Telecom Italia SpA (TIT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intred SpA

Telecom Italia SpA

TrenDevice SpA

Convergenze SpA Società Benefit

SG Company Società Benefit SPA

Tessellis SpA

Unidata SpA

Why is Telecom Italia SpA ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.65%

Poor long term growth as Net Sales has grown by an annual rate of -3.18% and Operating profit at -10.48% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With ROE of 0.25%, it has a Expensive valuation with a 0.62 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 94.31%, its profits have risen by 110.6% ; the PEG ratio of the company is 2.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Telecom Italia SpA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Telecom Italia SpA

94.31%

-0.40

34.12%

Italy FTSE MIB

24.83%

1.30

19.16%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.18%

EBIT Growth (5y)

-10.48%

EBIT to Interest (avg)

0.47

Debt to EBITDA (avg)

3.30

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.35

Tax Ratio

23.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

3.65%

ROE (avg)

5.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

243

Industry P/E

Price to Book Value

0.62

EV to EBIT

13.60

EV to EBITDA

3.75

EV to Capital Employed

0.77

EV to Sales

1.12

PEG Ratio

2.20

Dividend Yield

ROCE (Latest)

5.70%

ROE (Latest)

0.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Telecom Italia SpA

Net Sales - Quarterly

At EUR 4,343 MM has Grown at 7.2 %

over average Net Sales of the previous four periods of EUR 4,053 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (EUR MM)

Net Sales - Quarterly

Highest at EUR 4,343 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Inventory Turnover Ratio- Half Yearly

Highest at 47.23 times

in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio- Half Yearly

Highest at times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Telecom Italia SpA

Interest - Quarterly

At EUR 862 MM has Grown at 38.81 %

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR -586 MM has Fallen at -65.5 %

over average PBT of the previous four periods of EUR -354 MM

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (EUR MM)

Operating Cash Flow - Annually

Lowest at EUR 3,944.00 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (EUR MM)

Interest - Quarterly

Highest at EUR 862 MM

in the last five periods and Increased by 38.81 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income - Quarterly

Highest at EUR 407 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (EUR MM)