TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
Europe - BIT:TIT - IT0003497168 - Common Stock
0.448 EUR
+0.01 (+1.22%)
TIT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals 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 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.
In the past 5 years TIT always reported a positive cash flow from operatings.
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.
TIT has a worse Return On Equity (-0.70%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.73%, TIT is in line with its industry, outperforming 56.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIT is below the industry average of 7.68%.
The 3 year average ROIC (3.21%) for TIT is below the current ROIC(5.73%), indicating increased profibility in the last year.
| 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
TIT has a Operating Margin (8.87%) which is comparable to the rest of the industry.
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 63.33% of its industry peers.
In the last couple of years the Gross Margin of TIT has declined.
| 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.
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.
Compared to 1 year ago, TIT has an improved debt to assets ratio.
2.2 Solvency
TIT has an Altman-Z score of 0.94. 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 (0.94) than 66.67% 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.
The Debt to FCF ratio of TIT (26.15) is worse than 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.80, TIT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.83
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TIT may have some problems paying its short term obligations.
The Current ratio of TIT (0.66) is worse than 60.00% 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.
Looking at the Quick ratio, with a value of 0.64, TIT is doing worse than 60.00% of the companies in the same industry.
| 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%.
The Revenue has been decreasing by -4.28% on average over the past years.
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
TIT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.02% yearly.
EPS Next Y101.83%
EPS Next 2Y71.56%
EPS Next 3Y55.63%
EPS Next 5Y30.35%
Revenue Next Year-2.6%
Revenue Next 2Y0.2%
Revenue Next 3Y-1.38%
Revenue Next 5Y-0.02%
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.
With a Price/Forward Earnings ratio of 28.69, TIT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TIT is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
TIT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.69 |
4.2 Price Multiples
96.67% of the companies in the same industry are more expensive than TIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TIT is valued a bit more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.05 | ||
| EV/EBITDA | 3.5 |
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 55.63% 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 3Y55.63%
5. Dividend
5.1 Amount
TIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TIT (9/15/2025, 2:26:13 PM)
0.448
+0.01 (+1.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners16.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.57B
Analysts81
Price Target0.45 (0.45%)
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)5.8%
PT rev (3m)14.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)130%
EPS NY rev (3m)130%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)7.17%
Revenue NY rev (3m)6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.69 | ||
| P/S | 0.46 | ||
| P/FCF | 18.05 | ||
| P/OCF | 4.29 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.5 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.02
Fwd EY3.49%
FCF(TTM)0.02
FCFY5.54%
OCF(TTM)0.1
OCFY23.31%
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 | 0.94 |
F-Score5
WACC6.9%
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 Y101.83%
EPS Next 2Y71.56%
EPS Next 3Y55.63%
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-2.6%
Revenue Next 2Y0.2%
Revenue Next 3Y-1.38%
Revenue Next 5Y-0.02%
EBIT growth 1Y-30.76%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year207.41%
EBIT Next 3Y50.3%
EBIT Next 5Y29.61%
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%