Telecom Italia SpA

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TI : NYSE : Technology
$9.68 -0.2 | -2.02%
Today's Range: 9.62 - 9.86
Avg. Daily Volume: 182600.0
05/23/17 - 4:02 PM ET

Financial Analysis


TELECOM ITALIA SPA's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. TELECOM ITALIA SPA has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 17.02% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)4553.274890.02
EBITDA ($mil)1902.041992.04
EBIT ($mil)875.941033.5
Net Income ($mil)171.53-482.25


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)5891.185480.54
Total Assets ($mil)74334.6277350.83
Total Debt ($mil)34353.0937433.15
Equity ($mil)22377.6319122.7


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin41.7740.74
EBITDA Margin41.7740.73
Operating Margin19.2421.13
Sales Turnover0.270.28
Return on Assets2.560.49
Return on Equity8.53-0.88
Debt Q4 FY16 Q4 FY15
Current Ratio0.950.78
Debt/Capital0.610.66
Interest Expense458.961277.65
Interest Coverage1.910.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2106.721936.4
Div / share0.00.0
EPS0.15-0.24
Book value / share10.629.88
Institutional Own % n/a n/a
Avg Daily Volume181531.0264593.0

Valuation


SELL. The current P/E ratio indicates a significant discount compared to an average of 36.56 for the Diversified Telecommunication Services industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 0.92 indicates a significant discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 3.50. 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 22.79 Peers 36.56   TI 3.46 Peers 7.79

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TI is trading at a significant discount 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 8.45 Peers 15.57   TI 0.97 Peers 1.29

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TI is trading at a significant discount to its peers.

 

Discount. 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 trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TI 0.92 Peers 3.50   TI 637.50 Peers 34.20

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 1.01 Peers 10.05   TI -6.10 Peers 2.53

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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