Telefónica (BME:TEF) Use Of Debt Could Be Considered Risky
Feb 04
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Spanish (IBEX) Telecom Sector Analysis
UpdatedFeb 16, 2025
DataAggregated Company Financials
Companies10
- 7D0.5%
- 3M-0.5%
- 1Y5.7%
- YTD3.0%
The Telecom industry has stayed flat over the last week. The past year has been better, since the industry has gained 5.7% in that time. As for the next few years, earnings are expected to grow by 51% per annum.
Sector Valuation and Performance
Has the Spanish Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 16 Feb 2025 | €47.4b | €46.1b | -€1,482,701,204.00 | 11.2x | -32x | 1x |
| Tue, 14 Jan 2025 | €43.8b | €46.1b | -€1,482,701,204.00 | 10.3x | -29.5x | 0.9x |
| Thu, 12 Dec 2024 | €49.1b | €46.4b | -€1,480,921,364.00 | 9.8x | -33.1x | 1.1x |
| Sat, 09 Nov 2024 | €48.5b | €46.4b | -€1,753,552,883.00 | 10.8x | -27.7x | 1x |
| Mon, 07 Oct 2024 | €51.7b | €46.7b | -€1,252,048,684.00 | 13.2x | -41.3x | 1.1x |
| Wed, 04 Sep 2024 | €49.6b | €46.7b | -€1,252,048,684.00 | 14.8x | -39.6x | 1.1x |
| Fri, 02 Aug 2024 | €48.6b | €46.6b | -€980,077,684.00 | 14.7x | -49.6x | 1x |
| Sun, 30 Jun 2024 | €45.0b | €46.4b | -€974,743,684.00 | 14.4x | -46.2x | 1x |
| Tue, 28 May 2024 | €49.2b | €46.4b | -€971,406,347.00 | 15.2x | -50.6x | 1.1x |
| Thu, 25 Apr 2024 | €46.8b | €46.3b | -€1,247,792,214.00 | 14.1x | -37.5x | 1x |
| Sat, 23 Mar 2024 | €47.6b | €46.3b | -€1,246,855,629.00 | 18.3x | -38.2x | 1x |
| Mon, 19 Feb 2024 | €45.1b | €46.3b | €1.4b | 18.7x | 31.6x | 1x |
| Wed, 17 Jan 2024 | €48.5b | €47.1b | €1.6b | 13.4x | 30.3x | 1x |
| Fri, 15 Dec 2023 | €48.8b | €47.1b | €1.6b | 13.5x | 30.6x | 1x |
| Sun, 12 Nov 2023 | €44.8b | €47.8b | €1.6b | 13.7x | 28.1x | 0.9x |
| Tue, 10 Oct 2023 | €44.9b | €47.7b | €1.5b | 14.6x | 29.9x | 0.9x |
| Thu, 07 Sep 2023 | €48.5b | €47.7b | €1.5b | 15.3x | 32.2x | 1x |
| Sat, 05 Aug 2023 | €43.8b | €47.7b | €1.5b | 13.8x | 29.1x | 0.9x |
| Mon, 03 Jul 2023 | €49.5b | €47.4b | €1.4b | 18.1x | 36x | 1x |
| Wed, 31 May 2023 | €51.1b | €47.4b | €1.4b | 21.8x | 37.1x | 1.1x |
| Fri, 28 Apr 2023 | €52.5b | €46.6b | €1.8b | 21.3x | 29.2x | 1.1x |
| Sun, 26 Mar 2023 | €47.8b | €46.5b | €1.8b | 19.8x | 26.5x | 1x |
| Tue, 21 Feb 2023 | €50.7b | €46.0b | -€124,163,591.00 | 35.4x | -408.5x | 1.1x |
| Thu, 19 Jan 2023 | €46.6b | €46.0b | -€124,163,591.00 | 35.6x | -375.5x | 1x |
| Sat, 17 Dec 2022 | €42.7b | €46.0b | -€119,771,255.00 | 37.9x | -356.8x | 0.9x |
| Mon, 14 Nov 2022 | €48.7b | €45.7b | -€109,125,256.00 | 33.8x | -446x | 1.1x |
| Wed, 12 Oct 2022 | €41.9b | €44.5b | €136.4m | 26.6x | 307.1x | 0.9x |
| Fri, 09 Sep 2022 | €50.0b | €44.5b | €136.4m | 26.6x | 366.3x | 1.1x |
| Sun, 07 Aug 2022 | €54.7b | €44.5b | €136.4m | 28.7x | 400.7x | 1.2x |
| Tue, 05 Jul 2022 | €56.3b | €44.4b | €7.6b | 6.7x | 7.4x | 1.3x |
| Thu, 02 Jun 2022 | €57.8b | €44.5b | €7.6b | 16.4x | 7.6x | 1.3x |
| Sat, 30 Apr 2022 | €59.4b | €44.8b | €7.9b | 18.7x | 7.6x | 1.3x |
| Mon, 28 Mar 2022 | €56.6b | €44.8b | €7.9b | 19.8x | 7.2x | 1.3x |
| Wed, 23 Feb 2022 | €54.8b | €44.9b | €10.1b | 36.9x | 5.4x | 1.2x |
Price to Earnings Ratio
5.4x
Current Industry PE
- Investors are relatively neutral on the Spanish Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
- Total earnings for the Communication Services industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Spanish Telecom sector?
| ES Market | 2.26% | |
| Telecom | 0.49% | |
| Entertainment | 6.59% | |
| Media | 1.17% | |
| Telecom Services and Carriers | 0.45% | |
| Interactive Media and Services | 0% | 0 |
| Wireless Telecom | 0% | 0 |
Industry PE
- Investors are most optimistic about the Entertainment industry even though it's trading below its 3-year average PE ratio of 31.0x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 53% over the next 5 years.
- In contrast, the Media industry is expected to see its earnings decline by 3.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TEF Telefónica | €4.14 | 0.9% +€197.3m | 16.2% | PS0.6x | |
| A3M Atresmedia Corporación de Medios de Comunicación | €4.61 | 1.7% +€16.9m | 29.0% | PE5.8x | |
| SQRL Squirrel Media | €1.57 | 6.8% +€9.1m | 6.8% | PE11.2x | |
| CLNX Cellnex Telecom | €31.86 | 0.03% +€7.1m | -3.9% | PS5.6x | |
| PAR Parlem Telecom Companyia de Telecomunicacions | €3.20 | 1.9% +€1.2m | 12.3% | PS1.4x |