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Telefónica, S.A.OTCPK:TELF.Y Stock Report

Market Cap US$25.6b
Share Price
US$4.48
US$4.56
1.8% undervalued intrinsic discount
1Y-14.3%
7D-1.1%
1D
Portfolio Value
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Telefónica, S.A.

OTCPK:TELF.Y Stock Report

Market Cap: US$25.6b

Telefónica (TELF.Y) Stock Overview

Provides telecommunications services in Spain, Brazil, Germany, and the United Kingdom. More details

TELF.Y fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends3/6

Rewards

Trading at 28.3% below our estimate of its fair value

Earnings are forecast to grow 68% per year

Trading at good value compared to peers and industry

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 7.62% is not well covered by earnings


TELF.Y Community Fair Values

Create Narrative

See what 12 others think this stock is worth. Follow their fair value or set your own to get alerts.

View all narratives

Telefónica, S.A. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Telefónica
Historical stock prices
Current Share Price€4.48
52 Week High€5.72
52 Week Low€3.67
Beta0.29
1 Month Change-0.22%
3 Month Change12.00%
1 Year Change-14.34%
3 Year Change13.99%
5 Year Change-8.76%
Change since IPO122.73%

Recent News & Updates

Seeking Alpha • Nov 19

Telefonica: The Turnaround Story Income Investors Should Skip

Summary Telefónica (TEF) is cutting its dividend by 50% in 2026-2027, ending its status as a high-yield income stock. TEF's persistent dividend cuts reflect high leverage, weak free cash flow, and years of mismanagement, forcing a shift to a payout tied to recurring FCF. The new strategic plan targets modest 1.5-2.5% revenue growth, cost cuts, capex reduction, and deleveraging to 2.5x net debt/EBITDAaL by 2028. While the turnaround plan is coherent, TEF remains a low-growth, low-margin story; it is no longer suitable for dividend-focused investors. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Nov 19

Telefonica: The Turnaround Story Income Investors Should Skip

Summary Telefónica (TEF) is cutting its dividend by 50% in 2026-2027, ending its status as a high-yield income stock. TEF's persistent dividend cuts reflect high leverage, weak free cash flow, and years of mismanagement, forcing a shift to a payout tied to recurring FCF. The new strategic plan targets modest 1.5-2.5% revenue growth, cost cuts, capex reduction, and deleveraging to 2.5x net debt/EBITDAaL by 2028. While the turnaround plan is coherent, TEF remains a low-growth, low-margin story; it is no longer suitable for dividend-focused investors. Read the full article on Seeking Alpha
Seeking Alpha • Nov 07

Telefonica Q3 Earnings: Not Very Attractive Due To Volatility In Certain Regions

Summary Telefonica S.A.'s Q3 earnings show a 3% y/y decline in sales, with significant revenue drops in Brazil and Hispam due to currency depreciation and competitive pressures. The company's high debt load (€32B long-term, €6B short-term) is concerning, though it has decent free cash flow and cash reserves to cover obligations. Telefonica Tech's growth in digital solutions, with a 9.5% y/y increase, offers potential for future revenue diversification and top-line improvement. Despite an attractive 7.22% dividend yield, high exposure to volatile currencies and lackluster growth leads me to assign a hold rating for now. Read the full article on Seeking Alpha
Seeking Alpha • Sep 18

AT&T Vs. Telefonica: Only One Of These High-Yields Is A Buy

Summary Telefonica and AT&T are high-yield telecoms with checkered pasts. Both have made a lot of progress towards deleveraging and putting their businesses and dividends on a more sustainable path. We compare them side-by-side and share our take on which is the better buy today. Read the full article on Seeking Alpha
Seeking Alpha • Aug 22

Telefonica: There Is Further Upside Here - I Say 'Buy'

Summary Conservative leverage, FCF improvement, and on-track results make Telefonica stock a buy with a €4.9/share price target. Telefonica is a decent investment with good yield and potential for outperformance, primarily income-oriented. The company's 2Q24 results show accelerating top-line growth, EBITDA growth, and expansion of 5G coverage, supporting the positive thesis. Read the full article on Seeking Alpha
Seeking Alpha • May 31

