Telecom Italia SPA (TIT) AI Stock Analysis

• Market Cap: €9.63B
• Dividend Yield: N/A
• Average Volume (3M): 156.00M
• Price to Earnings (P/E): 106.6
• Beta (1Y): 0.87
• Revenue Growth: -9.88%
• EPS Growth: N/A
• Country: IT
• Employees: 26,282
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 15,329,467,000
• 10 Day Avg. Volume: 197,446,323
• 30 Day Avg. Volume: 155,997,823
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.49
• Price Target Upside: 11.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: €0.50 ▲(13.64% Upside)

Telecom Italia SPA's stock score is primarily impacted by weak financial performance and high valuation concerns. While technical analysis shows some positive trends, the overall financial health and valuation metrics suggest caution.

Telecom Italia SPA Business Overview & Revenue Model

Company Description

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities. The company has a strategic partnership with Google Cloud. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.

How the Company Makes Money

Telecom Italia generates revenue primarily through its core services in telecommunications, which include voice services, mobile data plans, and fixed broadband subscriptions. Key revenue streams include monthly service fees from mobile and fixed-line customers, data usage charges, and sales of telecommunications equipment. Additionally, the company earns revenue from value-added services such as cloud computing and cybersecurity solutions. Significant partnerships with technology providers and content creators also contribute to its earnings, enabling Telecom Italia to offer bundled services that attract and retain customers. The company further benefits from investments in network infrastructure, which enhance service quality and expand customer reach, driving growth in both retail and enterprise segments.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.79B	14.44B	14.31B	15.79B	15.32B	15.80B
Gross Profit	5.86B	6.73B	7.23B	9.13B	9.25B	10.13B
EBITDA	4.26B	4.80B	4.81B	5.51B	1.16B	7.25B
Net Income	-334.00M	-610.00M	-1.44B	-2.92B	-8.65B	7.22B
Balance Sheet
Total Assets	37.95B	37.66B	62.16B	62.03B	69.19B	73.23B
Cash, Cash Equivalents and Short-Term Investments	3.79B	4.57B	4.97B	5.00B	9.15B	5.92B
Total Debt	15.20B	15.54B	31.55B	31.19B	32.10B	29.95B
Total Liabilities	24.63B	24.30B	44.65B	43.30B	47.15B	44.39B
Stockholders Equity	11.97B	11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow
Free Cash Flow	927.00M	402.00M	-25.00M	-1.41B	323.00M	1.85B
Operating Cash Flow	3.20B	3.25B	3.94B	4.89B	4.34B	6.55B
Investing Cash Flow	5.45B	5.36B	-4.15B	-5.33B	-5.12B	-3.08B
Financing Cash Flow	-6.32B	-7.25B	-456.00M	-2.87B	3.16B	-2.01B

Telecom Italia SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 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 Positive. The current price of 0.44 is below the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.42, and above the 200-day MA of 0.33, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	56 Neutral	$13.75B	13.14	10.03%	0.89%	7.13%	-12.93%
TIT	46 Neutral	€9.63B	106.59	-2.01%	―	-9.88%	―
0LLP	―	€41.51M	―	-1150.83%	―	―	―
0A7	―	€28.14M	21.34	5.69%	―	―	―
7E0	―	€13.57M	10.59	20.46%	―	―	―
ITD	―	€157.18M	22.72		1.04%	―	―
UD	―	€87.72M	10.12		0.35%	―	―