Telefonica Sa (TELFY)
OTHER OTC:TELFY
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Telefonica
(OTC:TELFY)
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Rating:43Neutral
Price Target:
$4.00
▲(1.78% Upside)
Action:Reiterated
Date:11/08/25
Telefonica's overall stock score of 43 reflects significant challenges in financial performance, with a net loss, high debt, and declining revenue as the primary drags. Bearish technical indicators further weigh on the score, signaling a downward trend. A high dividend yield provides some offset, but profitability concerns dominate the outlook, warranting caution for investors.
Positive Factors
Strategic Growth Plans
Telefónica's long-term growth strategy, with planned revenue and EBITDA growth, indicates a focus on sustainable expansion and operational efficiency.
Negative Factors
Declining Revenue Growth
Declining revenue growth indicates challenges in maintaining market share and could impact long-term profitability if not addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic Growth Plans
Telefónica's long-term growth strategy, with planned revenue and EBITDA growth, indicates a focus on sustainable expansion and operational efficiency.
Read all positive factors
Telefonica (TELFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.31B
Dividend Yield7.47%
Average Volume (3M)46.55K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-5.91%
EPS Growth-104.62%
CountryUS
Employees100,870
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.39
Shares Outstanding5,670,161,600
10 Day Avg. Volume0
30 Day Avg. Volume46,555
Financial Highlights & Ratios
PEG Ratio5.70
Price to Book (P/B)1.13
Price to Sales (P/S)0.53
P/FCF Ratio4.20
Enterprise Value/Market Cap2.25
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda3.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.4
Revenue Forecast (FY)$39.60B
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
Telefónica generates revenue primarily through its telecommunications services, which include mobile and fixed-line voice services, data transmission, and broadband internet access. The company earns significant income from mobile subscriptions, w...
Telefonica Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: Telefonica delivered on 2025 guidance, reported yoy growth across revenue, adjusted EBITDA and adjusted operating cash flow after leases, showed Q4 acceleration, strengthened the balance sheet and upgraded 2026 free cash flow guidance to ~EUR 3bn. Core markets (Spain and Brazil) and B2B/digital units showed strong momentum and the company progressed portfolio simplification. Offsets include meaningful declines and one-off pressures in Germany and VMO2, FX headwinds, rising lease costs and near-term restructuring cash outflows. Regulatory uncertainty around consolidation and competitive pressures in consumer fixed/low-end segments add execution risk. On balance the positive operational strides, improved cash generation, balance sheet progress and upgraded guidance outweigh the material but manageable headwinds.Positive Updates
Delivered on 2025 Financial Commitments
Revenue EUR 35.1bn (+1.5% YoY constant), adjusted EBITDA EUR 11.9bn (+2% YoY), adjusted operating cash flow after leases just over EUR 5bn (+5.9% YoY). Free cash flow EUR 2.8bn (above initial base guidance ~EUR 2.7bn). Q4 acceleration: revenue +1.3% (constant), adjusted EBITDA +2.8%, adjusted operating cash flow after leases ~+13%.
Negative Updates
Germany: Revenue and EBITDA Declines (1&1 Migration Impact)
Revenue and adjusted EBITDA declined in 2025, with Q4 hit by the completion of the 1&1 customer migration and tough comparables to Q4 2024. Management reported steep Q4 EBITDA after-lease declines (questions cite ~-22% in Q4) and expects a return to growth only by 2027; market remains promotional which pressures ARPU.
Read all updates
Q4-2025 Updates
Positive
Negative
Delivered on 2025 Financial Commitments
Revenue EUR 35.1bn (+1.5% YoY constant), adjusted EBITDA EUR 11.9bn (+2% YoY), adjusted operating cash flow after leases just over EUR 5bn (+5.9% YoY). Free cash flow EUR 2.8bn (above initial base guidance ~EUR 2.7bn). Q4 acceleration: revenue +1.3% (constant), adjusted EBITDA +2.8%, adjusted operating cash flow after leases ~+13%.
Read all positive updates
Company Guidance
Telefonica guided for 2026 to deliver constant‑currency revenue and adjusted EBITDA growth of 1.5–2.5%, a CapEx-to-sales ratio of around 12% (after 12.4% in 2025), adjusted operating cash flow after leases growth of >2% and upgraded free cash flow to approximately €3.0bn (versus €2.8bn in 2025); management reconfirmed the €0.15 dividend per share for 2026, reaffirmed its 3‑ and 5‑year CMD targets (including a 3–5% mid‑term FCF CAGR range), and reiterated the deleveraging path to ~2.5x net debt/adjusted EBITDA by 2028 (net debt ~€26.8bn and 2.78x at year‑end, liquidity €17.4bn), while highlighting operational efficiency measures (c.€0.6bn run‑rate workforce savings by 2028 and ~€250m Spain savings by 2026) that underpin the guidance.Telefonica Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
40
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.27B | 41.31B | 40.65B | 39.99B | 39.28B | 43.08B |
| Gross Profit | 32.04B | 28.76B | 20.23B | 27.84B | 27.79B | 30.93B |
| EBITDA | 14.30B | 12.35B | 10.34B | 14.79B | 22.52B | 14.36B |
| Net Income | -2.12B | -49.00M | -892.00M | 2.01B | 8.14B | 1.58B |
Balance Sheet | ||||||
| Total Assets | 92.57B | 100.50B | 104.32B | 109.64B | 109.21B | 105.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.37B | 9.26B | 7.67B | 8.54B | 10.66B | 8.10B |
| Total Debt | 42.90B | 45.02B | 44.12B | 45.39B | 48.17B | 50.85B |
| Total Liabilities | 71.22B | 77.75B | 77.23B | 77.93B | 80.53B | 86.79B |
| Stockholders Equity | 17.61B | 19.35B | 21.85B | 25.09B | 22.21B | 11.23B |
Cash Flow | ||||||
| Free Cash Flow | 4.89B | 5.20B | 5.93B | 5.41B | 4.18B | 6.18B |
| Operating Cash Flow | 11.05B | 10.99B | 12.59B | 11.76B | 12.14B | 13.20B |
| Investing Cash Flow | -6.01B | -5.22B | -4.63B | -5.33B | 6.97B | -7.79B |
| Financing Cash Flow | -7.01B | -4.67B | -7.77B | -7.92B | -15.35B | -5.44B |
Telefonica Technical Analysis
Negative
3.93
Price Trends
4.54
Negative
4.35
Positive
4.45
Positive
Market Momentum
<0.01
Positive
41.94
Neutral
-0.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELFY, the sentiment is Negative. The current price of 3.93 is below the 20-day moving average (MA) of 4.62, below the 50-day MA of 4.54, and below the 200-day MA of 4.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of -0.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELFY.
Telefonica Risk Analysis
Telefonica disclosed 16 risk factors in its most recent earnings report. Telefonica reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Telefonica Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $76.19B | 14.96 | 20.61% | 2.69% | 9.51% | 187.55% | |
70 Outperform | $20.44B | 16.53 | 9.28% | 5.03% | 10.34% | 17.26% | |
68 Neutral | $12.81B | 14.52 | 12.76% | 6.14% | -4.78% | -32.55% | |
62 Neutral | $34.39B | -73.11 | -0.79% | 3.77% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $18.31B | 3.36 | 30.84% | ― | -0.92% | 3.13% | |
43 Neutral | $25.31B | -6.38 | -11.45% | 7.47% | -5.91% | -104.62% |
* Communication Services Sector Average
TELFY
Telefonica
4.48
-0.54
-10.68%
AMX
America Movil
24.86
8.50
51.96%
CHTR
Charter Communications
132.20
-262.36
-66.49%
TLK
PT Telekomunikasi Indonesia Tbk
14.07
-2.51
-15.13%
VIV
Telefonica Brasil
12.81
3.09
31.80%
VOD
Vodafone
14.81
5.27
55.27%
Telefonica Corporate Events
Telefónica Launches Tender Offer for €2.25 Billion in Hybrid Notes as Part of Capital Management Drive
Jan 12, 2026
On 12 January 2026, Telefónica Europe B.V., irrevocably guaranteed by Telefónica, S.A., launched cash tender offers for three outstanding euro-denominated undated deeply subordinated hybrid note series maturing around first call dates in...
Telefónica Sets €2.5 Billion Workforce Exit Plan Under 2026–2030 Transformation Strategy
Dec 22, 2025
On 22 December 2025, Telefónica announced that, as part of its Transform Grow Plan 2026–2030, it has reached agreements with major trade unions to extend collective bargaining agreements for Telefónica España and its corporat...
Telefónica Plans NYSE and LSE Delisting to Streamline Operations
Dec 17, 2025
On December 17, 2025, Telefónica announced plans to delist its American Depositary Shares (ADSs) and several debt securities from the New York Stock Exchange (NYSE). The move aligns with its strategic plan to reduce administrative costs and s...
Telefónica Secures LaLiga Broadcasting Rights for 2027-2032
Nov 28, 2025
On November 28, 2025, Telefónica Audiovisual Digital, S.A.U. was provisionally awarded exclusive broadcasting rights for five matches per matchday of LaLiga’s Primera División for pay television in Spain. This agreement, covering t...
Telefónica Announces New Committee Appointments
Nov 26, 2025
On November 26, 2025, Telefónica’s Board of Directors announced changes to the composition of its committees. The Board appointed Mr. César Mascaraque Alonso as a member of both the Executive Commission and the Nominating, Compensa...
Telefónica Secures Exclusive UEFA Media Rights for 2027-2031
Nov 20, 2025
On November 20, 2025, Telefónica announced it has been provisionally awarded exclusive media rights for major UEFA football competitions, including the Champions League and Europa League, for the seasons from 2027 to 2031. This acquisition, v...
Telefónica Outlines Strategic Growth Plans Up to 2030
Nov 4, 2025
On November 4, 2025, Telefónica held its Capital Markets Day in Madrid, outlining strategic guidelines for growth up to 2030. The company anticipates revenue growth with a CAGR of 1.5-2.5% from 2025 to 2028, accelerating to 2.5-3.5% from 2028...
Telefónica Q3 2025 Results: Growth and Strategic Transformations
Nov 4, 2025
Telefónica reported its financial results for the third quarter of 2025, highlighting consistent growth and strong operational performance across its business units. The company achieved a year-on-year revenue growth of 0.4%, with notable inc...
Telefónica Reports Q3 2025 Results with Strategic Network Expansion
Nov 4, 2025
Telefónica, S.A. reported its financial results for the first nine months of 2025, highlighting a strategic focus on customer-centric operations and network efficiency. The company achieved notable milestones such as the expansion of its fibe...
Telefónica Completes Sale of Otecel to Millicom
Oct 31, 2025
On October 30, 2025, Telefónica announced the completion of the sale of its Ecuadorian subsidiary, Otecel S.A., to Millicom Spain, S.L. for USD 380 million. This transaction, part of Telefónica’s strategy to reduce its exposure in ...
Telefónica Announces Board Restructuring and New Appointments
Oct 22, 2025
On October 22, 2025, Telefónica announced changes in its Board of Directors and its committees. Mr. Francisco Javier de Paz Mancho resigned from his director position to take on executive responsibilities within the Telefónica Group. Mr....
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.