TELECOM ITALIA SPA (TQI.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:TQI • IT0003497168
0.5808 EUR
0 (-0.38%)
Last: Jan 29, 2026, 07:00 PM
TQI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 35 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
- TQI had negative earnings in the past year.
- TQI had a positive operating cash flow in the past year.
- TQI had negative earnings in 4 of the past 5 years.
- TQI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TQI (-0.23%) is worse than 77.14% of its industry peers.
- The Return On Equity of TQI (-0.70%) is worse than 77.14% of its industry peers.
- With a Return On Invested Capital value of 5.47%, TQI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TQI is significantly below the industry average of 8.42%.
- 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
- With a Operating Margin value of 9.02%, TQI is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
- TQI's Operating Margin has declined in the last couple of years.
- TQI's Gross Margin of 42.94% is on the low side compared to the rest of the industry. TQI is outperformed by 62.86% of its industry peers.
- 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
- TQI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- TQI has about the same amout of shares outstanding than it did 1 year ago.
- TQI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TQI has an improved debt to assets ratio.
2.2 Solvency
- TQI has an Altman-Z score of 1.01. This is a bad value and indicates that TQI is not financially healthy and even has some risk of bankruptcy.
- TQI's Altman-Z score of 1.01 is on the low side compared to the rest of the industry. TQI is outperformed by 60.00% of its industry peers.
- 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.
- The Debt to FCF ratio of TQI (26.15) is worse than 74.29% of its industry peers.
- TQI has a Debt/Equity ratio of 0.80. This is a neutral value indicating TQI is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.80, TQI is doing good in the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 26.15 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.83
WACC6.56%
2.3 Liquidity
- TQI has a Current 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's Current ratio of 0.66 is on the low side compared to the rest of the industry. TQI is outperformed by 74.29% of its industry peers.
- A Quick Ratio of 0.64 indicates that TQI may have some problems paying its short term obligations.
- The Quick ratio of TQI (0.64) is worse than 74.29% 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
- Based on estimates for the next years, TQI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.95% on average per year.
- The Revenue is expected to decrease by -1.50% on average over the next years.
EPS Next Y58.62%
EPS Next 2Y45.5%
EPS Next 3Y35%
EPS Next 5Y21.95%
Revenue Next Year-6.59%
Revenue Next 2Y-8.02%
Revenue Next 3Y-4.07%
Revenue Next 5Y-1.5%
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 124.20.
- TQI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TQI is more expensive than 74.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. TQI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 124.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TQI is valued cheaper than 94.29% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TQI is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.4 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as TQI's earnings are expected to grow with 35.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.5%
EPS Next 3Y35%
5. Dividend
5.1 Amount
- No dividends for TQI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
What is the valuation status of TELECOM ITALIA SPA (TQI.DE) stock?
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.
Can you provide the financial health for TQI stock?
The financial health rating of TELECOM ITALIA SPA (TQI.DE) is 1 / 10.
Can you provide the expected EPS growth for TQI stock?
The Earnings per Share (EPS) of TELECOM ITALIA SPA (TQI.DE) is expected to grow by 58.62% in the next year.