Logo image of TEF

TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis

NYSE:TEF - New York Stock Exchange, Inc. - US8793822086 - ADR - Currency: USD

5.26  +0.03 (+0.57%)

Premarket: 5.2397 -0.02 (-0.39%)

Fundamental Rating

3

TEF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. TEF may be in some trouble as it scores bad on both profitability and health. TEF has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

In the past year TEF was profitable.
In the past year TEF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TEF reported negative net income in multiple years.
TEF had a positive operating cash flow in each of the past 5 years.
TEF Yearly Net Income VS EBIT VS OCF VS FCFTEF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

TEF has a worse Return On Assets (-2.17%) than 72.73% of its industry peers.
TEF has a Return On Equity of -10.91%. This is in the lower half of the industry: TEF underperforms 66.67% of its industry peers.
TEF has a Return On Invested Capital of 2.61%. This is comparable to the rest of the industry: TEF outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 7.13%.
Industry RankSector Rank
ROA -2.17%
ROE -10.91%
ROIC 2.61%
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.43%
ROIC(5y)3.52%
TEF Yearly ROA, ROE, ROICTEF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

TEF has a Operating Margin (6.11%) which is comparable to the rest of the industry.
TEF's Operating Margin has improved in the last couple of years.
TEF has a Gross Margin (50.52%) which is comparable to the rest of the industry.
TEF's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.11%
PM (TTM) N/A
GM 50.52%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
TEF Yearly Profit, Operating, Gross MarginsTEF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40 50

More info and screens

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TEF is destroying value.
The number of shares outstanding for TEF remains at a similar level compared to 1 year ago.
TEF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TEF is higher compared to a year ago.
TEF Yearly Shares OutstandingTEF Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TEF Yearly Total Debt VS Total AssetsTEF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

TEF has a debt to FCF ratio of 8.71. This is a slightly negative value and a sign of low solvency as TEF would need 8.71 years to pay back of all of its debts.
The Debt to FCF ratio of TEF (8.71) is comparable to the rest of the industry.
TEF has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.96, TEF is doing worse than 72.73% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF 8.71
Altman-Z N/A
ROIC/WACC0.64
WACC4.07%
TEF Yearly LT Debt VS Equity VS FCFTEF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

TEF has a Current Ratio of 0.97. This is a bad value and indicates that TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
TEF has a Current ratio of 0.97. This is comparable to the rest of the industry: TEF outperforms 42.42% of its industry peers.
TEF has a Quick Ratio of 0.97. This is a bad value and indicates that TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, TEF is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.93
TEF Yearly Current Assets VS Current LiabilitesTEF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

More info and screens

2

3. Growth

3.1 Past

The earnings per share for TEF have decreased by -2.63% in the last year.
Measured over the past years, TEF shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.75% on average per year.
The Revenue has decreased by -0.86% in the past year.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-2.63%
EPS 3YN/A
EPS 5Y-8.75%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%

3.2 Future

TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.53% yearly.
Based on estimates for the next years, TEF will show a decrease in Revenue. The Revenue will decrease by -0.49% on average per year.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.53%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.49%

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.
TEF Yearly Revenue VS EstimatesTEF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B 50B
TEF Yearly EPS VS EstimatesTEF Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.23, the valuation of TEF can be described as correct.
Based on the Price/Earnings ratio, TEF is valued a bit cheaper than 78.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEF to the average of the S&P500 Index (26.60), we can say TEF is valued rather cheaply.
A Price/Forward Earnings ratio of 14.47 indicates a correct valuation of TEF.
TEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TEF is cheaper than 72.73% of the companies in the same industry.
TEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
Industry RankSector Rank
PE 12.23
Fwd PE 14.47
TEF Price Earnings VS Forward Price EarningsTEF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

TEF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TEF is cheaper than 78.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.9
EV/EBITDA N/A
TEF Per share dataTEF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

A cheap valuation may be justified as TEF's earnings are expected to decrease with -4.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%

More info and screens

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.16%, TEF is a good candidate for dividend investing.
TEF's Dividend Yield is a higher than the industry average which is at 5.07.
Compared to an average S&P500 Dividend Yield of 2.39, TEF pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.16%

5.2 History

The dividend of TEF decreases each year by -5.71%.
TEF has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years0
TEF Yearly Dividends per shareTEF Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-81.03%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
TEF Yearly Income VS Free CF VS DividendTEF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

More info and screens

TELEFONICA SA-SPON ADR

NYSE:TEF (6/12/2025, 8:04:00 PM)

Premarket: 5.2397 -0.02 (-0.39%)

5.26

+0.03 (+0.57%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)07-29 2025-07-29
Inst Owners28.66%
Inst Owner Change-0.93%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap29.68B
Analysts53.55
Price Target4.83 (-8.17%)
Short Float %0.15%
Short Ratio7.97
Dividend
Industry RankSector Rank
Dividend Yield 5.16%
Yearly Dividend0.38
Dividend Growth(5Y)-5.71%
DP-81.03%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-18 2025-06-18 (0.17034)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.25%
Min EPS beat(2)-51.51%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)5
Avg EPS beat(8)2.39%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)0.81%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.23%
PT rev (3m)10.13%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-4.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.74%
Valuation
Industry RankSector Rank
PE 12.23
Fwd PE 14.47
P/S 0.63
P/FCF 4.9
P/OCF 2.41
P/B 1.3
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.43
EY8.17%
EPS(NY)0.36
Fwd EY6.91%
FCF(TTM)1.07
FCFY20.4%
OCF(TTM)2.18
OCFY41.49%
SpS8.3
BVpS4.05
TBVpS-1.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.17%
ROE -10.91%
ROCE 3.3%
ROIC 2.61%
ROICexc 3.02%
ROICexgc 5.12%
OM 6.11%
PM (TTM) N/A
GM 50.52%
FCFM 12.93%
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.43%
ROIC(5y)3.52%
ROICexc(3y)3.84%
ROICexc(5y)3.95%
ROICexgc(3y)6.39%
ROICexgc(5y)6.59%
ROCE(3y)4.35%
ROCE(5y)4.46%
ROICexcg growth 3Y26.02%
ROICexcg growth 5Y3.81%
ROICexc growth 3Y25.08%
ROICexc growth 5Y8.63%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
F-Score6
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF 8.71
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 13.37%
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.97
Quick Ratio 0.93
Altman-Z N/A
F-Score6
WACC4.07%
ROIC/WACC0.64
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.84%
Cap/Sales(5y)14.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.63%
EPS 3YN/A
EPS 5Y-8.75%
EPS Q2Q%-27.27%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.53%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.49%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y23.28%
FCF growth 1Y-16.47%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-11.92%
OCF growth 3Y0.61%
OCF growth 5Y-7%