TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEF - US8793822086 - ADR
4.27 USD
+0.04 (+0.95%)
4.2616 USD
-0.01 (-0.2%)
We assign a fundamental rating of 4 out of 10 to TEF. TEF was compared to 38 industry peers in the Diversified Telecommunication Services industry. TEF has a medium profitability rating, but doesn't score so well on its financial health evaluation. TEF has a valuation in line with the averages, 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.
In the past 5 years TEF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.10%, TEF is doing worse than 60.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of -21.56%, TEF is doing worse than 71.05% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.73%, TEF belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 6.52%.
The 3 year average ROIC (3.43%) for TEF is below the current ROIC(7.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROIC | 7.73% |
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
With a Operating Margin value of 12.00%, TEF perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
In the last couple of years the Operating Margin of TEF has grown nicely.
TEF has a worse Gross Margin (35.73%) than 78.95% of its industry peers.
TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% |
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 well above the Cost of Capital (WACC), which means it 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
The Debt to FCF ratio of TEF is 8.80, which is on the high side as it means it would take TEF, 8.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TEF (8.80) is better than 71.05% of its industry peers.
A Debt/Equity ratio of 2.07 is on the high side and indicates that TEF has dependencies on debt financing.
With a Debt to Equity ratio value of 2.07, TEF is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.89
WACC4.09%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TEF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, TEF is doing worse than 73.68% of the companies in the same industry.
TEF has a Quick Ratio of 0.84. 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 0.80, TEF is doing worse than 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
Measured over the past years, TEF shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.73% on average per year.
Looking at the last year, TEF shows a very strong growth in Revenue. The Revenue has grown by 40.77%.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
3.2 Future
TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.32% yearly.
The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
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
Based on the Price/Earnings ratio of 12.20, the valuation of TEF can be described as correct.
Based on the Price/Earnings ratio, TEF is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TEF to the average of the S&P500 Index (26.54), we can say TEF is valued rather cheaply.
The Price/Forward Earnings ratio is 11.32, which indicates a very decent valuation of TEF.
Based on the Price/Forward Earnings ratio, TEF is valued cheaper than 86.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. TEF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
97.37% of the companies in the same industry are more expensive than TEF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TEF's earnings are expected to decrease with -3.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.62%, TEF is a good candidate for dividend investing.
The stock price of TEF dropped by -20.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.38, TEF pays a better dividend. On top of this TEF pays more dividend than 89.47% of the companies listed in the same industry.
TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
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-48.26%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
4.27
+0.04 (+0.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.99%
Inst Owner Change0.11%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap24.07B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts52.26
Price Target4.72 (10.54%)
Short Float %0.1%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-48.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.89%
Min EPS beat(2)13.76%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-3.18%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)10.19%
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)-1.45%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
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)-7.88%
PT rev (3m)-10.12%
EPS NQ rev (1m)-8.54%
EPS NQ rev (3m)-8.53%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-15.69%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.36 | ||
| P/FCF | 4.21 | ||
| P/OCF | 1.99 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY8.2%
EPS(NY)0.38
Fwd EY8.83%
FCF(TTM)1.01
FCFY23.75%
OCF(TTM)2.15
OCFY50.36%
SpS11.88
BVpS3.67
TBVpS-1.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROCE | 9.79% | ||
| ROIC | 7.73% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 14.4% | ||
| OM | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% | ||
| FCFM | 8.53% |
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-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 9.56% | ||
| Interest Coverage | -7.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | N/A |
F-Score4
WACC4.09%
ROIC/WACC1.89
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)-34.78%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-18.18%
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year169.05%
EBIT Next 3Y40.87%
EBIT Next 5Y23.75%
FCF growth 1Y-20.22%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-14.64%
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 -36.15% in the next year.