Telefonica: Steadily Pushing Upward

Summary Telefonica has seen improvements in its results, with accelerating revenue and EBITDA growth, low churn rates, and enhanced customer experience. The company has achieved its goals in terms of fiber, infra growth, and coverage, with 5G coverage at 63% in core markets. Telefonica's FCF is expected to grow at more than 10%, affirming a positive outlook for the company. Read the full article on Seeking Alpha
Seeking Alpha • Jan 29

With 8% Dividend Yield, Telefonica Has Upside Potential

Summary Telefonica's various telecoms businesses present a mixed bag overall, with solid positions in Spain and the U.K. offset by weaker operations in Latin America and Germany. Medium-term financial goals point to modest growth and look achievable, while the 8%-yielding dividend is more secure than it appears at first glance. These shares look around 25% undervalued based on a rough sum-of-the-parts method, with the market basically ignoring the value of its U.K. joint venture. Read the full article on Seeking Alpha
Seeking Alpha • Nov 23

Telefonica: Don't Let An 8% Dividend Yield Fool You

Summary Telefonica S.A. offers an 8% forward dividend yield, but dividend growth is unlikely due to revenue challenges and high leverage. The company's financial performance has been declining, and its weak balance sheet limits room for investment in growth initiatives. My valuation analysis suggests the stock has almost no upside potential. Read the full article on Seeking Alpha

Shareholder Returns

TELF.YUS TelecomUS Market
7D-1.1%-7.2%-3.3%
1Y-14.3%-7.0%22.3%

Return vs Industry: TELF.Y underperformed the US Telecom industry which returned -7% over the past year.

Return vs Market: TELF.Y underperformed the US Market which returned 22.3% over the past year.

Price Volatility

Is TELF.Y's price volatile compared to industry and market?
TELF.Y volatility
TELF.Y Average Weekly Movement3.5%
Telecom Industry Average Movement7.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: TELF.Y has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: TELF.Y's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192482,175Marc Thomas Millarwww.telefonica.com

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Spain, Brazil, Germany, and the United Kingdom. The company offers digital services for residential customers, such as entertainment, home connectivity and security; and advanced solutions for businesses and public administrations, including cloud, cybersecurity, IoT, artificial intelligence, and professional services. It also provides wholesale services to other operators; fixed and wireless telephony services.

Telefónica, S.A. Fundamentals Summary

How do Telefónica's earnings and revenue compare to its market cap?
TELF.Y fundamental statistics
Market capUS$25.61b
Earnings (TTM)-US$2.72b
Revenue (TTM)US$41.47b
0.6x
P/S Ratio
-9.4x
P/E Ratio

Is TELF.Y overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
TELF.Y income statement (TTM)
Revenue€35.91b
Cost of Revenue€19.70b
Gross Profit€16.20b
Other Expenses€18.56b
Earnings-€2.36b

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

Jul 29, 2026

Earnings per share (EPS)-0.42
Gross Margin45.13%
Net Profit Margin-6.56%
Debt/Equity Ratio187.2%

How did TELF.Y perform over the long term?

See historical performance and comparison

Dividends

7.6%
Current Dividend Yield
-77%
Payout Ratio

Does TELF.Y pay a reliable dividends?

See TELF.Y dividend history and benchmarks
When do you need to buy TELF.Y by to receive an upcoming dividend?
Telefónica dividend dates
Ex Dividend DateJun 17 2026
Dividend Pay DateJul 10 2026
Days until Ex dividend6 days
Days until Dividend pay date29 days

Does TELF.Y pay a reliable dividends?

See TELF.Y dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/10 22:10
End of Day Share Price 2026/06/10 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Telefónica, S.A. is covered by 40 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew Charles BealeArete Research Services LLP
null nullBanco de Sabadell. S.A.
Fernando Cordero BarreiraBanco Santander