TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - NYSE:TEF - US8793822086 - ADR
4.08 USD
-0.08 (-1.92%)
4.11 USD
+0.03 (+0.74%)
We assign a fundamental rating of 4 out of 10 to TEF. TEF was compared to 36 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of TEF while its profitability can be described as average. TEF is valued correctly, but it does not seem to be growing.
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.
In the past 5 years TEF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.30%, TEF is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
TEF has a Return On Equity of -23.50%. This is in the lower half of the industry: TEF underperforms 72.22% of its industry peers.
TEF has a better Return On Invested Capital (7.64%) than 80.56% of its industry peers.
TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 6.52%.
The last Return On Invested Capital (7.64%) for TEF is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 7.64% |
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
The Operating Margin of TEF (11.51%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TEF has grown nicely.
The Gross Margin of TEF (35.08%) is worse than 80.56% of its industry peers.
TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TEF is creating 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.
TEF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that TEF is in the distress zone and has some risk of bankruptcy.
TEF has a better Altman-Z score (1.27) than 75.00% of its industry peers.
TEF has a debt to FCF ratio of 7.98. This is a slightly negative value and a sign of low solvency as TEF would need 7.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.98, TEF is doing good in the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 2.11 is on the high side and indicates that TEF has dependencies on debt financing.
The Debt to Equity ratio of TEF (2.11) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.82
WACC4.19%
2.3 Liquidity
TEF has a Current Ratio of 0.85. This is a bad value and indicates that TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, TEF is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
TEF has a Quick Ratio of 0.85. 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 (0.81) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.56%.
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%.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-33.56%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-13.08%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
3.2 Future
Based on estimates for the next years, TEF will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
TEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
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
With a Price/Earnings ratio of 11.66, the valuation of TEF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. TEF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.57, which indicates a very decent valuation of TEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 88.89% of the companies listed 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 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
TEF has a Yearly Dividend Yield of 6.65%, which is a nice return.
In the last 3 months the price of TEF has falen by -27.53%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TEF's Dividend Yield is rather good when compared to the industry average which is at 5.35. TEF pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
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-45.46%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
4.08
-0.08 (-1.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-0.05%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap23.00B
Revenue(TTM)41.31B
Net Income(TTM)-4.06B
Analysts54.19
Price Target5.13 (25.74%)
Short Float %0.1%
Short Ratio6.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)0.84%
PT rev (3m)2.62%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.93%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.34 | ||
| P/FCF | 3.55 | ||
| P/OCF | 1.84 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY8.58%
EPS(NY)0.39
Fwd EY9.46%
FCF(TTM)1.15
FCFY28.16%
OCF(TTM)2.22
OCFY54.38%
SpS11.93
BVpS3.54
TBVpS-1.8
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 14.51% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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%
ROICexgc growth 3Y26.02%
ROICexgc 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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.27 |
F-Score5
WACC4.19%
ROIC/WACC1.82
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)-33.56%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-13.08%
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y21.15%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
OCF growth 3Y0.61%
OCF growth 5Y-7%
TELEFONICA SA-SPON ADR / TEF FAQ
What is the ChartMill fundamental rating of TELEFONICA SA-SPON ADR (TEF) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TEF.
What is the valuation status for TEF stock?
ChartMill assigns a valuation rating of 6 / 10 to TELEFONICA SA-SPON ADR (TEF). This can be considered as Fairly Valued.
How profitable is TELEFONICA SA-SPON ADR (TEF) stock?
TELEFONICA SA-SPON ADR (TEF) has a profitability rating of 4 / 10.
Can you provide the financial health for TEF stock?
The financial health rating of TELEFONICA SA-SPON ADR (TEF) is 3 / 10.
Can you provide the expected EPS growth for TEF stock?
The Earnings per Share (EPS) of TELEFONICA SA-SPON ADR (TEF) is expected to decline by -35.16% in the next year.