Telecom Italia SPA (TIT) AI Stock Analysis

• Market Cap: €7.79B
• Dividend Yield: N/A
• Average Volume (3M): 302.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -11.38%
• EPS Growth: 70.35%
• Country: IT
• Employees: 26,824
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): <0.01
• Shares Outstanding: 15,329,467,000
• 10 Day Avg. Volume: 191,053,608
• 30 Day Avg. Volume: 302,277,412
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €0.37
• Price Target Upside: 5.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Telecom Italia's stock score reflects significant financial challenges with declining revenues and high leverage, affecting profitability and equity returns. Despite positive technical indicators suggesting upward price momentum, the stock remains undervalued with negative earnings and no dividend yield. The overall outlook is cautious, with potential for improvement if strategic adjustments are made.

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 S.p.A. generates revenue primarily through its fixed and mobile telecommunications services. Key revenue streams include subscription fees from individual and corporate customers for mobile services, such as voice, text, and data plans, as well as fixed-line services, including broadband internet and landline telephony. TIM also earns revenue from its media and entertainment offerings, such as TV and streaming services, which are bundled with their telecommunications packages. In addition to direct customer subscriptions, the company benefits from partnerships and agreements with other telecom operators, tech companies, and content providers, which enhance its service offerings and expand its market reach. Furthermore, TIM's international presence, particularly through TIM Brasil, contributes to its earnings by tapping into the growing telecommunications market in Brazil.

Telecom Italia SPA Financial Statement Overview

Summary

Telecom Italia faces significant financial challenges, characterized by declining revenues, persistent net losses, and high leverage. While there is operational cash flow generation, the company's heavy debt load and negative equity returns highlight ongoing financial pressures. The telecom industry remains competitive, and strategic adjustments may be necessary to improve financial health.

Income Statement

Telecom Italia has experienced declining revenue over the past few years, with a notable drop of 11.4% from 2023 to 2024. The company continues to face challenges in profitability, as indicated by negative net income for multiple years. Gross profit margin remains relatively stable at around 37.1% for 2024, but the net profit margin is concerning due to persistent losses.

Balance Sheet

The balance sheet reflects a challenging financial position with a high debt-to-equity ratio of 1.30 in 2024, pointing to significant leverage. Stockholders' equity has decreased over the years, which, combined with a return on equity of -5.1%, signals difficulties in generating returns for shareholders. The equity ratio stands at 31.8%, indicating moderate equity financing of assets.

Cash Flow

Telecom Italia's cash flow statement shows volatile free cash flow, with a slight positive turn in 2024 compared to previous negative levels. The operating cash flow to net income ratio is not meaningful due to negative net income, but operating cash flow remains positive, suggesting operational resilience. However, the overall cash flow position is strained due to high capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.44B	16.30B	15.79B	15.32B	15.80B
	Gross Profit
5.36B	8.08B	9.13B	9.25B	10.13B
	EBIT
1.54B	836.00M	1.10B	1.37B	2.10B
	EBITDA
4.75B	5.71B	5.51B	1.16B	7.25B
	Net Income Common Stockholders
-610.00M	-1.44B	-2.65B	-8.40B	7.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.46B	4.97B	5.00B	9.15B	5.92B
	Total Assets
37.66B	62.16B	62.03B	69.19B	73.23B
	Total Debt
15.54B	31.55B	31.19B	32.10B	29.95B
	Net Debt
12.62B	28.64B	27.63B	25.20B	25.12B
	Total Liabilities
24.30B	44.65B	43.30B	47.15B	44.39B
	Stockholders Equity
11.96B	13.65B	15.06B	17.41B	26.21B
Cash Flow		Free Cash Flow
53.00M	-25.00M	-1.41B	323.00M	1.85B
	Operating Cash Flow
2.01B	3.94B	4.89B	4.34B	6.55B
	Investing Cash Flow
5.36B	-4.15B	-5.33B	-5.12B	-3.08B
	Financing Cash Flow
-7.25B	-456.00M	-2.87B	3.16B	-2.01B

Telecom Italia SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.35 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.30, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 74.51 is Negative, neither overbought nor oversold. The STOCH value of 95.66 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
Sector *	59 Neutral	$13.78B	7.66	-2.74%	3.86%	2.20%	-37.62%
TIT	51 Neutral	€7.79B	―	-1.27%	―	-11.38%	70.35%