Telecom Italia SPA (TIT) AI Stock Analysis

• Market Cap: €8.85B
• Dividend Yield: N/A
• Average Volume (3M): 146.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -15.82%
• EPS Growth: 86.90%
• Country: IT
• Employees: 26,282
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 15,329,467,000
• 10 Day Avg. Volume: 91,666,164
• 30 Day Avg. Volume: 146,359,161
• PEG Ratio: -0.02
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €0.44
• Price Target Upside: 10.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: €0.50 ▲(25.00%Upside)

Telecom Italia's stock score is primarily impacted by its mixed financial performance, with strong cash flow generation offsetting challenges in profitability and revenue growth. Technical analysis suggests bullish momentum, but valuation concerns due to a negative P/E ratio weigh heavily. The absence of earnings call data and corporate events simplifies the analysis to focus on these key factors.

Telecom Italia SPA Business Overview & Revenue Model

Company Description

Telecom Italia S.p.A. (TIT), operating under the TIM brand, is a leading telecommunications company in Italy, offering a wide range of services including fixed-line and mobile telephony, internet services, digital solutions, and cloud computing. The company serves both consumer and business markets, providing integrated communications solutions that cater to the evolving needs of digital connectivity and innovation. Besides its core operations in Italy, Telecom Italia also has significant interests and operations in Brazil, further enhancing its footprint in the international telecommunications landscape.

How the Company Makes Money

Telecom Italia S.p.A. generates revenue through several key streams. Primarily, the company earns from its telecommunications services, including mobile and fixed-line telephony, and broadband internet services. Mobile services revenue comes from both prepaid and postpaid subscriptions, data usage, and value-added services. Fixed-line services include traditional voice services and bundled offers that combine internet, fixed telephony, and television. Additionally, the company has been expanding its digital services portfolio with cloud computing, cybersecurity, and Internet of Things (IoT) solutions, which are becoming increasingly significant to its revenue model. Telecom Italia also benefits from strategic partnerships and collaborations with technology and digital service companies to enhance its offerings and reach new customer segments. Furthermore, its operations in Brazil contribute to its financial performance, providing geographical diversification and access to a large emerging market.

Telecom Italia SPA Financial Statement Overview

Summary

Telecom Italia faces challenges in revenue growth and profitability, with a negative net profit margin and declining gross profit margin. However, it shows strength in operational cash flow generation, with a significant improvement in free cash flow.

Income Statement

Telecom Italia's TTM (Trailing-Twelve-Months) income statement reveals a decline in total revenue and persistent net losses, evidenced by a negative net profit margin of -2.42%. Despite a slight improvement in EBIT margin to 11.22%, the company struggles with profitability, as shown by the decline in gross profit margin to 42.54% from the previous year. Revenue growth has been negative, indicating challenges in market expansion and competition. The EBITDA margin remains relatively stable at 30.89%, providing some operational efficiency cushion.

Balance Sheet

The balance sheet shows moderate stability with a debt-to-equity ratio of 1.27, suggesting a considerable level of leverage but manageable in the telecommunications industry. The equity ratio stands at 31.55%, indicating a reasonable proportion of equity financing. However, the return on equity is negative due to ongoing net losses, reflecting the company's difficulty in generating shareholder value amidst a high debt load.

Cash Flow

Telecom Italia's cash flow statement displays a positive trend in operating cash flow, with TTM figures showing an operating cash flow to net income ratio of approximately 9.57, highlighting strong cash generation relative to net income. The free cash flow growth rate is significant, moving from a negative free cash flow in previous years to a positive $927 million, suggesting improved cash management and operational efficiencies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.44B	14.31B	15.79B	15.32B	15.80B
Gross Profit	6.73B	7.23B	9.13B	9.25B	10.13B
EBITDA	4.80B	4.81B	5.51B	1.16B	7.25B
Net Income	-610.00M	-1.44B	-2.92B	-8.65B	7.22B
Balance Sheet
Total Assets	37.66B	62.16B	62.03B	69.19B	73.23B
Cash, Cash Equivalents and Short-Term Investments	4.46B	4.97B	5.00B	9.15B	5.92B
Total Debt	15.54B	31.55B	31.19B	32.10B	29.95B
Total Liabilities	24.30B	44.65B	43.30B	47.15B	44.39B
Stockholders Equity	11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow
Free Cash Flow	402.00M	-25.00M	-1.41B	323.00M	1.85B
Operating Cash Flow	3.25B	3.94B	4.89B	4.34B	6.55B
Investing Cash Flow	5.36B	-4.15B	-5.33B	-5.12B	-3.08B
Financing Cash Flow	-7.25B	-456.00M	-2.87B	3.16B	-2.01B

Telecom Italia SPA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TIT, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.40, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TIT.

Telecom Italia SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
TIT	55 Neutral	€8.85B	―	1.06%	―	-15.82%	86.90%
TSL	40 Underperform	€33.97M	―	-1150.83%	―	-6.15%	22.26%