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. 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 on the other hand it scores bad on growth.
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
SOBA has a Return On Assets of 2.96%. This is comparable to the rest of the industry: SOBA outperforms 50.00% of its industry peers.
SOBA's Return On Equity of 11.32% is fine compared to the rest of the industry. SOBA outperforms 63.33% of its industry peers.
SOBA has a worse Return On Invested Capital (5.31%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 8.11%.
The last Return On Invested Capital (5.31%) for SOBA is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
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 better Profit Margin (9.55%) than 66.67% of its industry peers.
SOBA's Profit Margin has improved in the last couple of years.
SOBA's Operating Margin of 19.84% is fine compared to the rest 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.
With a Gross Margin value of 59.90%, SOBA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SOBA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
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
The number of shares outstanding for SOBA has been reduced compared to 5 years ago.
The debt/assets ratio for SOBA has been reduced compared to a year ago.
2.2 Solvency
SOBA has an Altman-Z score of 0.89. This is a bad value and indicates that SOBA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, SOBA is doing worse than 70.00% of the companies in the same industry.
The Debt to FCF ratio of SOBA is 6.47, which is on the high side as it means it would take SOBA, 6.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.47, SOBA is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
SOBA has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
SOBA has a Debt to Equity ratio of 1.13. This is comparable to the rest of the industry: SOBA outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.76
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SOBA may have some problems paying its short term obligations.
With a Current ratio value of 0.70, SOBA perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that SOBA may have some problems paying its short term obligations.
SOBA has a Quick ratio (0.65) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for SOBA have decreased by -5.93% in the last year.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
The Revenue has been growing slightly by 0.50% in the past year.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
3.2 Future
Based on estimates for the next years, SOBA will show a small growth in Earnings Per Share. The EPS will grow by 4.72% on average per year.
SOBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y-7.95%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
EPS Next 5Y4.72%
Revenue Next Year1.31%
Revenue Next 2Y1.35%
Revenue Next 3Y1.44%
Revenue Next 5Y2.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
SOBA is valuated correctly with a Price/Earnings ratio of 12.48.
63.33% of the companies in the same industry are more expensive than SOBA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. SOBA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.05, which indicates a correct valuation of SOBA.
Based on the Price/Forward Earnings ratio, SOBA is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. SOBA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
63.33% 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 | 10.2 | ||
| EV/EBITDA | 7.03 |
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 2Y0.82%
EPS Next 3Y4.32%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 4.03%, which is a nice return.
SOBA's Dividend Yield is comparable with the industry average which is at 4.82.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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
70.36% of the earnings are spent on dividend by SOBA. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
FRA:SOBA (5/2/2025, 7:00:00 PM)
24.345
+0.09 (+0.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.96%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap174.75B
Analysts80
Price Target24.3 (-0.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Yearly Dividend1.01
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)-6.17%
PT rev (3m)0.62%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-10.81%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-8.1%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.05 | ||
| P/S | 1.62 | ||
| P/FCF | 10.2 | ||
| P/OCF | 4.93 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)1.95
EY8.01%
EPS(NY)2.02
Fwd EY8.3%
FCF(TTM)2.39
FCFY9.81%
OCF(TTM)4.93
OCFY20.26%
SpS15.06
BVpS12.71
TBVpS-11.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.89 |
F-Score8
WACC7.01%
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.95%
EPS Next 2Y0.82%
EPS Next 3Y4.32%
EPS Next 5Y4.72%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.31%
Revenue Next 2Y1.35%
Revenue Next 3Y1.44%
Revenue Next 5Y2.27%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.88%
EBIT Next 3Y28.35%
EBIT Next 5Y17.72%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%