Loading...

Telefónica

DB:TNE2
Snowflake Description

Good value with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TNE2
DB
€37B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Telefónica, S.A. provides mobile and fixed communication services primarily in Europe and Latin America. The last earnings update was 10 days ago. More info.


Add to Portfolio Compare Print
TNE2 Share Price and Events
7 Day Returns
2.9%
DB:TNE2
0.4%
DE Telecom
-0.2%
DE Market
1 Year Returns
-10%
DB:TNE2
0.5%
DE Telecom
-10.3%
DE Market
TNE2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telefónica (TNE2) 2.9% -2.7% -4% -10% -23.6% -40.5%
DE Telecom 0.4% 0.7% 3.3% 0.5% -10.7% 5%
DE Market -0.2% -2.4% 4% -10.3% 11.2% 10.8%
1 Year Return vs Industry and Market
  • TNE2 underperformed the Telecom industry which returned 0.5% over the past year.
Price Volatility
TNE2
Industry
5yr Volatility vs Market
Related Companies

TNE2 Value

 Is Telefónica undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telefónica to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telefónica.

DB:TNE2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TNE2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 8.2%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.335 (1 + (1- 25%) (174.95%))
0.85
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.85 * 8.18%)
7.18%

Discounted Cash Flow Calculation for DB:TNE2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telefónica is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:TNE2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.18%)
2019 3,995.39 Analyst x9 3,727.84
2020 4,333.87 Analyst x12 3,772.88
2021 4,846.32 Analyst x6 3,936.47
2022 4,670.68 Est @ -3.62% 3,539.76
2023 4,555.38 Est @ -2.47% 3,221.19
2024 4,479.78 Est @ -1.66% 2,955.61
2025 4,430.81 Est @ -1.09% 2,727.54
2026 4,399.93 Est @ -0.7% 2,527.16
2027 4,381.47 Est @ -0.42% 2,348.04
2028 4,371.61 Est @ -0.23% 2,185.87
Present value of next 10 years cash flows €30,942.36
DB:TNE2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €4,371.61 × (1 + 0.23%) ÷ (7.18% – 0.23%)
€63,053.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €63,053.19 ÷ (1 + 7.18%)10
€31,527.58
DB:TNE2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €30,942.36 + €31,527.58
€62,469.94
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €62,469.94 / 5,126.64
€12.19
DB:TNE2 Discount to Share Price
Calculation Result
Value per share (EUR) From above. €12.22
Current discount Discount to share price of €7.20
= -1 x (€7.20 - €12.22) / €12.22
41.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telefónica is available for.
Intrinsic value
41%
Share price is €7.2 vs Future cash flow value of €12.22
Current Discount Checks
For Telefónica to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telefónica's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telefónica's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telefónica's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telefónica's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TNE2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.61
BME:TEF Share Price ** BME (2019-05-20) in EUR €7.18
Germany Telecom Industry PE Ratio Median Figure of 5 Publicly-Listed Telecom Companies 41.57x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telefónica.

DB:TNE2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:TEF Share Price ÷ EPS (both in EUR)

= 7.18 ÷ 0.61

11.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is good value based on earnings compared to the DE Telecom industry average.
  • Telefónica is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Telefónica's expected growth come at a high price?
Raw Data
DB:TNE2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
4%per year
Europe Telecom Industry PEG Ratio Median Figure of 36 Publicly-Listed Telecom Companies 2.94x
Germany Market PEG Ratio Median Figure of 273 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

DB:TNE2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.72x ÷ 4%

2.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Telefónica's assets?
Raw Data
DB:TNE2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €3.80
BME:TEF Share Price * BME (2019-05-20) in EUR €7.18
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.46x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:TNE2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:TEF Share Price ÷ Book Value per Share (both in EUR)

= 7.18 ÷ 3.80

1.89x

* Primary Listing of Telefónica.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is overvalued based on assets compared to the DE Telecom industry average.
X
Value checks
We assess Telefónica's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Telefónica has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TNE2 Future Performance

 How is Telefónica expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telefónica expected to grow at an attractive rate?
  • Telefónica's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Telefónica's earnings growth is positive but not above the Germany market average.
  • Telefónica's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TNE2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TNE2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 4%
DB:TNE2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 0.8%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TNE2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TNE2 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 51,610 13,983 1
2022-12-31 49,568 13,556 4,527 3
2021-12-31 49,192 13,649 4,083 15
2020-12-31 49,227 13,744 3,919 25
2019-12-31 48,549 13,932 3,946 20
DB:TNE2 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 49,311 14,461 3,140
2018-12-31 49,508 13,423 2,929
2018-09-30 49,754 13,143 2,585
2018-06-30 50,830 13,943 2,348
2018-03-31 51,916 13,674 2,701
2017-12-31 52,871 13,796 2,854
2017-09-30 53,442 13,899 2,327
2017-06-30 53,762 13,900 2,471
2017-03-31 53,519 13,874 2,344
2016-12-31 52,903 13,338 2,111
2016-09-30 53,091 -259
2016-06-30 53,939 13,248 -532

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telefónica's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
  • Telefónica's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TNE2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Telefónica Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TNE2 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.07 1.07 1.07 1.00
2022-12-31 0.92 0.99 0.87 3.00
2021-12-31 0.79 1.06 0.42 13.00
2020-12-31 0.76 0.96 0.42 21.00
2019-12-31 0.71 0.83 0.57 21.00
DB:TNE2 Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.61
2018-12-31 0.57
2018-09-30 0.50
2018-06-30 0.46
2018-03-31 0.53
2017-12-31 0.56
2017-09-30 0.46
2017-06-30 0.49
2017-03-31 0.46
2016-12-31 0.42
2016-09-30 -0.05
2016-06-30 -0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Telefónica is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telefónica's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telefónica has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TNE2 Past Performance

  How has Telefónica performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telefónica's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telefónica's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Telefónica's 1-year earnings growth exceeds its 5-year average (16.3% vs -4.7%)
  • Telefónica's earnings growth has exceeded the DE Telecom industry average in the past year (16.3% vs -44%).
Earnings and Revenue History
Telefónica's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telefónica Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TNE2 Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 49,311.00 3,140.00 2,100.00
2018-12-31 49,508.00 2,929.00 2,100.00
2018-09-30 49,754.00 2,585.00 2,280.00
2018-06-30 50,830.00 2,348.00 2,280.00
2018-03-31 51,916.00 2,701.00 2,280.00
2017-12-31 52,871.00 2,854.00 2,280.00
2017-09-30 53,442.00 2,327.00 2,332.00
2017-06-30 53,762.00 2,471.00 2,332.00
2017-03-31 53,519.00 2,344.00 2,332.00
2016-12-31 52,903.00 2,111.00 2,332.00
2016-09-30 53,091.00 -259.00 2,530.00
2016-06-30 53,939.00 -532.00 2,530.00
2016-03-31 56,873.00 418.00 2,530.00
2015-12-31 55,862.00 368.00 2,530.00
2015-09-30 53,802.00 2,863.00 1,879.00
2015-06-30 50,586.00 2,899.00 1,879.00
2015-03-31 45,429.00 2,278.00 1,879.00
2014-12-31 51,151.00 2,814.00 2,265.00
2014-09-30 46,174.00 3,785.00 2,237.00
2014-06-30 50,007.00 4,128.00 2,237.00
2014-03-31 53,924.00 4,259.00 2,237.00
2013-12-31 51,228.00 4,124.00 2,000.00
2013-09-30 59,056.00 3,618.00 2,687.00
2013-06-30 60,758.00 3,909.00 -4,021.00
2013-03-31 61,804.00 4,082.00 2,442.00
2012-12-31 63,178.00 3,928.00 2,687.00
2012-09-30 64,204.00 6,125.00 -7,094.00
2012-06-30 63,714.00 4,316.00 2,887.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Telefónica has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telefónica used its assets more efficiently than the DE Telecom industry average last year based on Return on Assets.
  • Telefónica has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telefónica's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telefónica has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TNE2 Health

 How is Telefónica's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telefónica's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telefónica's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Telefónica's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telefónica's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telefónica Company Filings, last reported 1 month ago.

