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Morning Momentum: Telefonica, S.A., (TEF)

Friday February 24th 2017: Telefonica, S.A., TEF is in the exchange NYSE and its industry is Telecom Services – Foreign in the sector of Technology. Based in Spain, Telefonica, S.A., TEF  has a market cap of 53.48 B. Since its IPO date on the 06/12/1987, Telefonica, S.A., TEF performance year to date is 16.09%. Today Telefonica, S.A., TEF has gained 0.00%, with a current price of 10.68.

Ownership of the company is 5.60% for insider ownership while institutional ownership is 1.00%. The management of the company have seen the company have a payout ratio of 258.50%. Return of assets are at 1.70%, with return on investment at 6.10%.

In terms of debt levels and profit levels, Telefonica, S.A., TEF is seeing a long-term debt/equity of 2.47. While Total debt/equity is 3.19. With a profit margin of 3.90%, this is combined with a gross margin of 71.60%, and operating margin of 10.50%. Telefonica, S.A. ability to meet debt levels, with a current ratio of 0.7, while the quick ratio is 0.7.

For the last year Telefonica, S.A., TEF has seen a EPS growth of 475.60%. A performance for the year of 10.79%. The 52-week high is -8.25%, and the 52-week low is 31.04%. The average volume for Telefonica, S.A., TEF is 26276.

With a target price of 12.39, can Telefonica, S.A., TEF reach this target? Looking at the value indicators of Telefonica, S.A., TEF. Telefonica, S.A. has a P/E of 19.78 and a forward P/E of 10.08. Perhaps the more useful indicator than P/E, is PEG which has a value of 0.35. Telefonica, S.A. also has a P/S and a P/B of 0.87 and 2.35 respectively. For P/cash, Telefonica, S.A. has a value of 4.24, while it is 16.87 for P/free cash flow.

At the current price of 10.68, Telefonica, S.A. has a dividend yield of 4.12%. We see a return on equity of 11.80%.

Looking more long-term Telefonica, S.A., is projected to get an EPS growth for the next five years of 56.10%. In the short-term an EPS growth of 18.86% in the next year is forecasted. This is after a EPS growth of 475.60% for this year and for the last five years a -18.70% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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