Telefonica (ES:TEF)
BME:TEF
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Telefonica
(BME:TEF)
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Rating:53Neutral
Price Target:
€3.50
▼(-8.14% Downside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by weak and volatile profitability and a leveraged balance sheet, despite strong operating/free cash flow that provides support. Technical indicators are moderately constructive near-term, and valuation is mixed—high dividend yield but negative P/E due to losses.
Positive Factors
Strong cash generation
Telefonica’s sizable and positive operating and free cash flow provide durable funding for capex, network upgrades, debt service and shareholder returns. Consistent FCF even during net losses supports liquidity and strategic investments, reducing reliance on external financing.
Negative Factors
High leverage
Elevated debt relative to equity constrains financial flexibility and increases vulnerability to interest rate or funding shocks. With leverage high versus current earnings, debt servicing limits room for opportunistic investment and could pressure credit metrics during earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Telefonica’s sizable and positive operating and free cash flow provide durable funding for capex, network upgrades, debt service and shareholder returns. Consistent FCF even during net losses supports liquidity and strategic investments, reducing reliance on external financing.
Read all positive factors
Telefonica (TEF) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€21.37B
Dividend Yield7.88%
Average Volume (3M)7.73M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-7.15%
EPS Growth-79.58%
CountryES
Employees100,870
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding5,670,161,600
10 Day Avg. Volume9,593,306
30 Day Avg. Volume7,727,065
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.38
Price to Sales (P/S)0.56
P/FCF Ratio4.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€3.65Price Target Upside-4.20% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.42
Revenue Forecast (FY)€35.14B
Telefonica Business Overview & Revenue Model
Company Description
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company's mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, cor...
How the Company Makes Money
Telefonica generates revenue primarily through its core telecommunications services, including mobile and fixed-line voice services, broadband internet, and pay television subscriptions. The company's revenue model is diversified across several ke...
Telefonica Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 35.12B | 41.31B | 40.65B | 39.99B | 39.28B |
| Gross Profit | 315.00M | 28.76B | 20.23B | 27.05B | 27.02B |
| EBITDA | 9.21B | 12.35B | 10.34B | 14.79B | 22.53B |
| Net Income | -4.32B | -49.00M | -892.00M | 2.01B | 8.14B |
Balance Sheet | |||||
| Total Assets | 92.02B | 100.50B | 104.32B | 109.64B | 109.21B |
| Cash, Cash Equivalents and Short-Term Investments | 7.43B | 9.26B | 7.67B | 9.69B | 12.41B |
| Total Debt | 47.56B | 45.02B | 44.35B | 8.68B | 50.37B |
| Total Liabilities | 74.21B | 77.75B | 77.23B | 77.93B | 80.53B |
| Stockholders Equity | 14.26B | 19.35B | 14.30B | 25.09B | 22.21B |
Cash Flow | |||||
| Free Cash Flow | 4.67B | 5.20B | 5.49B | 5.30B | 4.10B |
| Operating Cash Flow | 9.72B | 10.99B | 11.65B | 10.81B | 10.27B |
| Investing Cash Flow | -4.59B | -5.22B | -4.29B | -5.33B | 5.90B |
| Financing Cash Flow | -6.41B | -4.67B | -7.19B | -7.92B | -12.99B |
Telefonica Technical Analysis
Positive
3.81
Price Trends
3.66
Positive
3.56
Positive
3.93
Negative
Market Momentum
0.06
Negative
56.84
Neutral
38.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TEF, the sentiment is Positive. The current price of 3.81 is above the 20-day moving average (MA) of 3.73, above the 50-day MA of 3.66, and below the 200-day MA of 3.93, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:TEF.
Telefonica Peers Comparison
UnderperformOutperform
Sector (55)
ES:TEF
Telefonica
3.81
-0.12
-2.96%
ES:AMP
Amper SA
0.18
0.04
30.66%
ES:IDR
Indra Sistemas
52.08
24.39
88.10%
ES:RED
Redeia Corporación
15.14
-3.23
-17.60%
ES:PAR
Parlem Telecom Companyia de Telecomunicacions SA
1.27
-1.97
-60.80%
ES:LLN
LleidaNetworks Serveis Telematics SA
1.17
0.05
4.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.