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TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis

FRA:TNE5 - Deutsche Boerse Ag - ES0178430E18 - Common Stock - Currency: EUR

4.749  +0.2 (+4.37%)

Fundamental Rating

3

Taking everything into account, TNE5 scores 3 out of 10 in our fundamental rating. TNE5 was compared to 31 industry peers in the Diversified Telecommunication Services industry. TNE5 may be in some trouble as it scores bad on both profitability and health. TNE5 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year TNE5 was profitable.
TNE5 had a positive operating cash flow in the past year.
In multiple years TNE5 reported negative net income over the last 5 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

With a Return On Assets value of -2.17%, TNE5 is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
TNE5's Return On Equity of -10.91% is on the low side compared to the rest of the industry. TNE5 is outperformed by 74.19% of its industry peers.
The Return On Invested Capital of TNE5 (2.33%) is worse than 74.19% of its industry peers.
TNE5 had an Average Return On Invested Capital over the past 3 years of 3.06%. This is below the industry average of 7.13%.
Industry RankSector 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%
TNE5.DE Yearly ROA, ROE, ROICTNE5.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

The Operating Margin of TNE5 (6.11%) is worse than 61.29% of its industry peers.
In the last couple of years the Operating Margin of TNE5 has grown nicely.
The Gross Margin of TNE5 (50.52%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TNE5 has remained more or less at the same level.
Industry RankSector 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%
TNE5.DE Yearly Profit, Operating, Gross MarginsTNE5.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40 50

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2

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.
The number of shares outstanding for TNE5 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TNE5 has less shares outstanding
Compared to 1 year ago, TNE5 has a worse debt to assets ratio.
TNE5.DE Yearly Shares OutstandingTNE5.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TNE5.DE Yearly Total Debt VS Total AssetsTNE5.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

The Debt to FCF ratio of TNE5 is 8.71, which is on the high side as it means it would take TNE5, 8.71 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.71, TNE5 perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
A Debt/Equity ratio of 1.96 is on the high side and indicates that TNE5 has dependencies on debt financing.
With a Debt to Equity ratio value of 1.96, TNE5 is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.96
Debt/FCF 8.71
Altman-Z N/A
ROIC/WACC0.58
WACC4%
TNE5.DE Yearly LT Debt VS Equity VS FCFTNE5.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

TNE5 has a Current 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 Current ratio of 0.97. This is in the better half of the industry: TNE5 outperforms 74.19% 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.
The Quick ratio of TNE5 (0.93) is better than 74.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.93
TNE5.DE Yearly Current Assets VS Current LiabilitesTNE5.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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2

3. Growth

3.1 Past

TNE5 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.63%.
The Earnings Per Share has been decreasing by -8.86% on average over the past years.
The Revenue has decreased by -0.86% in the past year.
Measured over the past years, TNE5 shows a decrease in Revenue. The Revenue has been decreasing by -3.12% on average per year.
EPS 1Y (TTM)-2.63%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%

3.2 Future

Based on estimates for the next years, TNE5 will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
TNE5 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.49% yearly.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.53%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.49%

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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B 50B
TNE5.DE Yearly EPS VS EstimatesTNE5.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.84, which indicates a correct valuation of TNE5.
Compared to the rest of the industry, the Price/Earnings ratio of TNE5 indicates a somewhat cheap valuation: TNE5 is cheaper than 77.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, TNE5 is valued rather cheaply.
The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of TNE5.
The rest of the industry has a similar Price/Forward Earnings ratio as TNE5.
TNE5's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 12.84
Fwd PE 15.13
TNE5.DE Price Earnings VS Forward Price EarningsTNE5.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

TNE5's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNE5 is cheaper than 90.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.13
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

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%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.27%, TNE5 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.51, TNE5 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TNE5 pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.27%

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
TNE5.DE Yearly Dividends per shareTNE5.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 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.
DP-81.03%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
TNE5.DE Yearly Income VS Free CF VS DividendTNE5.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

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TELEFONICA SA

FRA:TNE5 (6/16/2025, 7:00:00 PM)

4.749

+0.2 (+4.37%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)07-29 2025-07-29
Inst Owners23.12%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap26.80B
Analysts53.55
Price Target4.29 (-9.67%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.27%
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)0.19%
PT rev (3m)0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-4.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.74%
Valuation
Industry RankSector Rank
PE 12.84
Fwd PE 15.13
P/S 0.66
P/FCF 5.13
P/OCF 2.52
P/B 1.36
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.37
EY7.79%
EPS(NY)0.31
Fwd EY6.61%
FCF(TTM)0.93
FCFY19.49%
OCF(TTM)1.88
OCFY39.63%
SpS7.16
BVpS3.49
TBVpS-1.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC4%
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)-2.63%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-27.27%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.53%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.49%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y23.28%
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%