AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - FRA:SOBA - US00206R1023 - Common Stock
22.065 EUR
-0.37 (-1.65%)
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. 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.
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.
SOBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOBA has a Return On Assets (3.12%) which is comparable to the rest of the industry.
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.
SOBA's Return On Invested Capital of 5.25% is in line compared to the rest of the industry. SOBA outperforms 43.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 7.72%.
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
The Profit Margin of SOBA (10.21%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of SOBA has grown nicely.
Looking at the Operating Margin, with a value of 19.86%, SOBA is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, SOBA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
SOBA's Altman-Z score of 0.87 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.
SOBA has a Debt to FCF ratio of 6.74. This is comparable 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.
The Debt to Equity ratio of SOBA (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.79
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SOBA may have some problems paying its short term obligations.
SOBA's Current ratio of 0.81 is in line compared to the rest of the industry. SOBA outperforms 53.33% of its industry peers.
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 has a Quick ratio (0.76) which is comparable to the rest of the 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%.
SOBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
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
The Earnings Per Share is expected to grow by 4.99% on average over the next years.
The Revenue is expected to grow by 2.29% on average over the next years.
EPS Next Y-7.63%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
EPS Next 5Y4.99%
Revenue Next Year2.36%
Revenue Next 2Y1.87%
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
A Price/Earnings ratio of 11.67 indicates a reasonable 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.
The average S&P500 Price/Earnings ratio is at 27.77. SOBA is valued rather cheaply when compared to this.
SOBA is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.3 |
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 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
SOBA has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 4.24%, SOBA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 (10/22/2025, 5:02:22 PM)
22.065
-0.37 (-1.65%)
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 Cap157.77B
Revenue(TTM)123.98B
Net Income(TTM)12.66B
Analysts78.86
Price Target25.81 (16.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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)0.55%
PT rev (3m)2.17%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.48 | ||
| P/FCF | 9.33 | ||
| P/OCF | 4.47 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.77 |
EPS(TTM)1.89
EY8.57%
EPS(NY)1.95
Fwd EY8.85%
FCF(TTM)2.36
FCFY10.72%
OCF(TTM)4.93
OCFY22.36%
SpS14.94
BVpS12.68
TBVpS-10.96
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.22
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%
ROICexgc growth 3Y9.2%
ROICexgc 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 | 0.87 |
F-Score7
WACC6.63%
ROIC/WACC0.79
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 5Y4.99%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.36%
Revenue Next 2Y1.87%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
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%