TEF Stock Analysis: Telefonica | MC
Telecom Services | MC, Spain | Market Cap: 20.386m EUR | 12M Return: -15.7% | ES0178430E18 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 31.1M
Qual. Beats: 0
Rev. Trend: -87.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Telefónica, S.A. is a major integrated telecommunications operator headquartered in Madrid, Spain, providing mobile, fixed-line, broadband, and digital services across Europe and Latin America. Founded in 1924 and publicly traded since 1987, the company operates under the Movistar brand and is listed on the Madrid Stock Exchange (MC) with the ticker TEF, falling within the Communication Services sector.
Its business spans consumer and enterprise offerings, including mobile voice and data, traditional fixed telephony (PSTN, ISDN), fibre-to-the-home broadband, voice over IP, and wholesale interconnection services for other operators. The company also supplies corporate clients with leased lines, VPNs, managed hosting, cloud, security, and IT outsourcing solutions, reflecting the convergence of telecom and enterprise IT services typical of large integrated carriers.
Beyond connectivity, Telefónica has expanded into digital products and platforms, including the Aura AI ecosystem, the Movistar Home smart device, video/TV services, and the Phoenix digital sales platform. As a large-cap integrated telecom operator with a market capitalization of roughly $24 billion USD, the company competes in a capital-intensive sector that requires sustained investment in network infrastructure (fibre, 5G) while transitioning toward higher-margin digital and data-driven services.
- Argentina peso devaluation pressures reported revenue and margins
- Spain fiber rollout expands ARPU amid intensifying price competition
- Net debt reduction and suspended dividend reinforce balance sheet
| Net Income: -3.30b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.92 > 1.0 |
| NWC/Revenue: -6.92% < 20% (prev -9.92%; Δ 3.00% < -1%) |
| CFO/TA 0.11 > 3% & CFO 9.30b > Net Income -3.30b |
| Net Debt (51.3b) to EBITDA (10.5b): 4.87 < 3 |
| Current Ratio: 0.89 > 1.5 & < 3 |
| Outstanding Shares: last quarter (5.63b) vs 12m ago -0.16% < -2% |
| Gross Margin: 7.29% > 18% (prev 20.89%; Δ -13.60% > 0.5%) |
| Asset Turnover: 38.18% > 50% (prev 41.26%; Δ -3.08% > 0%) |
| Interest Coverage Ratio: 0.72 > 6 (EBIT TTM 1.47b / Interest Expense TTM 2.04b) |
| A: -0.03 (Total Current Assets 19.1b - Total Current Liabilities 21.5b) / Total Assets 88.6b |
| B: 0.17 (Retained Earnings 14.9b / Total Assets 88.6b) |
| C: 0.02 (EBIT TTM 1.47b / Avg Total Assets 91.5b) |
| D: 0.09 (Book Value of Equity 7.12b / Total Liabilities 77.8b) |
| Altman-Z'' = 0.57 = B |
| DSRI: 1.24 (Receivables 9.21b/8.25b, Revenue 34.9b/38.9b) |
| GMI: 2.87 (GM 20.89% / 7.29%) |
| AQI: 1.00 (AQ_t 0.50 / AQ_t-1 0.50) |
| SGI: 0.90 (Revenue 34.9b / 38.9b) |
| TATA: -0.14 (NI -3.30b - CFO 9.30b) / TA 88.6b) |
| Beneish M = -1.22 (Cap -4..+1) = D |
As of August 25, 2026, the stock is trading at EUR 3.65 with a total of 4,898,575 shares traded. Over the past week, the price has changed by -0.46%, over one month by +1.42%, over three months by -7.19% and over the past year by -15.73%.
Current recommended Stop Loss: 3.50 (which is 4.1% or 2.5 ATR below the current price).
Telefonica has no consensus analysts rating.
P/E Forward = 12.0773
P/S = 0.5625
P/B = 1.3891
P/EG = 0.3783
Revenue TTM = 34.9b EUR
EBIT TTM = 1.47b EUR
EBITDA TTM = 10.5b EUR
Long Term Debt = 28.1b EUR (from longTermDebt, last fiscal year)
Short Term Debt = 6.20b EUR (from shortTermDebt, last quarter)
Debt = 57.2b EUR (from shortLongTermDebtTotal, last quarter) + Leases 7.92b
Net Debt = 51.3b EUR (calculated: Debt 57.2b - CCE 5.86b)
Enterprise Value = 71.7b EUR (20.4b + Debt 57.2b - CCE 5.86b)
Interest Coverage Ratio = 0.72 (Ebit TTM 1.47b / Interest Expense TTM 2.04b)
EV/FCF = 17.03x (Enterprise Value 71.7b / FCF TTM 4.21b)
FCF Yield = 5.87% (FCF TTM 4.21b / Enterprise Value 71.7b)
FCF Margin = 12.06% (FCF TTM 4.21b / Revenue TTM 34.9b)
Net Margin = -9.46% (Net Income TTM -3.30b / Revenue TTM 34.9b)
Gross Margin = 7.29% ((Revenue TTM 34.9b - Cost of Revenue TTM 32.4b) / Revenue TTM)
Gross Margin QoQ = 6.98% (prev 10.23%)
Tobins Q-Ratio = 0.81 (Enterprise Value 71.7b / Total Assets 88.6b)
Interest Expense / Debt = 3.56% (Interest Expense 2.04b / Debt 57.2b)
Taxrate = 15.26% (29.0m / 190.0m)
NOPAT = 1.24b (EBIT 1.47b * (1 - 15.26%))
Current Ratio = 0.89 (Total Current Assets 19.1b / Total Current Liabilities 21.5b)
Debt / Equity = 8.02 (Debt 57.2b / totalStockholderEquity, last quarter 7.12b)
Debt / EBITDA = 4.87 (Net Debt 51.3b / EBITDA 10.5b)
Debt / FCF = 12.18 (Net Debt 51.3b / FCF TTM 4.21b)
Total Stockholder Equity = 13.4b (last 4 quarters mean from totalStockholderEquity)
RoA = -3.61% (Net Income -3.30b / Total Assets 88.6b)
RoE = -24.69% (Net Income TTM -3.30b / Total Stockholder Equity 13.4b)
RoCE = 3.53% (EBIT 1.47b / Capital Employed (Equity 13.4b + L.T.Debt 28.1b))
RoIC = 1.74% (NOPAT 1.24b / Invested Capital 71.5b)
WACC = 3.63% (E(20.4b)/V(77.6b) * Re(5.33%) + D(57.2b)/V(77.6b) * Rd(3.56%) * (1-Tc(0.15)))
Discount Rate = 5.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.39 | Cagr: -0.04%
[DCF] Terminal Value 73.10% ; FCFF base≈4.67b ; Y1≈4.09b ; Y5≈3.31b
[DCF] Fair Price = 0.32 (EV 53.1b - Net Debt 51.3b = Equity 1.78b / Shares 5.63b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.50 | # QB: 0
Revenue Correlation: -87.21 | Revenue CAGR: -5.64% | SUE: 0.00 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.11 | Chg30d=-8.25% | Revisions=+25% | Analysts=2
EPS current Year (2026-12-31): EPS=0.34 | Chg30d=-1.39% | Revisions=+0% | GrowthEPS=+3.0% | GrowthRev=-4.8%
EPS next Year (2027-12-31): EPS=0.39 | Chg30d=-0.28% | Revisions=+25% | GrowthEPS=+15.3% | GrowthRev=+1.9%
[Analyst] Revisions Ratio: +40% (up=2, down=0)