Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
/
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Telefónica S.A. is a leading multinational telecommunications company headquartered in Madrid, Spain, providing a comprehensive suite of services across Europe and Latin America. It offers mobile services including voice, data, internet, roaming, fixed wireless, trunking, and paging, alongside traditional fixed-line telecommunications such as PSTN lines, ISDN accesses, public telephony, local and international long-distance calls, corporate communications, and value-added supplementary services. The company also delivers broadband internet access, fiber-to-the-home, high-speed digital subscriber lines, VoIP, leased lines, virtual private networks, fiber optics, web hosting, managed services, content delivery, cybersecurity, outsourcing, system integration, and professional consulting. Additionally, Telefónica S.A. provides wholesale services for other operators, video/TV platforms, IoT products, financial services, cloud solutions, big data, digital experiences, and innovative offerings like Aura, open gateway, and smart devices. With a presence in key markets including Spain, the UK, Germany, and Brazil, it continues to invest in 5G networks, fiber expansion, cybersecurity, data centers, and strategic mergers to enhance its competitive position in the global telecom sector.
€4.20
+€0.00 (+0.00%)
EOD Jun 24, 2026 · Twelve Data
Operating margin is thin at 5.79%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 15.0% YoY. Margins deteriorated 5.3pp alongside, both lines moving the wrong way.
Free cash flow declined 10% versus the prior year, cash generation momentum has weakened. Net debt of €32.93B represents 7.1x FCF, leverage limits flexibility.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
€35.12B
▼ -15.0% YoY
Net Income (TTM)
-€4.15B
▼ -2086.6% YoY
Op. Margin
5.79%
▼ -5.3pp YoY
ROIC
2.57%
▼ -0.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
€4.67B
▼ -10.3% YoY
Op. Cash Flow (TTM)
€9.72B
▼ -9.4% YoY
Net Debt
€32.93B
Cash & Equiv.
€6.73B
3Y CAGR: -4.2%
3Y CAGR: -4.8%
Continue Research
Telefónica (TEFOF) trades below a two-stage DCF intrinsic value of about €12.11 per share, so at €4.20 the stock looks undervalued (188.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Telefónica scores 21/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 8.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about €12.11 per share for TEFOF, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around €9.08. At today's €4.20, that puts the stock about 188.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Telefónica scores 21 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 5.8% operating margin and a 2.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Telefónica pays a regular dividend of about €0.33 per share per year (typically in quarterly installments), a yield of roughly 8.9% at the current price. Telefónica has grown the dividend at roughly 31.4% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TEFOF's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. TEFOF currently trades below its estimated intrinsic value and scores 21/100 on quality (lower-quality). It also yields about 8.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.