TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - NYSE:TEF - US8793822086 - ADR
5.355 USD
-0.02 (-0.46%)
Overall TEF gets a fundamental rating of 3 out of 10. We evaluated TEF against 36 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of TEF have multiple concerns. TEF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TEF had positive earnings in the past year.
In the past year TEF had a positive cash flow from operations.
In multiple years TEF reported negative net income over the last 5 years.
Each year in the past 5 years TEF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.17%, TEF is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of -10.91%, TEF is in line with its industry, outperforming 41.67% of the companies in the same industry.
The Return On Invested Capital of TEF (2.61%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 6.32%.
| Industry Rank | Sector 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%
1.3 Margins
TEF has a Operating Margin (6.11%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TEF has grown nicely.
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 Rank | Sector 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%
2. Health
2.1 Basic Checks
TEF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TEF remains at a similar level compared to 1 year ago.
The number of shares outstanding for TEF has been reduced compared to 5 years ago.
Compared to 1 year ago, TEF has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TEF is 8.71, which is on the high side as it means it would take TEF, 8.71 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.71, TEF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.96 is on the high side and indicates that TEF has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.96, TEF is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC4.31%
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's Current ratio of 0.97 is on the low side compared to the rest of the industry. TEF is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.93 indicates that TEF may have some problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for TEF have decreased strongly by -39.14% in the last year.
TEF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.73% yearly.
TEF shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
Measured over the past years, TEF shows a decrease in Revenue. The Revenue has been decreasing by -3.12% on average per year.
EPS 1Y (TTM)-39.14%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-36.42%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
3.2 Future
TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.26% yearly.
The Revenue is expected to decrease by -0.13% on average over the next years.
EPS Next Y-24.27%
EPS Next 2Y-8.65%
EPS Next 3Y-2.72%
EPS Next 5Y3.26%
Revenue Next Year-7.47%
Revenue Next 2Y-3.79%
Revenue Next 3Y-2.16%
Revenue Next 5Y-0.13%
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
A Price/Earnings ratio of 16.23 indicates a correct valuation of TEF.
Based on the Price/Earnings ratio, TEF is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
TEF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.43.
A Price/Forward Earnings ratio of 13.73 indicates a correct valuation of TEF.
Based on the Price/Forward Earnings ratio, TEF is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. TEF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TEF is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as TEF's earnings are expected to decrease with -2.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.65%
EPS Next 3Y-2.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, TEF is a good candidate for dividend investing.
TEF's Dividend Yield is rather good when compared to the industry average which is at 4.80. TEF pays more dividend than 86.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
5.2 History
The dividend of TEF decreases each year by -5.71%.
TEF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of TEF are negative and hence is the payout ratio. TEF will probably not be able to sustain this dividend level.
DP-81.03%
EPS Next 2Y-8.65%
EPS Next 3Y-2.72%
NYSE:TEF (9/12/2025, 11:52:55 AM)
5.355
-0.02 (-0.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner Change-5.29%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap30.19B
Analysts53.75
Price Target5.15 (-3.83%)
Short Float %0.07%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-81.03%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)1.61%
PT rev (3m)6.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.83%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 13.73 | ||
| P/S | 0.64 | ||
| P/FCF | 4.95 | ||
| P/OCF | 2.43 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY6.16%
EPS(NY)0.39
Fwd EY7.28%
FCF(TTM)1.08
FCFY20.21%
OCF(TTM)2.2
OCFY41.11%
SpS8.37
BVpS4.09
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC4.31%
ROIC/WACC0.61
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)-39.14%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-36.42%
EPS Next Y-24.27%
EPS Next 2Y-8.65%
EPS Next 3Y-2.72%
EPS Next 5Y3.26%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
Revenue Next Year-7.47%
Revenue Next 2Y-3.79%
Revenue Next 3Y-2.16%
Revenue Next 5Y-0.13%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y17.45%
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%