Telecom Italia SpA

Find Ratings Reports
TI : NYSE : Technology
$9.06 -0.14 | -1.52%
Today's Range: 9.0 - 9.07
Avg. Daily Volume: 194600.0
03/29/17 - 4:02 PM ET

Financial Analysis


TELECOM ITALIA SPA's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

During the same period, stockholders' equity ("net worth") has increased by 8.81% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5697.335423.99
EBITDA ($mil)2556.282227.52
EBIT ($mil)1312.771071.67
Net Income ($mil)613.21831.6


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)6480.956912.63
Total Assets ($mil)78319.8780532.71
Total Debt ($mil)38462.0639185.32
Equity ($mil)21817.4520049.18


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin44.8741.07
EBITDA Margin44.8641.06
Operating Margin23.0419.76
Sales Turnover0.260.28
Return on Assets1.61.56
Return on Equity5.415.44
Debt Q3 FY16 Q3 FY15
Current Ratio0.961.09
Debt/Capital0.640.66
Interest Expense801.881040.52
Interest Coverage1.641.03


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1936.431936.4
Div / share0.00.0
EPS0.00.17
Book value / share11.2710.35
Institutional Own % n/a n/a
Avg Daily Volume192074.0240241.0

Valuation


SELL. TELECOM ITALIA SPA's P/E ratio indicates a significant premium compared to an average of 28.77 for the Diversified Telecommunication Services industry and a significant premium compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 0.80 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 3.76. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TI 226.00 Peers 28.77   TI 2.76 Peers 7.08

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

TI is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TI is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TI NA Peers 15.93   TI NM Peers 0.63

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TI is trading at a premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TI's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TI 0.80 Peers 3.76   TI -91.67 Peers 6.47

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TI is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TI 0.84 Peers 1.92   TI -9.48 Peers 4.56

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TI is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TI significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades