TELEFONICA SA (TNE5.DE) Fundamental Analysis & Valuation

FRA:TNE5 • ES0178430E18

Current stock price

3.748 EUR
+0.05 (+1.24%)
Last:

This TNE5.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. TNE5.DE Profitability Analysis

1.1 Basic Checks

  • In the past year TNE5 was profitable.
  • In the past year TNE5 had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: TNE5 reported negative net income in multiple years.
  • In the past 5 years TNE5 always reported a positive cash flow from operatings.
TNE5.DE Yearly Net Income VS EBIT VS OCF VS FCFTNE5.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • With a Return On Assets value of -6.23%, TNE5 is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
  • Looking at the Return On Equity, with a value of -40.23%, TNE5 is doing worse than 78.79% of the companies in the same industry.
  • TNE5 has a worse Return On Invested Capital (3.83%) than 63.64% of its industry peers.
  • TNE5 had an Average Return On Invested Capital over the past 3 years of 2.99%. This is below the industry average of 7.79%.
  • The last Return On Invested Capital (3.83%) for TNE5 is above the 3 year average (2.99%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -6.23%
ROE -40.23%
ROIC 3.83%
ROA(3y)-2.13%
ROA(5y)0.49%
ROE(3y)-13.01%
ROE(5y)0.73%
ROIC(3y)2.99%
ROIC(5y)2.86%
TNE5.DE Yearly ROA, ROE, ROICTNE5.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • TNE5 has a worse Operating Margin (6.34%) than 72.73% of its industry peers.
  • In the last couple of years the Operating Margin of TNE5 has declined.
  • TNE5's Gross Margin of 32.85% is on the low side compared to the rest of the industry. TNE5 is outperformed by 75.76% of its industry peers.
  • TNE5's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.34%
PM (TTM) N/A
GM 32.85%
OM growth 3Y-17.43%
OM growth 5Y-15.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.44%
GM growth 5Y0.15%
TNE5.DE Yearly Profit, Operating, Gross MarginsTNE5.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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3

2. TNE5.DE Health Analysis

2.1 Basic Checks

  • TNE5 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, TNE5 has less shares outstanding
  • The number of shares outstanding for TNE5 has been reduced compared to 5 years ago.
  • The debt/assets ratio for TNE5 has been reduced compared to a year ago.
TNE5.DE Yearly Shares OutstandingTNE5.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
TNE5.DE Yearly Total Debt VS Total AssetsTNE5.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • TNE5 has an Altman-Z score of 1.10. This is a bad value and indicates that TNE5 is not financially healthy and even has some risk of bankruptcy.
  • TNE5's Altman-Z score of 1.10 is in line compared to the rest of the industry. TNE5 outperforms 54.55% of its industry peers.
  • TNE5 has a debt to FCF ratio of 9.70. This is a negative value and a sign of low solvency as TNE5 would need 9.70 years to pay back of all of its debts.
  • TNE5 has a Debt to FCF ratio (9.70) which is comparable to the rest of the industry.
  • TNE5 has a Debt/Equity ratio of 2.51. This is a high value indicating a heavy dependency on external financing.
  • TNE5's Debt to Equity ratio of 2.51 is on the low side compared to the rest of the industry. TNE5 is outperformed by 78.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 9.7
Altman-Z 1.1
ROIC/WACC0.65
WACC5.9%
TNE5.DE Yearly LT Debt VS Equity VS FCFTNE5.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • TNE5 has a Current Ratio of 0.89. This is a bad value and indicates that TNE5 is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TNE5 has a Current ratio (0.89) which is in line with its industry peers.
  • A Quick Ratio of 0.85 indicates that TNE5 may have some problems paying its short term obligations.
  • TNE5 has a Quick ratio (0.85) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.85
TNE5.DE Yearly Current Assets VS Current LiabilitesTNE5.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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3

3. TNE5.DE Growth Analysis

3.1 Past

  • TNE5 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
  • TNE5 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.20% yearly.
  • TNE5 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.82%.
  • TNE5 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.00% yearly.
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5Y-9.2%
EPS Q2Q%0%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y-4.24%
Revenue growth 5Y-4%
Sales Q2Q%-14.27%

3.2 Future

  • TNE5 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.12% yearly.
  • Based on estimates for the next years, TNE5 will show a small growth in Revenue. The Revenue will grow by 1.91% on average per year.
EPS Next Y11.04%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y0.51%
Revenue Next 3Y0.84%
Revenue Next 5Y1.91%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
TNE5.DE Yearly Revenue VS EstimatesTNE5.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
TNE5.DE Yearly EPS VS EstimatesTNE5.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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5

4. TNE5.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.49, the valuation of TNE5 can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of TNE5 indicates a somewhat cheap valuation: TNE5 is cheaper than 75.76% of the companies listed in the same industry.
  • TNE5 is valuated rather cheaply when we compare the Price/Earnings ratio to 24.75, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 11.25 indicates a reasonable valuation of TNE5.
  • TNE5's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TNE5 is cheaper than 78.79% of the companies in the same industry.
  • TNE5 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.49
Fwd PE 11.25
TNE5.DE Price Earnings VS Forward Price EarningsTNE5.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, TNE5 is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.89
EV/EBITDA N/A
TNE5.DE Per share dataTNE5.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y11.66%
EPS Next 3Y6.12%

