TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis
BIT:TIT - Euronext Milan - IT0003497168 - Common Stock - Currency: EUR
Taking everything into account, TIT scores 2 out of 10 in our fundamental rating. TIT was compared to 30 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.
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
The Return On Assets of TIT (-2.32%) is worse than 74.07% of its industry peers.
TIT has a worse Return On Equity (-7.30%) than 70.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.92%, TIT is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
TIT had an Average Return On Invested Capital over the past 3 years of 3.21%. This is below the industry average of 7.68%.
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 Rank | Sector 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%
1.3 Margins
TIT has a Operating Margin (11.00%) which is in line with its industry peers.
TIT's Operating Margin has declined in the last couple of years.
TIT's Gross Margin of 48.24% is on the low side compared to the rest of the industry. TIT is outperformed by 62.96% of its industry peers.
In the last couple of years the Gross Margin of TIT has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIT is creating some 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 1.03. 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 (1.03) is worse than 62.96% 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's Debt to FCF ratio of 288.25 is on the low side compared to the rest of the industry. TIT is outperformed by 77.78% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that TIT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, TIT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 288.25 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.07
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.80 indicates that TIT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, TIT is in line with its industry, outperforming 59.26% of the companies in the same industry.
TIT has a Quick Ratio of 0.80. 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 0.77, TIT is in line with its industry, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
TIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.74%, which is quite impressive.
The Revenue has decreased by -9.52% in the past year.
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)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
The Earnings Per Share is expected to grow by 21.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, TIT will show a decrease in Revenue. The Revenue will decrease by -1.90% on average per year.
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y21.16%
Revenue Next Year-6.59%
Revenue Next 2Y-7.57%
Revenue Next 3Y-3.24%
Revenue Next 5Y-1.9%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
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 100.00% of the companies listed in the same industry.
77.78% of the companies in the same industry are cheaper than TIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 164.01 | ||
| EV/EBITDA | 3.17 |
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%
5. Dividend
5.1 Amount
No dividends for TIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TIT (7/18/2025, 7:00:00 PM)
0.407
+0 (+0.37%)
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 Cap8.69B
Analysts82
Price Target0.42 (3.19%)
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-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)5.35%
PT rev (3m)14.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.4 | ||
| P/FCF | 164.01 | ||
| P/OCF | 4.33 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.17 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EYN/A
FCF(TTM)0
FCFY0.61%
OCF(TTM)0.09
OCFY23.09%
SpS1.03
BVpS0.56
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.48%
ROIC/WACC1.07
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 5Y21.16%
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-1.9%
EBIT growth 1Y9.13%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year207.41%
EBIT Next 3Y50.3%
EBIT Next 5Y23.34%
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%