Telecom Italia SpA

Find Ratings Reports
TI : NYSE : Technology
$9.02 | %
Today's Range: 8.95 - 9.17
Avg. Daily Volume: 199,800
08/26/16 - 4:02 PM ET

Financial Analysis


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

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.63% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)5042.065927.35
EBITDA ($mil)2177.82320.34
EBIT ($mil)1068.81074.49
Net Income ($mil)629.87-51.27


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4181.137109.56
Total Assets ($mil)74933.7682232.87
Total Debt ($mil)38872.3639684.82
Equity ($mil)21077.7420535.63


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.1939.15
EBITDA Margin43.1939.14
Operating Margin21.218.13
Sales Turnover0.270.28
Return on Assets1.351.12
Return on Equity5.843.87
Debt Q2 FY16 Q2 FY15
Current Ratio0.861.04
Debt/Capital0.650.66
Interest Expense1074.31914.89
Interest Coverage0.991.17


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1936.41933.5
Div / share0.00.0
EPS0.3-0.12
Book value / share10.8910.62
Institutional Own % n/a n/a
Avg Daily Volume201673.0263846.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 17.02 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 0.84 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.08. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TELECOM ITALIA SPA proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TI 15.58 Peers 17.02   TI 2.67 Peers 6.86

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

TI is trading at a valuation on par with 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 11.32 Peers 17.86   TI NM Peers 1.03

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 significant 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 0.84 Peers 4.08   TI 78.78 Peers 58.20

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.

 

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

TI is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TI 0.87 Peers 1.74   TI -12.19 Peers 8.57

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