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Telefónica

DB:TNE5
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TNE5
DB
€21B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Telefónica, S.A. provides mobile and fixed communication services in Europe and Latin America. The last earnings update was 36 days ago. More info.


Add to Portfolio Compare Print
  • Telefónica has significant price volatility in the past 3 months.
TNE5 Share Price and Events
7 Day Returns
-5.9%
DB:TNE5
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-45.1%
DB:TNE5
-22.7%
DE Telecom
-14.1%
DE Market
TNE5 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telefónica (TNE5) -5.9% -29.9% -36.1% -45.1% -60.8% -69.3%
DE Telecom 3.7% -22.8% -18.2% -22.7% -31.2% -35.3%
DE Market 14.8% -20% -23.5% -14.1% -22.8% -26.7%
1 Year Return vs Industry and Market
  • TNE5 underperformed the Telecom industry which returned -22.7% over the past year.
  • TNE5 underperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
TNE5
Industry
5yr Volatility vs Market

Value

 Is Telefónica undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telefónica to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telefónica.

DB:TNE5 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TNE5
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 7.5%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 25%) (282.18%))
1.079
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.079 * 7.46%)
7.66%

Discounted Cash Flow Calculation for DB:TNE5 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telefónica is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:TNE5 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.66%)
2020 2,853.52 Analyst x6 2,650.45
2021 4,246.14 Analyst x8 3,663.31
2022 4,143.00 Analyst x3 3,319.97
2023 4,613.00 Analyst x1 3,433.55
2024 4,744.00 Analyst x1 3,279.78
2025 4,823.81 Est @ 1.68% 3,097.63
2026 4,874.98 Est @ 1.06% 2,907.71
2027 4,905.47 Est @ 0.63% 2,717.69
2028 4,921.21 Est @ 0.32% 2,532.39
2029 4,926.50 Est @ 0.11% 2,354.71
Present value of next 10 years cash flows €29,957.00
DB:TNE5 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €4,926.50 × (1 + -0.39%) ÷ (7.66% – -0.39%)
€60,949.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €60,949.34 ÷ (1 + 7.66%)10
€29,131.85
DB:TNE5 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €29,957.00 + €29,131.85
€59,088.85
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €59,088.85 / 5,114.57
€11.55
DB:TNE5 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TNE5 represents 0.98959x of BME:TEF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.98959x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 11.55 x 0.98959
€11.43
Value per share (EUR) From above. €11.43
Current discount Discount to share price of €4.09
= -1 x (€4.09 - €11.43) / €11.43
64.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telefónica is available for.
Intrinsic value
>50%
Share price is €4.09 vs Future cash flow value of €11.43
Current Discount Checks
For Telefónica to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telefónica's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telefónica's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telefónica's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telefónica's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TNE5 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €0.17
BME:TEF Share Price ** BME (2020-03-27) in EUR €4.13
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 17.13x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telefónica.

DB:TNE5 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:TEF Share Price ÷ EPS (both in EUR)

= 4.13 ÷ 0.17

24.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is overvalued based on earnings compared to the Europe Telecom industry average.
  • Telefónica is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Telefónica's expected growth come at a high price?
Raw Data
DB:TNE5 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
25.1%per year
Europe Telecom Industry PEG Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.35x
Germany Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:TNE5 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.58x ÷ 25.1%

0.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Telefónica's assets?
Raw Data
DB:TNE5 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €3.35
BME:TEF Share Price * BME (2020-03-27) in EUR €4.13
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.12x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.43x
DB:TNE5 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:TEF Share Price ÷ Book Value per Share (both in EUR)

= 4.13 ÷ 3.35

1.23x

* Primary Listing of Telefónica.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telefónica is overvalued based on assets compared to the DE Telecom industry average.
X
Value checks
We assess Telefónica's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Telefónica has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Telefónica expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
25.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telefónica expected to grow at an attractive rate?
  • Telefónica's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Telefónica's earnings growth is expected to exceed the Germany market average.
  • Telefónica's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TNE5 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TNE5 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 25.1%
DB:TNE5 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts -1.7%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TNE5 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TNE5 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 45,344 13,512 4,131 2
2023-12-31 45,132 13,294 3,869 2
2022-12-31 46,943 14,234 3,461 12
2021-12-31 46,847 13,977 3,166 20
2020-12-31 46,935 13,848 3,081 23
2020-03-27
DB:TNE5 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 49,312 15,022 860
2019-09-30 49,805 15,266 1,676
2019-06-30 49,581 14,616 3,258
2019-03-31 49,311 14,461 3,140
2018-12-31 49,508 13,423 2,929
2018-09-30 49,752 13,143 2,798
2018-06-30 50,828 13,943 2,498
2018-03-31 51,916 13,674 2,703
2017-12-31 52,871 13,796 2,856
2017-09-30 53,442 13,899 2,327
2017-06-30 53,762 13,900 2,471
2017-03-31 53,519 13,874 2,344

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telefónica's earnings are expected to grow significantly at over 20% yearly.
  • Telefónica's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TNE5 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Telefónica Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TNE5 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.69 0.69 0.69 1.00
2023-12-31 0.65 0.65 0.65 1.00
2022-12-31 0.71 0.84 0.62 7.00
2021-12-31 0.62 0.84 0.42 19.00
2020-12-31 0.57 0.75 0.43 19.00
2020-03-27
DB:TNE5 Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 0.17
2019-09-30 0.33
2019-06-30 0.64
2019-03-31 0.61
2018-12-31 0.57
2018-09-30 0.55
2018-06-30 0.49
2018-03-31 0.53
2017-12-31 0.56
2017-09-30 0.46
2017-06-30 0.49
2017-03-31 0.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Telefónica is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telefónica's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telefónica has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Telefónica performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telefónica's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telefónica's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Telefónica's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Telefónica's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
Telefónica's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telefónica Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TNE5 Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 49,312.00 860.00 1,130.00
2019-09-30 49,805.00 1,676.00 2,100.00
2019-06-30 49,581.00 3,258.00 2,100.00
2019-03-31 49,311.00 3,140.00 2,100.00
2018-12-31 49,508.00 2,929.00 2,100.00
2018-09-30 49,752.00 2,798.00 2,280.00
2018-06-30 50,828.00 2,498.00 2,280.00
2018-03-31 51,916.00 2,703.00 2,280.00
2017-12-31 52,871.00 2,856.00 2,280.00
2017-09-30 53,442.00 2,327.00 2,332.00
2017-06-30 53,762.00 2,471.00 2,332.00
2017-03-31 53,519.00 2,344.00 2,332.00
2016-12-31 52,903.00 2,113.00 2,332.00
2016-09-30 53,091.00 -259.00 2,530.00
2016-06-30 53,939.00 -532.00 2,530.00
2016-03-31 56,873.00 418.00 2,530.00
2015-12-31 55,862.00 368.00 2,530.00
2015-09-30 53,802.00 2,863.00 1,879.00
2015-06-30 50,586.00 2,899.00 1,879.00
2015-03-31 45,429.00 2,278.00 1,879.00
2014-12-31 51,151.00 2,814.00 2,265.00
2014-09-30 46,174.00 3,785.00 2,237.00
2014-06-30 50,007.00 4,128.00 2,237.00
2014-03-31 53,924.00 4,259.00 2,237.00
2013-12-31 51,228.00 4,124.00 2,000.00
2013-09-30 59,056.00 3,618.00 2,687.00
2013-06-30 60,758.00 3,909.00 -4,021.00
2013-03-31 61,804.00 4,082.00 2,442.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Telefónica has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telefónica used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Telefónica's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telefónica's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telefónica has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Telefónica's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telefónica's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telefónica's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Telefónica's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telefónica's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telefónica Company Filings, last reported 2 months ago.

DB:TNE5 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 25,450.00 52,364.00 8,432.00
2019-09-30 25,235.00 56,899.00 11,821.00
2019-06-30 26,449.00 56,585.00 10,776.00
2019-03-31 28,517.00 57,226.00 11,333.00
2018-12-31 26,980.00 54,702.00 7,296.00
2018-09-30 25,194.00 55,988.00 8,342.00
2018-06-30 23,715.00 54,770.00 6,214.00
2018-03-31 27,219.00 55,903.00 7,763.00
2017-12-31 26,618.00 55,746.00 6,242.00
2017-09-30 26,685.00 57,408.00 6,050.00
2017-06-30 25,534.00 62,495.00 9,636.00
2017-03-31 29,903.00 64,750.00 11,114.00
2016-12-31 28,385.00 60,361.00 4,525.00
2016-09-30 27,093.00 61,171.00 6,248.00
2016-06-30 26,225.00 63,712.00 5,492.00
2016-03-31 27,775.00 60,393.00 5,811.00
2015-12-31 25,436.00 60,087.00 3,306.00
2015-09-30 29,714.00 61,449.00 6,810.00
2015-06-30 35,519.00 62,223.00 5,904.00
2015-03-31 32,670.00 60,329.00 7,777.00
2014-12-31 30,321.00 59,782.00 8,648.00
2014-09-30 30,619.00 59,796.00 14,409.00
2014-06-30 27,736.00 59,733.00 13,000.00
2014-03-31 27,198.00 56,031.00 10,970.00
2013-12-31 27,482.00 60,699.00 11,682.00
2013-09-30 27,364.00 61,062.00 11,716.00
2013-06-30 25,079.00 62,678.00 9,713.00
2013-03-31 28,666.00 64,344.00 8,985.00
  • Telefónica's level of debt (205.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (197% vs 205.8% today).
  • Debt is well covered by operating cash flow (28.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess Telefónica's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Telefónica has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Telefónica's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.69%
Current annual income from Telefónica dividends. Estimated to be 9.75% next year.
If you bought €2,000 of Telefónica shares you are expected to receive €194 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telefónica's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • Telefónica's dividend is above the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TNE5 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 319 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TNE5 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.40 2.00
2023-12-31 0.40 2.00
2022-12-31 0.40 11.00
2021-12-31 0.41 20.00
2020-12-31 0.40 24.00
2020-03-27
DB:TNE5 Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-02-20 0.400 8.401
2019-06-07 0.400 5.973
2018-02-22 0.400 5.324
2018-02-15 0.400 5.224
2017-10-26 0.400 4.785
2017-03-29 0.400 4.199
2017-02-23 0.400 3.931
2016-02-26 0.400 4.444
2015-02-27 0.750 6.346
2015-02-25 0.750 5.407
2015-01-27 0.750 5.668
2014-11-12 0.750 6.090
2014-10-21 0.750 6.382
2014-03-20 0.750 6.240
2014-02-27 0.750 6.707
2014-01-28 0.750 6.615
2013-06-03 0.750 6.675
2013-04-29 0.000 0.000
2013-03-21 0.000 0.000
2013-03-01 0.000 0.000
2013-02-28 0.000 0.000
2012-11-07 0.000 0.000
2012-07-25 0.000 0.000
2012-03-29 1.660 16.187
2012-02-24 1.660 13.100
2011-12-22 1.540 11.611
2011-11-11 1.540 11.413
2011-07-28 1.540 10.721
2011-05-13 1.750 10.713
2011-04-29 1.600 9.164
2011-04-15 1.500 8.447
2011-02-25 1.500 8.392
2010-07-29 1.400 7.801
2010-05-13 1.300 8.207
2010-04-28 1.300 7.971
2009-10-09 1.400 7.644
2009-05-13 1.150 6.886

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Telefónica's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Telefónica's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telefónica afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telefónica has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Telefónica's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
José María Álvarez-Pallete López
COMPENSATION €5,376,670
AGE 56
TENURE AS CEO 3.9 years
CEO Bio

Mr. José María Álvarez-Pallete López has been the Chief Executive Officer of Telefónica Latinoamérica, a subsidiary of Telefonica S.A. since 2002. Mr. López has been Chief Executive Officer at Telefónica, S.A. since April 2016. In addition, he holds the position of Representative of Telefónica as an Advisor of TPI, Telefónica Móviles SA, Telefónica Data SA, Inmobiliaria Telefónica and Telefónica de Argentina S.A. He serves as a trustee of the Telefónica Foundation and he has served, from September 11, 2011, to September 2012, as Chairman of Telefónica Europe. Mr. López served as the Chief Operating Officer at Telefónica, S.A. from September 17, 2012 to April 2016. He served as an Executive President of Telefónica International S.A., a subsidiary of Telecomunicacoes de Sao Paulo SA since July 24, 2002. He served as Chairman and Chief Executive Officer at Telefónica Internacional, S.A.U. since 2002. He served as Chairman, Chief Executive Officer and President of Telefónica International, S.A. since July 24, 2002. He served as an Advisor of Telefónica Holding de Argentina S.A. and Telefónica International S.A. He served as Chief Financial Officer of Telefónica International S.A. since February 1999. He served as the Corporate Chief Financial Officer at Telefónica S.A. since September 1999. Mr. López joined Telefónica in February 1999 as General Manager of Finance. He served as General Manager of Corporate Finance at Telefónica, S.A. since September 1999. In 1995, Mr. López joined Cía. Valenciana de Cementos Portland (CEMEX) as head of the Investor Relations and Studies department. He served as Financial Manager of Spain and General Manager of Administration and Finance at the CEMEX since 1996 and since 1998 respectively. He began his professional career with the auditor firm Arthur Young in 1987. He joined Benito & Monjardín/Kidder, Peabody & Co. in 1988. Mr. López took a company associate course in 1991 at New York and was subsequently involved in several of GE's investment projects in Spain. Mr. López serves as Vice Chairman of Telefonica de Argentina S.A and has been its Director since 2003. He serves as Chairman of the Board at Compania Internacional De Telecomunicaciones, S.A. He has been the Executive Chairman of Telefónica, S.A. since April 8, 2016. He has been Chairman of Telefónica Holding de Argentina S.A. since 2002. He has been Vice Chairman of Telecomunicacoes de Sao Paulo SA - TELESP since March 27, 2003. He serves as a Member of the Board of Director of Telefonica Larga Distancia De Puerto Rico, Inc. Mr. López has been a Non-Executive Director of China Netcom Group Corp. (Hong Kong) Ltd. since September 12, 2005. He has been a Director of Telefónica International since January 2001. He serves as an Executive Director of Telefónica, S.A. Mr. López also serves as Member of the Board of Directors of Telefónica Datacorp., Telefónica Mundo, Colombia Telecom and Brasilcel, N.V. He served as Deputy Chairman/Vice-Chairman of Telefonica Brasil, S.A. and Telefónica Chile, S.A. since April 22, 2003. He served as Vice-Chairman of the Board of Directors of Telesp, S.A. and Telefónica Móviles México, S.A. He served as the Chairman of Supervisory Board at Telefónica Czech Republic AS (formerly name Telefonica 02 Czech Republic) until November 5, 2012. He served as Vice Chairman of Telefonica of Argentina, Inc. He has been an Executive Director of Telefónica Latinoamérica since July 26, 2006. Mr. López served as Non-Executive Director for China Netcom Group Corporation (Hong Kong) Limited since September 12, 2005. Since 1999, he has held several positions within the Telefónica Group, including General Manager of Finance at Telefónica Internacional, S.A.U., and Chairman of Telefónica Latin America. He was a member of the Board of the Cemex Group in Indonesia, among other companies. He served as a Director of Telefónica Europe plc (Telefónica O2 Europe plc) since September 19, 2006, Telefónica de España since January 2000, Telefónica Data since April 2000, Inmobiliaria Telefónica since April 2001, TPI since April 2001, Telefónica de Argentina since September 2002, Telefónica Perú since November 2002, Telefónica Móviles México since February 2000 and Cointel since November 2002. He served as a Director of Telefonica Moviles SA since February 14, 2000. He served as a Member of Supervisory Board at Telefónica Czech Republic AS until November 5, 2012. He served as a Director of Telefónica Chile, S.A. since April 22, 2003. He was Non-Executive Director of Altice Portugal since 2010. He was a Director of Telefónica Móviles México S.A. de C.V. He served as Director of hibu Connect, S.A. He served as a Director of Portugal Telecom SGPS SA from February 12, 2008 to September 27, 2010. In 2001, he was granted the best “CFO Europe Best Practices” award in the Mergers & Acquisitions category for the year 2000. In April 2003, he was appointed Member of Merit at the Ibero-American Forum of the Fundación Carlos III and in July 2007 he was awarded the Gold Master of the Executive Management Forum. On October 4, 2011 he received the Personality of the Year in Economics Award, granted by Spanish newspaper “El Economista”. In December 2013, he received the Excellence 2013 Award and Fast Company magazine named him one of the 100 most creative Personalities in Business during 2014. He received the 2014 Sorolla Medal from the Hispanic Society of America. In 2017, he was named the "Best CEO 2016" in Spain by Forbes. Mr. López holds a degree in Economics/Economic Sciences from Complutense University of Madrid. He also studied economics/Economic Sciences at the Université Libre in Belgium, completed the International Management Program (IMP) at the Instituto Panamericano de Desarrollo de Directivos (IPADE) and holds the Diploma of Advanced Studies (DEA)/an Advanced Research Degree from the Department of Financial Economics and Accounting of Complutense University of Madrid. He served as a Member of Supervisory Board at Telefónica Deutschland Holding AG until May 12, 2015. He serves as the Chairman and Chief Executive Officer of Telefónica Venezolana, C.A.

