Telecom Italia SpA

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TI : NYSE : Technology
$9.03 up 0.06 | 0.67%
Today's Range: 8.96 - 9.07
Avg. Daily Volume: 270600.0
01/20/17 - 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.

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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 Volume259522.098281.0

Valuation


SELL. TELECOM ITALIA SPA's P/E ratio indicates a significant premium compared to an average of 25.95 for the Diversified Telecommunication Services industry and a significant premium compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 0.79 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 4.29. 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 223.25 Peers 25.95   TI 2.73 Peers 8.32

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 17.27 Peers 21.02   TI NM Peers 1.89

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

TI is trading at a valuation on par with 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 0.79 Peers 4.29   TI -91.67 Peers 92.43

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 0.83 Peers 2.21   TI -9.48 Peers 9.50

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

 

 

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