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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.21
TI's Cash to Debt is ranked higher than
72% of the 904 Companies
in the Global Telecom Services industry.

( Industry Median: 0.33 vs. TI: 0.21 )
TI' s 10-Year Cash to Debt Range
Min: 0.07   Max: No Debt
Current: 0.21

Equity to Asset 0.26
TI's Equity to Asset is ranked higher than
68% of the 872 Companies
in the Global Telecom Services industry.

( Industry Median: 0.38 vs. TI: 0.26 )
TI' s 10-Year Equity to Asset Range
Min: 0.17   Max: 0.34
Current: 0.26

0.17
0.34
Interest Coverage 1.45
TI's Interest Coverage is ranked higher than
65% of the 603 Companies
in the Global Telecom Services industry.

( Industry Median: 5.91 vs. TI: 1.45 )
TI' s 10-Year Interest Coverage Range
Min: 0.85   Max: 9999.99
Current: 1.45

0.85
9999.99
F-Score: 8
Z-Score: 0.82
M-Score: -2.88
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 20.80
TI's Operating margin (%) is ranked higher than
93% of the 911 Companies
in the Global Telecom Services industry.

( Industry Median: 12.56 vs. TI: 20.80 )
TI' s 10-Year Operating margin (%) Range
Min: -2.25   Max: 25.87
Current: 20.8

-2.25
25.87
Net-margin (%) 5.45
TI's Net-margin (%) is ranked higher than
80% of the 911 Companies
in the Global Telecom Services industry.

( Industry Median: 6.41 vs. TI: 5.45 )
TI' s 10-Year Net-margin (%) Range
Min: -15.9   Max: 11.22
Current: 5.45

-15.9
11.22
ROE (%) 6.97
TI's ROE (%) is ranked higher than
76% of the 881 Companies
in the Global Telecom Services industry.

( Industry Median: 12.35 vs. TI: 6.97 )
TI' s 10-Year ROE (%) Range
Min: -30.58   Max: 15.35
Current: 6.97

-30.58
15.35
ROA (%) 1.74
TI's ROA (%) is ranked higher than
75% of the 919 Companies
in the Global Telecom Services industry.

( Industry Median: 4.57 vs. TI: 1.74 )
TI' s 10-Year ROA (%) Range
Min: -6.6   Max: 3.62
Current: 1.74

-6.6
3.62
ROC (Joel Greenblatt) (%) 34.37
TI's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 917 Companies
in the Global Telecom Services industry.

( Industry Median: 21.62 vs. TI: 34.37 )
TI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -4.2   Max: 58.79
Current: 34.37

-4.2
58.79
Revenue Growth (3Y)(%) -5.60
TI's Revenue Growth (3Y)(%) is ranked higher than
71% of the 786 Companies
in the Global Telecom Services industry.

( Industry Median: 3.90 vs. TI: -5.60 )
TI' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0   Max: 17.9
Current: -5.6

0
17.9
EBITDA Growth (3Y)(%) -22.40
TI's EBITDA Growth (3Y)(%) is ranked higher than
69% of the 704 Companies
in the Global Telecom Services industry.

( Industry Median: 3.60 vs. TI: -22.40 )
TI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 25.4
Current: -22.4

0
25.4
» TI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

TI Guru Trades in Q4 2013

Charles Brandes Sold Out
» More
Q1 2014

TI Guru Trades in Q1 2014

Joel Greenblatt 16,676 sh (-0.01%)
Charles Brandes 8,680,209 sh (-24.27%)
» More
Q2 2014

TI Guru Trades in Q2 2014

David Dreman 5,379 sh (New)
Joel Greenblatt 16,676 sh (unchged)
Charles Brandes 6,975,219 sh (-19.64%)
» More
Q3 2014

TI Guru Trades in Q3 2014

David Dreman 11,007 sh (+104.63%)
Charles Brandes 6,913,928 sh (-0.88%)
Joel Greenblatt 14,533 sh (-12.85%)
» More
» Details

