TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TIT - IT0003497168 - Common Stock
0.5 EUR
0 (-0.04%)
We assign a fundamental rating of 2 out of 10 to TIT. TIT was compared to 33 industry peers in the Diversified Telecommunication Services industry. TIT has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
TIT had a positive operating cash flow in the past year.
TIT had negative earnings in 4 of the past 5 years.
Each year in the past 5 years TIT had a positive operating cash flow.
1.2 Ratios
TIT has a worse Return On Assets (-0.23%) than 69.70% of its industry peers.
TIT's Return On Equity of -0.70% is on the low side compared to the rest of the industry. TIT is outperformed by 69.70% of its industry peers.
TIT has a Return On Invested Capital (5.83%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TIT is below the industry average of 7.72%.
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
The Operating Margin of TIT (9.02%) is worse than 66.67% of its industry peers.
TIT's Operating Margin has declined in the last couple of years.
TIT's Gross Margin of 42.94% is on the low side compared to the rest of the industry. TIT is outperformed by 60.61% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIT 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
TIT has a better debt/assets ratio than last year.
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 perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
The Debt to FCF ratio of TIT is 26.15, which is on the high side as it means it would take TIT, 26.15 years of fcf income to pay off all of its debts.
TIT has a worse Debt to FCF ratio (26.15) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that TIT is somewhat dependend on debt financing.
TIT's Debt to Equity ratio of 0.80 is fine compared to the rest of the industry. TIT outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.84
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TIT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, TIT is doing worse than 66.67% of the companies in the same industry.
TIT has a Quick 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.
Looking at the Quick ratio, with a value of 0.64, TIT is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 81.87% over the past year.
TIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.33%.
TIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
EPS 1Y (TTM)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
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 21.95% on average per year.
TIT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.50% yearly.
EPS Next Y58.62%
EPS Next 2Y46.58%
EPS Next 3Y34.68%
EPS Next 5Y21.95%
Revenue Next Year-6.59%
Revenue Next 2Y-8.06%
Revenue Next 3Y-4.09%
Revenue Next 5Y-1.5%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TIT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 84.19, TIT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TIT is valued a bit more expensive than 75.76% of the companies in the same industry.
TIT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.19 |
4.2 Price Multiples
93.94% of the companies in the same industry are more expensive than TIT, based on the Enterprise Value to EBITDA ratio.
TIT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TIT is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.15 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
TIT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TIT's earnings are expected to grow with 34.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.58%
EPS Next 3Y34.68%
5. Dividend
5.1 Amount
TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:TIT (12/16/2025, 5:36:15 PM)
0.5
0 (-0.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.74%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.68B
Revenue(TTM)20.63B
Net Income(TTM)-83.00M
Analysts80
Price Target0.52 (4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.58%
PT rev (3m)15.62%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)176.06%
EPS NY rev (3m)1860%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-7.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.19 | ||
| P/S | 0.51 | ||
| P/FCF | 20.15 | ||
| P/OCF | 4.79 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.73 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.01
Fwd EY1.19%
FCF(TTM)0.02
FCFY4.96%
OCF(TTM)0.1
OCFY20.88%
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
WACC6.94%
ROIC/WACC0.84
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 Y58.62%
EPS Next 2Y46.58%
EPS Next 3Y34.68%
EPS Next 5Y21.95%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-5.32%
Revenue Next Year-6.59%
Revenue Next 2Y-8.06%
Revenue Next 3Y-4.09%
Revenue Next 5Y-1.5%
EBIT growth 1Y-29.6%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year206.34%
EBIT Next 3Y50.58%
EBIT Next 5Y29.8%
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 2 / 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%.