TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TIT - IT0003497168 - Common Stock
0.57 EUR
+0 (+0.07%)
Taking everything into account, TIT scores 2 out of 10 in our fundamental rating. TIT was compared to 36 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
- In the past year TIT has reported negative net income.
- 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.
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 75.00% of its industry peers.
- TIT has a worse Return On Equity (-0.70%) than 75.00% 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 50.00% of its industry peers.
- TIT had an Average Return On Invested Capital over the past 3 years of 3.21%. This is below the industry average of 7.93%.
- 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's Operating Margin of 9.02% is on the low side compared to the rest of the industry. TIT is outperformed by 66.67% 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 66.67% of its industry peers.
- In the last couple of years the Gross Margin of TIT has declined.
| 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.
- Compared to 1 year ago, TIT has about the same amount of shares outstanding.
- The number of shares outstanding for TIT has been increased compared to 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 1.01. 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 1.01. This is comparable to the rest of the industry: TIT outperforms 41.67% 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.
- With a Debt to FCF ratio value of 26.15, TIT is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.80 indicates that TIT is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.80, TIT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.83
WACC6.98%
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 has a Current ratio of 0.66. This is in the lower half of the industry: TIT underperforms 72.22% of its industry peers.
- 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.
- TIT has a Quick ratio of 0.64. This is in the lower half of the industry: TIT underperforms 72.22% 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.
- TIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.33%.
- Measured over the past years, TIT shows a decrease in Revenue. The Revenue has been decreasing by -5.45% 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-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.
- The Revenue is expected to decrease by -1.50% on average over the next years.
EPS Next Y58.62%
EPS Next 2Y45.5%
EPS Next 3Y35%
EPS Next 5Y21.95%
Revenue Next Year-6.59%
Revenue Next 2Y-8.02%
Revenue Next 3Y-4.07%
Revenue Next 5Y-1.5%
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
- The Price/Earnings Ratio is negative for TIT. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 121.89 indicates a quite expensive valuation of 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 72.22% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, TIT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 121.89 |
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 94.44% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIT indicates a slightly more expensive valuation: TIT is more expensive than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.97 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as TIT's earnings are expected to grow with 35.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.5%
EPS Next 3Y35%
5. Dividend
5.1 Amount
- TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:TIT (1/19/2026, 4:12:56 PM)
0.57
+0 (+0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-05 2025-11-05
Earnings (Next)02-09 2026-02-09/amc
Inst Owners29.22%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap12.17B
Revenue(TTM)20.63B
Net Income(TTM)-83.00M
Analysts80
Price Target0.55 (-3.51%)
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)4.72%
PT rev (3m)19.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-21.26%
EPS NY rev (3m)561.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 121.89 | ||
| P/S | 0.58 | ||
| P/FCF | 22.97 | ||
| P/OCF | 5.46 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.03 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EY0.82%
FCF(TTM)0.02
FCFY4.35%
OCF(TTM)0.1
OCFY18.32%
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 | 1.01 |
F-Score5
WACC6.98%
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)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
EPS Next Y58.62%
EPS Next 2Y45.5%
EPS Next 3Y35%
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-8.02%
Revenue Next 3Y-4.07%
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 3Y50.75%
EBIT Next 5Y29.86%
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.
Can you provide the valuation status for TELECOM ITALIA SPA?
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.
How sustainable is the dividend of TELECOM ITALIA SPA (TIT.MI) stock?
The dividend rating of TELECOM ITALIA SPA (TIT.MI) is 0 / 10 and the dividend payout ratio is -202.41%.