(TIT) Telecom Italia S.p.A. - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: MI (Italy) | Market Cap: 16.252m EUR | Total Return: 83.6% in 12m
Avg Turnover: 84.9M
Rev. Trend: -92.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader, Tailwind, Confidence
Telecom Italia S.p.A. (TIT) provides comprehensive fixed and mobile telecommunications services across Italy and Brazil. The company’s operations are divided into Domestic and Brazil segments, serving residential customers, small businesses, and large public sector accounts through voice, broadband, and cloud-based ICT solutions.
As an integrated telecommunications provider, the company manages capital-intensive infrastructure, including fiber optic networks and mobile towers. The industry is currently characterized by a shift toward 5G deployment and the separation of network infrastructure from service operations to unlock asset value. For a deeper look at these structural developments, consult ValueRay.
Founded in 1908 and headquartered in Rome, the firm also maintains a significant presence in the Internet of Things (IoT) and digital connectivity markets. Its business model relies on recurring subscription revenue and long-term service contracts for enterprise data transmission.
- NetCo grid divestment reduces massive debt load and improves balance sheet
- TIM Brasil revenue growth offsets domestic market stagnation and intense competition
- Cloud and digital service expansion drives enterprise sector margin recovery
- European telecommunications regulatory shifts impact infrastructure investment and pricing power
- High interest rates increase financing costs for remaining long-term debt obligations
| Net Income: -18.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA -2.34 > 1.0 |
| NWC/Revenue: -1.74% < 20% (prev -15.93%; Δ 14.19% < -1%) |
| CFO/TA 0.07 > 3% & CFO 2.54b > Net Income -18.0m |
| Net Debt (1.12b) to EBITDA (3.67b): 0.30 < 3 |
| Current Ratio: 0.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (21.3b) vs 12m ago 0.12% < -2% |
| Gross Margin: 38.68% > 18% (prev 0.47%; Δ 3.82k% > 0.5%) |
| Asset Turnover: 36.27% > 50% (prev 37.61%; Δ -1.35% > 0%) |
| Interest Coverage Ratio: 1.61 > 6 (EBITDA TTM 3.67b / Interest Expense TTM 456.0m) |
| DSRI: 1.43 (Receivables 5.64b/4.12b, Revenue 13.7b/14.3b) |
| GMI: 1.21 (GM 38.68% / 46.89%) |
| AQI: 0.96 (AQ_t 0.51 / AQ_t-1 0.53) |
| SGI: 0.96 (Revenue 13.7b / 14.3b) |
| TATA: -0.07 (NI -18.0m - CFO 2.54b) / TA 37.5b) |
| Beneish M = -2.60 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at EUR 0.72 with a total of 110,133,334 shares traded.
Over the past week, the price has changed by +1.33%,
over one month by +8.74%,
over three months by +10.58% and
over the past year by +83.60%.
Telecom Italia S.p.A. has no consensus analysts rating.
P/E Trailing = 72.52
P/E Forward = 70.922
P/S = 1.1725
P/B = 1.2461
P/EG = 0.5051
Revenue TTM = 13.7b EUR
EBIT TTM = 736.0m EUR
EBITDA TTM = 3.67b EUR
Long Term Debt = 8.82b EUR (from longTermDebt, last quarter)
Short Term Debt = 2.65b EUR (from shortLongTermDebt, last quarter)
Debt = 3.17b EUR (Leases only: 3.17b)
Net Debt = 1.12b EUR (calculated: Debt 3.17b - CCE 2.05b)
Enterprise Value = 17.4b EUR (16.3b + Debt 3.17b - CCE 2.05b)
Interest Coverage Ratio = 1.61 (Ebit TTM 736.0m / Interest Expense TTM 456.0m)
EV/FCF = 469.4x (Enterprise Value 17.4b / FCF TTM 37.0m)
FCF Yield = 0.21% (FCF TTM 37.0m / Enterprise Value 17.4b)
FCF Margin = 0.27% (FCF TTM 37.0m / Revenue TTM 13.7b)
Net Margin = -0.13% (Net Income TTM -18.0m / Revenue TTM 13.7b)
Gross Margin = 38.68% ((Revenue TTM 13.7b - Cost of Revenue TTM 8.39b) / Revenue TTM)
Gross Margin QoQ = 43.18% (prev 25.63%)
Tobins Q-Ratio = 0.46 (Enterprise Value 17.4b / Total Assets 37.5b)
Interest Expense / Debt = 14.38% (Interest Expense 456.0m / Debt 3.17b)
Taxrate = 15.84% (112.0m / 707.0m)
NOPAT = 619.4m (EBIT 736.0m * (1 - 15.84%))
Current Ratio = 0.98 (Total Current Assets 10.8b / Total Current Liabilities 11.1b)
Debt / Equity = 0.26 (Debt 3.17b / totalStockholderEquity, last quarter 12.1b)
Debt / EBITDA = 0.30 (Net Debt 1.12b / EBITDA 3.67b)
Debt / FCF = 30.19 (Net Debt 1.12b / FCF TTM 37.0m)
Total Stockholder Equity = 12.0b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.05% (Net Income -18.0m / Total Assets 37.5b)
RoE = -0.15% (Net Income TTM -18.0m / Total Stockholder Equity 12.0b)
RoCE = 3.53% (EBIT 736.0m / Capital Employed (Equity 12.0b + L.T.Debt 8.82b))
RoIC = 2.35% (NOPAT 619.4m / Invested Capital 26.4b)
WACC = 7.11% (E(16.3b)/V(19.4b) * Re(6.13%) + D(3.17b)/V(19.4b) * Rd(14.38%) * (1-Tc(0.16)))
Discount Rate = 6.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 71.58 | Cagr: 0.08%
[DCF] Terminal Value 73.10% ; FCFF base≈393.0m ; Y1≈344.6m ; Y5≈278.5m
[DCF] Fair Price = 0.22 (EV 4.47b - Net Debt 1.12b = Equity 3.35b / Shares 15.3b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: N/A | # QB: 0
Revenue Correlation: -91.97 | Revenue CAGR: -6.95% | SUE: -0.00 | # QB: 0
EPS current Year (2026-12-31): EPS=0.02 | Chg30d=N/A | Revisions=+20% | GrowthEPS=+215.8% | GrowthRev=+3.5%
EPS next Year (2027-12-31): EPS=0.03 | Chg30d=N/A | Revisions=+14% | GrowthEPS=+33.6% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +20%