TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
FRA:TNE5 - ES0178430E18 - Common Stock
4.655 EUR
-0.21 (-4.41%)
We assign a fundamental rating of 3 out of 10 to TNE5. TNE5 was compared to 30 industry peers in the Diversified Telecommunication Services industry. TNE5 may be in some trouble as it scores bad on both profitability and health. TNE5 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TNE5 was profitable.
TNE5 had a positive operating cash flow in the past year.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.17%, TNE5 is doing worse than 76.67% of the companies in the same industry.
TNE5 has a worse Return On Equity (-10.91%) than 76.67% of its industry peers.
TNE5's Return On Invested Capital of 2.33% is on the low side compared to the rest of the industry. TNE5 is outperformed by 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNE5 is below the industry average of 7.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROIC | 2.33% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.06%
ROIC(5y)3.14%
1.3 Margins
With a Operating Margin value of 6.11%, TNE5 is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
TNE5's Operating Margin has improved in the last couple of years.
TNE5 has a worse Gross Margin (50.52%) than 60.00% of its industry peers.
TNE5's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% |
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
2. Health
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 about the same amount of shares outstanding.
Compared to 5 years ago, TNE5 has less shares outstanding
TNE5 has a worse debt/assets ratio than last year.
2.2 Solvency
TNE5 has a debt to FCF ratio of 8.71. This is a slightly negative value and a sign of low solvency as TNE5 would need 8.71 years to pay back of all of its debts.
The Debt to FCF ratio of TNE5 (8.71) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.96 is on the high side and indicates that TNE5 has dependencies on debt financing.
The Debt to Equity ratio of TNE5 (1.96) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.58
WACC3.98%
2.3 Liquidity
A Current Ratio of 0.97 indicates that TNE5 may have some problems paying its short term obligations.
TNE5 has a better Current ratio (0.97) than 83.33% of its industry peers.
TNE5 has a Quick Ratio of 0.97. 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 better Quick ratio (0.93) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
TNE5 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.14%.
The Earnings Per Share has been decreasing by -8.86% on average over the past years.
The Revenue has been growing slightly by 1.63% in the past year.
TNE5 shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
EPS 1Y (TTM)-39.14%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-36.42%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
3.2 Future
The Earnings Per Share is expected to grow by 1.42% on average over the next years.
Based on estimates for the next years, TNE5 will show a decrease in Revenue. The Revenue will decrease by -0.53% on average per year.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.63 indicates a correct valuation of TNE5.
TNE5's Price/Earnings ratio is a bit cheaper when compared to the industry. TNE5 is cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. TNE5 is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.84 indicates a correct valuation of TNE5.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNE5 is on the same level as its industry peers.
TNE5 is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than TNE5, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TNE5's earnings are expected to decrease with -4.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, TNE5 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.67, TNE5 pays a bit more dividend than its industry peers.
TNE5's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of TNE5 decreases each year by -5.71%.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
TNE5 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-81.03%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
FRA:TNE5 (8/21/2025, 7:00:00 PM)
4.655
-0.21 (-4.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap26.24B
Analysts53.75
Price Target4.38 (-5.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-81.03%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.25%
Min EPS beat(2)-51.51%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)5
Avg EPS beat(8)2.39%
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)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)0.81%
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)1.25%
PT rev (3m)2.1%
EPS NQ rev (1m)-38.89%
EPS NQ rev (3m)-38.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.84 | ||
| P/S | 0.65 | ||
| P/FCF | 5.02 | ||
| P/OCF | 2.47 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.28
EY6.02%
EPS(NY)0.31
Fwd EY6.74%
FCF(TTM)0.93
FCFY19.9%
OCF(TTM)1.88
OCFY40.47%
SpS7.17
BVpS3.5
TBVpS-1.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROCE | 3.3% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.69% | ||
| ROICexgc | 4.56% | ||
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% | ||
| FCFM | 12.93% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.06%
ROIC(5y)3.14%
ROICexc(3y)3.42%
ROICexc(5y)3.52%
ROICexgc(3y)5.7%
ROICexgc(5y)5.87%
ROCE(3y)4.35%
ROCE(5y)4.46%
ROICexcg growth 3Y26.02%
ROICexcg growth 5Y3.81%
ROICexc growth 3Y25.08%
ROICexc growth 5Y8.63%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | N/A |
F-Score6
WACC3.98%
ROIC/WACC0.58
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.84%
Cap/Sales(5y)14.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.14%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-36.42%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y16.97%
FCF growth 1Y-16.47%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-11.92%
OCF growth 3Y0.61%
OCF growth 5Y-7%