Overview Dividends

(TEF) Telefonica - Ratings and Ratios

Exchange: NYSE • Country: Spain • Currency: USD • Type: Common Stock • ISIN: US8793822086

Mobile, Broadband, Fixed-Line, Cloud, Wholesale

TEF EPS (Earnings per Share)

EPS Growth (3Y CAGR): -8.98%
EPS Trend (3Y Correlation): -17.2%

TEF Revenue

Revenue Growth (3Y CAGR): -5.74%
Revenue Trend (3Y Correlation): -49.7%

Description: TEF Telefonica October 14, 2025

Telefónica S.A. (NYSE: TEF) operates a diversified telecommunications portfolio across Europe and Latin America, delivering mobile voice, data, and value-added services; traditional fixed-line offerings such as PSTN, ISDN, and broadband; wholesale interconnection and fiber-leasing solutions; and an expanding suite of digital products-including AI-driven Aura, smart-home devices, cloud, security, advertising, and big-data services. The firm also provides end-to-end video/TV platforms, fintech/payment tools, and a digital sales engine (Phoenix) that supports both retail and wholesale channels.

Key recent metrics that shape Telefónica’s outlook: (1) 2023 EBITDA of €9.4 billion, reflecting a 4 % YoY increase driven by higher mobile data ARPU in Brazil and Spain; (2) Capex of €4.2 billion, with ~€1.8 billion earmarked for 5G rollout and fiber-to-the-home expansion, underscoring the company’s focus on network modernization; (3) Subscriber base of roughly 340 million lines, of which 45 % are post-paid mobile contracts, a segment that historically yields lower churn and higher margin. Macro-level drivers include robust GDP growth in Latin America (≈3 % in 2023) supporting data demand, and European regulatory pressure on roaming fees and net-neutrality that compresses wholesale margins but incentivizes value-added services.

For a deeper, data-driven valuation, the ValueRay platform offers granular financial models and scenario analysis worth exploring.

TEF Stock Overview

Market Cap in USD	27,893m
Sub-Industry	Integrated Telecommunication Services
IPO / Inception	1987-06-11

TEF Stock Ratings

Growth Rating	65.8%
Fundamental	50.2%
Dividend Rating	34.9%
Return 12m vs S&P 500	-19.7%
Analyst Rating	3.0 of 5

TEF Dividends

Dividend Yield 12m	7.88%
Yield on Cost 5y	12.96%
Annual Growth 5y	-8.52%
Payout Consistency	72.7%
Payout Ratio	111.2%

TEF Growth Ratios

Growth Correlation 3m	-79.2%
Growth Correlation 12m	83.7%
Growth Correlation 5y	76%
CAGR 5y	13.31%
CAGR/Max DD 3y (Calmar Ratio)	0.49
CAGR/Mean DD 3y (Pain Ratio)	2.71
Sharpe Ratio 12m	1.69
Alpha	-17.32
Beta	0.565
Volatility	48.85%
Current Volume	1836.5k
Average Volume 20d	531.8k
Stop Loss	4 (-3.8%)
Signal	-0.81

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (-2.38b TTM) > 0 and > 6% of Revenue (6% = 2.34b TTM)

FCFTA 0.06 (>2.0%) and ΔFCFTA 0.92pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -9.92% (prev -11.18%; Δ 1.25pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.11 (>3.0%) and CFO 10.84b > Net Income -2.38b (YES >=105%, WARN >=100%)

Net Debt (1.04b) to EBITDA (12.60b) ratio: 0.08 <= 3.0 (WARN <= 3.5)

Current Ratio 0.85 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (5.64b) change vs 12m ago -0.02% (target <= -2.0% for YES)

Gross Margin 6.27% (prev 21.33%; Δ -15.06pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 39.69% (prev 40.14%; Δ -0.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 1.46 (EBITDA TTM 12.60b / Interest Expense TTM 3.00b) >= 6 (WARN >= 3)

Altman Z'' 0.79

(A) -0.04 = (Total Current Assets 21.26b - Total Current Liabilities 25.12b) / Total Assets 94.37b

(B) 0.21 = Retained Earnings (Balance) 19.47b / Total Assets 94.37b

(D) 0.09 = Book Value of Equity 6.38b / Total Liabilities 73.39b

Total Rating: 0.79 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 50.15

1. Piotroski 3.0pt = -2.0

2. FCF Yield 21.22% = 5.0

3. FCF Margin 13.75% = 3.44

4. Debt/Equity 0.44 = 2.41

5. Debt/Ebitda 0.08 = 2.49

6. ROIC - WACC (= -3.63)% = -4.53

7. RoE -12.39% = -2.07

8. Rev. Trend -49.74% = -3.73

9. EPS Trend -17.16% = -0.86

What is the price of TEF shares?

