TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - BIT:TIT - IT0003497168 - Common Stock
0.5112 EUR
-0.01 (-2.33%)
Taking everything into account, TIT scores 2 out of 10 in our fundamental rating. TIT was compared to 29 industry peers in the Diversified Telecommunication Services industry. TIT has a bad profitability rating. Also its financial health evaluation is rather negative. TIT does not seem to be growing, but still is valued expensively.
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.
In the past 5 years TIT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.23%, TIT is doing worse than 65.52% of the companies in the same industry.
The Return On Equity of TIT (-0.70%) is worse than 65.52% of its industry peers.
TIT's Return On Invested Capital of 5.83% is in line compared to the rest of the industry. TIT outperforms 55.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TIT is below the industry average of 7.77%.
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 comparable to the rest of the industry.
TIT's Operating Margin has declined in the last couple of years.
The Gross Margin of TIT (42.94%) is comparable to the rest of the industry.
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.
TIT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TIT has been increased compared to 5 years ago.
TIT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that TIT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TIT (0.98) is worse than 62.07% of its industry peers.
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 75.86% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that 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 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.84
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TIT may have some problems paying its short term obligations.
TIT has a worse Current ratio (0.66) than 65.52% of its industry peers.
A Quick Ratio of 0.64 indicates that TIT may have some problems paying its short term obligations.
The Quick ratio of TIT (0.64) is worse than 65.52% of its industry peers.
| 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 79.46% over the past year.
TIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.57%.
The Revenue has been decreasing by -4.28% on average over the past years.
EPS 1Y (TTM)79.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%86%
Revenue 1Y (TTM)-11.57%
Revenue growth 3Y-1.94%
Revenue growth 5Y-4.28%
Sales Q2Q%-52.97%
3.2 Future
TIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.32% yearly.
TIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y104.27%
EPS Next 2Y71.56%
EPS Next 3Y54.02%
EPS Next 5Y29.32%
Revenue Next Year-7.88%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.27%
Revenue Next 5Y0.1%
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
The Price/Earnings Ratio is negative for TIT. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 32.74, TIT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIT indicates a slightly more expensive valuation: TIT is more expensive than 72.41% of the companies listed in the same industry.
TIT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIT indicates a rather cheap valuation: TIT is cheaper than 96.55% of the companies listed in the same industry.
65.52% of the companies in the same industry are cheaper than TIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.6 | ||
| EV/EBITDA | 3.78 |
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.
A more expensive valuation may be justified as TIT's earnings are expected to grow with 54.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71.56%
EPS Next 3Y54.02%
5. Dividend
5.1 Amount
TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TIT (10/31/2025, 7:00:00 PM)
0.5112
-0.01 (-2.33%)
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 Cap10.92B
Revenue(TTM)20.82B
Net Income(TTM)-83000000
Analysts78.95
Price Target0.51 (-0.23%)
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)12.71%
PT rev (3m)22.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)170%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.74 | ||
| P/S | 0.52 | ||
| P/FCF | 20.6 | ||
| P/OCF | 4.9 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.78 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.02
Fwd EY3.05%
FCF(TTM)0.02
FCFY4.85%
OCF(TTM)0.1
OCFY20.43%
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)3.77%
ROICexc(5y)3.22%
ROICexgc(3y)14.46%
ROICexgc(5y)10.83%
ROCE(3y)4.28%
ROCE(5y)3.69%
ROICexgc growth 3Y88.07%
ROICexgc 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-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 | 0.98 |
F-Score5
WACC6.91%
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)79.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%86%
EPS Next Y104.27%
EPS Next 2Y71.56%
EPS Next 3Y54.02%
EPS Next 5Y29.32%
Revenue 1Y (TTM)-11.57%
Revenue growth 3Y-1.94%
Revenue growth 5Y-4.28%
Sales Q2Q%-52.97%
Revenue Next Year-7.88%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.27%
Revenue Next 5Y0.1%
EBIT growth 1Y-29.6%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year211.75%
EBIT Next 3Y50.66%
EBIT Next 5Y29.68%
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%.