TELEFONICA SA (TNE5.DE) Fundamental Analysis & Valuation

FRA:TNE5 • ES0178430E18

Current stock price

3.591 EUR
+0.04 (+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.
  • TNE5 had a positive operating cash flow in the past year.
  • In multiple years TNE5 reported negative net income over the last 5 years.
  • TNE5 had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of TNE5 (-6.23%) is worse than 74.29% of its industry peers.
  • TNE5 has a Return On Equity of -40.23%. This is in the lower half of the industry: TNE5 underperforms 77.14% of its industry peers.
  • TNE5's Return On Invested Capital of 3.83% is on the low side compared to the rest of the industry. TNE5 is outperformed by 65.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TNE5 is below the industry average of 7.67%.
  • The 3 year average ROIC (2.99%) for TNE5 is below the current ROIC(3.83%), indicating increased profibility in the last year.
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

  • With a Operating Margin value of 6.34%, TNE5 is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of TNE5 has declined.
  • The Gross Margin of TNE5 (32.85%) is worse than 74.29% 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 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TNE5 is destroying value.
  • The number of shares outstanding for TNE5 has been reduced compared to 1 year ago.
  • TNE5 has less shares outstanding than it did 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 1.09. 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 (1.09) which is comparable to the rest of the industry.
  • 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 of 9.70. This is comparable to the rest of the industry: TNE5 outperforms 57.14% of its industry peers.
  • TNE5 has a Debt/Equity ratio of 2.51. This is a high value indicating a heavy dependency on external financing.
  • TNE5 has a Debt to Equity ratio of 2.51. This is amonst the worse of the industry: TNE5 underperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 9.7
Altman-Z 1.09
ROIC/WACC0.68
WACC5.61%
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

  • A Current Ratio of 0.89 indicates that TNE5 may have some problems paying its short term obligations.
  • TNE5's Current ratio of 0.89 is in line compared to the rest of the industry. TNE5 outperforms 57.14% of its industry peers.
  • TNE5 has a Quick 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.
  • The Quick ratio of TNE5 (0.85) is comparable to the rest of the industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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

  • The Earnings Per Share is expected to grow by 6.12% on average over the next years.
  • TNE5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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6

4. TNE5.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.97, the valuation of TNE5 can be described as very reasonable.
  • TNE5's Price/Earnings ratio is a bit cheaper when compared to the industry. TNE5 is cheaper than 77.14% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TNE5 to the average of the S&P500 Index (25.71), we can say TNE5 is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.78 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 80.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, TNE5 is valued rather cheaply.
Industry RankSector Rank
PE 11.97
Fwd PE 10.78
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 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.69
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

  • TNE5's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y11.66%
EPS Next 3Y6.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. TNE5.DE Dividend Analysis

5.1 Amount

  • TNE5 has a Yearly Dividend Yield of 6.85%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.09, TNE5 pays a better dividend. On top of this TNE5 pays more dividend than 97.14% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, TNE5 pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.85%

5.2 History

  • The dividend of TNE5 is nicely growing with an annual growth rate of 8.88%!
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.
  • The dividend of TNE5 is growing, but the earnings are growing slower. 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 (3/13/2026, 7:00:00 PM)

3.591

+0.04 (+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 Cap20.25B
Revenue(TTM)53.30B
Net Income(TTM)-5.74B
Analysts54.38
Price Target4.03 (12.23%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.85%
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)0.15%
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)3.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.19%
Valuation
Industry RankSector Rank
PE 11.97
Fwd PE 10.78
P/S 0.38
P/FCF 4.69
P/OCF 2.16
P/B 1.42
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8.35%
EPS(NY)0.33
Fwd EY9.28%
FCF(TTM)0.77
FCFY21.34%
OCF(TTM)1.66
OCFY46.31%
SpS9.45
BVpS2.53
TBVpS-1.89
PEG (NY)1.08
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 1.09
F-Score5
WACC5.61%
ROIC/WACC0.68
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 Year235.14%
EBIT Next 3Y50.6%
EBIT Next 5Y30.4%
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 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 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.