Telecom Italia (BIT:TIT) - Share price, News & Analysis

TIT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

TIT Stock Overview

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally.

Rewards

Trading at 60.4% below our estimate of its fair value

Earnings are forecast to grow 33.51% per year

Risk Analysis

Interest payments are not well covered by earnings

Telecom Italia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Telecom Italia
Historical stock prices
Current Share Price	€0.26
52 Week High	€0.51
52 Week Low	€0.22
Beta	1.13
1 Month Change	-6.95%
3 Month Change	-22.56%
1 Year Change	-38.12%
3 Year Change	-45.67%
5 Year Change	-67.71%
Change since IPO	-88.46%

Shareholder Returns

	TIT	IT Telecom	IT Market
7D	5.1%	5.2%	1.1%
1Y	-38.1%	-15.7%	-15.6%

Return vs Industry: TIT underperformed the Italian Telecom industry which returned -15.7% over the past year.

Return vs Market: TIT underperformed the Italian Market which returned -15.6% over the past year.

Price Volatility

Is TIT's price volatile compared to industry and market?
TIT volatility
TIT Average Weekly Movement	5.5%
Telecom Industry Average Movement	4.6%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.2%
10% least volatile stocks in IT Market	3.3%

Stable Share Price: TIT is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TIT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1908	51,893	Pietro Labriola	https://www.gruppotim.it/en.html

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets.

Telecom Italia Fundamentals Summary

How do Telecom Italia's earnings and revenue compare to its market cap?
TIT fundamental statistics
Market Cap	€5.47b
Earnings (TTM)	-€8.63b
Revenue (TTM)	€15.23b

0.4x

P/S Ratio

-0.6x

P/E Ratio

Is TIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TIT income statement (TTM)
Revenue	€15.23b
Cost of Revenue	€7.79b
Gross Profit	€7.44b
Other Expenses	€16.07b
Earnings	-€8.63b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	-0.41
Gross Margin	48.86%
Net Profit Margin	-56.64%
Debt/Equity Ratio	111.3%

How did TIT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TIT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TIT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TIT. This is calculated by dividing TIT's market cap by their current preferred multiple.
What is TIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€5.47b

TIT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	6.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TIT's PS Ratio compare to its peers?

TIT PS Ratio vs Peers

The above table shows the PS ratio for TIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.3x

Forward PS

Price-To-Sales vs Peers: TIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (5.3x).

Price to Earnings Ratio vs Industry

How does TIT's PE Ratio compare vs other companies in the Telecom Industry?

Price-To-Sales vs Industry: TIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the Italian Telecom industry average (2.4x)

Price to Sales Ratio vs Fair Ratio

What is TIT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TIT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	2.1x

Price-To-Sales vs Fair Ratio: TIT is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

Share Price vs Fair Value

What is the Fair Price of TIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TIT (€0.26) is trading below our estimate of fair value (€0.66)

Significantly Below Fair Value: TIT is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TIT's PEG Ratio to determine if it is good value.

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Future Growth

How is Telecom Italia forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

33.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TIT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TIT is expected to become profitable in the next 3 years.

Revenue vs Market: TIT's revenue (1.1% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: TIT's revenue (1.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TIT's Return on Equity is forecast to be low in 3 years time (1.5%).

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Past Performance

How has Telecom Italia performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TIT is currently unprofitable.

Growing Profit Margin: TIT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TIT is unprofitable, and losses have increased over the past 5 years at a rate of 5.5% per year.

Accelerating Growth: Unable to compare TIT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TIT is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (16.8%).

Return on Equity

High ROE: TIT has a negative Return on Equity (-36.67%), as it is currently unprofitable.

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Financial Health

How is Telecom Italia's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TIT's short term assets (€10.3B) do not cover its short term liabilities (€13.7B).

Long Term Liabilities: TIT's short term assets (€10.3B) do not cover its long term liabilities (€29.8B).

Debt to Equity History and Analysis

Debt Level: TIT's net debt to equity ratio (87.6%) is considered high.

Reducing Debt: TIT's debt to equity ratio has reduced from 133.5% to 111.3% over the past 5 years.

Debt Coverage: TIT's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: TIT's interest payments on its debt are not well covered by EBIT (1.6x coverage).

Balance Sheet

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Dividend

What is Telecom Italia current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.55%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TIT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TIT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: TIT is not paying a notable dividend for the Italian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TIT has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Pietro Labriola (54 yo)

0.42

Tenure

Mr. Pietro Labriola is General Manager at Telecom Italia SpA since November 26, 2021 and serves as its Chief Executive Officer since January 21, 2022. He serves as Executive Director of Telecom Italia SpA....

Leadership Team

Experienced Management: TIT's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: TIT's board of directors are considered experienced (3 years average tenure).

Ownership

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31