Is Telefonica Stock a Good Investment?

Telefonica Investment Advice

TEF

To provide specific investment advice or recommendations on Telefonica SA ADR stock, we recommend investors consider the following general factors when evaluating Telefonica SA ADR. This will help you to make an informed decision on whether to include Telefonica in one of your diversified portfolios:

Examine Telefonica's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Telefonica's leadership team and their track record. Good management can help Telefonica navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Diversified Telecommunication Services space and any emerging trends that could impact Telefonica's business and its evolving consumer preferences.
Compare Telefonica's performance and market position to its competitors. Analyze how Telefonica is positioned in terms of product offerings, innovation, and market share.
Check if Telefonica pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Telefonica's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Telefonica SA ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Telefonica SA ADR is a good investment.

Sell

Buy

Strong Sell

We provide advice to complement the current expert consensus on Telefonica. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Telefonica SA ADR is not overpriced, please validate all Telefonica fundamentals, including its total debt, target price, and the relationship between the ebitda and cash flow from operations . Given that Telefonica SA ADR has a price to earning of 13.11 X, we advise you to double-check Telefonica SA ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Somewhat reliable	Details
Hype Condition	Stale	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Hold	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine Telefonica Stock

Researching Telefonica's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book ratio of 1.15. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Telefonica SA ADR has Price/Earnings To Growth (PEG) ratio of 2.14. The entity recorded a loss per share of 0.26. The firm last dividend was issued on the 18th of December 2024. Telefonica had 3:1 split on the 21st of January 2011.

To determine if Telefonica is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Telefonica's research are outlined below:

	Telefonica SA ADR has 44.12 B in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. Telefonica SA ADR has a current ratio of 0.9, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Telefonica to invest in growth at high rates of return.
	The entity reported the last year's revenue of 40.65 B. Reported Net Loss for the year was (892 M) with profit before taxes, overhead, and interest of 20.48 B.
	On 10th of January 2025 Telefonica paid $ 0.1576 per share dividend to its current shareholders
	Latest headline from news.google.com: Contra Guys This Spanish telecom is a myriad of moving parts and not for the faint of heart - The Globe and Mail

Telefonica uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Telefonica SA ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Telefonica's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	22nd of February 2024 Upcoming Quarterly Report	View
	9th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	22nd of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Telefonica's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Telefonica's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
1996-03-06	1995-12-31	0.08	0.07	-0.01	12
1994-04-11	1994-03-31	0.05	0.04	-0.01	20
2023-05-11	2023-03-31	0.0878	0.0983	0.0105	11
2023-11-07	2023-09-30	0.0848	0.0964	0.0116	13
2020-10-29	2020-09-30	0.1346	0.1515	0.0169	12
2018-04-26	2018-03-31	0.17	0.15	-0.02	11
2019-05-10	2019-03-31	0.2	0.1799	-0.0201	10
2023-02-23	2022-12-31	0.1064	0.1272	0.0208	19

Know Telefonica's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Telefonica is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Telefonica SA ADR backward and forwards among themselves. Telefonica's institutional investor refers to the entity that pools money to purchase Telefonica's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
First Trust Advisors L.p.	2024-12-31	963.6 K
Cibc World Markets Inc.	2024-12-31	775.6 K
Bank Of Montreal	2024-12-31	636.5 K
Bmo Capital Markets Corp.	2024-12-31	636.5 K
Ethic Inc.	2024-12-31	584.4 K
Drum Hill Capital, Llc Usd	2024-12-31	497.8 K
Drum Hill Capital, Llc Usd	2024-12-31	497.8 K
Morgan Stanley - Brokerage Accounts	2024-12-31	21 M
Bank Of America Corp	2024-12-31	9 M
Goldman Sachs Group Inc	2024-12-31	5.2 M
Blackrock Inc	2024-12-31	5 M

Note, although Telefonica's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Telefonica's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 25.39 B.

Market Cap

34.84 Billion

Telefonica's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.01)	(0.01)
Return On Capital Employed	0.03	0.03
Return On Assets	(0.01)	(0.01)
Return On Equity	(0.06)	(0.05)

The company has Net Profit Margin of (0.03) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 0.11 %, which entails that for every 100 dollars of revenue, it generated $0.11 of operating income.

Determining Telefonica's profitability involves analyzing its financial statements and using various financial metrics to determine if Telefonica is a good buy. For example, gross profit margin measures Telefonica's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Telefonica's profitability and make more informed investment decisions.

Evaluate Telefonica's management efficiency

Telefonica SA ADR has Return on Asset of 0.0149 % which means that on every $100 spent on assets, it made $0.0149 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.0323) %, meaning that it generated no profit with money invested by stockholders. Telefonica's management efficiency ratios could be used to measure how well Telefonica manages its routine affairs as well as how well it operates its assets and liabilities. The Telefonica's current Return On Tangible Assets is estimated to increase to -0.01. The current Return On Capital Employed is estimated to decrease to 0.03. At this time, Telefonica's Intangible Assets are most likely to decrease significantly in the upcoming years.

