TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TNE5 - ES0178430E18 - Common Stock
3.49 EUR
+0.06 (+1.6%)
Taking everything into account, TNE5 scores 3 out of 10 in our fundamental rating. TNE5 was compared to 37 industry peers in the Diversified Telecommunication Services industry. While TNE5 is still in line with the averages on profitability rating, there are concerns on its financial health. TNE5 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
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.
Each year in the past 5 years TNE5 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TNE5 (-4.10%) is worse than 81.08% of its industry peers.
TNE5 has a worse Return On Equity (-21.56%) than 81.08% of its industry peers.
The Return On Invested Capital of TNE5 (6.89%) is better than 62.16% 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 7.57%.
The 3 year average ROIC (3.06%) for TNE5 is below the current ROIC(6.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROIC | 6.89% |
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
TNE5 has a Operating Margin (12.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNE5 has grown nicely.
TNE5's Gross Margin of 35.73% is on the low side compared to the rest of the industry. TNE5 is outperformed by 70.27% of its industry peers.
In the last couple of years the Gross Margin of TNE5 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TNE5 is creating 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
Compared to 1 year ago, TNE5 has a worse debt to assets ratio.
2.2 Solvency
TNE5 has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as TNE5 would need 8.80 years to pay back of all of its debts.
TNE5's Debt to FCF ratio of 8.80 is in line compared to the rest of the industry. TNE5 outperforms 51.35% of its industry peers.
TNE5 has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.07, TNE5 is doing worse than 86.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.83
WACC3.77%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TNE5 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, TNE5 is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TNE5 may have some problems paying its short term obligations.
TNE5's Quick ratio of 0.80 is in line compared to the rest of the industry. TNE5 outperforms 59.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for TNE5 have decreased strongly by -34.78% in the last year.
The Earnings Per Share has been decreasing by -8.86% on average over the past years.
TNE5 shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.77%.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
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 1.32% on average per year.
TNE5 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
EPS Next 5Y1.32%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.53%
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.
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
Based on the Price/Earnings ratio of 11.63, the valuation of TNE5 can be described as reasonable.
78.38% of the companies in the same industry are more expensive than TNE5, based on the Price/Earnings ratio.
TNE5 is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
TNE5 is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
TNE5's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TNE5 is cheaper than 70.27% of the companies in the same industry.
TNE5 is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TNE5 is valued cheaper than 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.04 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TNE5's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
TNE5 has a Yearly Dividend Yield of 6.96%, which is a nice return.
The stock price of TNE5 dropped by -20.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TNE5's Dividend Yield is rather good when compared to the industry average which is at 3.29. TNE5 pays more dividend than 94.59% of the companies in the same industry.
TNE5's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
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
The earnings of TNE5 are negative and hence is the payout ratio. TNE5 will probably not be able to sustain this dividend level.
DP-48.26%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
FRA:TNE5 (1/7/2026, 7:00:00 PM)
3.49
+0.06 (+1.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.78%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap19.68B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts52.26
Price Target4.11 (17.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-48.26%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.89%
Min EPS beat(2)13.76%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-3.18%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)10.19%
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)-1.45%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
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)-1.87%
PT rev (3m)-7.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.53%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)-10.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.61 | ||
| P/S | 0.34 | ||
| P/FCF | 4.04 | ||
| P/OCF | 1.9 | ||
| P/B | 1.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY8.6%
EPS(NY)0.33
Fwd EY9.42%
FCF(TTM)0.86
FCFY24.77%
OCF(TTM)1.83
OCFY52.52%
SpS10.13
BVpS3.12
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROCE | 9.79% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 12.83% | ||
| OM | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% | ||
| FCFM | 8.53% |
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%
ROICexgc growth 3Y26.02%
ROICexgc 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-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 9.56% | ||
| Interest Coverage | -7.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | N/A |
F-Score4
WACC3.77%
ROIC/WACC1.83
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)-34.78%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-18.18%
EPS Next Y-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
EPS Next 5Y1.32%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.53%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year166.12%
EBIT Next 3Y40.69%
EBIT Next 5Y23.75%
FCF growth 1Y-20.22%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-14.64%
OCF growth 3Y0.61%
OCF growth 5Y-7%
TELEFONICA SA / TNE5.DE FAQ
What is the fundamental rating for TNE5 stock?
ChartMill assigns a fundamental rating of 4 / 10 to TNE5.DE.
What is the valuation status of TELEFONICA SA (TNE5.DE) stock?
ChartMill assigns a valuation rating of 6 / 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 4 / 10.
Can you provide the financial health for TNE5 stock?
The financial health rating of TELEFONICA SA (TNE5.DE) is 2 / 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 decline by -37.95% in the next year.