AT&T INC (SOBA.DE) Stock Fundamental Analysis
FRA:SOBA - US00206R1023 - Common Stock
24.545 EUR
-0.2 (-0.81%)
Taking everything into account, SOBA scores 4 out of 10 in our fundamental rating. SOBA was compared to 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of SOBA while its profitability can be described as average. SOBA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SOBA had positive earnings in the past year.
In the past year SOBA had a positive cash flow from operations.
In multiple years SOBA reported negative net income over the last 5 years.
In the past 5 years SOBA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.12%, SOBA perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
SOBA has a better Return On Equity (12.03%) than 66.67% of its industry peers.
SOBA has a Return On Invested Capital of 5.25%. This is comparable to the rest of the industry: SOBA outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 7.31%.
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
SOBA has a Profit Margin of 10.21%. This is in the better half of the industry: SOBA outperforms 70.00% of its industry peers.
SOBA's Profit Margin has improved in the last couple of years.
SOBA's Operating Margin of 19.86% is fine compared to the rest of the industry. SOBA outperforms 76.67% of its industry peers.
SOBA's Operating Margin has improved in the last couple of years.
SOBA's Gross Margin of 59.67% is in line compared to the rest of the industry. SOBA outperforms 60.00% of its industry peers.
SOBA's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOBA is destroying value.
SOBA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOBA has less shares outstanding
The debt/assets ratio for SOBA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
SOBA's Altman-Z score of 0.92 is on the low side compared to the rest of the industry. SOBA is outperformed by 70.00% of its industry peers.
The Debt to FCF ratio of SOBA is 6.74, which is on the high side as it means it would take SOBA, 6.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.74, SOBA is in line with its industry, outperforming 60.00% of the companies in the same industry.
SOBA has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.17, SOBA is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.77
WACC6.8%
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.
SOBA has a Current ratio (0.81) which is in line with its industry peers.
A Quick Ratio of 0.76 indicates that SOBA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, SOBA is in line with its industry, outperforming 56.67% of the companies in the same industry.
| 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%.
Measured over the past years, SOBA shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.79% on average per year.
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 5.24% yearly.
SOBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 13.13, which indicates a correct valuation of SOBA.
SOBA's Price/Earnings ratio is a bit cheaper when compared to the industry. SOBA is cheaper than 80.00% 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 27.02.
With a Price/Forward Earnings ratio of 12.70, SOBA is valued correctly.
SOBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOBA is cheaper than 63.33% of the companies in the same industry.
SOBA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
70.00% of the companies in the same industry are more expensive than SOBA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 7.23 |
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 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 4.21, SOBA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, SOBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 2Y0.15%
EPS Next 3Y4.04%
FRA:SOBA (9/9/2025, 1:16:56 PM)
24.545
-0.2 (-0.81%)
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 Cap175.51B
Analysts78.89
Price Target25.8 (5.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)2.12%
PT rev (3m)1.32%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 12.7 | ||
| P/S | 1.66 | ||
| P/FCF | 10.49 | ||
| P/OCF | 5.03 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.23 |
EPS(TTM)1.87
EY7.62%
EPS(NY)1.93
Fwd EY7.87%
FCF(TTM)2.34
FCFY9.53%
OCF(TTM)4.88
OCFY19.89%
SpS14.78
BVpS12.55
TBVpS-10.85
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 | 0.92 |
F-Score7
WACC6.8%
ROIC/WACC0.77
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-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
EBIT Next 5Y17.43%
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%