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 27 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 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.
The reported net income has been mixed in the past 5 years: SOBA reported negative net income in multiple years.
Each year in the past 5 years SOBA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.96%, SOBA is in line with its industry, outperforming 44.44% of the companies in the same industry.
SOBA has a Return On Equity (11.32%) which is in line with 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 7.76%.
The 3 year average ROIC (5.19%) for SOBA is below the current ROIC(5.31%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 9.55%, SOBA is doing good in the industry, outperforming 62.96% of the companies in the same industry.
SOBA's Profit Margin has improved in the last couple of years.
The Operating Margin of SOBA (19.84%) is better than 74.07% 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 59.90%, SOBA is in line with its industry, outperforming 48.15% of the companies in the same industry.
SOBA's Gross Margin has improved in the last couple of years.
| 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.
SOBA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOBA has less shares outstanding
Compared to 1 year ago, SOBA has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
SOBA has a Altman-Z score of 0.89. This is in the lower half of the industry: SOBA underperforms 70.37% of its industry peers.
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.
The Debt to FCF ratio of SOBA (6.47) is better than 62.96% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that SOBA has dependencies on debt financing.
SOBA has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.57
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SOBA may have some problems paying its short term obligations.
The Current ratio of SOBA (0.70) is comparable to the rest of the industry.
A Quick Ratio of 0.65 indicates that SOBA may have some problems paying its short term obligations.
The Quick ratio of SOBA (0.65) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.93%.
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 0.50%.
SOBA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
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
The Earnings Per Share is expected to grow by 4.72% on average over the next years.
Based on estimates for the next years, SOBA will show a small growth in Revenue. The Revenue will grow by 2.27% on average per year.
EPS Next Y-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y4.72%
Revenue Next Year1.7%
Revenue Next 2Y1.53%
Revenue Next 3Y1.56%
Revenue Next 5Y2.27%
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
SOBA is valuated correctly with a Price/Earnings ratio of 12.64.
77.78% of the companies in the same industry are more expensive than SOBA, based on the Price/Earnings ratio.
SOBA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.30.
A Price/Forward Earnings ratio of 12.23 indicates a correct valuation of SOBA.
SOBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOBA is cheaper than 70.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.06. SOBA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOBA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 7.06 |
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 2Y0.69%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 4.05%, which is a nice return.
SOBA's Dividend Yield is comparable with the industry average which is at 4.53.
Compared to an average S&P500 Dividend Yield of 2.38, SOBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 70.36% of its income as dividend. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
FRA:SOBA (6/6/2025, 5:22:43 PM)
24.525
+0.28 (+1.15%)
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 Cap176.47B
Analysts78.92
Price Target25.54 (4.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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)5.13%
PT rev (3m)2.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.23 | ||
| P/S | 1.64 | ||
| P/FCF | 10.34 | ||
| P/OCF | 5.01 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)1.94
EY7.91%
EPS(NY)2.01
Fwd EY8.18%
FCF(TTM)2.37
FCFY9.67%
OCF(TTM)4.9
OCFY19.98%
SpS14.96
BVpS12.62
TBVpS-11.23
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
WACC9.24%
ROIC/WACC0.57
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-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y4.72%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.7%
Revenue Next 2Y1.53%
Revenue Next 3Y1.56%
Revenue Next 5Y2.27%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
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%