Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America.
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Price History & Performance
|Historical stock prices|
|Current Share Price||€3.77|
|52 Week High||€2.71|
|52 Week Low||€4.32|
|1 Month Change||-7.38%|
|3 Month Change||0.29%|
|1 Year Change||22.65%|
|3 Year Change||-44.93%|
|5 Year Change||-59.17%|
|Change since IPO||95.57%|
Recent News & Updates
Here's Why We Think Telefónica (BME:TEF) Is Well Worth Watching
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Telefónica (BME:TEF) Is Doing The Right Things To Multiply Its Share Price
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...
Is It Too Late To Consider Buying Telefónica, S.A. (BME:TEF)?
Let's talk about the popular Telefónica, S.A. ( BME:TEF ). The company's shares saw a double-digit share price rise of...
|TEF||ES Telecom||ES Market|
Return vs Industry: TEF exceeded the Spanish Telecom industry which returned 11.6% over the past year.
Return vs Market: TEF underperformed the Spanish Market which returned 23.8% over the past year.
Stable Share Price: TEF is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TEF's weekly volatility (3%) has been stable over the past year.
About the Company
|1924||111,490||Jose María Alvarez-Pallete Lopez||https://www.telefonica.com|
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data, Internet, wholesale, corporate, roaming, fixed wireless, 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 value-added services; video telephony; intelligent network; and telephony information services.
Telefónica Fundamentals Summary
|TEF fundamental statistics|
Is TEF overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TEF income statement (TTM)|
|Cost of Revenue||€18.16b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 28, 2021
|Earnings per share (EPS)||1.63|
|Net Profit Margin||21.46%|
How did TEF perform over the long term?See historical performance and comparison
8.0%Current Dividend Yield
Is Telefónica undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEF (€3.77) is trading below our estimate of fair value (€11.39)
Significantly Below Fair Value: TEF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TEF is good value based on its PE Ratio (2.3x) compared to the European Telecom industry average (22.7x).
PE vs Market: TEF is good value based on its PE Ratio (2.3x) compared to the Spanish market (23.2x).
Price to Earnings Growth Ratio
PEG Ratio: TEF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TEF is good value based on its PB Ratio (0.9x) compared to the ES Telecom industry average (2.5x).
How is Telefónica forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEF's earnings are forecast to decline over the next 3 years (-39.9% per year).
Earnings vs Market: TEF's earnings are forecast to decline over the next 3 years (-39.9% per year).
High Growth Earnings: TEF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TEF's revenue is expected to decline over the next 3 years (-2% per year).
High Growth Revenue: TEF's revenue is forecast to decline over the next 3 years (-2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TEF's Return on Equity is forecast to be low in 3 years time (14.8%).
How has Telefónica performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEF has a large one-off gain of €9.5B impacting its June 30 2021 financial results.
Growing Profit Margin: TEF's current net profit margins (21.5%) are higher than last year (0.3%).
Past Earnings Growth Analysis
Earnings Trend: TEF has become profitable over the past 5 years, growing earnings by 14.8% per year.
Accelerating Growth: TEF's earnings growth over the past year (7507.5%) exceeds its 5-year average (14.8% per year).
Earnings vs Industry: TEF earnings growth over the past year (7507.5%) exceeded the Telecom industry 19.1%.
Return on Equity
High ROE: Whilst TEF's Return on Equity (36.58%) is high, this metric is skewed due to their high level of debt.
How is Telefónica's financial position?
Financial Position Analysis
Short Term Liabilities: TEF's short term assets (€29.6B) exceed its short term liabilities (€24.5B).
Long Term Liabilities: TEF's short term assets (€29.6B) do not cover its long term liabilities (€56.6B).
Debt to Equity History and Analysis
Debt Level: TEF's debt to equity ratio (140%) is considered high.
Reducing Debt: TEF's debt to equity ratio has reduced from 242.8% to 140% over the past 5 years.
Debt Coverage: TEF's debt is well covered by operating cash flow (28.5%).
Interest Coverage: TEF's interest payments on its debt are well covered by EBIT (6.2x coverage).
What is Telefónica current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TEF's dividend (7.95%) is higher than the bottom 25% of dividend payers in the Spanish market (1.5%).
High Dividend: TEF's dividend (7.95%) is in the top 25% of dividend payers in the Spanish market (5.45%)
Stability and Growth of Payments
Stable Dividend: TEF's dividend payments have been volatile in the past 10 years.
Growing Dividend: TEF's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.3%), TEF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TEF's dividends in 3 years are forecast to be covered by earnings (67.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jose María Alvarez-Pallete Lopez (58 yo)
Mr. Jose Maria Alvarez-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,...
CEO Compensation Analysis
Compensation vs Market: Jose María's total compensation ($USD5.86M) is above average for companies of similar size in the Spanish market ($USD2.81M).
Compensation vs Earnings: Jose María's compensation has been consistent with company performance over the past year.
Experienced Management: TEF's management team is considered experienced (4.3 years average tenure).
Experienced Board: TEF's board of directors are seasoned and experienced ( 11.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.
Telefónica, S.A.'s employee growth, exchange listings and data sources
- Name: Telefónica, S.A.
- Ticker: TEF
- Exchange: BME
- Founded: 1924
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: €21.119b
- Shares outstanding: 5.60b
- Website: https://www.telefonica.com
Number of Employees
- Telefónica, S.A.
- Distrito Telefónica
- Ronda de la Comunicación, s/n
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/23 17:58|
|End of Day Share Price||2021/10/22 00:00|
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.