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6

5. TNE5.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.64%, TNE5 is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 3.01, TNE5 pays a better dividend. On top of this TNE5 pays more dividend than 93.94% of the companies listed in the same industry.
  • TNE5's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 6.64%

5.2 History

  • On average, the dividend of TNE5 grows each year by 8.88%, which is quite nice.
Dividend Growth(5Y)8.88%
Div Incr Years0
Div Non Decr Years2
TNE5.DE Yearly Dividends per shareTNE5.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • TNE5 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • TNE5's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-32.37%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
TNE5.DE Yearly Income VS Free CF VS DividendTNE5.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B

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TNE5.DE Fundamentals: All Metrics, Ratios and Statistics

TELEFONICA SA

FRA:TNE5 (3/30/2026, 7:00:00 PM)

3.748

+0.05 (+1.24%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-24
Earnings (Next)05-14
Inst Owners28.06%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap21.13B
Revenue(TTM)53.30B
Net Income(TTM)-5.74B
Analysts54.38
Price Target4.03 (7.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.64%
Yearly Dividend0.33
Dividend Growth(5Y)8.88%
DP-32.37%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)120.08%
Min EPS beat(2)13.76%
Max EPS beat(2)226.4%
EPS beat(4)3
Avg EPS beat(4)66.29%
Min EPS beat(4)-0.99%
Max EPS beat(4)226.4%
EPS beat(8)6
Avg EPS beat(8)36.28%
EPS beat(12)9
Avg EPS beat(12)24.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-1.14%
Revenue beat(8)3
Avg Revenue beat(8)0.43%
Revenue beat(12)4
Avg Revenue beat(12)0.29%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.79%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)-6.94%
Revenue NQ rev (3m)-7.62%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-2.15%
Valuation
Industry RankSector Rank
PE 12.49
Fwd PE 11.25
P/S 0.4
P/FCF 4.89
P/OCF 2.25
P/B 1.48
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8%
EPS(NY)0.33
Fwd EY8.89%
FCF(TTM)0.77
FCFY20.44%
OCF(TTM)1.66
OCFY44.37%
SpS9.45
BVpS2.53
TBVpS-1.89
PEG (NY)1.13
PEG (5Y)N/A
Graham Number4.13
Profitability
Industry RankSector Rank
ROA -6.23%
ROE -40.23%
ROCE 5.03%
ROIC 3.83%
ROICexc 4.27%
ROICexgc 7.29%
OM 6.34%
PM (TTM) N/A
GM 32.85%
FCFM 8.11%
ROA(3y)-2.13%
ROA(5y)0.49%
ROE(3y)-13.01%
ROE(5y)0.73%
ROIC(3y)2.99%
ROIC(5y)2.86%
ROICexc(3y)3.35%
ROICexc(5y)3.21%
ROICexgc(3y)5.62%
ROICexgc(5y)5.34%
ROCE(3y)3.92%
ROCE(5y)3.76%
ROICexgc growth 3Y-12.92%
ROICexgc growth 5Y-16.49%
ROICexc growth 3Y-13.93%
ROICexc growth 5Y-16.49%
OM growth 3Y-17.43%
OM growth 5Y-15.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.44%
GM growth 5Y0.15%
F-Score5
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 9.7
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 9.48%
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.89
Quick Ratio 0.85
Altman-Z 1.1
F-Score5
WACC5.9%
ROIC/WACC0.65
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.75%
Cap/Sales(5y)14.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5Y-9.2%
EPS Q2Q%0%
EPS Next Y11.04%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue 1Y (TTM)3.82%
Revenue growth 3Y-4.24%
Revenue growth 5Y-4%
Sales Q2Q%-14.27%
Revenue Next Year-0.32%
Revenue Next 2Y0.51%
Revenue Next 3Y0.84%
Revenue Next 5Y1.91%
EBIT growth 1Y-40.77%
EBIT growth 3Y-20.93%
EBIT growth 5Y-18.73%
EBIT Next Year244.64%
EBIT Next 3Y52.01%
EBIT Next 5Y31.13%
FCF growth 1Y-12.12%
FCF growth 3Y-11.6%
FCF growth 5Y-6.89%
OCF growth 1Y-10.18%
OCF growth 3Y-7.28%
OCF growth 5Y-6.6%

TELEFONICA SA / TNE5.DE Fundamental Analysis FAQ

What is the fundamental rating for TNE5 stock?

ChartMill assigns a fundamental rating of 3 / 10 to TNE5.DE.


What is the valuation status of TELEFONICA SA (TNE5.DE) stock?

ChartMill assigns a valuation rating of 5 / 10 to TELEFONICA SA (TNE5.DE). This can be considered as Fairly Valued.


What is the profitability of TNE5 stock?

TELEFONICA SA (TNE5.DE) has a profitability rating of 2 / 10.


Can you provide the financial health for TNE5 stock?

The financial health rating of TELEFONICA SA (TNE5.DE) is 3 / 10.


What is the expected EPS growth for TELEFONICA SA (TNE5.DE) stock?

The Earnings per Share (EPS) of TELEFONICA SA (TNE5.DE) is expected to grow by 11.04% in the next year.