Telefónica, S.A. TEF.MC
Composite 38/100; the shares have moved about 23% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 19/100 — a strong mark against it.
Valuation ranks 73/100 — a moderate point in its favour. Income ranks 55/100 — a slight point in its favour.
Balance-sheet strength ranks 19/100 — a strong mark against it. Quality ranks 20/100 — a strong mark against it. Momentum ranks 39/100 — a slight mark against it.
What the company does Telefónica provides integrated telecom and digital services across Spain, Brazil, Germany, and the UK, spanning fixed/mobile connectivity, cloud, cybersecurity, IoT, and adjacent ecosystem offerings such as devices, fintech, and advertising.
Key financials ROE is -8.9%, ROA 1.0%, and ROCE 3.3%. Net margin is -9.5% despite 45.1% gross margin, with revenue down -12.4% and EPS up 2660.0%. Debt/Equity is 2.28x and net debt/EBITDA 4.38x; interest coverage is 1.09x and current ratio 0.92.
Stock health Sideravia scores Quality 21.3, Growth 45.4, Strength 20.7, Valuation 62.3, Momentum 40.6, and Income 7.3. RSI(14) is 53.90; stock is -18.75% below its 52-week high.
Price vs fair value The stock trades at a PREMIUM of 29.90% versus our fair-value estimate of 2.57 and at a discount of 7.43% versus the 12-month target of 3.93. - Q2 2026 earnings call highlights “strong growth in Spain and Brazil” (GuruFocus.com) - Analysts note robust cloud and cybersecurity momentum (MarketBeat) - Forward P/E of 12.42 and EV/EBITDA of 2.56 support valuation above historical norms
Looking forward Forward P/E of 12.42 and PEG of 0.38 imply modest earnings recovery expectations, while high leverage and negative ROE remain key risks.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.