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TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis

BIT:TIT - Euronext Milan - IT0003497168 - Common Stock - Currency: EUR

0.4596  0 (-0.82%)

Fundamental Rating

2

Overall TIT gets a fundamental rating of 2 out of 10. We evaluated TIT against 30 industry peers in the Diversified Telecommunication Services industry. TIT may be in some trouble as it scores bad on both profitability and health. TIT does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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2

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.
Each year in the past 5 years TIT had a positive operating cash flow.
TIT.MI Yearly Net Income VS EBIT VS OCF VS FCFTIT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B

1.2 Ratios

Looking at the Return On Assets, with a value of -0.22%, TIT is doing worse than 70.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.69%, TIT is doing worse than 70.00% of the companies in the same industry.
The Return On Invested Capital of TIT (5.26%) is comparable to the rest of the industry.
TIT had an Average Return On Invested Capital over the past 3 years of 3.21%. This is below the industry average of 7.40%.
The last Return On Invested Capital (5.26%) for TIT is above the 3 year average (3.21%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.22%
ROE -0.69%
ROIC 5.26%
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.21%
ROIC(5y)2.76%
TIT.MI Yearly ROA, ROE, ROICTIT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

TIT has a Operating Margin of 8.81%. This is in the lower half of the industry: TIT underperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of TIT has declined.
TIT has a Gross Margin of 42.94%. This is in the lower half of the industry: TIT underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of TIT has declined.
Industry RankSector Rank
OM 8.81%
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%
TIT.MI Yearly Profit, Operating, Gross MarginsTIT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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2

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.
TIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TIT has been reduced compared to a year ago.
TIT.MI Yearly Shares OutstandingTIT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
TIT.MI Yearly Total Debt VS Total AssetsTIT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

TIT has an Altman-Z score of 0.98. This is a bad value and indicates that TIT is not financially healthy and even has some risk of bankruptcy.
TIT has a Altman-Z score of 0.98. This is in the lower half of the industry: TIT underperforms 63.33% of its industry peers.
The Debt to FCF ratio of TIT is 28.82, which is on the high side as it means it would take TIT, 28.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 28.82, TIT is doing worse than 80.00% of the companies in the same industry.
TIT has a Debt/Equity ratio of 0.92. This is a neutral value indicating TIT is somewhat dependend on debt financing.
TIT has a better Debt to Equity ratio (0.92) than 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 28.82
Altman-Z 0.98
ROIC/WACC0.81
WACC6.53%
TIT.MI Yearly LT Debt VS Equity VS FCFTIT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

A Current Ratio of 0.80 indicates that TIT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, TIT is in line with its industry, outperforming 50.00% of the companies in the same industry.
TIT has a Quick 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.
TIT has a Quick ratio of 0.77. This is comparable to the rest of the industry: TIT outperforms 56.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.77
TIT.MI Yearly Current Assets VS Current LiabilitesTIT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 79.46% over the past year.
The Revenue for TIT has decreased by -11.57% in the past year. This is quite bad
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)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

The Earnings Per Share is expected to grow by 30.35% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.04% on average over the next years.
EPS Next Y93.9%
EPS Next 2Y54.65%
EPS Next 3Y51.41%
EPS Next 5Y30.35%
Revenue Next Year-9.12%
Revenue Next 2Y-2.8%
Revenue Next 3Y-1.51%
Revenue Next 5Y-0.04%

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.
TIT.MI Yearly Revenue VS EstimatesTIT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
TIT.MI Yearly EPS VS EstimatesTIT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 0.02 -0.02 0.04 0.06

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3

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 70.88, TIT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TIT is valued a bit more expensive than 76.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, TIT is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 70.88
TIT.MI Price Earnings VS Forward Price EarningsTIT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TIT is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
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 RankSector Rank
P/FCF 18.52
EV/EBITDA 3.9
TIT.MI Per share dataTIT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 0.4 0.6 0.8

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 51.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.65%
EPS Next 3Y51.41%

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0

5. Dividend

5.1 Amount

TIT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TELECOM ITALIA SPA

BIT:TIT (8/21/2025, 7:00:00 PM)

0.4596

0 (-0.82%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)08-05 2025-08-05
Earnings (Next)11-05 2025-11-05
Inst Owners16.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.82B
Analysts82
Price Target0.43 (-6.44%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)6.88%
PT rev (3m)13.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 70.88
P/S 0.47
P/FCF 18.52
P/OCF 4.4
P/B 0.82
P/tB N/A
EV/EBITDA 3.9
EPS(TTM)-0.02
EYN/A
EPS(NY)0.01
Fwd EY1.41%
FCF(TTM)0.02
FCFY5.4%
OCF(TTM)0.1
OCFY22.72%
SpS0.97
BVpS0.56
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.22%
ROE -0.69%
ROCE 7.02%
ROIC 5.26%
ROICexc 6.38%
ROICexgc 30.34%
OM 8.81%
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%
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 Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 28.82
Debt/EBITDA 2.25
Cap/Depr 56.12%
Cap/Sales 8.16%
Interest Coverage 1.6
Cash Conversion 45.85%
Profit Quality N/A
Current Ratio 0.8
Quick Ratio 0.77
Altman-Z 0.98
F-Score6
WACC6.53%
ROIC/WACC0.81
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 Y93.9%
EPS Next 2Y54.65%
EPS Next 3Y51.41%
EPS Next 5Y30.35%
Revenue 1Y (TTM)-11.57%
Revenue growth 3Y-1.94%
Revenue growth 5Y-4.28%
Sales Q2Q%-52.97%
Revenue Next Year-9.12%
Revenue Next 2Y-2.8%
Revenue Next 3Y-1.51%
Revenue Next 5Y-0.04%
EBIT growth 1Y-31.25%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year207.41%
EBIT Next 3Y50.3%
EBIT Next 5Y29.58%
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%