OTCPK:TIAJ.F

Stock Analysis Report

Executive Summary

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, South America, and the Mediterranean Basin.

Snowflake

Fundamentals

Fair value 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


Market Performance


7 Day Return

1.9%

OTCPK:TIAJ.F

-0.5%

US Telecom

0.8%

US Market


1 Year Return

-4.3%

OTCPK:TIAJ.F

7.0%

US Telecom

1.9%

US Market

TIAJ.F underperformed the Telecom industry which returned 6.9% over the past year.

TIAJ.F underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

TIAJ.FIndustryMarket
7 Day1.9%-0.5%0.8%
30 Day1.9%5.8%3.4%
90 Day8.9%8.9%2.1%
1 Year-4.3%-4.3%12.6%7.0%4.2%1.9%
3 Year-19.1%-19.1%17.6%0.6%46.7%37.2%
5 Year-38.9%-38.9%34.6%3.7%62.3%44.5%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Telecom Italia's share price is below the future cash flow value, and at a moderate discount (> 20%).

Telecom Italia's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Telecom Italia is loss making, we can't compare its value to the US Telecom industry average.

Telecom Italia is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Telecom Italia, we can't assess if its growth is good value.


Price Based on Value of Assets

Telecom Italia is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Telecom Italia expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telecom Italia's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Telecom Italia's earnings are expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Telecom Italia performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Telecom Italia does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Telecom Italia's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Telecom Italia's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Telecom Italia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Telecom Italia has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Telecom Italia improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Telecom Italia's financial position?


Financial Position Analysis

Telecom Italia's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Telecom Italia's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Telecom Italia's level of debt (127.4%) 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 (175.3% vs 127.4% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Telecom Italia has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Telecom Italia has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 8.3% per year.


Next Steps

Dividend

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

2.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Telecom Italia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Telecom Italia's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Telecom Italia has not reported any payouts.

Unable to verify if Telecom Italia's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Telecom Italia has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.7x coverage).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Luigi Gubitosi (58yo)

0.8yrs

Tenure

€4,408,784

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

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

Insufficient data for Luigi to compare compensation growth.


Management Age and Tenure

0.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Telecom Italia management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Telecom Italia board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Valerio Giuseppe Cavallo (59yo)

    Group Compliance Officer

    • Tenure: 0yrs
  • Andrea Kerbaker (59yo)

    Chief Executive Officer of Progetto Italia SpA and Head of Brand Enrichment (Progetto Italia)

    • Tenure: 0yrs
  • Carola Bardelli

    Head of Investor Relations

    • Tenure: 0.7yrs
  • Piergiorgio Peluso (51yo)

    Chief Transformation Officer & Head of Admin

    • Tenure: 7yrs
  • Simone Cantagallo

    Chief of Institutional Communication

    • Tenure: 0.7yrs
  • Agostino Nuzzolo (51yo)

    General Counsel

    • Tenure: 2.7yrs
  • Luciano Sale (58yo)

    Chief of Human Resources & Organizational Development

    • Tenure: 0.6yrs
  • Giovanni Ronca (46yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Luigi Gubitosi (58yo)

    CEO, General Manager & Executive Director

    • Tenure: 0.8yrs
    • Compensation: €4.41m
  • Elisabetta Romano (56yo)

    Chief Technology & Innovation Officer

    • Tenure: 1.2yrs

Board Members

  • Fulvio Conti (72yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: €392.00k
  • Arnaud de Puyfontaine (55yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: €658.00k
  • Alfredo Altavilla (56yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: €103.00k
  • Marella Moretti (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: €156.00k
  • Roberto Capone (64yo)

    Chairman of Statutory Auditors

    • Tenure: 4.7yrs
    • Compensation: €122.00k
  • Luigi Gubitosi (58yo)

    CEO, General Manager & Executive Director

    • Tenure: 0.8yrs
    • Compensation: €4.41m
  • Michele Valensise (67yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: €114.00k
  • Giuseppina Capaldo (50yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: €103.00k
  • Paola de Ponti (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: €107.00k
  • Dante Roscini (61yo)

    Lead Independent Director

    • Tenure: 1.2yrs
    • Compensation: €82.00k

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: €10.619b
  • Listing Market Cap: €11.740b
  • 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
TQIXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURAug 2003
TIIA.YOTCPK (Pink Sheets LLC)SPONS ADR (EACH REP 10 ORD SHS)EUR0.55USUSDAug 2003
TIAO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2003
TITSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFAug 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
TIAI.YOTCPK (Pink Sheets LLC)SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55USUSDAug 2003
TQIRXTRA (XETRA Trading Platform)Saving SharesDEEURAug 2003
0GA3LSE (London Stock Exchange)Saving SharesGBEURAug 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
TITENXTBR (Euronext Brussels)YesOrdinary SharesBEEURAug 2003
TIAJ.FOTCPK (Pink Sheets LLC)AS DI RIS NONCUSUSDJan 2004

Biography

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, South America, and the Mediterranean Basin. The company operates through Domestic, Br ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:03
End of Day Share Price2019/09/13 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.