TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock
3.484 EUR
+0.06 (+1.87%)
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 35 industry peers in the Diversified Telecommunication Services industry. 1TEF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1TEF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1TEF was profitable.
- 1TEF had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of -4.10%, 1TEF is doing worse than 83.78% of the companies in the same industry.
- 1TEF has a worse Return On Equity (-21.56%) than 83.78% of its industry peers.
- The Return On Invested Capital of 1TEF (7.34%) is better than 64.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is significantly below the industry average of 8.42%.
- The last Return On Invested Capital (7.34%) for 1TEF is above the 3 year average (3.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROIC | 7.34% |
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 Operating Margin (12.00%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of 1TEF has grown nicely.
- With a Gross Margin value of 35.73%, 1TEF is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
- 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 | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% |
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) well above the Cost of Capital (WACC), 1TEF is creating value.
- Compared to 1 year ago, 1TEF has about the same amount of shares outstanding.
- The number of shares outstanding for 1TEF has been reduced compared to 5 years ago.
- Compared to 1 year ago, 1TEF has a worse debt to assets ratio.
2.2 Solvency
- 1TEF has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as 1TEF would need 8.80 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 8.80, 1TEF perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
- 1TEF has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
- 1TEF has a Debt to Equity ratio of 2.07. This is amonst the worse of the industry: 1TEF underperforms 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.87
WACC3.92%
2.3 Liquidity
- 1TEF has a Current Ratio of 0.84. This is a bad value and indicates that 1TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of 1TEF (0.84) is better than 62.16% of its industry peers.
- 1TEF has a Quick Ratio of 0.84. This is a bad value and indicates that 1TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1TEF has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The earnings per share for 1TEF have decreased strongly by -34.78% in the last year.
- 1TEF shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.77%.
- The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
3.2 Future
- Based on estimates for the next years, 1TEF will show a small growth in Earnings Per Share. The EPS will grow by 1.32% on average per year.
- Based on estimates for the next years, 1TEF will show a decrease in Revenue. The Revenue will decrease by -1.34% on average per year.
EPS Next Y-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
EPS Next 5Y1.32%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.34%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.61 indicates a reasonable valuation of 1TEF.
- Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than 75.68% of the companies in the same industry.
- 1TEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 10.59, the valuation of 1TEF can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 72.97% of the companies listed in the same industry.
- 1TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- 1TEF's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.04%, 1TEF is a good candidate for dividend investing.
- 1TEF's Dividend Yield is rather good when compared to the industry average which is at 3.26. 1TEF pays more dividend than 97.30% of the companies in the same industry.
- 1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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-48.26%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
TELEFONICA SA / 1TEF.MI FAQ
Can you provide the ChartMill fundamental rating for TELEFONICA SA?
ChartMill assigns a fundamental rating of 4 / 10 to 1TEF.MI.
What is the valuation status of TELEFONICA SA (1TEF.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to TELEFONICA SA (1TEF.MI). This can be considered as Fairly Valued.
What is the profitability of 1TEF stock?
TELEFONICA SA (1TEF.MI) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for 1TEF stock?
The Price/Earnings (PE) ratio for TELEFONICA SA (1TEF.MI) is 11.61 and the Price/Book (PB) ratio is 1.12.
What is the expected EPS growth for TELEFONICA SA (1TEF.MI) stock?
The Earnings per Share (EPS) of TELEFONICA SA (1TEF.MI) is expected to decline by -37.95% in the next year.