TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
BIT:TIT - Euronext Milan - IT0003497168 - Common Stock - Currency: EUR
TIT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 32 industry peers in the Diversified Telecommunication Services industry. TIT may be in some trouble as it scores bad on both profitability and health. TIT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TIT had negative earnings in the past year.
In the past year TIT had a positive cash flow from operations.
TIT had negative earnings in 4 of the past 5 years.
In the past 5 years TIT always reported a positive cash flow from operatings.
1.2 Ratios
TIT has a Return On Assets of -2.32%. This is amonst the worse of the industry: TIT underperforms 81.25% of its industry peers.
With a Return On Equity value of -7.30%, TIT is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
TIT's Return On Invested Capital of 6.92% is fine compared to the rest of the industry. TIT outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIT is below the industry average of 7.75%.
The 3 year average ROIC (3.21%) for TIT is below the current ROIC(6.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.32% | ||
| ROE | -7.3% | ||
| ROIC | 6.92% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.21%
ROIC(5y)2.76%
1.3 Margins
TIT has a Operating Margin (11.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TIT has declined.
The Gross Margin of TIT (48.24%) is worse than 65.63% of its industry peers.
TIT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | N/A | ||
| GM | 48.24% |
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIT is still creating some value.
Compared to 1 year ago, TIT has about the same amount of shares outstanding.
Compared to 5 years ago, TIT has more shares outstanding
The debt/assets ratio for TIT has been reduced compared to a year ago.
2.2 Solvency
TIT has an Altman-Z score of 1.02. This is a bad value and indicates that TIT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TIT (1.02) is worse than 65.63% of its industry peers.
TIT has a debt to FCF ratio of 288.25. This is a negative value and a sign of low solvency as TIT would need 288.25 years to pay back of all of its debts.
TIT has a Debt to FCF ratio of 288.25. This is amonst the worse of the industry: TIT underperforms 81.25% of its industry peers.
TIT has a Debt/Equity ratio of 0.92. This is a neutral value indicating TIT is somewhat dependend on debt financing.
The Debt to Equity ratio of TIT (0.92) is better than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 288.25 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.03
WACC6.73%
2.3 Liquidity
TIT has a Current Ratio of 0.80. This is a bad value and indicates that TIT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TIT (0.80) is comparable to the rest of the industry.
A Quick Ratio of 0.77 indicates that TIT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, TIT is in line with its industry, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
TIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.74%, which is quite impressive.
Looking at the last year, TIT shows a decrease in Revenue. The Revenue has decreased by -9.52% in the last year.
The Revenue has been decreasing by -5.45% on average over the past years.
EPS 1Y (TTM)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%
3.2 Future
Based on estimates for the next years, TIT will show a very strong growth in Earnings Per Share. The EPS will grow by 24.59% on average per year.
The Revenue is expected to decrease by -1.03% on average over the next years.
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y24.59%
Revenue Next Year-6.59%
Revenue Next 2Y-7.57%
Revenue Next 3Y-3.24%
Revenue Next 5Y-1.03%
3.3 Evolution
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 negative for TIT. In the last year negative earnings were reported.
Also next year TIT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIT indicates a rather expensive valuation: TIT more expensive than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 154.34 | ||
| EV/EBITDA | 3.11 |
4.3 Compensation for Growth
TIT's earnings are expected to grow with 29.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.53%
EPS Next 3Y29.31%
5. Dividend
5.1 Amount
TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TIT (5/27/2025, 5:35:30 PM)
0.383
-0.01 (-2.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.07%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.18B
Analysts82
Price Target0.38 (-0.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-10.69%
DP-18.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-2.34%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-2.17%
Revenue beat(4)2
Avg Revenue beat(4)17.88%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)74.3%
Revenue beat(8)2
Avg Revenue beat(8)5.21%
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)2.59%
PT rev (3m)8.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-225%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-4.86%
Revenue NY rev (3m)-6.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.37 | ||
| P/FCF | 154.34 | ||
| P/OCF | 4.08 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.11 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EYN/A
FCF(TTM)0
FCFY0.65%
OCF(TTM)0.09
OCFY24.54%
SpS1.03
BVpS0.56
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.32% | ||
| ROE | -7.3% | ||
| ROCE | 9.23% | ||
| ROIC | 6.92% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 39.91% | ||
| OM | 11% | ||
| PM (TTM) | N/A | ||
| GM | 48.24% | ||
| FCFM | 0.24% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.21%
ROIC(5y)2.76%
ROICexc(3y)3.77%
ROICexc(5y)3.22%
ROICexgc(3y)14.46%
ROICexgc(5y)10.83%
ROCE(3y)4.28%
ROCE(5y)3.69%
ROICexcg growth 3Y88.07%
ROICexcg growth 5Y21.28%
ROICexc growth 3Y50.62%
ROICexc growth 5Y4.66%
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 288.25 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 61.27% | ||
| Cap/Sales | 8.91% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 35.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.73%
ROIC/WACC1.03
Cap/Depr(3y)86.41%
Cap/Depr(5y)95.79%
Cap/Sales(3y)22.88%
Cap/Sales(5y)26.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y24.59%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%
Revenue Next Year-6.59%
Revenue Next 2Y-7.57%
Revenue Next 3Y-3.24%
Revenue Next 5Y-1.03%
EBIT growth 1Y9.13%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year207.41%
EBIT Next 3Y50.3%
EBIT Next 5Y38.85%
FCF growth 1Y-76.96%
FCF growth 3YN/A
FCF growth 5Y-44.71%
OCF growth 1Y-16.44%
OCF growth 3Y-22.65%
OCF growth 5Y-19.54%