Telecom Italia S.p.A.
Telecom Italia S.p.A. Fundamental Analysis
Telecom Italia S.p.A. (TIIAY) shows weak financial fundamentals with a PE ratio of 13.21, profit margin of 2.17%, and ROE of 2.47%. The company generates $4.7B in annual revenue with weak year-over-year growth of 0.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TIIAY's fundamental strength across five key dimensions:
Efficiency Score
WeakTIIAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTIIAY trades at attractive valuation levels.
Growth Score
ModerateTIIAY shows steady but slowing expansion.
Financial Health Score
WeakTIIAY carries high financial risk with limited liquidity.
Profitability Score
ModerateTIIAY maintains healthy but balanced margins.
Key Financial Metrics
Is TIIAY Expensive or Cheap?
P/E Ratio
TIIAY trades at 13.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TIIAY's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Telecom Italia S.p.A. at 0.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.21 times EBITDA. This is generally considered low.
How Well Does TIIAY Make Money?
Net Profit Margin
For every $100 in sales, Telecom Italia S.p.A. keeps $2.17 as profit after all expenses.
Operating Margin
Core operations generate 11.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.47 in profit for every $100 of shareholder equity.
ROA
Telecom Italia S.p.A. generates $0.81 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 $884.25M, showing steady but balanced cash generation.
Free Cash Flow
Telecom Italia S.p.A. produces free cash flow of $220.67M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.04 in free cash annually.
FCF Yield
TIIAY converts 48.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TIIAY Stacks Against Its Sector Peers
| Metric | TIIAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.21 | 22.85 | Better (Cheaper) |
| ROE | 2.47% | 996.00% | Weak |
| Net Margin | 2.17% | -61402.00% (disorted) | Weak |
| Debt/Equity | 1.13 | 1.12 | Neutral |
| Current Ratio | 0.77 | 1.65 | Weak Liquidity |
| ROA | 0.81% | -583089.00% (disorted) | Weak |
TIIAY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
-20.31%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-166.05%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-45.66%
Industry Style: Growth, Technology, Streaming
Declining