TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
NYSE:TEF - New York Stock Exchange, Inc. - US8793822086 - ADR - Currency: USD
Taking everything into account, TEF scores 3 out of 10 in our fundamental rating. TEF was compared to 35 industry peers in the Diversified Telecommunication Services industry. TEF has a bad profitability rating. Also its financial health evaluation is rather negative. TEF is valued correctly, but it does not seem to be growing.
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.
In multiple years TEF reported negative net income over the last 5 years.
In the past 5 years TEF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TEF (-2.17%) is worse than 68.57% of its industry peers.
TEF has a worse Return On Equity (-10.91%) than 68.57% of its industry peers.
With a Return On Invested Capital value of 2.61%, TEF perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 6.80%.
| 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
Looking at the Operating Margin, with a value of 6.11%, TEF is in line with its industry, outperforming 48.57% of the companies in the same industry.
TEF's Operating Margin has improved in the last couple of years.
TEF's Gross Margin of 50.52% is in line compared to the rest of the industry. TEF outperforms 42.86% of its industry peers.
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.
TEF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TEF is higher compared to a year ago.
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 62.86% of the companies in the same industry.
TEF has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
TEF's Debt to Equity ratio of 1.96 is on the low side compared to the rest of the industry. TEF is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC4.34%
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 worse Current ratio (0.97) than 65.71% 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.
TEF has a worse Quick ratio (0.93) than 65.71% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -8.73% on average over the past years.
Looking at the last year, TEF shows a small growth in Revenue. The Revenue has grown by 1.63% in the last year.
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
The Earnings Per Share is expected to grow by 1.42% on average over the next years.
Based on estimates for the next years, TEF will show a decrease in Revenue. The Revenue will decrease by -0.53% on average per year.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
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 17.06, the valuation of TEF can be described as rather expensive.
68.57% of the companies in the same industry are more expensive than TEF, based on the Price/Earnings ratio.
TEF is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.35 indicates a correct valuation of TEF.
Based on the Price/Forward Earnings ratio, TEF is valued a bit cheaper than 74.29% of the companies in the same industry.
TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
TEF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEF is cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
TEF has a Yearly Dividend Yield of 5.09%, which is a nice return.
TEF's Dividend Yield is a higher than the industry average which is at 5.29.
TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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
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-11.43%
EPS Next 3Y-4.55%
5.63
+0.05 (+0.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner Change-5.25%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap31.74B
Analysts53.75
Price Target5.07 (-9.95%)
Short Float %0.11%
Short Ratio7.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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)2.76%
PT rev (3m)5.88%
EPS NQ rev (1m)-38.83%
EPS NQ rev (3m)-38.84%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 15.35 | ||
| P/S | 0.67 | ||
| P/FCF | 5.2 | ||
| P/OCF | 2.56 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY5.86%
EPS(NY)0.37
Fwd EY6.51%
FCF(TTM)1.08
FCFY19.23%
OCF(TTM)2.2
OCFY39.11%
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
WACC4.34%
ROIC/WACC0.6
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-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y16.97%
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%