TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
Europe - FRA:TNE5 - ES0178430E18 - Common Stock
4.506 EUR
+0.05 (+1.12%)
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. 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
TNE5 had positive earnings in the past year.
In the past year TNE5 had a positive cash flow from operations.
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
TNE5's Return On Assets of -4.30% is on the low side compared to the rest of the industry. TNE5 is outperformed by 80.00% of its industry peers.
The Return On Equity of TNE5 (-23.50%) is worse than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.81%, TNE5 is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TNE5 is below the industry average of 7.72%.
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
With a Operating Margin value of 11.51%, TNE5 perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
TNE5's Operating Margin has improved in the last couple of years.
TNE5's Gross Margin of 35.08% is on the low side compared to the rest of the industry. TNE5 is outperformed by 73.33% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNE5 is 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.
Compared to 1 year ago, TNE5 has a worse debt to assets ratio.
2.2 Solvency
TNE5 has an Altman-Z score of 1.31. This is a bad value and indicates that TNE5 is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TNE5 (1.31) is better than 63.33% of its industry peers.
TNE5 has a debt to FCF ratio of 7.98. This is a slightly negative value and a sign of low solvency as TNE5 would need 7.98 years to pay back of all of its debts.
TNE5 has a Debt to FCF ratio of 7.98. This is comparable to the rest of the industry: TNE5 outperforms 46.67% of its industry peers.
TNE5 has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.11, TNE5 is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.31 |
ROIC/WACC1.73
WACC3.94%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TNE5 may have some problems paying its short term obligations.
TNE5's Current ratio of 0.85 is in line compared to the rest of the industry. TNE5 outperforms 60.00% of its industry peers.
A Quick Ratio of 0.81 indicates that TNE5 may have some problems paying its short term obligations.
TNE5's Quick ratio of 0.81 is in line compared to the rest of the industry. TNE5 outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for TNE5 have decreased strongly by -39.14% in the last year.
The Earnings Per Share has been decreasing by -8.86% on average over the past years.
TNE5 shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
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)-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
Based on estimates for the next years, TNE5 will show a small growth in Earnings Per Share. The EPS will grow by 3.15% on average per year.
The Revenue is expected to decrease by -0.22% on average over the next years.
EPS Next Y-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
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
With a Price/Earnings ratio of 16.09, TNE5 is valued correctly.
70.00% 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 27.42, TNE5 is valued a bit cheaper.
TNE5 is valuated correctly with a Price/Forward Earnings ratio of 13.91.
The rest of the industry has a similar Price/Forward Earnings ratio as TNE5.
TNE5 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TNE5 is valued cheaper than 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as TNE5's earnings are expected to decrease with -3.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
5. Dividend
5.1 Amount
TNE5 has a Yearly Dividend Yield of 5.45%, which is a nice return.
TNE5's Dividend Yield is a higher than the industry average which is at 4.58.
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 | 5.45% |
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-45.46%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
FRA:TNE5 (10/17/2025, 7:00:00 PM)
4.506
+0.05 (+1.12%)
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 Cap25.40B
Analysts53.75
Price Target4.46 (-1.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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)-0.03%
PT rev (3m)3.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)-8.27%
EPS NY rev (3m)-8.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-6.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.91 | ||
| P/S | 0.44 | ||
| P/FCF | 4.53 | ||
| P/OCF | 2.35 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.28
EY6.21%
EPS(NY)0.32
Fwd EY7.19%
FCF(TTM)0.99
FCFY22.06%
OCF(TTM)1.92
OCFY42.59%
SpS10.32
BVpS3.07
TBVpS-1.56
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 1.31 |
F-Score5
WACC3.94%
ROIC/WACC1.73
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-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-11.4%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y17.35%
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%