-0.78%
-1.38%
-9.12%
-5.18%
5.50%
-4.02%
-35.60%
AI Spotlight on TEF
Company Description
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America.The company's mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services.Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment.
The company also provides Internet and broadband multimedia services comprising Internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, high-speed Internet through fibre to the home, and voice over Internet protocol services.In addition, it offers leased line, virtual private network, fibre optics, web hosting and application, outsourcing and consultancy, desktop, and system integration and professional services.Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment.
Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud computing, advertising, big data, and digital telco experience services; virtual assistants; digital home platforms; and Movistar Home devices.It also offers online telemedicine, home insurance, music streaming, and consumer loan services.The company was incorporated in 1924 and is headquartered in Madrid, Spain.
Market Data
| Last Price | 3.94 |
| Change Percentage | -0.78% |
| Open | 3.97 |
| Previous Close | 3.97 |
| Market Cap ( Millions) | 22184 |
| Volume | 8025402 |
| Year High | 4.55 |
| Year Low | 3.54 |
| M A 50 | 4.05 |
| M A 200 | 4.16 |
Financial Ratios
| FCF Yield | 21.16% |
| Dividend Yield | 7.62% |
| ROE | -6.54% |
| Debt / Equity | 38.23% |
| Net Debt / EBIDTA | 13.74% |
| Price To Book | 1.08 |
| Price Earnings Ratio | -19.03 |
| Price To FCF | 4.72 |
| Price To sales | 0.55 |
| EV / EBITDA | 2.12 |
News
- Jan -31 - IBM and Telefónica Tech join forces for quantum-safe cybersecurity
- Jan -31 - Telefonica, IBM Join Forces to Develop Quantum-Safe Security Solutions
- Jan -29 - Is Telefónica (TEF) the Best 5G Stock to Invest in According to Analysts?
- Jan -29 - Telefonica’s New CEO Faces First Test as Bids Due for Fiber Unit
- Jan -27 - TEF's Unit Offers Perplexity Pro AI Services to Spain-based Customers
- Jan -27 - Is Telefónica (TEF) Among the Best Affordable Stocks Under $5 to Buy Now?
- Jan -24 - Saudi Arabia's STC seeks seat on Telefonica board
- Jan -21 - TEF's Movistar & Xbox Team Up to Boost Colombia's Esports Ecosystem
- Jan -20 - Telefonica replaces president with former Indra Group head Marc Murtra, amid increasing shareholder pressure
- Jan -20 - Sanchez Rattles Spanish Business With Flex Ahead of Davos
- Jan -19 - Spain's Indra appoints Angel Escribano as new chairman
- Jan -18 - State-owned SEPI proposes to replace Telefonica CEO
- Jan -18 - State-owned SEPI proposes to replace Telefonica CEO
- Jan -18 - Telefonica replaces CEO Alvarez-Pallete with Indra's chairman
- Jan -16 - Zacks.com featured highlights YPF Sociedad, Telefonica, Penumbra, Deckers Outdoor and Abercrombie & Fitch
- Jan -15 - 5 Must-Buy Efficient Stocks to Increase Your Portfolio Returns
- Jan -14 - Best Income Stocks to Buy for January 14th
- Jan -14 - Telefonica & Siemens Partner for Spain's Industrial Transformation
- Jan -03 - Will Telefonica's Shares Benefit From Robust 5G Footprint in Spain?
- Jan -03 - Zacks Industry Outlook Deutsche Telekom, Telefonica and Telefonica Brasil
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Mobile
Expected Growth : 1.2 %
What the company do ?
Why we expect these perspectives ?
Telefónica's Mobile segment growth of 1.2% is driven by increasing demand for mobile data and digital services, particularly in Latin America and Europe. Strong 4G and 5G network investments, as well as innovative offerings such as IoT and cybersecurity solutions, contribute to the growth. Additionally, cost savings initiatives and operational efficiencies also support the segment's expansion.
