TELEFONICA SA-SPON ADR (TEF)
US8793822086 - ADR
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 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.
Of the past 5 years TEF 4 years were profitable.
In the past 5 years TEF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.10%, TEF is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
TEF has a worse Return On Equity (-5.24%) than 61.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.05%, TEF is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
TEF had an Average Return On Invested Capital over the past 3 years of 2.62%. This is below the industry average of 5.85%.
The 3 year average ROIC (2.62%) for TEF is below the current ROIC(4.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -5.24% | ||
| ROIC | 4.05% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
1.3 Margins
TEF has a Operating Margin of 10.29%. This is comparable to the rest of the industry: TEF outperforms 58.33% of its industry peers.
TEF's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 48.89%, TEF is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.29% | ||
| PM (TTM) | N/A | ||
| GM | 48.89% |
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEF is still creating some value.
The number of shares outstanding for TEF has been reduced compared to 1 year ago.
Compared to 5 years ago, TEF has less shares outstanding
Compared to 1 year ago, TEF has a worse debt to assets ratio.
2.2 Solvency
TEF has an Altman-Z score of 1.01. This is a bad value and indicates that TEF is not financially healthy and even has some risk of bankruptcy.
TEF has a Altman-Z score of 1.01. This is in the better half of the industry: TEF outperforms 75.00% of its industry peers.
The Debt to FCF ratio of TEF is 7.95, which is on the high side as it means it would take TEF, 7.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TEF (7.95) is better than 72.22% of its industry peers.
A Debt/Equity ratio of 1.83 is on the high side and indicates that TEF has dependencies on debt financing.
TEF has a worse Debt to Equity ratio (1.83) than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 7.95 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.22
WACC3.31%
2.3 Liquidity
TEF has a Current Ratio of 0.89. 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 0.89, TEF is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
TEF has a Quick Ratio of 0.89. 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 (0.85) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -164.56%.
Measured over the past years, TEF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.09% on average per year.
Looking at the last year, TEF shows a small growth in Revenue. The Revenue has grown by 1.65% in the last year.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-164.56%
EPS 3Y-9.25%
EPS 5Y-13.09%
EPS growth Q2Q5.88%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Revenue growth Q2Q-0.46%
3.2 Future
The Earnings Per Share is expected to decrease by -4.68% on average over the next years.
TEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.56% yearly.
EPS Next Y-11.59%
EPS Next 2Y-2.65%
EPS Next 3Y-0.92%
EPS Next 5Y-4.68%
Revenue Next Year0.87%
Revenue Next 2Y0.76%
Revenue Next 3Y0.76%
Revenue Next 5Y0.56%
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 11.36, the valuation of TEF can be described as reasonable.
Based on the Price/Earnings ratio, TEF is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.83. TEF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.82, the valuation of TEF can be described as correct.
TEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TEF is cheaper than 72.22% of the companies in the same industry.
TEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.82 |
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 | 3.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.65%
EPS Next 3Y-0.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.78%, TEF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.12, TEF pays a better dividend. On top of this TEF pays more dividend than 100.00% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
5.2 History
The dividend of TEF decreases each year by -3.17%.
TEF has paid a dividend for at least 10 years, which is a reliable track record.
TEF has decreased its dividend recently.
Dividend Growth(5Y)-3.17%
Div Incr Years1
Div Non Decr Years1
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.
TEF's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-186.65%
EPS Next 2Y-2.65%
EPS Next 3Y-0.92%
TELEFONICA SA-SPON ADR
NYSE:TEF (5/16/2024, 7:20:22 PM)
After market: 4.43 0 (0%)4.43
-0.06 (-1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.1% | ||
| ROE | -5.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.29% | ||
| PM (TTM) | N/A | ||
| GM | 48.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-164.56%
EPS 3Y-9.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.65%
Revenue growth 3Y-1.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y