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TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis

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

0.393  -0.01 (-3.44%)

Fundamental Rating

2

Taking everything into account, TIT scores 2 out of 10 in our fundamental rating. TIT was compared to 31 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.


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.
In the past 5 years TIT always reported a positive cash flow from operatings.
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

TIT's Return On Assets of -2.32% is on the low side compared to the rest of the industry. TIT is outperformed by 74.19% of its industry peers.
With a Return On Equity value of -7.30%, TIT is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
The Return On Invested Capital of TIT (6.92%) is better than 67.74% 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 7.13%.
The last Return On Invested Capital (6.92%) for TIT is above the 3 year average (3.21%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -2.32%
ROE -7.3%
ROIC 6.92%
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

The Operating Margin of TIT (11.00%) is comparable to the rest of the industry.
TIT's Operating Margin has declined in the last couple of years.
TIT has a worse Gross Margin (48.24%) than 61.29% of its industry peers.
In the last couple of years the Gross Margin of TIT has declined.
Industry RankSector Rank
OM 11%
PM (TTM) N/A
GM 48.24%
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.
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.
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 1.03. This is a bad value and indicates that TIT is not financially healthy and even has some risk of bankruptcy.
TIT has a worse Altman-Z score (1.03) than 61.29% of its industry peers.
The Debt to FCF ratio of TIT is 288.25, which is on the high side as it means it would take TIT, 288.25 years of fcf income to pay off all of its debts.
TIT has a worse Debt to FCF ratio (288.25) than 74.19% of its industry peers.
TIT has a Debt/Equity ratio of 0.92. This is a neutral value indicating TIT is somewhat dependend on debt financing.
The Debt to Equity ratio of TIT (0.92) is better than 64.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 288.25
Altman-Z 1.03
ROIC/WACC1
WACC6.95%
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.
The Current ratio of TIT (0.80) is comparable to the rest of the industry.
A Quick Ratio of 0.77 indicates that TIT may have some problems paying its short term obligations.
TIT's Quick ratio of 0.77 is in line compared to the rest of the industry. TIT outperforms 54.84% 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 48.74% over the past year.
TIT shows a decrease in Revenue. In the last year, the revenue decreased by -9.52%.
TIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
EPS 1Y (TTM)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%

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 21.28% on average per year.
The Revenue is expected to decrease by -1.55% on average over the next years.
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y21.28%
Revenue Next Year-6.59%
Revenue Next 2Y-7.57%
Revenue Next 3Y-3.24%
Revenue Next 5Y-1.55%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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1

4. Valuation

4.1 Price/Earnings Ratio

TIT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TIT. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
TIT.MI Price Earnings VS Forward Price EarningsTIT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200 -300

4.2 Price Multiples

TIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIT is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIT is valued a bit more expensive than 74.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 158.37
EV/EBITDA 3.17
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 1

4.3 Compensation for Growth

TIT's earnings are expected to grow with 29.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.53%
EPS Next 3Y29.31%

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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 (6/19/2025, 5:36:15 PM)

0.393

-0.01 (-3.44%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)05-07 2025-05-07
Earnings (Next)08-05 2025-08-05
Inst Owners16.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.39B
Analysts82.11
Price Target0.4 (1.78%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.01
Dividend Growth(5Y)-10.69%
DP-18.21%
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)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-2.17%
Revenue beat(4)2
Avg Revenue beat(4)17.88%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)74.3%
Revenue beat(8)2
Avg Revenue beat(8)5.21%
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)5.6%
PT rev (3m)14.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-225%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.95%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.38
P/FCF 158.37
P/OCF 4.18
P/B 0.7
P/tB N/A
EV/EBITDA 3.17
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EYN/A
FCF(TTM)0
FCFY0.63%
OCF(TTM)0.09
OCFY23.91%
SpS1.03
BVpS0.56
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.32%
ROE -7.3%
ROCE 9.23%
ROIC 6.92%
ROICexc 8.39%
ROICexgc 39.91%
OM 11%
PM (TTM) N/A
GM 48.24%
FCFM 0.24%
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 Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 288.25
Debt/EBITDA 1.95
Cap/Depr 61.27%
Cap/Sales 8.91%
Interest Coverage 1.31
Cash Conversion 35.82%
Profit Quality N/A
Current Ratio 0.8
Quick Ratio 0.77
Altman-Z 1.03
F-Score6
WACC6.95%
ROIC/WACC1
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)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y21.28%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%
Revenue Next Year-6.59%
Revenue Next 2Y-7.57%
Revenue Next 3Y-3.24%
Revenue Next 5Y-1.55%
EBIT growth 1Y9.13%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year207.41%
EBIT Next 3Y50.3%
EBIT Next 5Y23.78%
FCF growth 1Y-76.96%
FCF growth 3YN/A
FCF growth 5Y-44.71%
OCF growth 1Y-16.44%
OCF growth 3Y-22.65%
OCF growth 5Y-19.54%