NYSE:TEF

Stock Analysis Report

Executive Summary

Telefónica, S.A. provides mobile and fixed communication services in Europe and Latin America.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Telefónica's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

NYSE:TEF

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

-6.1%

NYSE:TEF

7.9%

US Telecom

1.6%

US Market

TEF underperformed the Telecom industry which returned 7% over the past year.

TEF underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

TEFIndustryMarket
7 Day0.7%-2.9%-0.02%
30 Day10.6%4.4%2.7%
90 Day-11.0%8.4%1.4%
1 Year-2.1%-6.1%13.6%7.9%3.8%1.6%
3 Year-20.5%-29.9%15.6%-1.2%45.2%35.8%
5 Year-39.5%-53.0%33.5%2.9%61.8%44.1%

Price Volatility Vs. Market

How volatile is Telefónica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

28%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, but not at a substantial discount (< 40%).


Price Based on Earnings

Telefónica is good value based on earnings compared to the US Telecom industry average.

Telefónica is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Telefónica is poor value based on expected growth next year.


Price Based on Value of Assets

Telefónica is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Telefónica expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telefónica's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

Telefónica's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Telefónica's revenue growth is positive but not above the United States of America market average.

Telefónica's earnings growth is positive but not above the United States of America market average.

Telefónica's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Telefónica is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Telefónica performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Telefónica's year on year earnings growth rate has been positive over the past 5 years.

Telefónica's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Telefónica's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Telefónica has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Telefónica used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Telefónica has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Telefónica's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Telefónica's level of debt (213.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (215.1% vs 213.9% today).

Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

6.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Telefónica's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Telefónica's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

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

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

José María Álvarez-Pallete López (56yo)

3.4yrs

Tenure

€5,407,782

Compensation

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,  ...


CEO Compensation Analysis

José María's remuneration is lower than average for companies of similar size in United States of America.

José María's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

56yo

Average Age

The tenure for the Telefónica management team is about average.


Board Age and Tenure

5.6yrs

Average Tenure

61.5yo

Average Age

The tenure for the Telefónica board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • José María Álvarez-Pallete López (56yo)

    Executive Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: €5.41m
  • Laura Abasolo de Baquedano (47yo)

    Chief Finance & Control Officer

    • Tenure: 2.2yrs
  • Ángel Vilá Boix (55yo)

    COO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: €4.03m
  • Guillermo Pablo Ansaldo Lutz (57yo)

    Chief Global Resources Officer

    • Tenure: 11.8yrs
  • Eduardo Navarro de Carvalho (56yo)

    Chief Communications

    • Tenure: 0.7yrs
  • Enrique Lloves (54yo)

    Chief of Strategy & Corporate Development

    • Tenure: 2.1yrs
  • Pablo De Carvajal González (56yo)

    General Counsel

    • Tenure: 1.7yrs
  • Enrique Blanco

    Global Chief Technology Officer

    • Tenure: 0yrs
  • Pablo Eguiron Vidarte

    Head of Investor Relations

    • Tenure: 10.2yrs
  • Marta Machicot

    Chief People Officer

    • Tenure: 1.7yrs

Board Members

  • José María Álvarez-Pallete López (56yo)

    Executive Chairman & CEO

    • Tenure: 3.4yrs
    • Compensation: €5.41m
  • Peter Erskine (68yo)

    External Director

    • Tenure: 13.7yrs
    • Compensation: €245.60k
  • Isidro Fainé Casas (77yo)

    Vice Chairman

    • Tenure: 25.7yrs
    • Compensation: €280.00k
  • Ángel Vilá Boix (55yo)

    COO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: €4.03m
  • Ignacio Moreno Martínez (62yo)

    Proprietary Director

    • Tenure: 7.8yrs
    • Compensation: €189.80k
  • José María Abril Pérez (67yo)

    Vice Chairman

    • Tenure: 12.2yrs
    • Compensation: €300.20k
  • Antonio Carlos Valente da Silva (66yo)

    Chairman of Telefônica Brasil S A

    • Tenure: 0yrs
  • Francisco Javier de Paz Mancho (61yo)

    Lead Director

    • Tenure: 3.4yrs
    • Compensation: €279.80k
  • Markus Haas (47yo)

    CEO & Chairman of Telefónica Deutschland Holding AG

    • Tenure: 2.7yrs
  • Christian Mauad Gebara (46yo)

    Chairman & CEO of Telefónica Brasil

    • Tenure: 0yrs

Company Information

Telefónica, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telefónica, S.A.
  • Ticker: TEF
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €34.471b
  • Listing Market Cap: €38.136b
  • Shares outstanding: 5.13b
  • Website: https://www.telefonica.com

Number of Employees


Location

  • Telefónica, S.A.
  • Distrito Telefónica
  • Ronda de la Comunicación, s/n
  • Madrid
  • Madrid
  • 28050
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TELEFONICBOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 ADRBRBRLNo data
TEFBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1980
TFAENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1980
TEFWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
TEFBASE (Buenos Aires Stock Exchange)YesOrdinary SharesARARSJan 1980
TEFEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
TEFBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1980
TNE5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
0TDELSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
TNE5XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1980
TEFO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
TNE2DB (Deutsche Boerse AG)ADR EA REPR 1 ORD NPVDEEURJun 1987
TEFBVL (Bolsa de Valores de Lima)ADR EA REPR 1 ORD NPVPEUSDJun 1987
TNE2XTRA (XETRA Trading Platform)ADR EA REPR 1 ORD NPVDEEURJun 1987
TEF NBMV (Bolsa Mexicana de Valores)ADR EA REPR 1 ORD NPVMXMXNJun 1987
TEFNYSE (New York Stock Exchange)ADR EA REPR 1 ORD NPVUSUSDJun 1987

Biography

Telefónica, S.A. provides mobile and fixed communication services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data, Intern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:40
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.