Telefonica (ES:TEF)
BME:TEF
Want to see ES:TEF full AI Analyst Report?
Top Page
Telefonica
(BME:TEF)
Select Model
Select Model
Rating:56Neutral
Price Target:
€4.00
▲(3.36% Upside)
Action:Reiterated
Date:05/21/26
The score is held back primarily by weak financial performance (net losses, declining revenue, and high leverage), partly offset by strong operating/free cash flow. Technicals are supportive with price trading above key moving averages and positive momentum indicators. Valuation is mixed: an attractive dividend yield is counterbalanced by a negative P/E due to losses.
Positive Factors
Cash generation
Sizable, recurring operating and free cash flow provides durable internal funding for network capex, dividend distribution and debt servicing. Over 2–6 months this cash generation underpins strategic investments and cushions near-term earnings volatility without immediate recapitalization.
Negative Factors
Declining revenue & net losses
Falling top line and persistent net losses indicate structural pressure on pricing, competition or cost base. Over months this undermines reinvestment capacity and weakens profitability leverage, making it harder to restore returns on capital and sustain shareholder distributions without balance sheet actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sizable, recurring operating and free cash flow provides durable internal funding for network capex, dividend distribution and debt servicing. Over 2–6 months this cash generation underpins strategic investments and cushions near-term earnings volatility without immediate recapitalization.
Read all positive factors
Telefonica (TEF) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€20.31B
Dividend Yield7.88%
Average Volume (3M)7.73M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-12.81%
EPS Growth-85.34%
CountryES
Employees100,870
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.60
Shares Outstanding5,670,161,600
10 Day Avg. Volume9,593,306
30 Day Avg. Volume7,727,065
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.38
Price to Sales (P/S)0.56
P/FCF Ratio4.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€4.18Price Target Upside7.88% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.35
Revenue Forecast (FY)€33.88B
Telefonica Business Overview & Revenue Model
Company Description
Telefónica, S.A., along with its affiliated companies, provides an extensive portfolio of telecommunications services across both Europe and Latin America. Its mobile division offers a wide array of solutions, including voice communication, value-...
How the Company Makes Money
Telefónica generates revenue mainly by selling telecommunications and digital services on a recurring subscription and usage basis across its operating markets. Key revenue streams typically include: (1) Mobile services: recurring monthly fees fro...
Telefonica Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
38
Negative
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.45B | 35.12B | 41.31B | 40.65B | 39.99B | 39.28B |
| Gross Profit | 10.76B | 2.60B | 28.76B | 20.23B | 27.05B | 27.02B |
| EBITDA | 11.30B | 8.83B | 12.35B | 10.34B | 14.79B | 22.53B |
| Net Income | -3.43B | -4.32B | -49.00M | -892.00M | 2.01B | 8.14B |
Balance Sheet | ||||||
| Total Assets | 89.54B | 92.02B | 100.50B | 104.32B | 109.64B | 109.21B |
| Cash, Cash Equivalents and Short-Term Investments | 7.70B | 7.43B | 9.26B | 7.67B | 9.69B | 12.41B |
| Total Debt | 42.07B | 39.65B | 45.02B | 44.35B | 8.68B | 50.37B |
| Total Liabilities | 71.29B | 74.21B | 77.75B | 77.23B | 77.93B | 80.53B |
| Stockholders Equity | 14.52B | 14.26B | 19.35B | 14.30B | 25.09B | 22.21B |
Cash Flow | ||||||
| Free Cash Flow | 4.72B | 4.67B | 5.20B | 5.49B | 5.30B | 4.10B |
| Operating Cash Flow | 9.79B | 9.72B | 10.99B | 11.65B | 10.81B | 10.27B |
| Investing Cash Flow | -4.35B | -4.59B | -5.22B | -4.29B | -5.33B | 5.90B |
| Financing Cash Flow | -6.27B | -6.41B | -4.67B | -7.19B | -7.92B | -12.99B |
Telefonica Technical Analysis
Negative
3.87
Price Trends
3.78
Negative
3.66
Negative
3.68
Negative
Market Momentum
-0.03
Positive
31.87
Neutral
8.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TEF, the sentiment is Negative. The current price of 3.87 is above the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.78, and above the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 31.87 is Neutral, neither overbought nor oversold. The STOCH value of 8.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:TEF.
Telefonica Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | €9.44B | 20.77 | 27.79% | 0.52% | 15.07% | 64.92% | |
62 Neutral | €8.18B | 13.16 | 12.00% | 4.27% | 4.10% | 37.07% | |
59 Neutral | €16.44M | 12.93 | 31.27% | ― | 1.38% | 35.91% | |
56 Neutral | €20.31B | -6.11 | -21.53% | 7.88% | -12.81% | -85.34% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ES:TEF
Telefonica
3.69
-0.60
-13.89%
ES:AMP
Amper SA
0.21
0.05
28.93%
ES:IDR
Indra Sistemas
53.38
20.52
62.45%
ES:RED
Redeia Corporación
15.26
-2.55
-14.30%
ES:PAR
Parlem Telecom Companyia de Telecomunicacions SA
0.82
-2.67
-76.58%
ES:LLN
LleidaNetworks Serveis Telematics SA
1.03
-0.15
-12.71%
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.