Telefonica Price To Earning vs. Number Of Shares Shorted

TEF Stock  USD 4.33  0.07  1.59%   
Based on the key profitability measurements obtained from Telefonica's financial statements, Telefonica SA ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Telefonica's ability to earn profits and add value for shareholders. At this time, Telefonica's Operating Cash Flow Sales Ratio is most likely to slightly decrease in the upcoming years. The Telefonica's current Days Of Sales Outstanding is estimated to increase to 84.94, while EV To Sales is projected to decrease to 1.33. At this time, Telefonica's Change To Netincome is most likely to decrease significantly in the upcoming years. The Telefonica's current Net Income Per E B T is estimated to increase to 0.78, while Accumulated Other Comprehensive Income is forecasted to increase to (18.6 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.760.4977
Way Up
Pretty Stable
Operating Profit Margin0.06060.0638
Notably Down
Very volatile
For Telefonica profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Telefonica to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Telefonica SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Telefonica's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Telefonica SA ADR over time as well as its relative position and ranking within its peers.
  
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Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Telefonica. If investors know Telefonica will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Telefonica listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.98)
Dividend Share
0.15
Earnings Share
(0.26)
Revenue Per Share
7.195
Quarterly Revenue Growth
(0.06)
The market value of Telefonica SA ADR is measured differently than its book value, which is the value of Telefonica that is recorded on the company's balance sheet. Investors also form their own opinion of Telefonica's value that differs from its market value or its book value, called intrinsic value, which is Telefonica's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Telefonica's market value can be influenced by many factors that don't directly affect Telefonica's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Telefonica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Telefonica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Telefonica's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Telefonica SA ADR Number Of Shares Shorted vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Telefonica's current stock value. Our valuation model uses many indicators to compare Telefonica value to that of its competitors to determine the firm's financial worth.
Telefonica SA ADR is rated fifth in price to earning category among its peers. It is rated below average in number of shares shorted category among its peers making about  462,778  of Number Of Shares Shorted per Price To Earning. Comparative valuation analysis is a catch-all technique that is used if you cannot value Telefonica by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Telefonica Number Of Shares Shorted vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Telefonica

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.11 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Telefonica

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
6.07 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.

Telefonica Number Of Shares Shorted Comparison

Telefonica is currently under evaluation in number of shares shorted category among its peers.

Telefonica Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Telefonica, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Telefonica will eventually generate negative long term returns. The profitability progress is the general direction of Telefonica's change in net profit over the period of time. It can combine multiple indicators of Telefonica, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-19.6 B-18.6 B
Operating Income2.6 B2.5 B
Income Before Tax-1.5 B-1.4 B
Total Other Income Expense Net-4.1 B-3.9 B
Net Loss-892 M-847.4 M
Income Tax Expense-899 M-854 M
Net Income Applicable To Common Shares1.6 B1.5 B
Net Loss-574 M-545.3 M
Interest Income1.1 B1.1 B
Net Interest Income-1.9 B-2 B
Change To Netincome860.4 M887.6 M
Net Loss(0.16)(0.15)
Income Quality(10.16)(9.66)
Net Income Per E B T 0.61  0.78 

Telefonica Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Telefonica. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Telefonica position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Telefonica's important profitability drivers and their relationship over time.

Use Telefonica in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Telefonica position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Telefonica will appreciate offsetting losses from the drop in the long position's value.

Telefonica Pair Trading

Telefonica SA ADR Pair Trading Analysis

The ability to find closely correlated positions to Telefonica could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonica when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Telefonica - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Telefonica SA ADR to buy it.
The correlation of Telefonica is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Telefonica moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Telefonica SA ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Telefonica can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Telefonica position

In addition to having Telefonica in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. The Railroads theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Railroads Theme or any other thematic opportunities.
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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:
Check out World Market Map.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Telefonica's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Telefonica SA ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Telefonica's income statement, its balance sheet, and the statement of cash flows.
Potential Telefonica investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Telefonica investors may work on each financial statement separately, they are all related. The changes in Telefonica's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Telefonica's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.