AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - FRA:SOBA - US00206R1023 - Common Stock
23.96 EUR
0 (-0.02%)
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. SOBA has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
SOBA had a positive operating cash flow in the past year.
In multiple years SOBA reported negative net income over the last 5 years.
Each year in the past 5 years SOBA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.12%, SOBA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.03%, SOBA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SOBA has a Return On Invested Capital (5.25%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 7.61%.
The 3 year average ROIC (5.19%) for SOBA is below the current ROIC(5.25%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 10.21%, SOBA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SOBA's Profit Margin has improved in the last couple of years.
SOBA has a better Operating Margin (19.86%) than 73.33% of its industry peers.
In the last couple of years the Operating Margin of SOBA has grown nicely.
Looking at the Gross Margin, with a value of 59.67%, SOBA is in line with its industry, outperforming 53.33% 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 | 19.86% | ||
| 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
SOBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
SOBA has an Altman-Z score of 0.90. This is a bad value and indicates that SOBA is not financially healthy and even has some risk of bankruptcy.
SOBA has a worse Altman-Z score (0.90) than 66.67% 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.
The Debt to FCF ratio of SOBA (6.74) is better than 63.33% of its industry peers.
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 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.77
WACC6.82%
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 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.
Looking at the Quick ratio, with a value of 0.76, SOBA is in line with its industry, outperforming 60.00% 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.
Looking at the last year, SOBA shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
SOBA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
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
Based on estimates for the next years, SOBA will show a small growth in Earnings Per Share. The EPS will grow by 5.24% on average per year.
Based on estimates for the next years, SOBA will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-7.63%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.87%
Revenue Next 3Y1.84%
Revenue Next 5Y2.29%
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.
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
With a Price/Earnings ratio of 12.81, SOBA is valued correctly.
83.33% of the companies in the same industry are more expensive than SOBA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOBA to the average of the S&P500 Index (27.67), we can say SOBA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.39, the valuation of SOBA can be described as correct.
Based on the Price/Forward Earnings ratio, SOBA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SOBA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOBA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 7.09 |
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 2Y0.14%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 3.92%.
Compared to an average industry Dividend Yield of 4.23, SOBA pays a bit more dividend than its industry peers.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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
SOBA pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
FRA:SOBA (9/30/2025, 3:29:59 PM)
23.96
0 (-0.02%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap171.32B
Analysts78.89
Price Target25.67 (7.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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)-0.49%
PT rev (3m)1.63%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.39 | ||
| P/S | 1.62 | ||
| P/FCF | 10.23 | ||
| P/OCF | 4.91 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.09 |
EPS(TTM)1.87
EY7.8%
EPS(NY)1.93
Fwd EY8.07%
FCF(TTM)2.34
FCFY9.77%
OCF(TTM)4.88
OCFY20.39%
SpS14.79
BVpS12.56
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 | 0.9 |
F-Score7
WACC6.82%
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 2Y0.14%
EPS Next 3Y4.01%
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 2Y1.87%
Revenue Next 3Y1.84%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
EBIT Next 3Y28.47%
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%