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Is Telefonica, S.A.(NYSE: TEF), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Telefonica, S.A. (NYSE: TEF) has been on the stock market since its IPO date on the 06/12/1987. Telefonica, S.A. is in the Telecom Services – Foreign industry and Technology sector. Average volume for Telefonica, S.A., is 1573.39, and so far today it has a volume of 1112500. Performance year to date since the 06/12/1987 is -10.58%.

To help you determine whether Telefonica, S.A. is undervalued the following values will help you decide. P/E is 1894 and forward P/E is 12.73. PEG perhaps more useful shows that Telefonica, S.A. has a value for PEG of 42.75. P/S ratio is 0.9 and the P/B ratio is 2.36. The P/Cash and P/Free cash flow is 7.23 and 10.1 respectively.

At the current price Telefonica, S.A. is trading at, 9.47 (1.07% today), Telefonica, S.A. has a dividend yield of 4.75%, and this is covered by a payout ratio of 120.00%. Earnings per share (EPS) is 0.01, and this is looking to grow in the next year to 16.61% after growing -93.90% this past year. EPS growth quarter over quarter is -24.50%, and -6.60% for sales growth quarter over quarter.

The number of shares outstanding is 4907.91, and the number of shares float is 4058.39. The senior management bring insider ownership to 5.60%, and institutional ownership is at 1.50%. The float short is 0.07%, with the short ratio at a value of 1.88. Management has seen a return on assets of 1.40%, and also a return on investment of 3.80%.

The ability for Telefonica, S.A., to deal with debt, means it current ratio is 1, and quick ratio is 0.9. Long term debt/equity is 2.76 and total debt/equity is 3.37. In terms of margins, Telefonica, S.A. has a gross margin of 73.50%, with its operating margin at 5.90%, and Telefonica, S.A. has a profit margin of 3.70%.

The 52 week high is -34.42%, with 13.55% being its 52 week low. The 20 day simple moving average is -4.87% and the 200 day simple moving average is -10.65%.

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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Peter Clarke

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