	Last Reported	Projected for Next Year
Book Value Per Share	4.30	3.73
Tangible Book Value Per Share	(0.61)	(0.64)
Enterprise Value Over EBITDA	6.34	11.88
Price Book Value Ratio	1.61	1.53
Enterprise Value Multiple	6.34	11.88
Price Fair Value	1.61	1.53
Enterprise Value	29.8 B	28.3 B

Telefonica SA ADR benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.

Dividend Yield

0.0713

Forward Dividend Yield

0.0713

Forward Dividend Rate

0.32

Beta

0.699

Basic technical analysis of Telefonica Stock

As of the 26th of February, Telefonica has the Semi Deviation of 0.9883, coefficient of variation of 2088.06, and Risk Adjusted Performance of 0.0383. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Telefonica SA ADR, as well as the relationship between them. Please validate Telefonica SA ADR treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Telefonica is priced more or less accurately, providing market reflects its prevalent price of 4.38 per share. Given that Telefonica SA ADR has jensen alpha of 0.0419, we advise you to double-check Telefonica SA ADR's current market performance to make sure the company can sustain itself at a future point.

Telefonica's Outstanding Corporate Bonds

Telefonica issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Telefonica SA ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Telefonica bonds can be classified according to their maturity, which is the date when Telefonica SA ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	TELEFONICA EUROPE B Corp Bond US879385AD49	View
	MPLX LP 4125 Corp Bond US55336VAK61	View
	MGM Resorts International Corp Bond US552953CD18	View
	Teleflex 425 percent Corp Bond US879369AG12	View
	Teleflex 4625 percent Corp Bond US879369AF39	View
	TELEFONICA EMISIONES S Corp Bond US87938WAT09	View
	TELEFONICA EMISIONES SAU Corp Bond US87938WAX11	View
	TELEFONICA EMISIONES S Corp Bond US87938WAW38	View

View All Telefonica Corporate Bonds

Understand Telefonica's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Telefonica's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0383
	Market Risk Adjusted Performance	(0.32)
	Mean Deviation	0.8785
	Semi Deviation	0.9883
	Downside Deviation	1.12
	Coefficient Of Variation	2088.06
	Standard Deviation	1.07
	Variance	1.15
	Information Ratio	0.0339
	Jensen Alpha	0.0419
	Total Risk Alpha	0.0341
	Sortino Ratio	0.0324
	Treynor Ratio	(0.33)
	Maximum Drawdown	4.24
	Value At Risk	(1.50)
	Potential Upside	1.88
	Downside Variance	1.26
	Semi Variance	0.9768
	Expected Short fall	(0.96)
	Skewness	0.0441
	Kurtosis	(0.59)

	Risk Adjusted Performance	0.0383
	Market Risk Adjusted Performance	(0.32)
	Mean Deviation	0.8785
	Semi Deviation	0.9883
	Downside Deviation	1.12
	Coefficient Of Variation	2088.06
	Standard Deviation	1.07
	Variance	1.15
	Information Ratio	0.0339
	Jensen Alpha	0.0419
	Total Risk Alpha	0.0341
	Sortino Ratio	0.0324
	Treynor Ratio	(0.33)
	Maximum Drawdown	4.24
	Value At Risk	(1.50)
	Potential Upside	1.88
	Downside Variance	1.26
	Semi Variance	0.9768
	Expected Short fall	(0.96)
	Skewness	0.0441
	Kurtosis	(0.59)

Consider Telefonica's intraday indicators

Telefonica intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Telefonica stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0136
	Daily Balance Of Power	1.0
	Rate Of Daily Change	1.01
	Day Median Price	4.38
	Day Typical Price	4.38
	Market Facilitation Index	0.06
	Price Action Indicator	0.03
	Period Momentum Indicator	0.06
	Relative Strength Index	64.53

Telefonica Corporate Filings

6K	24th of February 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	14th of February 2025 Other Reports	View Verify
	23rd of January 2025 Other Reports	View Verify
F3	2nd of August 2024 An amendment to the original Schedule 13D filing	View Verify

Telefonica time-series forecasting models is one of many Telefonica's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Telefonica's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Telefonica Stock media impact

Far too much social signal, news, headlines, and media speculation about Telefonica that are available to investors today. That information is available publicly through Telefonica media outlets and privately through word of mouth or via Telefonica internal channels. However, regardless of the origin, that massive amount of Telefonica data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Telefonica news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Telefonica relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Telefonica's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Telefonica alpha.

Telefonica Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Telefonica can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Telefonica Corporate Directors

Peter Loscher	External Independent Director	Profile
Claudia Ramirez	External Independent Director	Profile
Francisco Mera	External Independent Director	Profile
Markus Haas	COO and Director of Telefónica Deutschland Holding AG	Profile

When determining whether Telefonica SA ADR is a strong investment it is important to analyze Telefonica's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Telefonica's future performance. For an informed investment choice regarding Telefonica Stock, refer to the following important reports: