Telecom Italia S.p.A.
Telecom Italia S.p.A. Fundamental Analysis
Telecom Italia S.p.A. (TQI.DE) shows weak financial fundamentals with a PE ratio of 12.56, profit margin of 2.24%, and ROE of 2.57%. The company generates $49.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TQI.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakTQI.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTQI.DE trades at attractive valuation levels.
Growth Score
WeakTQI.DE faces weak or negative growth trends.
Financial Health Score
WeakTQI.DE carries high financial risk with limited liquidity.
Profitability Score
ModerateTQI.DE maintains healthy but balanced margins.
Key Financial Metrics
Is TQI.DE Expensive or Cheap?
P/E Ratio
TQI.DE trades at 12.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TQI.DE'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 0.58 times EBITDA. This is generally considered low.
How Well Does TQI.DE Make Money?
Net Profit Margin
For every $100 in sales, Telecom Italia S.p.A. keeps $2.24 as profit after all expenses.
Operating Margin
Core operations generate 11.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.57 in profit for every $100 of shareholder equity.
ROA
Telecom Italia S.p.A. generates $0.84 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 $9.26B, showing steady but balanced cash generation.
Free Cash Flow
Telecom Italia S.p.A. produces free cash flow of $1.80B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
TQI.DE converts 3.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.56
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
1.02
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
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TQI.DE Stacks Against Its Sector Peers
| Metric | TQI.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.56 | 22.85 | Better (Cheaper) |
| ROE | 2.57% | 996.00% | Weak |
| Net Margin | 2.24% | -61392.00% (disorted) | Weak |
| Debt/Equity | 1.13 | 1.12 | Neutral |
| Current Ratio | 0.77 | 1.65 | Weak Liquidity |
| ROA | 0.84% | -583086.00% (disorted) | Weak |
TQI.DE 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
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming