TELECOM ITALIA SPA (TQI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TQI - IT0003497168 - Common Stock
0.451 EUR
-0.01 (-2.91%)
Taking everything into account, TQI scores 2 out of 10 in our fundamental rating. TQI was compared to 28 industry peers in the Diversified Telecommunication Services industry. TQI has a bad profitability rating. Also its financial health evaluation is rather negative. TQI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TQI has reported negative net income.
TQI had a positive operating cash flow in the past year.
In multiple years TQI reported negative net income over the last 5 years.
In the past 5 years TQI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TQI (-3.25%) is worse than 71.43% of its industry peers.
The Return On Equity of TQI (-15.58%) is worse than 71.43% of its industry peers.
The Return On Invested Capital of TQI (4.63%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TQI is significantly below the industry average of 7.65%.
The 3 year average ROIC (1.65%) for TQI is below the current ROIC(4.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.25% | ||
| ROE | -15.58% | ||
| ROIC | 4.63% |
ROA(3y)-6.51%
ROA(5y)-1.67%
ROE(3y)-26.55%
ROE(5y)-9.52%
ROIC(3y)1.65%
ROIC(5y)2.34%
1.3 Margins
TQI has a Operating Margin (11.33%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TQI has declined.
TQI's Gross Margin of 55.97% is in line compared to the rest of the industry. TQI outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of TQI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.33% | ||
| PM (TTM) | N/A | ||
| GM | 55.97% |
OM growth 3Y-13.89%
OM growth 5Y-12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.68%
GM growth 5Y-3.33%
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.
Compared to 1 year ago, TQI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that TQI is in the distress zone and has some risk of bankruptcy.
TQI has a Altman-Z score of 0.48. This is in the lower half of the industry: TQI underperforms 71.43% of its industry peers.
TQI has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, TQI is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.77
WACC5.98%
2.3 Liquidity
TQI has a Current Ratio of 0.37. This is a bad value and indicates that TQI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TQI (0.37) is worse than 82.14% of its industry peers.
A Quick Ratio of 0.36 indicates that TQI may have some problems paying its short term obligations.
The Quick ratio of TQI (0.36) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
TQI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.08%, which is quite impressive.
TQI shows a decrease in Revenue. In the last year, the revenue decreased by -1.46%.
The Revenue has been decreasing by -2.96% on average over the past years.
EPS 1Y (TTM)68.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.59%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y1.02%
Revenue growth 5Y-2.96%
Sales Q2Q%76.57%
3.2 Future
The Earnings Per Share is expected to grow by 30.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, TQI will show a decrease in Revenue. The Revenue will decrease by -0.62% on average per year.
EPS Next Y93.51%
EPS Next 2Y50.08%
EPS Next 3Y37.26%
EPS Next 5Y30.31%
Revenue Next Year-5.58%
Revenue Next 2Y-2.93%
Revenue Next 3Y-1.43%
Revenue Next 5Y-0.62%
3.3 Evolution
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
The Price/Earnings Ratio is negative for TQI. In the last year negative earnings were reported.
TQI is valuated quite expensively with a Price/Forward Earnings ratio of 44.65.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TQI indicates a slightly more expensive valuation: TQI is more expensive than 67.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. TQI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 44.65 |
4.2 Price Multiples
TQI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TQI is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TQI's earnings are expected to grow with 37.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.08%
EPS Next 3Y37.26%
5. Dividend
5.1 Amount
No dividends for TQI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:TQI (11/24/2025, 7:00:00 PM)
0.451
-0.01 (-2.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners16.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.63B
Revenue(TTM)23.55B
Net Income(TTM)-1.99B
Analysts77
Price Target0.33 (-26.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-6.11%
DP-9.02%
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)2
Avg Revenue beat(2)38.1%
Min Revenue beat(2)1.89%
Max Revenue beat(2)74.3%
Revenue beat(4)2
Avg Revenue beat(4)11.95%
Min Revenue beat(4)-18.11%
Max Revenue beat(4)74.3%
Revenue beat(8)3
Avg Revenue beat(8)17.88%
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)10.25%
PT rev (3m)5.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)85.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 44.65 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 3.33 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.63 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.01
Fwd EY2.24%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.14
OCFY30%
SpS1.1
BVpS0.6
TBVpS-0.22
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.25% | ||
| ROE | -15.58% | ||
| ROCE | 6.58% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.95% | ||
| ROICexgc | 9.22% | ||
| OM | 11.33% | ||
| PM (TTM) | N/A | ||
| GM | 55.97% | ||
| FCFM | N/A |
ROA(3y)-6.51%
ROA(5y)-1.67%
ROE(3y)-26.55%
ROE(5y)-9.52%
ROIC(3y)1.65%
ROIC(5y)2.34%
ROICexc(3y)1.9%
ROICexc(5y)2.61%
ROICexgc(3y)5.08%
ROICexgc(5y)6.31%
ROCE(3y)2.34%
ROCE(5y)3.32%
ROICexgc growth 3Y6.56%
ROICexgc growth 5Y-16.01%
ROICexc growth 3Y-3.21%
ROICexc growth 5Y-11.92%
OM growth 3Y-13.89%
OM growth 5Y-12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.68%
GM growth 5Y-3.33%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 78.58% | ||
| Cap/Sales | 13.57% | ||
| Interest Coverage | 1.17 | ||
| Cash Conversion | 42.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 0.48 |
F-Score4
WACC5.98%
ROIC/WACC0.77
Cap/Depr(3y)110.53%
Cap/Depr(5y)106.65%
Cap/Sales(3y)32.96%
Cap/Sales(5y)31.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%21.59%
EPS Next Y93.51%
EPS Next 2Y50.08%
EPS Next 3Y37.26%
EPS Next 5Y30.31%
Revenue 1Y (TTM)-1.46%
Revenue growth 3Y1.02%
Revenue growth 5Y-2.96%
Sales Q2Q%76.57%
Revenue Next Year-5.58%
Revenue Next 2Y-2.93%
Revenue Next 3Y-1.43%
Revenue Next 5Y-0.62%
EBIT growth 1Y72.53%
EBIT growth 3Y-13%
EBIT growth 5Y-15.3%
EBIT Next Year338.05%
EBIT Next 3Y65.19%
EBIT Next 5Y34.25%
FCF growth 1Y66.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.07%
OCF growth 3Y-15.56%
OCF growth 5Y-3%
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 3 / 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 3 / 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 93.51% 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 -9.02%.