

1TEF's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	6.11%
PM (TTM)	N/A
GM	50.52%

OM growth 3Y18.75%

OM growth 5Y8.06%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.37%

GM growth 5Y-1.04%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

1TEF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

1TEF has about the same amout of shares outstanding than it did 1 year ago.

The number of shares outstanding for 1TEF has been reduced compared to 5 years ago.

The debt/assets ratio for 1TEF is higher compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of 1TEF is 8.71, which is on the high side as it means it would take 1TEF, 8.71 years of fcf income to pay off all of its debts.

1TEF has a Debt to FCF ratio of 8.71. This is comparable to the rest of the industry: 1TEF outperforms 43.33% of its industry peers.

A Debt/Equity ratio of 1.96 is on the high side and indicates that 1TEF has dependencies on debt financing.

The Debt to Equity ratio of 1TEF (1.96) is worse than 73.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.96
Debt/FCF	8.71
Altman-Z	N/A

ROIC/WACC0.62

WACC4.02%

2.3 Liquidity

A Current Ratio of 0.97 indicates that 1TEF may have some problems paying its short term obligations.

With an excellent Current ratio value of 0.97, 1TEF belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.

A Quick Ratio of 0.93 indicates that 1TEF may have some problems paying its short term obligations.

The Quick ratio of 1TEF (0.93) is better than 86.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.97
Quick Ratio	0.93

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

1TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.

1TEF shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.

1TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.

EPS 1Y (TTM)-27.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-41.67%

Revenue 1Y (TTM)1.63%

Revenue growth 3Y1.7%

Revenue growth 5Y-3.12%

Sales Q2Q%-12.7%

3.2 Future

1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.42% yearly.

The Revenue is expected to decrease by -0.53% on average over the next years.

EPS Next Y-23.76%

EPS Next 2Y-11.43%

EPS Next 3Y-4.55%

EPS Next 5Y1.42%

Revenue Next Year-6.19%

Revenue Next 2Y-3.06%

Revenue Next 3Y-1.67%

Revenue Next 5Y-0.53%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.56, 1TEF is valued correctly.

Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than 76.67% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.41, 1TEF is valued a bit cheaper.

Based on the Price/Forward Earnings ratio of 14.85, the valuation of 1TEF can be described as correct.

The rest of the industry has a similar Price/Forward Earnings ratio as 1TEF.

1TEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.

		Industry Rank	Sector Rank
PE	14.56
Fwd PE	14.85

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaper than 93.33% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.03
EV/EBITDA	N/A

4.3 Compensation for Growth

A cheap valuation may be justified as 1TEF's earnings are expected to decrease with -4.55% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-11.43%

EPS Next 3Y-4.55%

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5. Dividend

5.1 Amount

1TEF has a Yearly Dividend Yield of 5.09%, which is a nice return.

Compared to an average industry Dividend Yield of 208786.82, 1TEF pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.38, 1TEF pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	5.09%

5.2 History

The dividend of 1TEF decreases each year by -5.71%.

Dividend Growth(5Y)-5.71%

Div Incr YearsN/A

Div Non Decr YearsN/A

5.3 Sustainability

1TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-81.03%

EPS Next 2Y-11.43%

EPS Next 3Y-4.55%

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TELEFONICA SA

BIT:1TEF (8/6/2025, 7:00:00 PM)

4.66

+0.69 (+17.32%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)07-30 2025-07-30/dmh

Earnings (Next)11-06 2025-11-06/bmo

Inst Owners23.12%

Inst Owner ChangeN/A

Ins Owners0.37%

Ins Owner ChangeN/A

Market Cap26.27B

Analysts53.75

Price Target4.38 (-6.01%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	5.09%

Yearly Dividend0.33

Dividend Growth(5Y)-5.71%

DP-81.03%

Div Incr YearsN/A

Div Non Decr YearsN/A

Ex-DateN/A

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-26.25%

Min EPS beat(2)-51.51%

Max EPS beat(2)-0.99%

EPS beat(4)2

Avg EPS beat(4)0.77%

Min EPS beat(4)-51.51%

Max EPS beat(4)36.57%

EPS beat(8)5

Avg EPS beat(8)2.39%

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)-0.85%

Min Revenue beat(2)-2.28%

Max Revenue beat(2)0.57%

Revenue beat(4)2

Avg Revenue beat(4)-0.48%

Min Revenue beat(4)-2.28%

Max Revenue beat(4)1.19%

Revenue beat(8)3

Avg Revenue beat(8)0.81%

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)2.25%

PT rev (3m)2.25%

EPS NQ rev (1m)-38.89%

EPS NQ rev (3m)-38.89%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)-5.82%

Revenue NQ rev (3m)-5.82%

Revenue NY rev (1m)-5.82%

Revenue NY rev (3m)-5.82%

Valuation

		Industry Rank	Sector Rank
PE	14.56
Fwd PE	14.85
P/S	0.65
P/FCF	5.03
P/OCF	2.47
P/B	1.33
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.32

EY6.87%

EPS(NY)0.31

Fwd EY6.73%

FCF(TTM)0.93

FCFY19.88%

OCF(TTM)1.88

OCFY40.43%

SpS7.17

BVpS3.5

TBVpS-1.2

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-2.17%
ROE	-10.91%
ROCE	3.3%
ROIC	2.48%
ROICexc	2.87%
ROICexgc	4.86%
OM	6.11%
PM (TTM)	N/A
GM	50.52%
FCFM	12.93%

ROA(3y)0.08%

ROA(5y)1.74%

ROE(3y)0.1%

ROE(5y)9.53%

ROIC(3y)3.26%

ROIC(5y)3.34%

ROICexc(3y)3.65%

ROICexc(5y)3.75%

ROICexgc(3y)6.07%

ROICexgc(5y)6.25%

ROCE(3y)4.35%

ROCE(5y)4.46%

ROICexcg growth 3Y26.02%

ROICexcg growth 5Y3.81%

ROICexc growth 3Y25.08%

ROICexc growth 5Y8.63%

OM growth 3Y18.75%

OM growth 5Y8.06%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.37%

GM growth 5Y-1.04%

F-Score6

Asset Turnover0.41

Health

		Industry Rank	Sector Rank
Debt/Equity	1.96
Debt/FCF	8.71
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	13.37%
Interest Coverage	250
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.97
Quick Ratio	0.93
Altman-Z	N/A

F-Score6

WACC4.02%

ROIC/WACC0.62

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)13.84%

Cap/Sales(5y)14.7%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-27.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-41.67%

EPS Next Y-23.76%

EPS Next 2Y-11.43%

EPS Next 3Y-4.55%

EPS Next 5Y1.42%

Revenue 1Y (TTM)1.63%

Revenue growth 3Y1.7%

Revenue growth 5Y-3.12%

Sales Q2Q%-12.7%

Revenue Next Year-6.19%

Revenue Next 2Y-3.06%

Revenue Next 3Y-1.67%

Revenue Next 5Y-0.53%

EBIT growth 1Y-41.72%

EBIT growth 3Y20.77%

EBIT growth 5Y4.69%

EBIT Next Year177.98%

EBIT Next 3Y41.61%

EBIT Next 5Y16.97%

FCF growth 1Y-16.47%

FCF growth 3Y6.37%

FCF growth 5Y-7.72%

OCF growth 1Y-11.92%

OCF growth 3Y0.61%

OCF growth 5Y-7%

TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens