AT&T INC (SOBA.DE) Stock Fundamental Analysis
FRA:SOBA - Deutsche Boerse Ag - US00206R1023 - Common Stock - Currency: EUR
SOBA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. While SOBA is still in line with the averages on profitability rating, there are concerns on its financial health. SOBA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SOBA had positive earnings in the past year.
SOBA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SOBA reported negative net income in multiple years.
Each year in the past 5 years SOBA had a positive operating cash flow.
1.2 Ratios
SOBA's Return On Assets of 3.12% is in line compared to the rest of the industry. SOBA outperforms 46.67% of its industry peers.
With a decent Return On Equity value of 12.03%, SOBA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
With a Return On Invested Capital value of 5.25%, SOBA perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOBA is below the industry average of 7.40%.
The last Return On Invested Capital (5.25%) for SOBA is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
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
With a decent Profit Margin value of 10.21%, SOBA is doing good in the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Profit Margin of SOBA has grown nicely.
SOBA has a Operating Margin of 19.86%. This is in the better half of the industry: SOBA outperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of SOBA has grown nicely.
The Gross Margin of SOBA (59.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SOBA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOBA is destroying value.
Compared to 1 year ago, SOBA has more shares outstanding
SOBA has less shares outstanding than it did 5 years ago.
SOBA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, SOBA is doing worse than 73.33% of the companies in the same industry.
SOBA has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as SOBA would need 6.74 years to pay back of all of its debts.
SOBA's Debt to FCF ratio of 6.74 is in line compared to the rest of the industry. SOBA outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that SOBA has dependencies on debt financing.
SOBA has a Debt to Equity ratio of 1.17. This is comparable to the rest of the industry: SOBA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.76
WACC6.87%
2.3 Liquidity
SOBA has a Current Ratio of 0.81. This is a bad value and indicates that SOBA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SOBA (0.81) is comparable to the rest of the industry.
SOBA has a Quick Ratio of 0.81. This is a bad value and indicates that SOBA is not financially healthy enough and could expect problems in meeting its short term obligations.
SOBA's Quick ratio of 0.76 is in line compared to the rest of the industry. SOBA outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
The Revenue has been growing slightly by 1.46% in the past year.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
SOBA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
Revenue Next 5Y2.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SOBA is valuated correctly with a Price/Earnings ratio of 12.90.
Based on the Price/Earnings ratio, SOBA is valued a bit cheaper than 76.67% of the companies in the same industry.
SOBA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 12.36, the valuation of SOBA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOBA indicates a somewhat cheap valuation: SOBA is cheaper than 63.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOBA to the average of the S&P500 Index (33.87), we can say SOBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SOBA.
Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The decent profitability rating of SOBA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.44%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 4.34, SOBA has a dividend in line with its industry peers.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of SOBA decreases each year by -10.97%.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
64.83% of the earnings are spent on dividend by SOBA. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
FRA:SOBA (8/11/2025, 7:00:00 PM)
24.245
+0.14 (+0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.3%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap173.36B
Analysts78.38
Price Target25.94 (6.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)2.7%
PT rev (3m)1.55%
EPS NQ rev (1m)-1.99%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)0%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.63 | ||
| P/FCF | 10.27 | ||
| P/OCF | 4.92 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)1.88
EY7.75%
EPS(NY)1.96
Fwd EY8.09%
FCF(TTM)2.36
FCFY9.74%
OCF(TTM)4.93
OCFY20.32%
SpS14.92
BVpS12.67
TBVpS-10.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
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)4.87%
ROICexgc(3y)12.3%
ROICexgc(5y)11.33%
ROCE(3y)6.83%
ROCE(5y)6.27%
ROICexcg growth 3Y9.2%
ROICexcg growth 5Y-1.63%
ROICexc growth 3Y4.26%
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.9 |
F-Score7
WACC6.87%
ROIC/WACC0.76
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
Revenue Next 5Y2.18%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
EBIT Next 5Y17.76%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%