OTCPK:TEFO.F

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

3.1%

TEFO.F

1.0%

US Telecom

1.8%

US Market


1 Year Return

-1.9%

TEFO.F

10.4%

US Telecom

7.3%

US Market

Return vs Industry: TEFO.F underperformed the US Telecom industry which returned 10.4% over the past year.

Return vs Market: TEFO.F underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

TEFO.FIndustryMarket
7 Day3.1%1.0%1.8%
30 Day4.2%0.9%-0.7%
90 Day-5.6%10.1%0.06%
1 Year-1.9%-1.9%16.2%10.4%9.7%7.3%
3 Year-20.0%-20.0%22.5%4.7%46.3%36.9%
5 Year-45.5%-45.5%41.9%9.5%64.5%46.5%

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 compared to its fair value and its price relative to the market?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TEFO.F ($7.69) is trading below our estimate of fair value ($10.26)

Significantly Undervalued: TEFO.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TEFO.F is good value based on its PE Ratio (11.7x) compared to the Telecom industry average (18.8x).

PE vs Market: TEFO.F is good value based on its PE Ratio (11.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TEFO.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: TEFO.F is overvalued based on its PB Ratio (2.4x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

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

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEFO.F's forecast earnings growth (8.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TEFO.F's earnings (8.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: TEFO.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEFO.F's revenue (0.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TEFO.F's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TEFO.F's Return on Equity is forecast to be low in 3 years time (17.6%).


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

Earnings Trend: TEFO.F's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: TEFO.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEFO.F had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: TEFO.F's Return on Equity (15.1%) is considered low.


Return on Assets

ROA vs Industry: TEFO.F's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: TEFO.F has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Telefónica's financial position?


Financial Position Analysis

Short Term Liabilities: TEFO.F's short term assets (€26.8B) do not cover its short term liabilities (€31.9B)

Long Term Liabilities: TEFO.F's short term assets (26.8B) do not cover its long term liabilities (64.4B)


Debt to Equity History and Analysis

Debt Level: TEFO.F's debt to equity ratio (213.9%) is considered high

Reducing Debt: TEFO.F's debt to equity ratio has reduced from 215.1% to 213.9% over the past 5 years.

Debt Coverage: TEFO.F's debt is well covered by operating cash flow (25.8%).

Interest Coverage: TEFO.F's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: TEFO.F has a high level of physical assets or inventory.

Debt Coverage by Assets: TEFO.F's 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?

5.66%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.5%markettop25%3.7%industryaverage4.8%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TEFO.F's dividend (5.66%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TEFO.F's dividend (5.66%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: TEFO.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: TEFO.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.1%), TEFO.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEFO.F's dividends in 3 years are forecast to be covered by earnings (57.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

José María Álvarez-Pallete López (56yo)

3.5yrs

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

Compensation vs. Market: José María's total compensation ($USD6.02M) is about average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: José María's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: TEFO.F's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: TEFO.F's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: TEFO.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€75,19708 Oct 19
María Luisa García Blanco
EntityIndividual
Shares10,000
Max Price€7.52
Buy€16027 Aug 19
José María Álvarez-Pallete López
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares23
Max Price€6.94
Buy€16027 Aug 19
Ángel Vilá Boix
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares23
Max Price€6.94
Buy€663,56023 Aug 19
José María Álvarez-Pallete López
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares100,000
Max Price€6.64
Buy€152,63523 Aug 19
Ángel Vilá Boix
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares22,965
Max Price€6.69
Buy€15605 Jul 19
Ángel Vilá Boix
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares19
Max Price€8.23
Buy€15315 Jan 19
Ángel Vilá Boix
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares18
Max Price€8.48
Buy€83,28602 Jan 19
Ángel Vilá Boix
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares10,000
Max Price€8.33
Sell€213,11720 Dec 18
José Javier Echenique Landiribar
EntityIndividual
Role
Member of the Board of Directors
Independent External Director
Shares25,000
Max Price€8.52
Buy€25,88020 Dec 18
José Javier Echenique Landiribar
EntityIndividual
Role
Member of the Board of Directors
Independent External Director
Shares3,000
Max Price€8.63

Ownership Breakdown


Management Team

  • José María Álvarez-Pallete López (56yo)

    Executive Chairman & CEO

    • Tenure: 3.5yrs
    • Compensation: €5.41m
  • Laura Abasolo de Baquedano (47yo)

    Chief Finance & Control Officer

    • Tenure: 2.3yrs
  • Ángel Vilá Boix (55yo)

    COO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: €4.03m
  • Guillermo Pablo Ansaldo Lutz (57yo)

    Chief Global Resources Officer

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

    Chief Communications

    • Tenure: 0.8yrs
  • Enrique Lloves (54yo)

    Chief of Strategy & Corporate Development

    • Tenure: 2.2yrs
  • Pablo De Carvajal González (56yo)

    General Counsel

    • Tenure: 1.8yrs
  • Enrique Blanco

    Global Chief Technology Officer

    • Tenure: 0yrs
  • Pablo Eguiron Vidarte

    Head of Investor Relations

    • Tenure: 10.3yrs
  • Marta Machicot

    Chief People Officer

    • Tenure: 1.8yrs

Board Members

  • José María Álvarez-Pallete López (56yo)

    Executive Chairman & CEO

    • Tenure: 3.5yrs
    • Compensation: €5.41m
  • José Javier Echenique Landiribar (68yo)

    Independent External Director

    • Tenure: 3.5yrs
    • Compensation: €256.60k
  • Peter Erskine (68yo)

    External Director

    • Tenure: 13.8yrs
    • Compensation: €245.60k
  • Isidro Fainé Casas (77yo)

    Vice Chairman

    • Tenure: 25.8yrs
    • Compensation: €280.00k
  • Ángel Vilá Boix (55yo)

    COO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: €4.03m
  • José María Abril Pérez (67yo)

    Vice Chairman

    • Tenure: 12.3yrs
    • 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: 3.5yrs
    • Compensation: €279.80k
  • Markus Haas (47yo)

    CEO & Chairman of Telefónica Deutschland Holding AG

    • Tenure: 2.8yrs
  • 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: TEFO.F
  • Exchange: OTCPK
  • Founded: 1924
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €36.235b
  • Listing Market Cap: €40.364b
  • 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
TEFBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1980
TEFBASE (Buenos Aires Stock Exchange)YesOrdinary SharesARARSJan 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
TEFEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
TEFWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
TFAENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1980
TEF NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNJun 1987
TEFBVL (Bolsa de Valores de Lima)SPONSORED ADRPEUSDJun 1987
TEFNYSE (New York Stock Exchange)SPONSORED ADRUSUSDJun 1987
TNE2XTRA (XETRA Trading Platform)SPONSORED ADRDEEURJun 1987
TNE2DB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1987
0A2YLSE (London Stock Exchange)SPONSORED ADRGBUSDJun 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 Analysis2019/10/19 00:10
End of Day Share Price2019/10/15 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.