DB:TNE2 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 28,517.00 64,371.00 11,333.00
2018-12-31 26,980.00 54,702.00 6,778.00
2018-09-30 25,194.00 55,988.00 8,342.00
2018-06-30 23,715.00 54,770.00 6,214.00
2018-03-31 27,219.00 55,903.00 7,763.00
2017-12-31 26,618.00 55,746.00 6,242.00
2017-09-30 26,685.00 57,408.00 6,050.00
2017-06-30 25,534.00 62,495.00 9,636.00
2017-03-31 29,903.00 64,750.00 11,114.00
2016-12-31 28,385.00 60,361.00 4,525.00
2016-09-30 27,093.00 61,171.00 6,248.00
2016-06-30 26,225.00 63,712.00 5,492.00
2016-03-31 27,775.00 60,393.00 5,811.00
2015-12-31 25,436.00 60,087.00 3,306.00
2015-09-30 29,714.00 61,449.00 6,810.00
2015-06-30 35,519.00 62,223.00 5,904.00
2015-03-31 32,670.00 60,329.00 7,777.00
2014-12-31 30,321.00 59,782.00 8,648.00
2014-09-30 30,619.00 59,796.00 14,409.00
2014-06-30 27,736.00 59,733.00 13,000.00
2014-03-31 27,198.00 56,031.00 10,970.00
2013-12-31 27,482.00 60,699.00 11,682.00
2013-09-30 27,364.00 61,062.00 11,716.00
2013-06-30 25,079.00 62,678.00 9,713.00
2013-03-31 28,666.00 64,344.00 8,985.00
2012-12-31 27,661.00 66,853.00 11,403.00
2012-09-30 26,194.00 69,334.00 9,899.00
2012-06-30 26,026.00 68,900.00 6,842.00
  • Telefónica's level of debt (225.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (206.1% vs 225.7% today).
  • Debt is well covered by operating cash flow (22.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Telefónica's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Telefónica has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TNE2 Dividends

 What is Telefónica's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.57%
Current annual income from Telefónica dividends. Estimated to be 5.7% next year.
If you bought €2,000 of Telefónica shares you are expected to receive €111 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telefónica's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • Telefónica's dividend is above the markets top 25% of dividend payers in Germany (3.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TNE2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TNE2 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.40 1.00
2022-12-31 0.43 3.00
2021-12-31 0.42 14.00
2020-12-31 0.41 25.00
2019-12-31 0.40 25.00
DB:TNE2 Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.400 5.359
2018-07-26 0.400 5.457
2018-02-22 0.400 5.096
2018-02-15 0.400 5.224
2017-10-26 0.400 4.785
2017-03-29 0.400 4.199
2017-02-23 0.400 3.931
2016-02-26 0.400 4.444
2015-02-27 0.750 6.346
2015-02-25 0.750 5.407
2015-01-27 0.750 5.668
2014-11-12 0.750 6.090
2014-10-21 0.750 6.382
2014-03-20 0.750 6.240
2014-02-27 0.750 6.707
2014-01-28 0.750 6.615
2013-06-03 0.750 6.675
2013-04-29 0.000 0.000
2013-03-21 0.000 0.000
2013-03-20 0.000 0.000
2013-03-01 0.000 0.000
2013-02-28 0.000 0.000
2012-11-07 0.000 0.000
2012-07-25 0.000 0.000
2012-03-29 1.660 16.187
2012-02-24 1.660 13.100
2011-12-22 1.540 11.611
2011-11-11 1.540 11.413
2011-10-17 1.540 10.352
2011-07-28 1.540 10.850
2011-05-13 1.750 10.713
2011-04-29 1.600 9.164
2011-04-15 1.500 8.447
2011-02-25 1.500 8.392
2010-07-29 1.400 7.801
2010-05-13 1.300 8.207
2010-04-28 1.300 7.971
2009-10-09 1.400 7.644

