TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - BIT:TIT - IT0003497168 - Common Stock
0.499 EUR
+0 (+0.65%)
Overall TIT gets a fundamental rating of 2 out of 10. We evaluated TIT against 31 industry peers in the Diversified Telecommunication Services industry. TIT may be in some trouble as it scores bad on both profitability and health. TIT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TIT had negative earnings in the past year.
TIT had a positive operating cash flow in the past year.
In the past 5 years TIT reported 4 times negative net income.
TIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TIT's Return On Assets of -0.23% is on the low side compared to the rest of the industry. TIT is outperformed by 67.74% of its industry peers.
Looking at the Return On Equity, with a value of -0.70%, TIT is doing worse than 67.74% of the companies in the same industry.
With a Return On Invested Capital value of 5.83%, TIT perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIT is below the industry average of 7.62%.
The 3 year average ROIC (3.21%) for TIT is below the current ROIC(5.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROIC | 5.83% |
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 worse Operating Margin (9.02%) than 67.74% of its industry peers.
TIT's Operating Margin has declined in the last couple of years.
The Gross Margin of TIT (42.94%) is worse than 64.52% of its industry peers.
TIT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.94% |
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
TIT 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 TIT remains at a similar level compared to 1 year ago.
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 0.97. This is a bad value and indicates that TIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.97, TIT is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
TIT has a debt to FCF ratio of 26.15. This is a negative value and a sign of low solvency as TIT would need 26.15 years to pay back of all of its debts.
TIT has a Debt to FCF ratio of 26.15. This is in the lower half of the industry: TIT underperforms 77.42% of its industry peers.
TIT has a Debt/Equity ratio of 0.80. This is a neutral value indicating TIT is somewhat dependend on debt financing.
TIT has a Debt to Equity ratio of 0.80. This is in the better half of the industry: TIT outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.85
WACC6.88%
2.3 Liquidity
TIT has a Current Ratio of 0.66. This is a bad value and indicates that TIT is not financially healthy enough and could expect problems in meeting its short term obligations.
TIT's Current ratio of 0.66 is on the low side compared to the rest of the industry. TIT is outperformed by 74.19% of its industry peers.
A Quick Ratio of 0.64 indicates that TIT may have some problems paying its short term obligations.
TIT's Quick ratio of 0.64 is on the low side compared to the rest of the industry. TIT is outperformed by 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
TIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.87%, which is quite impressive.
Looking at the last year, TIT shows a very negative growth in Revenue. The Revenue has decreased by -10.33% in the last year.
Measured over the past years, TIT shows a decrease in Revenue. The Revenue has been decreasing by -4.28% on average per year.
EPS 1Y (TTM)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-1.94%
Revenue growth 5Y-4.28%
Sales Q2Q%-5.32%
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 29.54% on average per year.
Based on estimates for the next years, TIT will show a small growth in Revenue. The Revenue will grow by 0.48% on average per year.
EPS Next Y113%
EPS Next 2Y72.96%
EPS Next 3Y54.1%
EPS Next 5Y29.54%
Revenue Next Year-9.43%
Revenue Next 2Y-2.83%
Revenue Next 3Y-1.38%
Revenue Next 5Y0.48%
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
TIT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 30.40, which means the current valuation is very expensive for TIT.
TIT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TIT is more expensive than 77.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TIT to the average of the S&P500 Index (34.59), we can say TIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.4 |
4.2 Price Multiples
TIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIT is cheaper than 96.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIT is valued a bit more expensive than the industry average as 70.97% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TIT's earnings are expected to grow with 54.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y72.96%
EPS Next 3Y54.1%
5. Dividend
5.1 Amount
TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TIT (11/14/2025, 7:00:00 PM)
0.499
+0 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners22.98%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.66B
Revenue(TTM)20.63B
Net Income(TTM)-83.00M
Analysts78.95
Price Target0.51 (2.2%)
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-202.41%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)10.94%
PT rev (3m)19.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)204.29%
EPS NY rev (3m)313%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.4 | ||
| P/S | 0.51 | ||
| P/FCF | 20.11 | ||
| P/OCF | 4.78 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.73 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.02
Fwd EY3.29%
FCF(TTM)0.02
FCFY4.97%
OCF(TTM)0.1
OCFY20.92%
SpS0.97
BVpS0.56
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROCE | 7.77% | ||
| ROIC | 5.83% | ||
| ROICexc | 6.84% | ||
| ROICexgc | 36.22% | ||
| OM | 9.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.94% | ||
| FCFM | 2.55% |
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)3.85%
ROICexc(5y)3.27%
ROICexgc(3y)15.88%
ROICexgc(5y)11.68%
ROCE(3y)4.28%
ROCE(5y)3.69%
ROICexgc growth 3Y95.47%
ROICexgc growth 5Y24.12%
ROICexc growth 3Y51.8%
ROICexc growth 5Y5.15%
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-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 56.12% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 45.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.97 |
F-Score5
WACC6.88%
ROIC/WACC0.85
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)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
EPS Next Y113%
EPS Next 2Y72.96%
EPS Next 3Y54.1%
EPS Next 5Y29.54%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-1.94%
Revenue growth 5Y-4.28%
Sales Q2Q%-5.32%
Revenue Next Year-9.43%
Revenue Next 2Y-2.83%
Revenue Next 3Y-1.38%
Revenue Next 5Y0.48%
EBIT growth 1Y-29.6%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year211.75%
EBIT Next 3Y50.66%
EBIT Next 5Y30.17%
FCF growth 1Y134.11%
FCF growth 3YN/A
FCF growth 5Y-44.71%
OCF growth 1Y-46.07%
OCF growth 3Y-22.65%
OCF growth 5Y-19.54%
TELECOM ITALIA SPA / TIT.MI FAQ
What is the fundamental rating for TIT stock?
ChartMill assigns a fundamental rating of 2 / 10 to TIT.MI.
What is the valuation status for TIT stock?
ChartMill assigns a valuation rating of 3 / 10 to TELECOM ITALIA SPA (TIT.MI). This can be considered as Overvalued.
Can you provide the profitability details for TELECOM ITALIA SPA?
TELECOM ITALIA SPA (TIT.MI) has a profitability rating of 2 / 10.
Can you provide the dividend sustainability for TIT stock?
The dividend rating of TELECOM ITALIA SPA (TIT.MI) is 0 / 10 and the dividend payout ratio is -202.41%.