Telecom Italia
Market Cap
US$8.6b
Last Updated
2020/09/23 06:10 UTC
Data Sources
Company Financials +
Executive Summary
Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 1.1% per year for the next 3 years
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.F | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -1.8% | -3.1% |
| 30 Day | 0% | -1.5% | -2.9% |
| 90 Day | n/a | 4.0% | 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 Year | n/a | 33.1%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD | 1.83yrs | €1.53m | no data | |
| Chief Financial Officer | 1.25yrs | no data | no data | |
| Chief Operations Officer | 0.83yr | no data | no data | |
| Chief Technology & Information Officer | 0.83yr | no data | no data | |
| Chief Transformation Officer & Head of Admin | 8yrs | no data | no data | |
| Head of Investor Relations | 1.67yrs | no data | no data | |
| Group Compliance Officer | no data | no data | no data | |
| General Counsel | 3.67yrs | no data | no data | |
| Chief of Institutional Communication & Sponsorship | 1.67yrs | no data | no data | |
| Head of HR | 1.58yrs | no data | no data | |
| Chief Executive Officer of Progetto Italia SpA and Head of Brand Enrichment (Progetto Italia) | no data | no data | no data | |
| Head of Telecom Italia Latam and Chairman of the Telecom Italia Latin America | 14.83yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD | 1.83yrs | €1.53m | no data | |
| Director | 4.75yrs | €370.00k | no data | |
| Independent Director | 2.33yrs | €103.00k | no data | |
| Independent Chairman | 0.92yr | no data | no data | |
| Independent Director | 3.33yrs | €156.00k | no data | |
| Independent Director | 2.33yrs | €91.00k | no data | |
| Chairman of Statutory Auditors | 5.67yrs | €122.00k | no data | |
| Independent Director | 2.33yrs | €114.00k | no data | |
| Independent Director | 2.33yrs | €103.00k | no data | |
| Independent Director | 2.33yrs | €110.00k | no data | |
| Independent Director | 2.33yrs | €107.00k | no data | |
| Lead Independent Director | 2.17yrs | €82.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TIIA.Y | OTCPK (Pink Sheets LLC) | SPONS ADR (EACH REP 10 ORD SHS)EUR0.55 | US | USD | Aug 2003 | |
| TIAI.Y | OTCPK (Pink Sheets LLC) | SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55 | US | USD | Aug 2003 | |
| TIAO.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 2003 |
| TIAJ.F | OTCPK (Pink Sheets LLC) | Saving Shares | US | USD | Aug 2003 | |
| TIT | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Aug 2003 |
| TQI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 2003 |
| 0H6I | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Aug 2003 |
| TQIA | DB (Deutsche Boerse AG) | SPONS ADR (EACH REP 10 ORD SHS)EUR0.55 | DE | EUR | Aug 2003 | |
| TQIR | DB (Deutsche Boerse AG) | Saving Shares | DE | EUR | Aug 2003 | |
| TQI | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Aug 2003 |
| TQIR | XTRA (XETRA Trading Platform) | Saving Shares | DE | EUR | Aug 2003 | |
| 0GA3 | LSE (London Stock Exchange) | Saving Shares | GB | EUR | Aug 2003 | |
| TIT * | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Aug 2003 |
| TITR | BIT (Borsa Italiana) | Saving Shares | IT | EUR | Aug 2003 | |
| TITRM | BATS-CHIXE (BATS 'Chi-X Europe') | Saving Shares | GB | EUR | Aug 2003 | |
| TITM | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Aug 2003 |
| TQI1 | DB (Deutsche Boerse AG) | SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55 | DE | EUR | Aug 2003 | |
| TIT | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Aug 2003 |
| TIT | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Aug 2003 |
| TITR N | BMV (Bolsa Mexicana de Valores) | Saving Shares | MX | MXN | Aug 2003 | |
| TIT | ENXTBR (Euronext Brussels) | Yes | Ordinary Shares | BE | EUR | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/23 06:10 |
| End of Day Share Price | 2020/08/11 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.