Telecom Italia S.p.A. [NYSE:TI]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Telecom Italia S.p.A. [TI] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give TI an Buy rating. Its stock price has been found in the range of 12.72 to 19.50. This is compared to its latest closing price of $5.69.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Mon 15 Apr (In 91 Days).
Fundamental Analysis of Telecom Italia S.p.A. [TI]
Now let’s turn to look at profitability: with a current Operating Margin for Telecom Italia S.p.A. [TI] sitting at +17.85 and its Gross Margin at +51.71, this company’s Net Margin is now -3.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 6.39, and its Return on Invested Capital has reached 5.30%. Its Return on Equity is 5.24, and its Return on Assets is 1.59. These metrics suggest that this Telecom Italia S.p.A. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Telecom Italia S.p.A. [TI] has generated a Total Debt to Total Equity ratio of 143.20. Similarly, its Total Debt to Total Capital is 58.88, while its Total Debt to Total Assets stands at 44.32. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 121.49, and its Long-Term Debt to Total Capital is 49.95. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 4.57 and its Total Debt to EBITDA Value is 3.85. The Enterprise Value to Sales for this firm is now 1.90, and its Total Debt to Enterprise Value stands at 0.70. Telecom Italia S.p.A. [TI] has a Price to Book Ratio of 0.70, a Price to Cash Flow Ratio of 2.96.
Shifting the focus to workforce efficiency, Telecom Italia S.p.A. [TI] earns $333,642 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.30 and its Total Asset Turnover is 0.28. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.84 and its Current Ratio is 0.87. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Telecom Italia S.p.A. [TI] has 2.07B shares outstanding, amounting to a total market cap of $11.74B. Its stock price has been found in the range of 5.15 to 11.28. At its current price, it has moved by -49.82% from its 52-week high, and it has moved 9.90% from its 52-week low.
This stock’s Beta value is currently 0.74, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.84. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Telecom Italia S.p.A. [TI] a Reliable Buy?
Telecom Italia S.p.A. [TI] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.