TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - BIT:1TEF - ES0178430E18 - Common Stock
3.6 EUR
-0.02 (-0.69%)
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 31 industry peers in the Diversified Telecommunication Services industry. While 1TEF is still in line with the averages on profitability rating, there are concerns on its financial health. 1TEF is valued correctly, 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
1TEF has a worse Return On Assets (-4.30%) than 74.19% of its industry peers.
1TEF has a worse Return On Equity (-23.50%) than 74.19% of its industry peers.
The Return On Invested Capital of 1TEF (7.25%) is better than 67.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1TEF is below the industry average of 7.62%.
The last Return On Invested Capital (7.25%) for 1TEF is above the 3 year average (3.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 7.25% |
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
The Operating Margin of 1TEF (11.51%) is comparable to the rest of the industry.
1TEF's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.08%, 1TEF is doing worse than 74.19% of the companies in the same industry.
1TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1TEF is creating value.
1TEF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1TEF has less shares outstanding
The debt/assets ratio for 1TEF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that 1TEF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1TEF (1.27) is comparable to the rest of the industry.
The Debt to FCF ratio of 1TEF is 7.98, which is on the high side as it means it would take 1TEF, 7.98 years of fcf income to pay off all of its debts.
1TEF has a Debt to FCF ratio (7.98) which is in line with its industry peers.
1TEF has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
1TEF's Debt to Equity ratio of 2.11 is on the low side compared to the rest of the industry. 1TEF is outperformed by 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.8
WACC4.02%
2.3 Liquidity
A Current Ratio of 0.85 indicates that 1TEF may have some problems paying its short term obligations.
With a Current ratio value of 0.85, 1TEF perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that 1TEF may have some problems paying its short term obligations.
1TEF has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for 1TEF have decreased strongly by -27.27% in the last year.
Looking at the last year, 1TEF shows a very strong growth in Revenue. The Revenue has grown by 42.35%.
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)42.35%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
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 3.15% on average per year.
1TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.22% yearly.
EPS Next Y-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
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 11.25.
Compared to the rest of the industry, the Price/Earnings ratio of 1TEF indicates a rather cheap valuation: 1TEF is cheaper than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, 1TEF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.11, the valuation of 1TEF can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, 1TEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than 1TEF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1TEF's earnings are expected to decrease with -3.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
5. Dividend
5.1 Amount
1TEF has a Yearly Dividend Yield of 5.55%, which is a nice return.
1TEF's Dividend Yield is a higher than the industry average which is at 4.93.
1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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-45.46%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
BIT:1TEF (11/10/2025, 7:00:00 PM)
3.6
-0.02 (-0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.30B
Revenue(TTM)58.18B
Net Income(TTM)-4.06B
Analysts53.75
Price Target4.47 (24.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)1.99%
PT rev (3m)4.28%
EPS NQ rev (1m)-14.58%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.88%
EPS NY rev (3m)-8.88%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.65%
Revenue NY rev (3m)-9.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.35 | ||
| P/FCF | 3.62 | ||
| P/OCF | 1.88 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY8.89%
EPS(NY)0.32
Fwd EY9%
FCF(TTM)0.99
FCFY27.61%
OCF(TTM)1.92
OCFY53.31%
SpS10.32
BVpS3.07
TBVpS-1.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 7.25% | ||
| ROICexc | 8.03% | ||
| ROICexgc | 13.77% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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%
ROICexgc growth 3Y26.02%
ROICexgc 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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.27 |
F-Score5
WACC4.02%
ROIC/WACC1.8
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-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue 1Y (TTM)42.35%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y17.35%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
OCF growth 3Y0.61%
OCF growth 5Y-7%
TELEFONICA SA / 1TEF.MI FAQ
Can you provide the ChartMill fundamental rating for TELEFONICA SA?
ChartMill assigns a fundamental rating of 3 / 10 to 1TEF.MI.
What is the valuation status for 1TEF stock?
ChartMill assigns a valuation rating of 6 / 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 11.25 and the Price/Book (PB) ratio is 1.17.
How financially healthy is TELEFONICA SA?
The financial health rating of TELEFONICA SA (1TEF.MI) is 2 / 10.