TELECOM ITALIA SPA (TQI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TQI - IT0003497168 - Common Stock
0.4553 EUR
-0.05 (-9.09%)
Overall TQI gets a fundamental rating of 2 out of 10. We evaluated TQI against 33 industry peers in the Diversified Telecommunication Services industry. TQI may be in some trouble as it scores bad on both profitability and health. TQI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TQI has reported negative net income.
In the past year TQI had a positive cash flow from operations.
In the past 5 years TQI reported 4 times negative net income.
TQI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.23%, TQI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
TQI has a Return On Equity of -0.70%. This is in the lower half of the industry: TQI underperforms 66.67% of its industry peers.
TQI has a Return On Invested Capital (5.47%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TQI is below the industry average of 7.72%.
The 3 year average ROIC (3.02%) for TQI is below the current ROIC(5.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROIC | 5.47% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.02%
ROIC(5y)2.6%
1.3 Margins
TQI's Operating Margin of 9.02% is on the low side compared to the rest of the industry. TQI is outperformed by 63.64% of its industry peers.
In the last couple of years the Operating Margin of TQI has declined.
With a Gross Margin value of 42.94%, TQI perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
In the last couple of years the Gross Margin of TQI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.94% |
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TQI is destroying value.
TQI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TQI has been increased compared to 5 years ago.
TQI has a better debt/assets ratio than last year.
2.2 Solvency
TQI has an Altman-Z score of 0.95. This is a bad value and indicates that TQI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, TQI is in line with its industry, outperforming 42.42% of the companies in the same industry.
The Debt to FCF ratio of TQI is 26.15, which is on the high side as it means it would take TQI, 26.15 years of fcf income to pay off all of its debts.
TQI has a worse Debt to FCF ratio (26.15) than 72.73% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that TQI is somewhat dependend on debt financing.
TQI has a better Debt to Equity ratio (0.80) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.82
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TQI may have some problems paying its short term obligations.
The Current ratio of TQI (0.66) is worse than 72.73% of its industry peers.
TQI has a Quick Ratio of 0.66. This is a bad value and indicates that TQI is not financially healthy enough and could expect problems in meeting its short term obligations.
TQI has a Quick ratio of 0.64. This is in the lower half of the industry: TQI underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 81.87% over the past year.
The Revenue for TQI has decreased by -10.33% in the past year. This is quite bad
Measured over the past years, TQI shows a decrease in Revenue. The Revenue has been decreasing by -5.45% on average per year.
EPS 1Y (TTM)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-5.32%
3.2 Future
TQI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.95% yearly.
TQI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.50% yearly.
EPS Next Y58.62%
EPS Next 2Y46.58%
EPS Next 3Y34.68%
EPS Next 5Y21.95%
Revenue Next Year-6.59%
Revenue Next 2Y-8.06%
Revenue Next 3Y-4.09%
Revenue Next 5Y-1.5%
3.3 Evolution
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
The Price/Earnings Ratio is negative for TQI. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 76.67, which means the current valuation is very expensive for TQI.
Based on the Price/Forward Earnings ratio, TQI is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
TQI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 76.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TQI is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TQI indicates a slightly more expensive valuation: TQI is more expensive than 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 3.54 |
4.3 Compensation for Growth
TQI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TQI's earnings are expected to grow with 34.68% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.58%
EPS Next 3Y34.68%
5. Dividend
5.1 Amount
No dividends for TQI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:TQI (12/15/2025, 7:00:00 PM)
0.4553
-0.05 (-9.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.74%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.72B
Revenue(TTM)20.63B
Net Income(TTM)-83.00M
Analysts80
Price Target0.48 (5.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.01
Dividend Growth(5Y)-10.69%
DP-202.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)45.79%
PT rev (3m)45.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-41.2%
EPS NY rev (3m)-41.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-10.29%
Revenue NY rev (3m)-10.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 76.67 | ||
| P/S | 0.47 | ||
| P/FCF | 18.35 | ||
| P/OCF | 4.36 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.54 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.01
Fwd EY1.3%
FCF(TTM)0.02
FCFY5.45%
OCF(TTM)0.1
OCFY22.93%
SpS0.97
BVpS0.56
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.23% | ||
| ROE | -0.7% | ||
| ROCE | 7.77% | ||
| ROIC | 5.47% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 34% | ||
| OM | 9.02% | ||
| PM (TTM) | N/A | ||
| GM | 42.94% | ||
| FCFM | 2.55% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.02%
ROIC(5y)2.6%
ROICexc(3y)3.61%
ROICexc(5y)3.07%
ROICexgc(3y)14.91%
ROICexgc(5y)10.96%
ROCE(3y)4.28%
ROCE(5y)3.69%
ROICexgc growth 3Y95.47%
ROICexgc growth 5Y24.12%
ROICexc growth 3Y51.8%
ROICexc growth 5Y5.15%
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 56.12% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 45.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.95 |
F-Score5
WACC6.65%
ROIC/WACC0.82
Cap/Depr(3y)86.41%
Cap/Depr(5y)95.79%
Cap/Sales(3y)22.88%
Cap/Sales(5y)26.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)81.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%162.96%
EPS Next Y58.62%
EPS Next 2Y46.58%
EPS Next 3Y34.68%
EPS Next 5Y21.95%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-5.32%
Revenue Next Year-6.59%
Revenue Next 2Y-8.06%
Revenue Next 3Y-4.09%
Revenue Next 5Y-1.5%
EBIT growth 1Y-29.6%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year206.34%
EBIT Next 3Y50.58%
EBIT Next 5Y29.8%
FCF growth 1Y134.11%
FCF growth 3YN/A
FCF growth 5Y-44.71%
OCF growth 1Y-46.07%
OCF growth 3Y-22.65%
OCF growth 5Y-19.54%
TELECOM ITALIA SPA / TQI.DE FAQ
What is the ChartMill fundamental rating of TELECOM ITALIA SPA (TQI.DE) stock?
ChartMill assigns a fundamental rating of 2 / 10 to TQI.DE.
Can you provide the valuation status for TELECOM ITALIA SPA?
ChartMill assigns a valuation rating of 2 / 10 to TELECOM ITALIA SPA (TQI.DE). This can be considered as Overvalued.
What is the profitability of TQI stock?
TELECOM ITALIA SPA (TQI.DE) has a profitability rating of 2 / 10.
What is the expected EPS growth for TELECOM ITALIA SPA (TQI.DE) stock?
The Earnings per Share (EPS) of TELECOM ITALIA SPA (TQI.DE) is expected to grow by 58.62% in the next year.
Is the dividend of TELECOM ITALIA SPA sustainable?
The dividend rating of TELECOM ITALIA SPA (TQI.DE) is 0 / 10 and the dividend payout ratio is -202.41%.