TEFTelefónica shows a mixed picture with strong dividend yields and a solid market position, but faces headwinds in profitability and recent revenue decline. Technicals suggest a potential short-term upside. A moderate buy for income-focused investors.
Telefónica operates in the essential telecommunications sector, which benefits from ongoing digital transformation and data demand. However, it faces intense competition and significant capital expenditure requirements.
Telefónica offers attractive dividend yields, but has experienced recent net income losses and flat revenue growth. Its balance sheet shows significant debt, though it is manageable with current cash flows.
The stock has shown strong performance over the past 6 months and 1 year. While some short-term indicators suggest it might be consolidating or slightly overbought, the longer-term trend appears positive.
| Factor | Score |
|---|---|
| Digital Transformation | 75 |
| 5G Rollout & Adoption | 80 |
| 70 | |
| Market Competition | 40 |
| Technological Disruption | 50 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 20 |
| Growth | 40 |
| Balance Sheet Health | 40 |
| Cash Flow | 75 |
| Dividends | 95 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 70 |
| Price Action | 75 |
| Volume Analysis | 65 |
| Short-Term Signals | 65 |
Strong Debt Management
The company demonstrates sound financial management with a decreasing debt trend over the past few years, moving from 8.677 billion in 2022 to 4.502 billion in 2024, indicating a proactive approach to leverage.
Consistent and Attractive Dividend Yield
The company offers a significant dividend yield, with the latest reported yield at 15.5% and historical yields consistently above 15%, suggesting a strong commitment to returning value to shareholders.
Recent Net Losses
The company has reported net losses in the most recent annual (2024: -49 million) and quarterly (Q1 2025: -1.304 billion) periods, which can be a concern for future profitability and investor confidence.
Negative Price-to-Earnings (P/E) Ratio
The trailing twelve-month P/E ratio is -13.1, and the P/E for fiscal year 2023 and 2024 are also negative (-34.2 and -463.0 respectively), indicating the company is not currently profitable on a per-share basis.
June 2025
18
Ex-Dividend Date
July 2025
11
Next Dividend Date
July 2025
30
Next Earnings Date
H: $
A: $
L: $
H: 9.05B
A: 8.99B
L: 8.88B
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, including mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services; traditional fixed telecommunication services, such as PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; telephony information services; and leases and sells handset equipment. It also provides internet provider service; portal and network, retail and wholesale broadband access, narrowband switched access and other technologies, internet through fibre to the home, very high bit-rate digital subscriber line, and voice over internet protocol services; leased line, virtual private network, fibre optics, web and managed hosting, content delivery and application, security, and outsourcing and consultancy services, including network management or CGP; and desktop, system integration, and professional services. In addition, the company offers wholesale services for telecommunication operators, such as domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Further, it provides video/TV services; smart connectivity and services; financial and other payment, cloud, security, advertising, and big data services; digital products; Aura, an artificial-intelligence ecosystem; Movistar Home device; open gateway; living apps; smart Wi-Fi; NT; Solar 360; and Phoenix, a digital sales platform. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.
5.24 USD
The 39 analysts offering 1 year price forecasts for TEF have a max estimate of 5.37 and a min estimate of 5.10.