Telecom Italia S.p.A. Fundamental Analysis
Telecom Italia S.p.A. Fundamental Analysis
Telecom Italia S.p.A. (TIAIY) shows weak financial fundamentals with a PE ratio of 36.88, profit margin of 0.94%, and ROE of 1.07%. The company generates $471.5B in annual revenue with weak year-over-year growth of -4.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TIAIY's fundamental strength across five key dimensions:
Efficiency Score
WeakTIAIY struggles to generate sufficient returns from assets.
Valuation Score
ModerateTIAIY shows balanced valuation metrics.
Growth Score
WeakTIAIY faces weak or negative growth trends.
Financial Health Score
WeakTIAIY carries high financial risk with limited liquidity.
Profitability Score
ModerateTIAIY maintains healthy but balanced margins.
Key Financial Metrics
Is TIAIY Expensive or Cheap?
P/E Ratio
TIAIY trades at 36.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TIAIY's PEG of -0.25 indicates potential undervaluation.
Price to Book
The market values Telecom Italia S.p.A. at 0.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.51 times EBITDA. This signals the market has high growth expectations.
How Well Does TIAIY Make Money?
Net Profit Margin
For every $100 in sales, Telecom Italia S.p.A. keeps $0.94 as profit after all expenses.
Operating Margin
Core operations generate 9.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.07 in profit for every $100 of shareholder equity.
ROA
Telecom Italia S.p.A. generates $0.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telecom Italia S.p.A. produces operating cash flow of $84.33B, showing steady but balanced cash generation.
Free Cash Flow
Telecom Italia S.p.A. generates weak or negative free cash flow of $6.51B, restricting financial flexibility.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
TIAIY converts 0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TIAIY Stacks Against Its Sector Peers
| Metric | TIAIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.88 | 24.20 | Worse (Expensive) |
| ROE | 1.07% | 959.00% | Weak |
| Net Margin | 0.94% | -68674.00% (disorted) | Weak |
| Debt/Equity | 1.21 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 1.71 | Weak Liquidity |
| ROA | 0.34% | -2558.00% (disorted) | Weak |
TIAIY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telecom Italia S.p.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.00%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-85.61%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-22.42%
Industry Style: Growth, Technology, Streaming
Declining