TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TIT - IT0003497168 - Common Stock
0.564 EUR
-0.01 (-1.95%)
We assign a fundamental rating of 2 out of 10 to TIT. 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
- TIT had negative earnings in the past year.
- TIT had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- TIT has a Return On Assets of -0.23%. This is in the lower half of the industry: TIT underperforms 75.00% of its industry peers.
- The Return On Equity of TIT (-0.70%) is worse than 75.00% of its industry peers.
- TIT has a Return On Invested Capital of 5.83%. This is comparable to the rest of the industry: TIT outperforms 50.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TIT 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.
- TIT's Gross Margin of 42.94% is on the low side compared to the rest of the industry. TIT is outperformed by 66.67% of its industry peers.
- 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.
- Compared to 1 year ago, TIT has about the same amount of shares outstanding.
- Compared to 5 years ago, TIT has more shares outstanding
- Compared to 1 year ago, TIT has an improved debt to assets ratio.
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.
- With a Altman-Z score value of 1.01, TIT perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- 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 has a worse Debt to FCF ratio (26.15) than 69.44% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.84
WACC6.96%
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.
- Looking at the Current ratio, with a value of 0.66, TIT is doing worse than 72.22% of the companies in the same industry.
- A Quick Ratio of 0.64 indicates that TIT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.64, TIT is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| 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 81.87% over the past year.
- TIT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.33%.
- The Revenue has been decreasing by -5.45% on average over the past years.
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
- TIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.95% yearly.
- 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.
- Based on the Price/Forward Earnings ratio of 120.61, the valuation of TIT can be described as expensive.
- 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.
- TIT is valuated expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 120.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TIT is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TIT is valued a bit more expensive than the industry average as 72.22% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.73 | ||
| EV/EBITDA | 4.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TIT does not grow enough to justify the current Price/Earnings ratio.
- TIT's earnings are expected to grow with 35.00% in the coming years. This may justify a more expensive valuation.
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 (1/20/2026, 10:41:54 AM)
0.564
-0.01 (-1.95%)
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 Cap12.05B
Revenue(TTM)20.63B
Net Income(TTM)-83.00M
Analysts80
Price Target0.55 (-2.48%)
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 | 120.61 | ||
| P/S | 0.58 | ||
| P/FCF | 22.73 | ||
| P/OCF | 5.4 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.06 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EY0.83%
FCF(TTM)0.02
FCFY4.4%
OCF(TTM)0.1
OCFY18.51%
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
WACC6.96%
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)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%.