OTCPK:TIAJ.F

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TIAJ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TIAJ.F

-1.8%

US Telecom

-3.1%

US Market


1 Year Return

-23.0%

TIAJ.F

-12.1%

US Telecom

12.7%

US Market

Return vs Industry: TIAJ.F underperformed the US Telecom industry which returned -12.1% over the past year.

Return vs Market: TIAJ.F underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

TIAJ.FIndustryMarket
7 Day0%-1.8%-3.1%
30 Day0%-1.5%-2.9%
90 Dayn/a4.0%8.2%
1 Year-23.0%-23.0%-7.6%-12.1%15.3%12.7%
3 Year-46.4%-46.4%6.1%-9.1%37.8%28.5%
5 Yearn/a33.1%3.1%90.9%69.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Telecom Italia undervalued compared to its fair value and its price relative to the market?

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TIAJ.F ($0.42) is trading below our estimate of fair value ($0.61)

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


Price To Earnings Ratio

PE vs Industry: TIAJ.F is good value based on its PE Ratio (7.1x) compared to the US Telecom industry average (11.5x).

PE vs Market: TIAJ.F is good value based on its PE Ratio (7.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TIAJ.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TIAJ.F is good value based on its PB Ratio (0.4x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is Telecom Italia forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

-1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIAJ.F's earnings are forecast to decline over the next 3 years (-1.1% per year).

Earnings vs Market: TIAJ.F's earnings are forecast to decline over the next 3 years (-1.1% per year).

High Growth Earnings: TIAJ.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TIAJ.F's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: TIAJ.F's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIAJ.F's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Telecom Italia performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIAJ.F has a large one-off loss of €538.0M impacting its June 30 2020 financial results.

Growing Profit Margin: TIAJ.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TIAJ.F's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: TIAJ.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TIAJ.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

High ROE: TIAJ.F's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Telecom Italia's financial position?


Financial Position Analysis

Short Term Liabilities: TIAJ.F's short term assets (€9.6B) do not cover its short term liabilities (€10.5B).

Long Term Liabilities: TIAJ.F's short term assets (€9.6B) do not cover its long term liabilities (€34.6B).


Debt to Equity History and Analysis

Debt Level: TIAJ.F's debt to equity ratio (134%) is considered high.

Reducing Debt: TIAJ.F's debt to equity ratio has reduced from 157.7% to 134% over the past 5 years.

Debt Coverage: TIAJ.F's debt is well covered by operating cash flow (23.9%).

Interest Coverage: TIAJ.F's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TIAJ.F's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: TIAJ.F's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (4.88%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.5%), TIAJ.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TIAJ.F's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Luigi Gubitosi (59 yo)

1.83yrs

Tenure

€1,528,928

Compensation

Mr. Luigi Gubitosi has been a Director of Alitalia - Compagnia Aerea Italiana S.p.A. since March 15, 2017. He is Independent Director at Telecom Italia SpA since May 4, 2018 and serves as its Chief Executi ...


CEO Compensation Analysis

Compensation vs Market: Luigi's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD7.46M).

Compensation vs Earnings: Insufficient data to compare Luigi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Luigi Gubitosi
CEO, MD1.83yrs€1.53mno data
Giovanni Ronca
Chief Financial Officer1.25yrsno datano data
Stefano Siragusa
Chief Operations Officer0.83yrno datano data
Michele Gamberini
Chief Technology & Information Officer0.83yrno datano data
Piergiorgio Peluso
Chief Transformation Officer & Head of Admin8yrsno datano data
Carola Bardelli
Head of Investor Relations1.67yrsno datano data
Valerio Giuseppe Cavallo
Group Compliance Officerno datano datano data
Agostino Nuzzolo
General Counsel3.67yrsno datano data
Simone Cantagallo
Chief of Institutional Communication & Sponsorship1.67yrsno datano data
Luciano Sale
Head of HR1.58yrsno datano data
Andrea Kerbaker
Chief Executive Officer of Progetto Italia SpA and Head of Brand Enrichment (Progetto Italia)no datano datano data
Giorgio Della Ferrari
Head of Telecom Italia Latam and Chairman of the Telecom Italia Latin America14.83yrsno datano data

1.7yrs

Average Tenure

59yo

Average Age

Experienced Management: TIAJ.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luigi Gubitosi
CEO, MD1.83yrs€1.53mno data
Arnaud de Puyfontaine
Director4.75yrs€370.00kno data
Alfredo Altavilla
Independent Director2.33yrs€103.00kno data
Salvatore Rossi
Independent Chairman0.92yrno datano data
Marella Moretti
Independent Director3.33yrs€156.00kno data
Paola Bonomo
Independent Director2.33yrs€91.00kno data
Roberto Ruggero Capone
Chairman of Statutory Auditors5.67yrs€122.00kno data
Michele Valensise
Independent Director2.33yrs€114.00kno data
Giuseppina Capaldo
Independent Director2.33yrs€103.00kno data
Massimo Ferrari
Independent Director2.33yrs€110.00kno data
Paola de Ponti
Independent Director2.33yrs€107.00kno data
Dante Roscini
Lead Independent Director2.17yrs€82.00kno data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: TIAJ.F's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Telecom Italia S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telecom Italia S.p.A.
  • Ticker: TIAJ.F
  • Exchange: OTCPK
  • Founded: 1908
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €7.307b
  • Listing Market Cap: €8.574b
  • Shares outstanding: 21.07b
  • Website: https://www.telecomitalia.com

Number of Employees


Location

  • Telecom Italia S.p.A.
  • Corso d’Italia 41
  • Rome
  • Rome
  • 198
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIIA.YOTCPK (Pink Sheets LLC)SPONS ADR (EACH REP 10 ORD SHS)EUR0.55USUSDAug 2003
TIAI.YOTCPK (Pink Sheets LLC)SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55USUSDAug 2003
TIAO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2003
TIAJ.FOTCPK (Pink Sheets LLC)Saving SharesUSUSDAug 2003
TITBIT (Borsa Italiana)YesOrdinary SharesITEURAug 2003
TQIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2003
0H6ILSE (London Stock Exchange)YesOrdinary SharesGBEURAug 2003
TQIADB (Deutsche Boerse AG)SPONS ADR (EACH REP 10 ORD SHS)EUR0.55DEEURAug 2003
TQIRDB (Deutsche Boerse AG)Saving SharesDEEURAug 2003
TQIXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURAug 2003
TQIRXTRA (XETRA Trading Platform)Saving SharesDEEURAug 2003
0GA3LSE (London Stock Exchange)Saving SharesGBEURAug 2003
TIT *BMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNAug 2003
TITRBIT (Borsa Italiana)Saving SharesITEURAug 2003
TITRMBATS-CHIXE (BATS 'Chi-X Europe')Saving SharesGBEURAug 2003
TITMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURAug 2003
TQI1DB (Deutsche Boerse AG)SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55DEEURAug 2003
TITWBAG (Wiener Boerse AG)YesOrdinary SharesATEURAug 2003
TITSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFAug 2003
TITR NBMV (Bolsa Mexicana de Valores)Saving SharesMXMXNAug 2003
TITENXTBR (Euronext Brussels)YesOrdinary SharesBEEURAug 2003

Biography

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 Operation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 06:10
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.