Segment n°2 -> Retailers
Expected Growth : 0.8 %
What the company do ?
Why we expect these perspectives ?
Telefónica's retail segment growth of 0.8% is driven by increasing demand for digital services, expansion into new markets, and strategic partnerships. Additionally, investments in 5G network infrastructure and IoT solutions have enhanced customer experience, contributing to revenue growth.
Segment n°3 -> Fixed
Expected Growth : 0.5 %
What the company do ?
Why we expect these perspectives ?
Telefónica's fixed segment growth of 0.5% is driven by increasing demand for high-speed internet and bundled services, particularly in rural areas. Additionally, investments in fiber-optic infrastructure and network modernization have improved service quality, attracting and retaining customers. Furthermore, strategic partnerships and cost-saving initiatives have enhanced operational efficiency, contributing to the segment's growth.
Segment n°4 -> Wholesalers, Mobile Handsets and Others
Expected Growth : 1.5 %
What the company do ?
Why we expect these perspectives ?
Telefónica's Wholesalers segment growth of 1.5% is driven by increasing demand for data services and IoT solutions. Mobile Handsets growth is fueled by rising smartphone adoption and 5G network expansion. Others segment growth is attributed to growing demand for digital services, such as cybersecurity and cloud computing, and strategic partnerships.
Segment n°5 -> Other and Eliminations
Expected Growth : 0.3 %
What the company do ?
Why we expect these perspectives ?
Telefónica's Other and Eliminations segment growth of 0.3% is driven by the company's efforts to optimize its cost structure, improve operational efficiency, and divest non-core assets. Additionally, the segment benefits from the growth of its digital businesses, such as cybersecurity and IoT, which offset the decline in traditional voice and data services.
Telefónica, S.A. Products
| Product Range | What is it ? |
|---|---|
| Movistar+ | A subscription-based streaming service offering a wide range of TV channels, movies, and original content. |
| Fibre Broadband | High-speed internet connectivity using fibre-optic cables, providing fast and reliable internet access. |
| Mobile Plans | A range of mobile phone plans offering varying amounts of data, minutes, and texts, with options for individuals and businesses. |
| Cybersecurity Services | A suite of security solutions protecting individuals and businesses from cyber threats, including antivirus software and threat detection. |
| IoT Solutions | A range of Internet of Things (IoT) solutions enabling businesses to connect and manage devices, sensors, and machines remotely. |
| Cloud Services | A range of cloud-based services, including infrastructure, platform, and software as a service, for businesses and individuals. |
| Big Data Analytics | A suite of big data analytics tools and services helping businesses to collect, process, and analyze large datasets. |
Telefónica, S.A.'s Porter Forces
Threat Of Substitutes
Telefónica faces moderate threat from substitutes, such as VoIP services and messaging apps, which can replace traditional voice and messaging services.
Bargaining Power Of Customers
Telefónica's customers have high bargaining power due to the availability of alternative service providers and the ease of switching between them.
Bargaining Power Of Suppliers
Telefónica's suppliers, such as network equipment providers, have low bargaining power due to the company's large scale and negotiating power.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry in the telecommunications industry is high, with multiple players competing for market share and customers.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 76.61% |
| Debt Cost | 4.24% |
| Equity Weight | 23.39% |
| Equity Cost | 7.52% |
| WACC | 5.01% |
| Leverage | 327.58% |
Telefónica, S.A. : Quality Control
Telefónica, S.A. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| T | AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying … |
| VOD.L | Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, … |
| SCMN.SW | Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such … |
| DTE.DE | Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development. It offers fixed-network services, … |
| ORA.PA | Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Deutsche Telekom
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1-Year Total Return ->
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Telefónica
A-Score
1-Year Total Return ->
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AT&T
A-Score
1-Year Total Return ->
4
Orange
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1-Year Total Return ->
5
Vodafone
A-Score
1-Year Total Return ->
6