Insider Trades

Latest Guru Trades with TI

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Dreman 2014-09-30 Add 104.63%0.01%$10.71 - $12.51 $ 11.35-1%11007
Charles Brandes 2014-06-30 Reduce -19.64%0.26%$11.28 - $13.41 $ 11.35-8%6975219
David Dreman 2014-06-30 New Buy0.01%$11.28 - $13.41 $ 11.35-8%5379
Charles Brandes 2012-09-30 Add 6.87%0.12%$7.37 - $10.99 $ 11.3523%14856795
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Telecom Italia SpA

Bill Nygren Comments on TI - Apr 14, 2014

We also eliminated the remainder of our investment in TI (TI) as the final tranche of shares went long term. TI offers another example of a management team that we believe puts its shareholders first in a situation where many do not. Since its acquisition of National Semiconductor in 2011, TI has been generously returning excess capital to shareholders while maintaining a prudent, but not lazy, balance sheet. This likely contributed to their shares approaching our estimate of fair value. Many large technology companies today simply grow their already immense cash positions and offer little insight into their plans for distributing that excess capital. We believe TI set a terrific example for other companies in the technology sector. Finally, we also sold Newfield Exploration after we came to believe that its effort to transition the company to liquids was a low-return proposition that would limit its ability to grow per-share value.

From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund first quarter 2014 investor letter.

Check out Bill Nygren latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 15.00
TI's P/E(ttm) is ranked higher than
91% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 24.50 vs. TI: 15.00 )
TI' s 10-Year P/E(ttm) Range
Min: 5.25   Max: 115.75
Current: 15

5.25
115.75
Forward P/E 13.74
TI's Forward P/E is ranked higher than
92% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 24.45 vs. TI: 13.74 )
N/A
PE(NRI) 32.90
TI's PE(NRI) is ranked higher than
81% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 29.20 vs. TI: 32.90 )
TI' s 10-Year PE(NRI) Range
Min: 4.82   Max: 41.57
Current: 32.9

4.82
41.57
P/B 1.11
TI's P/B is ranked higher than
93% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 3.23 vs. TI: 1.11 )
TI' s 10-Year P/B Range
Min: 0.53   Max: 3.13
Current: 1.11

0.53
3.13
P/S 0.89
TI's P/S is ranked higher than
89% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 1.86 vs. TI: 0.89 )
TI' s 10-Year P/S Range
Min: 0.41   Max: 1.68
Current: 0.89

0.41
1.68
PFCF 11.33
TI's PFCF is ranked higher than
94% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 37.75 vs. TI: 11.33 )
TI' s 10-Year PFCF Range
Min: 1.88   Max: 22.4
Current: 11.33

1.88
22.4
POCF 3.40
TI's POCF is ranked higher than
95% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 9.19 vs. TI: 3.40 )
TI' s 10-Year POCF Range
Min: 0.94   Max: 5.23
Current: 3.4

0.94
5.23
EV-to-EBIT 9.58
TI's EV-to-EBIT is ranked higher than
93% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 18.62 vs. TI: 9.58 )
TI' s 10-Year EV-to-EBIT Range
Min: -75.7   Max: 49
Current: 9.58

-75.7
49
Shiller P/E 117.92
TI's Shiller P/E is ranked higher than
83% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 53.47 vs. TI: 117.92 )
TI' s 10-Year Shiller P/E Range
Min: 5.85   Max: 101.8
Current: 117.92

5.85
101.8
Current Ratio 1.27
TI's Current Ratio is ranked higher than
81% of the 892 Companies
in the Global Telecom Services industry.

( Industry Median: 1.06 vs. TI: 1.27 )
TI' s 10-Year Current Ratio Range
Min: 0.76   Max: 1.27
Current: 1.27

0.76
1.27
Quick Ratio 1.24
TI's Quick Ratio is ranked higher than
81% of the 892 Companies
in the Global Telecom Services industry.

( Industry Median: 0.98 vs. TI: 1.24 )
TI' s 10-Year Quick Ratio Range
Min: 0.73   Max: 1.24
Current: 1.24

0.73
1.24
Days Inventory 16.23
TI's Days Inventory is ranked higher than
87% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 27.72 vs. TI: 16.23 )
TI' s 10-Year Days Inventory Range
Min: 7.52   Max: 110.09
Current: 16.23

7.52
110.09
Days Sales Outstanding 98.51
TI's Days Sales Outstanding is ranked higher than
73% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 56.59 vs. TI: 98.51 )
TI' s 10-Year Days Sales Outstanding Range
Min: 59.5   Max: 108.57
Current: 98.51

59.5
108.57

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.70
TI's Dividend Yield is ranked higher than
58% of the 685 Companies
in the Global Telecom Services industry.