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Telefónica's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Telefónica's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telefónica afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telefónica has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TNE2 Management

 What is the CEO of Telefónica's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
José Álvarez-Pallete López
COMPENSATION €5,407,782
AGE 55
TENURE AS CEO 3.1 years
CEO Bio

Mr. José María Álvarez-Pallete López has been the Chief Executive Officer of Telefónica Latinoamérica, a subsidiary of Telefonica S.A. since 2002. Mr. López has been Chief Executive Officer at Telefónica, S.A. since April 2016. In addition, he holds the position of Representative of Telefónica as an Advisor of TPI, Telefónica Móviles SA, Telefónica Data SA, Inmobiliaria Telefónica and Telefónica de Argentina S.A. He serves as a trustee of the Telefónica Foundation and he has served, from September 11, 2011, to September 2012, as Chairman of Telefónica Europe. Mr. López served as the Chief Operating Officer at Telefónica, S.A. from September 17, 2012 to April 2016. He served as an Executive President of Telefónica International S.A., a subsidiary of Telecomunicacoes de Sao Paulo SA since July 24, 2002. He served as Chairman and Chief Executive Officer at Telefónica Internacional, S.A.U. since 2002. He served as Chairman, Chief Executive Officer and President of Telefónica International, S.A. since July 24, 2002. He served as an Advisor of Telefónica Holding de Argentina S.A. and Telefónica International S.A. He served as Chief Financial Officer of Telefónica International S.A. since February 1999. He served as the Corporate Chief Financial Officer at Telefónica S.A. since September 1999. Mr. López joined Telefónica in February 1999 as General Manager of Finance. He served as General Manager of Corporate Finance at Telefónica, S.A. since September 1999. In 1995, Mr. López joined Cía. Valenciana de Cementos Portland (CEMEX) as head of the Investor Relations and Studies department. He served as Financial Manager of Spain and General Manager of Administration and Finance at the CEMEX since 1996 and since 1998 respectively. He began his professional career with the auditor firm Arthur Young in 1987. He joined Benito & Monjardín/Kidder, Peabody & Co. in 1988. Mr. López took a company associate course in 1991 at New York and was subsequently involved in several of GE's investment projects in Spain. Mr. López serves as Vice Chairman of Telefonica de Argentina S.A and has been its Director since 2003. He serves as Chairman of the Board at Compania Internacional De Telecomunicaciones, S.A. He has been the Executive Chairman of Telefónica, S.A. since April 8, 2016. He has been Chairman of Telefónica Holding de Argentina S.A. since 2002. He has been Vice Chairman of Telecomunicacoes de Sao Paulo SA - TELESP since March 27, 2003. He serves as a Member of the Board of Director of Telefonica Larga Distancia De Puerto Rico, Inc. Mr. López has been a Non-Executive Director of China Netcom Group Corp. (Hong Kong) Ltd. since September 12, 2005. He has been a Director of Telefónica International since January 2001. He serves as an Executive Director of Telefónica, S.A. Mr. López also serves as Member of the Board of Directors of Telefónica Datacorp., Telefónica Mundo, Colombia Telecom and Brasilcel, N.V. He served as Deputy Chairman/Vice-Chairman of Telefonica Brasil, S.A. and Telefónica Chile, S.A. since April 22, 2003. He served as Vice-Chairman of the Board of Directors of Telesp, S.A. and Telefónica Móviles México, S.A. He served as the Chairman of Supervisory Board at Telefónica Czech Republic AS (formerly name Telefonica 02 Czech Republic) until November 5, 2012. He served as Vice Chairman of Telefonica of Argentina, Inc. He has been an Executive Director of Telefónica Latinoamérica since July 26, 2006. Mr. López served as Non-Executive Director for China Netcom Group Corporation (Hong Kong) Limited since September 12, 2005. Since 1999, he has held several positions within the Telefónica Group, including General Manager of Finance at Telefónica Internacional, S.A.U., and Chairman of Telefónica Latin America. He was a member of the Board of the Cemex Group in Indonesia, among other companies. He served as a Director of Telefónica Europe plc (Telefónica O2 Europe plc) since September 19, 2006, Telefónica de España since January 2000, Telefónica Data since April 2000, Inmobiliaria Telefónica since April 2001, TPI since April 2001, Telefónica de Argentina since September 2002, Telefónica Perú since November 2002, Telefónica Móviles México since February 2000 and Cointel since November 2002. He served as a Director of Telefonica Moviles SA since February 14, 2000. He served as a Member of Supervisory Board at Telefónica Czech Republic AS until November 5, 2012. He served as a Director of Telefónica Chile, S.A. since April 22, 2003. He served as Director of hibu Connect, S.A. He served as a Director of Portugal Telecom SGPS SA from February 12, 2008 to September 27, 2010. In 2001, he was granted the best “CFO Europe Best Practices” award in the Mergers & Acquisitions category for the year 2000. In April 2003, he was appointed Member of Merit at the Ibero-American Forum of the Fundación Carlos III and in July 2007 he was awarded the Gold Master of the Executive Management Forum. On October 4, 2011 he received the Personality of the Year in Economics Award, granted by Spanish newspaper “El Economista”. In December 2013, he received the Excellence 2013 Award and Fast Company magazine named him one of the 100 most creative Personalities in Business during 2014. He received the 2014 Sorolla Medal from the Hispanic Society of America. In 2017, he was named the "Best CEO 2016" in Spain by Forbes. Mr. López holds a degree in Economics/Economic Sciences from Complutense University of Madrid. He also studied economics/Economic Sciences at the Université Libre in Belgium, completed the International Management Program (IMP) at the Instituto Panamericano de Desarrollo de Directivos (IPADE) and holds the Diploma of Advanced Studies (DEA)/an Advanced Research Degree from the Department of Financial Economics and Accounting of Complutense University of Madrid. He served as a Member of Supervisory Board at Telefónica Deutschland Holding AG until May 12, 2015. He serves as the Chairman and Chief Executive Officer of Telefónica Venezolana, C.A.

