TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
BIT:1TEF - Euronext Milan - ES0178430E18 - Common Stock - Currency: EUR
Overall 1TEF gets a fundamental rating of 3 out of 10. We evaluated 1TEF against 27 industry peers in the Diversified Telecommunication Services industry. 1TEF has a bad profitability rating. Also its financial health evaluation is rather negative. 1TEF has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years 1TEF had a positive operating cash flow.
1.2 Ratios
1TEF has a Return On Assets of -0.32%. This is in the lower half of the industry: 1TEF underperforms 68.97% of its industry peers.
1TEF has a Return On Equity of -1.64%. This is in the lower half of the industry: 1TEF underperforms 72.41% of its industry peers.
1TEF's Return On Invested Capital of 2.41% is on the low side compared to the rest of the industry. 1TEF is outperformed by 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.32% | ||
| ROE | -1.64% | ||
| ROIC | 2.41% |
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's Operating Margin of 5.82% is on the low side compared to the rest of the industry. 1TEF is outperformed by 68.97% of its industry peers.
1TEF's Operating Margin has improved in the last couple of years.
The Gross Margin of 1TEF (49.39%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1TEF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 49.39% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1TEF is destroying value.
1TEF has about the same amout of shares outstanding than it did 1 year ago.
1TEF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1TEF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that 1TEF is in the distress zone and has some risk of bankruptcy.
1TEF's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. 1TEF is outperformed by 72.41% of its industry peers.
The Debt to FCF ratio of 1TEF is 9.58, which is on the high side as it means it would take 1TEF, 9.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1TEF (9.58) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that 1TEF has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, 1TEF is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 9.58 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.64
WACC3.78%
2.3 Liquidity
A Current Ratio of 0.87 indicates that 1TEF may have some problems paying its short term obligations.
The Current ratio of 1TEF (0.87) is better than 68.97% of its industry peers.
A Quick Ratio of 0.83 indicates that 1TEF may have some problems paying its short term obligations.
1TEF's Quick ratio of 0.83 is fine compared to the rest of the industry. 1TEF outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
1TEF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
The Revenue has been growing slightly by 1.63% in the past year.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%5.4%
3.2 Future
1TEF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.92% yearly.
1TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y-1.92%
Revenue Next Year-0.4%
Revenue Next 2Y0.25%
Revenue Next 3Y0.55%
Revenue Next 5Y-0.24%
3.3 Evolution
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
1TEF is valuated reasonably with a Price/Earnings ratio of 9.93.
Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.18. 1TEF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.02, which indicates a correct valuation of 1TEF.
65.52% of the companies in the same industry are more expensive than 1TEF, based on the Price/Forward Earnings ratio.
1TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1TEF's earnings are expected to decrease with -4.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
1TEF has a Yearly Dividend Yield of 5.61%, which is a nice return.
Compared to an average industry Dividend Yield of 4.58, 1TEF pays a bit more dividend than its industry peers.
1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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.
The Dividend Rate of 1TEF has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-593.4%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
BIT:1TEF (4/10/2025, 7:00:00 PM)
3.972
-0.24 (-5.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.66%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap22.42B
Analysts54.84
Price Target4.28 (7.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-593.4%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.24%
Min EPS beat(2)-51.51%
Max EPS beat(2)19.03%
EPS beat(4)3
Avg EPS beat(4)6.28%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)3.94%
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)-0.43%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)2.6%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)10.07%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
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)-0.38%
PT rev (3m)1.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 13.02 | ||
| P/S | 0.54 | ||
| P/FCF | 4.56 | ||
| P/OCF | 2.15 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.4
EY10.07%
EPS(NY)0.3
Fwd EY7.68%
FCF(TTM)0.87
FCFY21.93%
OCF(TTM)1.85
OCFY46.56%
SpS7.32
BVpS3.43
TBVpS-1.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.32% | ||
| ROE | -1.64% | ||
| ROCE | 3.22% | ||
| ROIC | 2.41% | ||
| ROICexc | 2.72% | ||
| ROICexgc | 4.52% | ||
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 49.39% | ||
| FCFM | 11.9% |
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 | 2.03 | ||
| Debt/FCF | 9.58 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.36% | ||
| Interest Coverage | -2.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.95 |
F-Score6
WACC3.78%
ROIC/WACC0.64
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)11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y-1.92%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%5.4%
Revenue Next Year-0.4%
Revenue Next 2Y0.25%
Revenue Next 3Y0.55%
Revenue Next 5Y-0.24%
EBIT growth 1Y-42.5%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year186.65%
EBIT Next 3Y42.49%
EBIT Next 5Y23.68%
FCF growth 1Y8.31%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y0.45%
OCF growth 3Y0.61%
OCF growth 5Y-7%