AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SOBA - US00206R1023 - Common Stock
19.778 EUR
-0.13 (-0.65%)
We assign a fundamental rating of 5 out of 10 to SOBA. SOBA was compared to 35 industry peers in the Diversified Telecommunication Services industry. SOBA has only an average score on both its financial health and profitability. SOBA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SOBA was profitable.
- 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
- SOBA has a Return On Assets of 5.24%. This is in the better half of the industry: SOBA outperforms 77.14% of its industry peers.
- SOBA's Return On Equity of 20.02% is fine compared to the rest of the industry. SOBA outperforms 80.00% of its industry peers.
- The Return On Invested Capital of SOBA (4.98%) is worse than 65.71% of its industry peers.
- SOBA had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROIC | 4.98% |
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
- The Profit Margin of SOBA (17.81%) is better than 91.43% of its industry peers.
- In the last couple of years the Profit Margin of SOBA has grown nicely.
- With a decent Operating Margin value of 19.44%, SOBA is doing good in the industry, outperforming 68.57% of the companies in the same industry.
- 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 54.29% 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 | 19.44% | ||
| PM (TTM) | 17.81% | ||
| 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.
- The number of shares outstanding for SOBA has been increased compared to 1 year ago.
- The number of shares outstanding for SOBA has been reduced compared to 5 years ago.
- SOBA has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.85, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
- SOBA has a worse Altman-Z score (0.85) than 71.43% of its industry peers.
- The Debt to FCF ratio of SOBA is 6.99, which is on the high side as it means it would take SOBA, 6.99 years of fcf income to pay off all of its debts.
- SOBA's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. SOBA outperforms 65.71% of its industry peers.
- A Debt/Equity ratio of 1.16 is on the high side and indicates that SOBA has dependencies on debt financing.
- SOBA's Debt to Equity ratio of 1.16 is in line compared to the rest of the industry. SOBA outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.75
WACC6.61%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that SOBA should not have too much problems paying its short term obligations.
- The Current ratio of SOBA (1.01) is better than 88.57% of its industry peers.
- A Quick Ratio of 0.96 indicates that SOBA may have some problems paying its short term obligations.
- SOBA has a Quick ratio of 0.96. This is amongst the best in the industry. SOBA outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.75%.
- SOBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
- SOBA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
- The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
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 5.70% on average per year.
- Based on estimates for the next years, SOBA will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-7.49%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
EPS Next 5Y5.7%
Revenue Next Year2.35%
Revenue Next 2Y1.92%
Revenue Next 3Y1.88%
Revenue Next 5Y2.26%
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
- Based on the Price/Earnings ratio of 10.93, the valuation of SOBA can be described as reasonable.
- Based on the Price/Earnings ratio, SOBA is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SOBA to the average of the S&P500 Index (27.25), we can say SOBA is valued rather cheaply.
- SOBA is valuated reasonably with a Price/Forward Earnings ratio of 10.29.
- Based on the Price/Forward Earnings ratio, SOBA is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SOBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
- SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 6.29 |
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 2Y-0.05%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
- SOBA has a Yearly Dividend Yield of 4.71%, which is a nice return.
- SOBA's Dividend Yield is a higher than the industry average which is at 3.26.
- Compared to an average S&P500 Dividend Yield of 1.82, SOBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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
- 37.01% of the earnings are spent on dividend by SOBA. This is a low number and sustainable payout ratio.
DP37.01%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
AT&T INC / SOBA.DE FAQ
Can you provide the ChartMill fundamental rating for AT&T INC?
ChartMill assigns a fundamental rating of 5 / 10 to SOBA.DE.
Can you provide the valuation status for AT&T INC?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (SOBA.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for AT&T INC?
AT&T INC (SOBA.DE) has a profitability rating of 6 / 10.
What is the valuation of AT&T INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AT&T INC (SOBA.DE) is 10.93 and the Price/Book (PB) ratio is 1.49.
How sustainable is the dividend of AT&T INC (SOBA.DE) stock?
The dividend rating of AT&T INC (SOBA.DE) is 6 / 10 and the dividend payout ratio is 37.01%.