CEO Compensation
  • José's compensation has been consistent with company performance over the past year, both up more than 20%.
  • José's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Telefónica management team in years:

1.8
Average Tenure
54.5
Average Age
  • The average tenure for the Telefónica management team is less than 2 years, this suggests a new team.
Management Team

José Álvarez-Pallete López

TITLE
Executive Chairman & CEO
COMPENSATION
€5M
AGE
55
TENURE
3.1 yrs

Ángel Boix

TITLE
COO & Executive Director
COMPENSATION
€4M
AGE
54
TENURE
1.8 yrs

Laura Abasolo de Baquedano

TITLE
Chief Finance & Control Officer
AGE
46
TENURE
1.8 yrs

Enrique Blanco

TITLE
Global Chief Technology Officer

Pablo Eguiron Vidarte

TITLE
Head of Investor Relations
TENURE
9.8 yrs

Pablo De Carvajal González

TITLE
General Counsel
AGE
55
TENURE
1.3 yrs

José Luis Gómez-Navarro

TITLE
Head of Corporate Communication & Institutional Marketing

Enrique Lloves

TITLE
Chief of Strategy & Corporate Development
AGE
53
TENURE
1.8 yrs

Marta Machicot

TITLE
Chief HR Officer
TENURE
1.3 yrs

Guillermo Ansaldo Lutz

TITLE
Chief Global Resources Officer
AGE
56
TENURE
11.4 yrs
Board of Directors Tenure

Average tenure and age of the Telefónica board of directors in years:

9.6
Average Tenure
60.5
Average Age
  • The tenure for the Telefónica board of directors is about average.
Board of Directors