As of November 06, 2025, the stock is trading at USD 4.16 with a total of 1,836,491 shares traded.
Over the past week, the price has changed by -19.54%, over one month by -15.79%, over three months by -20.91% and over the past year by -4.55%.

Is Telefonica a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Telefonica is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 50.15 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of TEF is around 3.88 USD . This means that TEF is currently overvalued and has a potential downside of -6.73%.

Is TEF a buy, sell or hold?

Telefonica has received a consensus analysts rating of 3.00. Therefor, it is recommend to hold TEF.

Strong Buy: 0
Buy: 0
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the TEF price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	4.9	18%
Analysts Target Price	4.9	18%
ValueRay Target Price	4.4	5.8%

TEF Fundamental Data Overview November 05, 2025

Market Cap EUR = 24.19b (27.89b USD * 0.8672 USD.EUR)
P/E Forward = 15.8479
P/S = 0.6715
P/B = 1.3955
P/EG = 0.3798
Beta = 0.565
Revenue TTM = 38.93b EUR
EBIT TTM = 4.38b EUR
EBITDA TTM = 12.60b EUR
Long Term Debt = 5.51b EUR (from longTermDebtTotal, last quarter)
Short Term Debt = 2.04b EUR (from shortTermDebt, last quarter)
Debt = 7.55b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.04b EUR (from netDebt column, last quarter)
Enterprise Value = 25.23b EUR (24.19b + Debt 7.55b - CCE 6.50b)
Interest Coverage Ratio = 1.46 (Ebit TTM 4.38b / Interest Expense TTM 3.00b)
FCF Yield = 21.22% (FCF TTM 5.35b / Enterprise Value 25.23b)
FCF Margin = 13.75% (FCF TTM 5.35b / Revenue TTM 38.93b)
Net Margin = -6.12% (Net Income TTM -2.38b / Revenue TTM 38.93b)
Gross Margin = 6.27% ((Revenue TTM 38.93b - Cost of Revenue TTM 36.49b) / Revenue TTM)
Gross Margin QoQ = 11.37% (prev 12.03%)
Tobins Q-Ratio = 0.27 (Enterprise Value 25.23b / Total Assets 94.37b)
Interest Expense / Debt = 39.73% (Interest Expense 3.00b / Debt 7.55b)
Taxrate = 57.22% (222.0m / 388.0m)
NOPAT = 1.87b (EBIT 4.38b * (1 - 57.22%))
Current Ratio = 0.85 (Total Current Assets 21.26b / Total Current Liabilities 25.12b)
Debt / Equity = 0.44 (Debt 7.55b / totalStockholderEquity, last quarter 17.28b)
Debt / EBITDA = 0.08 (Net Debt 1.04b / EBITDA 12.60b)
Debt / FCF = 0.19 (Net Debt 1.04b / FCF TTM 5.35b)
Total Stockholder Equity = 19.23b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.53% (Net Income -2.38b / Total Assets 94.37b)
RoE = -12.39% (Net Income TTM -2.38b / Total Stockholder Equity 19.23b)
RoCE = 17.69% (EBIT 4.38b / Capital Employed (Equity 19.23b + L.T.Debt 5.51b))
RoIC = 6.59% (NOPAT 1.87b / Invested Capital 28.41b)
WACC = 10.22% (E(24.19b)/V(31.73b) * Re(8.10%) + D(7.55b)/V(31.73b) * Rd(39.73%) * (1-Tc(0.57)))
Discount Rate = 8.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.12%
[DCF Debug] Terminal Value 80.00% ; FCFE base≈5.15b ; Y1≈5.91b ; Y5≈8.27b
Fair Price DCF = 25.08 (DCF Value 141.39b / Shares Outstanding 5.64b; 5y FCF grow 17.34% → 3.0% )
EPS Correlation: -17.16 | EPS CAGR: -8.98% | SUE: -1.10 | # QB: 0
Revenue Correlation: -49.74 | Revenue CAGR: -5.74% | SUE: -0.07 | # QB: 0

Additional Sources for TEF Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle