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Telecom Italia

DB:TQI1
Snowflake Description

Undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TQI1
DB
€8B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Italy and internationally. The last earnings update was 8 days ago. More info.


Add to Portfolio Compare Print
  • Telecom Italia has significant price volatility in the past 3 months.
TQI1 Share Price and Events
7 Day Returns
9.2%
DB:TQI1
0.7%
DE Telecom
-0.6%
DE Market
1 Year Returns
-22.1%
DB:TQI1
-22.4%
DE Telecom
-20.9%
DE Market
TQI1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telecom Italia (TQI1) 9.2% -13.6% -28.3% -22.1% -41.4% -56.6%
DE Telecom 0.7% -17.7% -18.7% -22.4% -31.8% -37.6%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • TQI1 matched the Telecom industry (-22.4%) over the past year.
  • TQI1 underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
TQI1
Industry
5yr Volatility vs Market

TQI1 Value

 Is Telecom Italia 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 Telecom Italia 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 Telecom Italia.

DB:TQI1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
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:TQI1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 8.2%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.355 (1 + (1- 24%) (411.85%))
1.313
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.313 * 8.23%)
10.41%

Discounted Cash Flow Calculation for DB:TQI1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telecom Italia 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:TQI1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 10.41%)
2020 1,378.50 Analyst x2 1,248.49
2021 1,584.60 Analyst x5 1,299.80
2022 -342.50 Analyst x2 -254.45
2023 1,675.50 Analyst x2 1,127.35
2024 1,632.00 Analyst x2 994.52
2025 1,602.50 Est @ -1.81% 884.45
2026 1,580.36 Est @ -1.38% 789.96
2027 1,563.22 Est @ -1.08% 707.70
2028 1,549.52 Est @ -0.88% 635.34
2029 1,538.20 Est @ -0.73% 571.22
Present value of next 10 years cash flows €8,004.00
DB:TQI1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,538.20 × (1 + -0.39%) ÷ (10.41% – -0.39%)
€14,182.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €14,182.88 ÷ (1 + 10.41%)10
€5,266.89
DB:TQI1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €8,004.00 + €5,266.89
€13,270.89
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €13,270.89 / 21,067.16
€0.63
DB:TQI1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TQI1 represents 9.68429x of BIT:TIT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
9.68429x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 0.63 x 9.68429
€6.10
Value per share (EUR) From above. €6.10
Current discount Discount to share price of €3.80
= -1 x (€3.80 - €6.10) / €6.10
37.7%

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

Current Discount
Amount off the current price Telecom Italia is available for.
Intrinsic value
38%
Share price is €3.8 vs Future cash flow value of €6.1
Current Discount Checks
For Telecom Italia to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telecom Italia's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telecom Italia's share price is below the future cash flow value, but not 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 Telecom Italia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telecom Italia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TQI1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €0.04
BIT:TIT Share Price ** BIT (2020-04-06) in EUR €0.39
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 16.48x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

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

** Primary Listing of Telecom Italia.

DB:TQI1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:TIT Share Price ÷ EPS (both in EUR)

= 0.39 ÷ 0.04

9.19x

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

  • Telecom Italia is good value based on earnings compared to the Europe Telecom industry average.
  • Telecom Italia is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Telecom Italia's expected growth come at a high price?
Raw Data
DB:TQI1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
9.8%per year
Europe Telecom Industry PEG Ratio Median Figure of 34 Publicly-Listed Telecom Companies 1.34x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:TQI1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.19x ÷ 9.8%

0.94x

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

  • Telecom Italia is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Telecom Italia's assets?
Raw Data
DB:TQI1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €0.96
BIT:TIT Share Price * BIT (2020-04-06) in EUR €0.39
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 1.44x
DB:TQI1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:TIT Share Price ÷ Book Value per Share (both in EUR)

= 0.39 ÷ 0.96

0.41x

* Primary Listing of Telecom Italia.

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

  • Telecom Italia is good value based on assets compared to the DE Telecom industry average.
X
Value checks
We assess Telecom Italia'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. Telecom Italia has a total score of 5/6, 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.

TQI1 Future Performance

 How is Telecom Italia expected to perform in the next 1 to 3 years based on estimates from 20 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
9.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telecom Italia expected to grow at an attractive rate?
  • Telecom Italia's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Telecom Italia's earnings growth is positive but not above the Germany market average.
  • Telecom Italia'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:TQI1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TQI1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 9.8%
DB:TQI1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts -1.5%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.7%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
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:TQI1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TQI1 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 17,253 6,471 1,600 3
2023-12-31 16,210 6,265 1,367 4
2022-12-31 17,092 5,350 1,332 11
2021-12-31 17,330 5,992 1,239 16
2020-12-31 17,491 5,341 1,158 20
2020-04-06
DB:TQI1 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 17,974 5,950 900
2019-09-30 18,286 5,608 309
2019-06-30 18,523 5,153 -1,392
2019-03-31 18,726 5,147 -1,445
2018-12-31 18,940 4,592 -1,411
2018-09-30 19,226 5,660 -846
2018-06-30 19,467 4,839 991
2018-03-31 19,694 4,944 1,054
2017-12-31 19,828 5,399 1,055
2017-09-30 19,765 4,665 1,346
2017-06-30 19,701 6,351 1,386
2017-03-31 19,404 5,743 1,575

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telecom Italia's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
  • Telecom Italia'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:TQI1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Telecom Italia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TQI1 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.09 0.09 0.09 1.00
2023-12-31 0.07 0.09 0.05 2.00
2022-12-31 0.06 0.08 0.04 10.00
2021-12-31 0.06 0.14 0.04 15.00
2020-12-31 0.05 0.07 0.03 17.00
2020-04-06
DB:TQI1 Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 0.04
2019-09-30
2019-06-30 -0.07
2019-03-31
2018-12-31 -0.07
2018-09-30 -0.04
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.05
2017-09-30 0.06
2017-06-30 0.07
2017-03-31 0.07

*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.
  • Telecom Italia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telecom Italia'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.
Telecom Italia has a total score of 1/6, 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.

TQI1 Past Performance

  How has Telecom Italia 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 Telecom Italia'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.
  • Telecom Italia's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Telecom Italia has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Telecom Italia has become profitable in the last year making it difficult to compare the Europe Telecom industry average.
Earnings and Revenue History
Telecom Italia'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 Telecom Italia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TQI1 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 17,974.00 900.00 646.00
2019-09-30 18,286.00 309.00 969.00
2019-06-30 18,523.00 -1,392.00 663.00
2019-03-31 18,726.00 -1,445.00 969.00
2018-12-31 18,940.00 -1,411.00 1,221.00
2018-09-30 19,226.00 -846.00 1,041.00
2018-06-30 19,467.00 991.00 967.00
2018-03-31 19,694.00 1,054.00 844.00
2017-12-31 19,828.00 1,055.00 1,041.00
2017-09-30 19,765.00 1,346.00 764.00
2017-06-30 19,701.00 1,386.00 1,325.00
2017-03-31 19,404.00 1,575.00 1,315.00
2016-12-31 19,025.00 1,761.00 1,284.00
2016-09-30 18,780.00 880.00 1,656.00
2016-06-30 18,714.00 587.00 1,642.00
2016-03-31 19,105.00 -208.00 1,657.00
2015-12-31 19,719.00 -681.00 1,668.00
2015-09-30 20,559.00 97.00 1,710.00
2015-06-30 21,295.00 229.00 1,543.00
2015-03-31 21,558.00 633.00 1,732.00
2014-12-31 21,733.00 809.00 1,737.00
2014-09-30 21,988.00 741.00 1,818.00
2014-06-30 22,208.00 845.00 1,818.00
2014-03-31 22,875.00 -1,193.00 1,845.00
2013-12-31 23,549.00 -1,015.00 1,830.00
2013-09-30 21,391.00 -4,824.00 1,980.00
2013-06-30 22,987.00 -4,548.00 1,980.00

*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.
  • Telecom Italia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telecom Italia used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Telecom Italia's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telecom Italia'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.
Telecom Italia has a total score of 0/6, 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.

TQI1 Health

 How is Telecom Italia'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 Telecom Italia's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telecom Italia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Telecom Italia's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telecom Italia'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 Telecom Italia Company Filings, last reported 3 months ago.

DB:TQI1 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 22,626.00 28,787.00 4,121.00
2019-09-30 22,544.00 29,103.00 3,394.00
2019-06-30 22,334.00 28,459.00 2,795.00
2019-03-31 21,819.00 29,475.00 3,677.00
2018-12-31 21,747.00 29,024.00 3,297.00
2018-09-30 21,901.00 29,349.00 3,603.00
2018-06-30 23,396.00 28,789.00 3,482.00
2018-03-31 23,642.00 29,033.00 2,879.00
2017-12-31 23,783.00 30,434.00 4,943.00
2017-09-30 24,059.00 30,360.00 3,926.00
2017-06-30 23,619.00 31,178.00 5,743.00
2017-03-31 23,950.00 31,984.00 5,530.00
2016-12-31 23,553.00 31,889.00 5,796.00
2016-09-30 21,637.00 34,005.00 5,767.00
2016-06-30 21,327.00 32,678.00 3,988.00
2016-03-31 20,216.00 32,347.00 3,400.00
2015-12-31 21,249.00 34,318.00 5,349.00
2015-09-30 22,035.00 35,192.00 6,193.00
2015-06-30 22,692.00 35,783.00 6,727.00
2015-03-31 22,050.00 39,253.00 7,124.00
2014-12-31 21,699.00 35,858.00 6,353.00
2014-09-30 21,208.00 34,946.00 5,305.00
2014-06-30 20,632.00 37,418.00 6,601.00
2014-03-31 20,381.00 34,966.00 5,237.00
2013-12-31 20,186.00 35,910.00 7,272.00
2013-09-30 20,597.00 36,582.00 6,753.00
2013-06-30 20,478.00 36,682.00 6,514.00
  • Telecom Italia's level of debt (127.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (165.4% vs 127.2% today).
  • Debt is well covered by operating cash flow (20.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Telecom Italia'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. Telecom Italia has a total score of 3/6, 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.

TQI1 Dividends

 What is Telecom Italia'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
2.55%
Current annual income from Telecom Italia dividends. Estimated to be 3.69% next year.
If you bought €2,000 of Telecom Italia shares you are expected to receive €51 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?
  • Telecom Italia's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Telecom Italia's dividend is below the markets top 25% of dividend payers in Germany (4.85%).
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:TQI1 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 20 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 315 Stocks 3.9%
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:TQI1 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.03 2.00
2023-12-31 0.02 3.00
2022-12-31 0.02 10.00
2021-12-31 0.01 15.00
2020-12-31 0.01 17.00
2020-04-06
DB:TQI1 Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-30 0.010 2.661
2020-03-10 0.010 2.807
2015-03-19 0.000 0.000
2014-12-29 0.000 0.000
2014-11-07 0.000 0.000
2014-08-12 0.000 0.000
2014-08-06 0.000 0.000
2014-06-04 0.000 0.000
2014-05-13 0.000 0.000
2014-04-22 0.000 0.000
2013-04-03 0.020 3.078
2013-03-07 0.020 3.410
2012-08-02 0.043 6.062
2012-05-15 0.043 6.081
2011-02-24 0.058 6.573
2010-04-13 0.050 4.937
2009-04-08 0.050 4.701

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 Telecom Italia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Telecom Italia'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 Telecom Italia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telecom Italia 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.

TQI1 Management

 What is the CEO of Telecom Italia'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
Luigi Gubitosi
COMPENSATION €1,528,928
AGE 58
TENURE AS CEO 1.4 years
CEO Bio

Mr. Luigi Gubitosi has been a Director of Alitalia - Compagnia Aerea Italiana S.p.A. since March 15, 2017. He is Independent Director at Telecom Italia SpA since May 4, 2018 and serves as its Chief Executive Officer since November 18, 2018 and serves as its General Manager since November 18, 2018.

CEO Compensation
  • Insufficient data for Luigi to compare compensation growth.
  • Luigi's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Telecom Italia management team in years:

1.3
Average Tenure
51
Average Age
  • The average tenure for the Telecom Italia management team is less than 2 years, this suggests a new team.
Management Team

Luigi Gubitosi

TITLE
CEO, General Manager & Executive Director
COMPENSATION
€2M
AGE
58
TENURE
1.4 yrs

Giovanni Ronca

TITLE
Chief Financial Officer
AGE
46
TENURE
0.8 yrs

Stefano Siragusa

TITLE
Chief Operations Officer
AGE
43
TENURE
0.4 yrs

Michele Gamberini

TITLE
Chief Technology & Information Officer
TENURE
0.4 yrs

Piergiorgio Peluso

TITLE
Chief Transformation Officer & Head of Admin
AGE
51
TENURE
7.6 yrs

Carola Bardelli

TITLE
Head of Investor Relations
TENURE
1.3 yrs

Valerio Giuseppe Cavallo

TITLE
Group Compliance Officer
AGE
59

Agostino Nuzzolo

TITLE
General Counsel
AGE
51
TENURE
3.3 yrs

Simone Cantagallo

TITLE
Chief of Institutional Communication
TENURE
1.3 yrs

Luciano Sale

TITLE
Chief of Human Resources & Organizational Development
AGE
58
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Telecom Italia board of directors in years:

1.9
Average Tenure
57
Average Age
  • The average tenure for the Telecom Italia board of directors is less than 3 years, this suggests a new board.
Board of Directors

Salvatore Rossi

TITLE
Independent Chairman
TENURE
0.5 yrs

Luigi Gubitosi

TITLE
CEO, General Manager & Executive Director
COMPENSATION
€2M
AGE
58
TENURE
1.9 yrs

Roberto Capone

TITLE
Chairman of Statutory Auditors
COMPENSATION
€122K
AGE
64
TENURE
5.3 yrs

Alfredo Altavilla

TITLE
Independent Director
COMPENSATION
€103K
AGE
56
TENURE
1.9 yrs

Paola de Ponti

TITLE
Independent Director
COMPENSATION
€107K
AGE
57
TENURE
1.9 yrs

Dante Roscini

TITLE
Lead Independent Director
COMPENSATION
€82K
AGE
61
TENURE
1.8 yrs

Arnaud de Puyfontaine

TITLE
Director
COMPENSATION
€370K
AGE
55
TENURE
4.3 yrs

Marella Moretti

TITLE
Independent Director
COMPENSATION
€156K
AGE
54
TENURE
2.9 yrs

Michele Valensise

TITLE
Independent Director
COMPENSATION
€114K
AGE
67
TENURE
1.9 yrs

Giuseppina Capaldo

TITLE
Independent Director
COMPENSATION
€103K
AGE
50
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Telecom Italia'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. Telecom Italia 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.

TQI1 News

Simply Wall St News

TQI1 Company Info

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; provision of infrastructure for housing radio transmission equipment of mobile telephone networks; and development, engineering, construction, and operation of network infrastructures, information technology (IT), real estate properties, and plant engineering. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities; and staff functions and other support activities. Further, the company offers products and services for IT sector. The company was founded in 1908 and is headquartered in Rome, Italy.

Details
Name: Telecom Italia S.p.A.
TQI1
Exchange: DB
Founded: 1908
€8,255,903,517
21,067,159,894
Website: http://www.telecomitalia.com
Address: Telecom Italia S.p.A.
Corso d’Italia 41,
Rome,
Rome, 00198,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT TIT Ordinary Shares Borsa Italiana IT EUR 04. Aug 2003
OTCPK TIAO.F Ordinary Shares Pink Sheets LLC US USD 04. Aug 2003
DB TQI Ordinary Shares Deutsche Boerse AG DE EUR 04. Aug 2003
XTRA TQI Ordinary Shares XETRA Trading Platform DE EUR 04. Aug 2003
LSE 0H6I Ordinary Shares London Stock Exchange GB EUR 04. Aug 2003
SWX TIT Ordinary Shares SIX Swiss Exchange CH CHF 04. Aug 2003
ENXTBR TIT Ordinary Shares Euronext Brussels BE EUR 04. Aug 2003
WBAG TIT Ordinary Shares Wiener Boerse AG AT EUR 04. Aug 2003
BMV TIT * Ordinary Shares Bolsa Mexicana de Valores MX MXN 04. Aug 2003
BATS-CHIXE TITM Ordinary Shares BATS 'Chi-X Europe' GB EUR 04. Aug 2003
OTCPK TIAJ.F AS DI RIS NONC Pink Sheets LLC US USD 13. Jan 2004
OTCPK TIIA.Y SPONS ADR (EACH REP 10 ORD SHS)EUR0.55 Pink Sheets LLC US USD 04. Aug 2003
OTCPK TIAI.Y SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55 Pink Sheets LLC US USD 04. Aug 2003
BIT TITR Saving Shares Borsa Italiana IT EUR 04. Aug 2003
DB TQIR Saving Shares Deutsche Boerse AG DE EUR 04. Aug 2003
DB TQI1 SPONS ADR(EACH REP 10 SAVING SHS)EUR0.55 Deutsche Boerse AG DE EUR 04. Aug 2003
DB TQIA SPONS ADR (EACH REP 10 ORD SHS)EUR0.55 Deutsche Boerse AG DE EUR 04. Aug 2003
XTRA TQIR Saving Shares XETRA Trading Platform DE EUR 04. Aug 2003
LSE 0GA3 Saving Shares London Stock Exchange GB EUR 04. Aug 2003
BMV TITR N Saving Shares Bolsa Mexicana de Valores MX MXN 04. Aug 2003
BATS-CHIXE TITRM Saving Shares BATS 'Chi-X Europe' GB EUR 04. Aug 2003
Number of employees
Current staff
Staff numbers
55,198
Telecom Italia employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 23:35
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/29
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.