Isidro Fainé Casas

TITLE
Vice Chairman
COMPENSATION
€280K
AGE
76
TENURE
25.3 yrs

José Álvarez-Pallete López

TITLE
Executive Chairman & CEO
COMPENSATION
€5M
AGE
55
TENURE
12.8 yrs

José María Pérez

TITLE
Vice Chairman
COMPENSATION
€300K
AGE
66
TENURE
11.8 yrs

Ángel Boix

TITLE
COO & Executive Director
COMPENSATION
€4M
AGE
54
TENURE
1.8 yrs

Antonio Valente da Silva

TITLE
Chairman of Telefônica Brasil S A
AGE
65

Markus Haas

TITLE
CEO & Chairman of Telefónica Deutschland Holding AG
AGE
46
TENURE
2.3 yrs

Christian Mauad Gebara

TITLE
Chairman & CEO of Telefónica Brasil
AGE
45

Peter Erskine

TITLE
External Director
COMPENSATION
€246K
AGE
67
TENURE
13.3 yrs

Francisco de Paz Mancho

TITLE
Lead Director
COMPENSATION
€280K
AGE
60
TENURE
3.1 yrs

Ignacio Martínez

TITLE
Proprietary Director
COMPENSATION
€190K
AGE
61
TENURE
7.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Telefónica's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Telefónica has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TNE2 News

Simply Wall St News

TNE2 Company Info

Description

Telefónica, S.A. provides mobile and fixed communication services primarily in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary and business oriented value-added; video telephony; intelligent network; and telephony information services. The company also leases and sells handset equipment, as well as provides Internet and broadband multimedia services comprising Internet service provider; portal and network; retail and wholesale broadband access; narrowband switched access to Internet; high-speed Internet services through fiber to the home; and voice over Internet protocol services. In addition, it offers data and business-solutions services that include leased lines; virtual private network; fiber optics; hosting and application; outsourcing and consultancy; desktop; and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection; international wholesale; leased lines for other operators’ network deployment; and local loop leasing under the unbundled local loop regulation framework, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators’ fiber deployment. Additionally, it provides Internet protocol television (TV), over-the-top network TV, cable and satellite TV, and pay TV services; M2M connectivity platforms; financial and other payment, security, cloud computing, advertising, big data, and digital telco experience services; and Aura and Movistar Home. The company was founded in 1924 and is headquartered in Madrid, Spain.

Details
Name: Telefónica, S.A.
TNE2
Exchange: DB
Founded: 1924
€36,793,863,457
5,126,635,566
Website: http://www.telefonica.com
Address: Telefónica, S.A.
Distrito Telefónica,
Ronda de la Comunicación, s/n,
Madrid,
Madrid, 28050,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME TEF Ordinary Shares Bolsas y Mercados Espanoles ES EUR 02. Jan 1980
OTCPK TEFO.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1980
DB TNE5 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1980
XTRA TNE5 Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1980
LSE 0TDE Ordinary Shares London Stock Exchange GB EUR 02. Jan 1980
ENXTBR TFA Ordinary Shares Euronext Brussels BE EUR 02. Jan 1980
BIT TEF Ordinary Shares Borsa Italiana IT EUR 02. Jan 1980
BASE TEF Ordinary Shares Buenos Aires Stock Exchange AR ARS 02. Jan 1980
WBAG TEF Ordinary Shares Wiener Boerse AG AT EUR 02. Jan 1980
BATS-CHIXE TEFE Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1980
NYSE TEF ADR EA REPR 1 ORD NPV New York Stock Exchange US USD 12. Jun 1987
DB TNE2 ADR EA REPR 1 ORD NPV Deutsche Boerse AG DE EUR 12. Jun 1987
XTRA TNE2 ADR EA REPR 1 ORD NPV XETRA Trading Platform DE EUR 12. Jun 1987
BMV TEF N ADR EA REPR 1 ORD NPV Bolsa Mexicana de Valores MX MXN 12. Jun 1987
BVL TEF ADR EA REPR 1 ORD NPV Bolsa de Valores de Lima PE USD 12. Jun 1987
Number of employees
Current staff
Staff numbers
119,111
Telefónica employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 20:54
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/18
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.