TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TNE5 - ES0178430E18 - Common Stock
3.648 EUR
-0.02 (-0.6%)
Taking everything into account, TNE5 scores 4 out of 10 in our fundamental rating. TNE5 was compared to 28 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of TNE5 while its profitability can be described as average. TNE5 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TNE5 had positive earnings in the past year.
TNE5 had a positive operating cash flow in the past year.
In multiple years TNE5 reported negative net income over the last 5 years.
Each year in the past 5 years TNE5 had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.30%, TNE5 is doing worse than 75.00% of the companies in the same industry.
TNE5 has a Return On Equity of -23.50%. This is in the lower half of the industry: TNE5 underperforms 75.00% of its industry peers.
TNE5 has a better Return On Invested Capital (6.81%) than 71.43% 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 7.65%.
The 3 year average ROIC (3.06%) for TNE5 is below the current ROIC(6.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 6.81% |
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
The Operating Margin of TNE5 (11.51%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNE5 has grown nicely.
TNE5 has a worse Gross Margin (35.08%) than 67.86% 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 | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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 just above the Cost of Capital (WACC), so TNE5 is still creating some value.
Compared to 1 year ago, TNE5 has about the same amount of shares outstanding.
TNE5 has less shares outstanding than it did 5 years ago.
TNE5 has a worse debt/assets ratio than last year.
2.2 Solvency
TNE5 has an Altman-Z score of 1.27. This is a bad value and indicates that TNE5 is not financially healthy and even has some risk of bankruptcy.
TNE5 has a Altman-Z score of 1.27. This is in the better half of the industry: TNE5 outperforms 64.29% of its industry peers.
The Debt to FCF ratio of TNE5 is 7.98, which is on the high side as it means it would take TNE5, 7.98 years of fcf income to pay off all of its debts.
TNE5 has a Debt to FCF ratio (7.98) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.11 is on the high side and indicates that TNE5 has dependencies on debt financing.
With a Debt to Equity ratio value of 2.11, TNE5 is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.77
WACC3.85%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TNE5 may have some problems paying its short term obligations.
TNE5 has a better Current ratio (0.85) than 64.29% of its industry peers.
A Quick Ratio of 0.81 indicates that TNE5 may have some problems paying its short term obligations.
TNE5 has a Quick ratio of 0.81. This is in the better half of the industry: TNE5 outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TNE5 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
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.
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)-34.78%
EPS 3YN/A
EPS 5Y-8.86%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
3.2 Future
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
Based on estimates for the next years, TNE5 will show a small growth in Revenue. The Revenue will grow by 0.16% on average per year.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TNE5 is valuated correctly with a Price/Earnings ratio of 12.16.
82.14% of the companies in the same industry are more expensive than TNE5, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.98, TNE5 is valued rather cheaply.
A Price/Forward Earnings ratio of 10.93 indicates a reasonable valuation of TNE5.
75.00% of the companies in the same industry are more expensive than TNE5, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, TNE5 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNE5 indicates a rather cheap valuation: TNE5 is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
TNE5 has a Yearly Dividend Yield of 6.72%, which is a nice return.
In the last 3 months the price of TNE5 has falen by -20.16%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TNE5's Dividend Yield is rather good when compared to the industry average which is at 4.96. TNE5 pays more dividend than 89.29% of the companies in the same industry.
TNE5's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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-45.46%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
FRA:TNE5 (11/24/2025, 7:00:00 PM)
3.648
-0.02 (-0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.57B
Revenue(TTM)41.31B
Net Income(TTM)-4.06B
Analysts54.19
Price Target4.19 (14.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)-6.17%
PT rev (3m)-4.95%
EPS NQ rev (1m)-23.58%
EPS NQ rev (3m)-34.72%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.38%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.93 | ||
| P/S | 0.35 | ||
| P/FCF | 3.67 | ||
| P/OCF | 1.9 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY8.22%
EPS(NY)0.33
Fwd EY9.15%
FCF(TTM)0.99
FCFY27.24%
OCF(TTM)1.92
OCFY52.61%
SpS10.32
BVpS3.07
TBVpS-1.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 6.81% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 12.93% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.27 |
F-Score5
WACC3.85%
ROIC/WACC1.77
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-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y21.15%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
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.
Can you provide the valuation status for TELEFONICA SA?
ChartMill assigns a valuation rating of 5 / 10 to TELEFONICA SA (TNE5.DE). This can be considered as Fairly Valued.
How profitable is TELEFONICA SA (TNE5.DE) 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 3 / 10.
Can you provide the dividend sustainability for TNE5 stock?
The dividend rating of TELEFONICA SA (TNE5.DE) is 5 / 10 and the dividend payout ratio is -45.46%.