Telecom Italia SPA (TIT) AI Stock Analysis

• Market Cap: €12.26B
• Dividend Yield: N/A
• Average Volume (3M): 180.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -7.91%
• EPS Growth: 96.66%
• Country: IT
• Employees: 26,282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.00
• Shares Outstanding: 15,329,467,000
• 10 Day Avg. Volume: 237,326,700
• 30 Day Avg. Volume: 180,994,994
• PEG Ratio: 0.15
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 13.03
• 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: €0.60
• Price Target Upside: 11.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: €0.49 ▼(-10.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and high leverage. Technical analysis provides some stability, but poor valuation metrics further weigh down the score.

Positive Factors

Digital Transformation

Telecom Italia's focus on digital transformation and infrastructure development positions it as a key player in Italy's digital evolution, potentially driving long-term growth and competitiveness.

5G Network Expansion

Investments in 5G networks can enhance service offerings, attract more customers, and provide a competitive edge, supporting sustainable revenue growth.

Operational Efficiency

Positive EBITDA margins indicate operational efficiency, which can help mitigate financial challenges and support profitability in the long term.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, posing a risk to long-term stability.

Declining Revenue

Declining revenues reflect challenges in market demand or competitive pressures, which could impact the company's ability to sustain growth.

Cash Flow Constraints

Cash flow constraints limit the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.

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 through several key streams, primarily from its mobile and fixed-line services. The company earns money from subscription fees for mobile voice and data plans, fixed broadband services, and pay-TV offerings. Additionally, it provides wholesale telecommunications services to other operators, contributing to its revenue. The company also engages in partnerships with various technology firms and content providers, enhancing its service offerings and customer acquisition. Factors such as the growing demand for high-speed internet, the expansion of 5G mobile networks, and its strategic investments in digital transformation and innovative technologies play significant roles in boosting its earnings.

Telecom Italia SPA Financial Statement Overview

Summary

Telecom Italia SPA faces challenges with profitability and cash flow generation, despite some improvements in leverage. The company needs to address its operational inefficiencies and manage its debt levels to enhance financial stability and shareholder value. While there are signs of improvement, the overall financial health remains weak, requiring strategic initiatives to drive growth and profitability.

Income Statement

Telecom Italia SPA shows a declining trend in gross profit margin from 64.08% in 2020 to 42.53% in TTM 2025, indicating pressure on profitability. The net profit margin remains negative, reflecting ongoing losses, although the loss has narrowed from -54.84% in 2021 to -2.42% in TTM 2025. Revenue growth is modest at 1.38% in TTM 2025, following a decline in previous years. EBIT and EBITDA margins are relatively stable, but lower than industry averages, suggesting room for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.31 in 2023 to 1.27 in TTM 2025, indicating better leverage management, yet it remains high, posing a risk. Return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the high debt levels suggest a leveraged balance sheet.

Cash Flow

Telecom Italia SPA's free cash flow has been volatile, with a significant decline in TTM 2025. The operating cash flow to net income ratio is low at 0.26, indicating challenges in converting profits into cash. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net losses.

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	4.88B	6.73B	7.23B	9.13B	9.25B	10.13B
EBITDA	3.55B	4.80B	4.81B	5.51B	1.16B	7.25B
Net Income	-210.00M	-610.00M	-1.44B	-2.92B	-8.65B	7.22B
Balance Sheet
Total Assets	36.69B	37.66B	62.16B	62.03B	69.19B	73.23B
Cash, Cash Equivalents and Short-Term Investments	1.77B	4.57B	4.97B	5.00B	9.15B	5.92B
Total Debt	14.64B	15.54B	31.91B	31.19B	32.10B	29.95B
Total Liabilities	23.39B	24.30B	44.65B	43.30B	47.15B	44.39B
Stockholders Equity	11.94B	11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow
Free Cash Flow	-109.00M	402.00M	-25.00M	-1.41B	323.00M	1.85B
Operating Cash Flow	2.42B	3.25B	3.94B	4.89B	4.34B	6.55B
Investing Cash Flow	-1.15B	5.36B	-4.15B	-5.33B	-5.12B	-3.08B
Financing Cash Flow	-1.41B	-7.25B	-456.00M	-2.87B	3.16B	-2.01B

Telecom Italia SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.54 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.50, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.28 is Neutral, neither overbought nor oversold. The STOCH value of 86.61 is Negative, 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
UD	70 Outperform	€93.90M	10.19	―	0.35%	1.59%	16.25%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TIT	47 Neutral	€12.26B	-411.54	-1.26%	―	-7.91%	96.66%
TSL	44 Neutral	€31.31M	-0.42	―	―	-6.23%	19.42%