TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - NYSE:TEF - US8793822086 - ADR
5.02 USD
-0.06 (-1.18%)
5.07 USD
+0.05 (+1%)
TEF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. TEF may be in some trouble as it scores bad on both profitability and health. 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.
TEF had a positive operating cash flow in the past year.
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.
1.2 Ratios
TEF's Return On Assets of -2.17% is on the low side compared to the rest of the industry. TEF is outperformed by 66.67% of its industry peers.
TEF's Return On Equity of -10.91% is in line compared to the rest of the industry. TEF outperforms 41.67% of its industry peers.
TEF has a Return On Invested Capital (2.61%) which 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 6.38%.
| 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.
Looking at the Gross Margin, with a value of 50.52%, TEF is in line with its industry, outperforming 47.22% of the companies in the same industry.
In the last couple of years the Gross Margin of TEF has remained more or less at the same level.
| 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.
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.
The Debt to FCF ratio of TEF (8.71) is better than 69.44% of its industry peers.
A Debt/Equity ratio of 1.96 is on the high side and indicates that TEF has dependencies on debt 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 72.22% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 0.97, TEF is doing worse than 66.67% of the companies in the same industry.
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's Quick ratio of 0.93 is on the low side compared to the rest of the industry. TEF is outperformed by 66.67% 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.
TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
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.
TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.13% yearly.
EPS Next Y-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.26%
Revenue Next Year-8.88%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.48%
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.
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
The Price/Earnings ratio is 15.21, which indicates a correct valuation of TEF.
TEF's Price/Earnings ratio is a bit cheaper when compared to the industry. TEF is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. TEF is valued slightly cheaper when compared to this.
TEF is valuated correctly with a Price/Forward Earnings ratio of 13.19.
Based on the Price/Forward Earnings ratio, TEF is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.29. TEF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 13.19 |
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 97.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TEF's earnings are expected to decrease with -3.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
5. Dividend
5.1 Amount
TEF has a Yearly Dividend Yield of 7.54%, which is a nice return.
TEF's Dividend Yield is rather good when compared to the industry average which is at 5.17. TEF pays more dividend than 91.67% of the companies in the same industry.
TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
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-10.01%
EPS Next 3Y-3.54%
5.02
-0.06 (-1.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-5.29%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap28.30B
Analysts53.75
Price Target5.25 (4.58%)
Short Float %0.09%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
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)2.07%
PT rev (3m)6.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.83%
EPS NY rev (1m)-8.27%
EPS NY rev (3m)-8.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.21 | ||
| Fwd PE | 13.19 | ||
| P/S | 0.6 | ||
| P/FCF | 4.61 | ||
| P/OCF | 2.27 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY6.57%
EPS(NY)0.38
Fwd EY7.58%
FCF(TTM)1.09
FCFY21.69%
OCF(TTM)2.21
OCFY44.11%
SpS8.42
BVpS4.11
TBVpS-1.42
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-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
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-8.88%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.48%
Revenue Next 5Y-0.13%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
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%