Telecom Italia S.p.A.
Telecom Italia S.p.A. Fundamental Analysis
Telecom Italia S.p.A. (TIAJF) shows weak financial fundamentals with a PE ratio of 137.60, profit margin of 0.93%, and ROE of 1.06%. The company generates $13.8B in annual revenue with weak year-over-year growth of -4.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TIAJF's fundamental strength across five key dimensions:
Efficiency Score
WeakTIAJF struggles to generate sufficient returns from assets.
Valuation Score
ModerateTIAJF shows balanced valuation metrics.
Growth Score
WeakTIAJF faces weak or negative growth trends.
Financial Health Score
WeakTIAJF carries high financial risk with limited liquidity.
Profitability Score
ModerateTIAJF maintains healthy but balanced margins.
Key Financial Metrics
Is TIAJF Expensive or Cheap?
P/E Ratio
TIAJF trades at 137.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TIAJF's PEG of -0.50 indicates potential undervaluation.
Price to Book
The market values Telecom Italia S.p.A. at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.17 times EBITDA. This is generally considered low.
How Well Does TIAJF Make Money?
Net Profit Margin
For every $100 in sales, Telecom Italia S.p.A. keeps $0.93 as profit after all expenses.
Operating Margin
Core operations generate 10.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.06 in profit for every $100 of shareholder equity.
ROA
Telecom Italia S.p.A. generates $0.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telecom Italia S.p.A. produces operating cash flow of $2.53B, showing steady but balanced cash generation.
Free Cash Flow
Telecom Italia S.p.A. generates weak or negative free cash flow of $414.24M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
TIAJF converts 2.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
137.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TIAJF Stacks Against Its Sector Peers
| Metric | TIAJF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 137.60 | 23.97 | Worse (Expensive) |
| ROE | 1.06% | 990.00% | Weak |
| Net Margin | 0.93% | -58825.00% (disorted) | Weak |
| Debt/Equity | 1.21 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.92 | 1.70 | Weak Liquidity |
| ROA | 0.34% | -6510.00% (disorted) | Weak |
TIAJF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telecom Italia S.p.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.00%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-85.61%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-22.42%
Industry Style: Growth, Technology, Streaming
Declining