OTCPK:TIIA.Y

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 moderate growth potential.


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

0.7%

TIIA.Y

0.6%

US Telecom

0.07%

US Market


1 Year Return

4.6%

TIIA.Y

8.4%

US Telecom

8.9%

US Market

Return vs Industry: TIIA.Y underperformed the US Telecom industry which returned 8.4% over the past year.

Return vs Market: TIIA.Y underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

TIIA.YIndustryMarket
7 Day0.7%0.6%0.07%
30 Day6.8%0.6%-0.3%
90 Day8.4%10.7%-1.6%
1 Year4.6%4.6%14.1%8.4%11.3%8.9%
3 Year-31.4%-31.4%28.0%9.3%46.3%36.8%
5 Year-44.8%-44.8%40.7%8.4%62.1%44.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TIIA.Y ($5.95) is trading below our estimate of fair value ($22.13)

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


Price To Earnings Ratio

PE vs Industry: TIIA.Y is unprofitable, so we can't compare its PE Ratio to the Telecom industry average.

PE vs Market: TIIA.Y is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TIIA.Y's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TIIA.Y is good value based on its PB Ratio (0.6x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIIA.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: TIIA.Y is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TIIA.Y's is expected to become profitable in the next 3 years.

Revenue vs Market: TIIA.Y's revenue (0.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TIIA.Y's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIIA.Y's Return on Equity is forecast to be low in 3 years time (6.8%).


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

Earnings Trend: TIIA.Y is unprofitable, and losses have increased over the past 5 years at a rate of -25.6% per year.

Accelerating Growth: Unable to compare TIIA.Y's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TIIA.Y is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23%).


Return on Equity

High ROE: TIIA.Y has a negative Return on Equity (-4.56%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: TIIA.Y is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: TIIA.Y is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Telecom Italia's financial position?


Financial Position Analysis

Short Term Liabilities: TIIA.Y's short term assets (€8.3B) do not cover its short term liabilities (€10.2B)

Long Term Liabilities: TIIA.Y's short term assets (8.3B) do not cover its long term liabilities (36.6B)


Debt to Equity History and Analysis

Debt Level: TIIA.Y's debt to equity ratio (127.4%) is considered high

Reducing Debt: TIIA.Y's debt to equity ratio has reduced from 175.3% to 127.4% over the past 5 years.


Balance Sheet

Inventory Level: TIIA.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: TIIA.Y's 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.

Stable Cash Runway: Whilst unprofitable TIIA.Y has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TIIA.Y is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.3% per year.


Next Steps

Dividend

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

2.40%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TIIA.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TIIA.Y's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TIIA.Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TIIA.Y's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TIIA.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TIIA.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


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)

0.9yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

57yo

Average Age

Experienced Management: TIIA.Y's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

57yo

Average Age

Experienced Board: TIIA.Y's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 0.8yrs
  • Piergiorgio Peluso (51yo)

    Chief Transformation Officer & Head of Admin

    • Tenure: 7.1yrs
  • Simone Cantagallo

    Chief of Institutional Communication

    • Tenure: 0.8yrs
  • Agostino Nuzzolo (51yo)

    General Counsel

    • Tenure: 2.8yrs
  • Luciano Sale (58yo)

    Chief of Human Resources & Organizational Development

    • Tenure: 0.7yrs
  • Giovanni Ronca (46yo)

    Chief Financial Officer

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

    CEO, General Manager & Executive Director

    • Tenure: 0.9yrs
    • Compensation: €1.53m
  • Elisabetta Romano (56yo)

    Chief Technology & Innovation Officer

    • Tenure: 1.3yrs

Board Members

  • Arnaud de Puyfontaine (55yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: €370.00k
  • Alfredo Altavilla (56yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: €103.00k
  • Salvatore Rossi

    Chairman

    • Tenure: 0yrs
  • Marella Moretti (54yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €156.00k
  • Roberto Capone (64yo)

    Chairman of Statutory Auditors

    • Tenure: 4.8yrs
    • Compensation: €122.00k
  • Luigi Gubitosi (58yo)

    CEO, General Manager & Executive Director

    • Tenure: 0.9yrs
    • Compensation: €1.53m
  • Michele Valensise (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: €114.00k
  • Giuseppina Capaldo (50yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: €103.00k
  • Paola de Ponti (57yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: €107.00k
  • Dante Roscini (61yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • 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: TIIA.Y
  • Exchange: OTCPK
  • Founded: 1908
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €11.286b
  • Listing Market Cap: €12.553b
  • 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 Analysis2019/10/23 23:55
End of Day Share Price2019/10/23 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.