( Industry Median: 3.27 vs. TI: 1.70 )
TI' s 10-Year Dividend Yield Range
Min: 1.49   Max: 11.53
Current: 1.7

1.49
11.53
Dividend growth (3y) -26.30
TI's Dividend growth (3y) is ranked higher than
75% of the 517 Companies
in the Global Telecom Services industry.

( Industry Median: 4.20 vs. TI: -26.30 )
TI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 90.5
Current: -26.3

0
90.5
Yield on cost (5-Year) 0.44
TI's Yield on cost (5-Year) is ranked lower than
82% of the 694 Companies
in the Global Telecom Services industry.

( Industry Median: 3.77 vs. TI: 0.44 )
TI' s 10-Year Yield on cost (5-Year) Range
Min: 0.39   Max: 2.98
Current: 0.44

0.39
2.98
Share Buyback Rate -0.60
TI's Share Buyback Rate is ranked higher than
81% of the 677 Companies
in the Global Telecom Services industry.

( Industry Median: -0.20 vs. TI: -0.60 )
TI' s 10-Year Share Buyback Rate Range
Min: 0   Max: -13.3
Current: -0.6

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 0.57
TI's Price/DCF (Projected) is ranked higher than
96% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 2.26 vs. TI: 0.57 )
TI' s 10-Year Price/DCF (Projected) Range
Min: 0.18   Max: 0.64
Current: 0.57

0.18
0.64
Price/Median PS Value 1.21
TI's Price/Median PS Value is ranked higher than
78% of the 1028 Companies
in the Global Telecom Services industry.

( Industry Median: 1.15 vs. TI: 1.21 )
TI' s 10-Year Price/Median PS Value Range
Min: 0.56   Max: 2.16
Current: 1.21

0.56
2.16
Earnings Yield (Greenblatt) 10.40
TI's Earnings Yield (Greenblatt) is ranked higher than
92% of the 897 Companies
in the Global Telecom Services industry.

( Industry Median: 5.90 vs. TI: 10.40 )
TI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2   Max: 39.1
Current: 10.4

2
39.1
Forward Rate of Return (Yacktman) -8.21
TI's Forward Rate of Return (Yacktman) is ranked higher than
71% of the 615 Companies
in the Global Telecom Services industry.

( Industry Median: 9.66 vs. TI: -8.21 )
TI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -14.3   Max: 87.9
Current: -8.21

-14.3
87.9

Business Description

Industry: Communication Services » Telecom Services
Compare:CHU, VOD, T, VZ, AMOV » details
Traded in other countries:TIT.Italy, TIT.Netherlands, 0H6I.UK, TITR.Italy, 0GA3.UK, TQI.Germany, TQIR.Germany, TQI1.Germany, TQIA.Germany, TIAJF.USA, TIT.Switzerland,
Telecom Italia SpA was incorporated on October 20, 1908 as a joint stock company under the laws of Italy. The Company is engaged in the communications sector and, particularly, the fixed and mobile national and international telecommunications sector. The Company's main operating segments are: Domestic, Brazil, Argentina, Media, Olivetti, other Operations. Domestic: includes operations in Italy for voice and data services on fixed and mobile networks for final customers and other operators, the operations of the Telecom Italia Sparkle group as well as the relative support activities. Brazil: includes mobile and fixed telecommunications operations in Brazil; Argentina: includes fixed and mobile telecommunications operations; Media: includes television network operations and management; Olivetti: includes manufacturing operations for products and services for Information Technology. It carries out Solution Provider activities to automate processes and business activities for small and medium-size enterprises, large corporations and vertical markets; Other Operations: includes finance companies and other minor companies. The Company's subject to regulatory requirements in Italy and its international operations are subject to regulation in their host countries.
» More Articles for TI

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Telecom Italia S.p.A. announces maximum acceptance amount of notes equal to eur 600 million Jan 13 2015
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