CEO Compensation
  • José María's compensation has been consistent with company performance over the past year, both up more than 20%.
  • José María's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Telefónica management team in years:

2.7
Average Tenure
55.5
Average Age
  • The tenure for the Telefónica management team is about average.
Management Team

José María Álvarez-Pallete López

TITLE
Executive Chairman & CEO
COMPENSATION
€5M
AGE
56
TENURE
3.9 yrs

Ángel Vilá Boix

TITLE
COO & Executive Director
COMPENSATION
€4M
AGE
55
TENURE
2.7 yrs

Laura Abasolo de Baquedano

TITLE
Chief Financial & Control Officer
AGE
47
TENURE
2.7 yrs

Enrique Blanco

TITLE
Chief Technology & Information Officer
TENURE
9.2 yrs

Pablo Eguiron Vidarte

TITLE
Head of Investor Relations
TENURE
10.7 yrs

Pablo De Carvajal González

TITLE
General Counsel
AGE
56
TENURE
2.2 yrs

Marta Machicot

TITLE
Chief People Officer
TENURE
2.2 yrs

María García-Legaz Ponce

TITLE
Chief of Staff

Juan Francisco Gallego Arrechea

TITLE
General Manager of Internal Audit
AGE
52
TENURE
3.8 yrs

Eduardo Navarro de Carvalho

TITLE
Chief Strategy & Corporate Affairs Officer
AGE
56
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Telefónica board of directors in years:

8.3
Average Tenure
64
Average Age
  • The tenure for the Telefónica board of directors is about average.
Board of Directors

Isidro Fainé Casas

TITLE
Vice Chairman
COMPENSATION
€280K
AGE
77
TENURE
26.2 yrs

José María Álvarez-Pallete López

TITLE
Executive Chairman & CEO
COMPENSATION
€5M
AGE
56
TENURE
13.7 yrs

José María Abril Pérez

TITLE
Vice Chairman
COMPENSATION
€300K
AGE
67
TENURE
12.7 yrs

José Javier Echenique Landiríbar

TITLE
Vice-Chairman & Lead Independent Director
COMPENSATION
€259K
AGE
68
TENURE
0.3 yrs

Ángel Vilá Boix

TITLE
COO & Executive Director
COMPENSATION
€4M
AGE
55
TENURE
2.7 yrs

Antonio Carlos Valente da Silva

TITLE
Chairman of Telefônica Brasil S A
AGE
66

Markus Haas

TITLE
CEO & Chairman of Telefónica Deutschland Holding AG
AGE
47
TENURE
3.2 yrs

Christian Mauad Gebara

TITLE
Chairman & CEO of Telefónica Brasil
AGE
45

Peter Löscher

TITLE
Independent Director
COMPENSATION
€168K
AGE
62
TENURE
3.9 yrs

Peter Erskine

TITLE
External Director
COMPENSATION
€251K
AGE
68
TENURE
14.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Telefónica individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Mar 20 Buy José Javier Echenique Landiríbar Individual 08. Jan 20 08. Jan 20 47,000 €6.25 €293,750
19. Feb 20 Buy José María Álvarez-Pallete López Individual 06. Jan 20 06. Jan 20 2 €6.36 €13
19. Feb 20 Buy Ángel Vilá Boix Individual 06. Jan 20 06. Jan 20 25 €6.36 €159
09. Jan 20 Buy José Javier Echenique Landiríbar Individual 08. Jan 20 08. Jan 20 47,000 €6.25 €293,750
03. Dec 19 Buy Halekulani, S.L. Company 02. Dec 19 02. Dec 19 3,601,142 €6.94 €24,988,953
08. Oct 19 Buy María Luisa García Blanco Individual 02. Aug 19 02. Aug 19 10,000 €6.77 €67,700
27. Aug 19 Buy Ángel Vilá Boix Individual 21. Aug 19 21. Aug 19 23 €6.25 €144
27. Aug 19 Buy José María Álvarez-Pallete López Individual 21. Aug 19 21. Aug 19 23 €6.25 €144
23. Aug 19 Buy Ángel Vilá Boix Individual 21. Aug 19 22. Aug 19 22,965 €6.03 €137,662
23. Aug 19 Buy José María Álvarez-Pallete López Individual 21. Aug 19 21. Aug 19 100,000 €5.98 €598,000
05. Jul 19 Buy Ángel Vilá Boix Individual 02. Jul 19 02. Jul 19 19 €7.28 €138
X
Management checks
We assess Telefónica's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Telefónica has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Telefónica, S.A. provides mobile and fixed communication services in Europe and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data, Internet, wholesale, corporate, roaming, fixed wireless, trunking, and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary and business oriented value-added; video telephony; intelligent network; and telephony information services. The company also leases and sells handset equipment; and provides Internet and broadband multimedia services comprising Internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access to Internet, high-speed Internet through fibre to the home, and voice over Internet protocol services. In addition, it offers leased lines; virtual private network; fibre optics; hosting and application; outsourcing and consultancy; desktop; and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection; international wholesale; leased lines for other operators’ network deployment; and local loop leasing under the unbundled local loop regulation framework, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators’ fiber deployment. Additionally, it provides Internet protocol television (TV), over-the-top network TV, cable and satellite TV, and pay TV services; M2M connectivity platforms; financial and other payment, security, cloud computing, advertising, big data, and digital telco experience services; and Aura and Movistar Home. Telefónica, S.A. has a collaboration agreement with Juniper Networks, Inc. The company was founded in 1924 and is headquartered in Madrid, Spain.

Details
Name: Telefónica, S.A.
TNE5
Exchange: DB
Founded: 1924
€21,118,055,611
5,114,569,051
Website: http://www.telefonica.com
Address: Telefónica, S.A.
Distrito Telefónica,
Ronda de la Comunicación, s/n,
Madrid,
Madrid, 28050,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME TEF Ordinary Shares Bolsas y Mercados Espanoles ES EUR 02. Jan 1980
OTCPK TEFO.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1980
DB TNE5 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1980
XTRA TNE5 Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1980
LSE 0TDE Ordinary Shares London Stock Exchange GB EUR 02. Jan 1980
ENXTBR TFA Ordinary Shares Euronext Brussels BE EUR 02. Jan 1980
BIT TEF Ordinary Shares Borsa Italiana IT EUR 02. Jan 1980
BASE TEF Ordinary Shares Buenos Aires Stock Exchange AR ARS 02. Jan 1980
WBAG TEF Ordinary Shares Wiener Boerse AG AT EUR 02. Jan 1980
BATS-CHIXE TEFE Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1980
NYSE TEF ADR EA REPR 1 ORD NPV New York Stock Exchange US USD 12. Jun 1987
DB TNE2 ADR EA REPR 1 ORD NPV Deutsche Boerse AG DE EUR 12. Jun 1987
XTRA TNE2 ADR EA REPR 1 ORD NPV XETRA Trading Platform DE EUR 12. Jun 1987
LSE 0A2Y ADR EA REPR 1 ORD NPV London Stock Exchange GB USD 12. Jun 1987
BMV TEF N ADR EA REPR 1 ORD NPV Bolsa Mexicana de Valores MX MXN 12. Jun 1987
BVL TEF ADR EA REPR 1 ORD NPV Bolsa de Valores de Lima PE USD 12. Jun 1987
Number of employees
Current staff
Staff numbers
113,819
Telefónica employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 21:15
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.