TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - BIT:TIT - IT0003497168 - Common Stock
0.484 EUR
+0 (+0.39%)
We assign a fundamental rating of 2 out of 10 to TIT. TIT was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of TIT have multiple concerns. TIT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TIT has reported negative net income.
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
Looking at the Return On Assets, with a value of -0.23%, TIT is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.70%, TIT is doing worse than 66.67% of the companies in the same industry.
The Return On Invested Capital of TIT (5.73%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIT is below the industry average of 7.66%.
The last Return On Invested Capital (5.73%) for TIT is above the 3 year average (3.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROIC | 5.73% |
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
Looking at the Operating Margin, with a value of 8.87%, TIT is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TIT has declined.
Looking at the Gross Margin, with a value of 42.94%, TIT is doing worse than 63.33% of the companies in the same industry.
TIT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.87% | ||
| 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.
Compared to 1 year ago, TIT has about the same amount of shares outstanding.
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.
2.2 Solvency
TIT has an Altman-Z score of 0.96. 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 (0.96) is worse than 63.33% of its industry peers.
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's Debt to FCF ratio of 26.15 is on the low side compared to the rest of the industry. TIT is outperformed by 70.00% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.83
WACC6.87%
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 60.00% 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 60.00% 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 79.46%, which is quite impressive.
TIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.57%.
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
TIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.32% yearly.
The Revenue is expected to grow by 0.10% on average over the next years.
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
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 31.00, which means the current valuation is very expensive for TIT.
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 76.67% of the companies listed in the same industry.
TIT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31 |
4.2 Price Multiples
TIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIT is cheaper than 93.33% 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 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.5 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
TIT's 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 54.02% in the coming years. This may justify a more expensive valuation.
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 (10/6/2025, 5:29:55 PM)
0.484
+0 (+0.39%)
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 Cap10.34B
Analysts78.95
Price Target0.46 (-4.96%)
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)1.28%
PT rev (3m)14.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)133.33%
EPS NY rev (3m)170%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31 | ||
| P/S | 0.5 | ||
| P/FCF | 19.5 | ||
| P/OCF | 4.64 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.68 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.02
Fwd EY3.23%
FCF(TTM)0.02
FCFY5.13%
OCF(TTM)0.1
OCFY21.57%
SpS0.97
BVpS0.56
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROCE | 7.64% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.73% | ||
| ROICexgc | 35.62% | ||
| OM | 8.87% | ||
| 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-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 56.12% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 1.61 | ||
| Cash Conversion | 45.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.96 |
F-Score5
WACC6.87%
ROIC/WACC0.83
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-30.76%
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%