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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 lower than
68% of the 444 Companies
in the Global Telecom Services industry.

( Industry Median: 0.52 vs. TI: 0.21 )
Ranked among companies with meaningful Cash to Debt only.
TI' s 10-Year Cash to Debt Range
Min: 0.07  Med: 0.22 Max: No Debt
Current: 0.21
Equity to Asset 0.25
TI's Equity to Asset is ranked lower than
77% of the 419 Companies
in the Global Telecom Services industry.

( Industry Median: 0.41 vs. TI: 0.25 )
Ranked among companies with meaningful Equity to Asset only.
TI' s 10-Year Equity to Asset Range
Min: 0.17  Med: 0.29 Max: 0.34
Current: 0.25
0.17
0.34
Interest Coverage 2.46
TI's Interest Coverage is ranked lower than
82% of the 252 Companies
in the Global Telecom Services industry.

( Industry Median: 14.68 vs. TI: 2.46 )
Ranked among companies with meaningful Interest Coverage only.
TI' s 10-Year Interest Coverage Range
Min: 0.48  Med: 1.48 Max: 9999.99
Current: 2.46
0.48
9999.99
F-Score: 8
Z-Score: 0.94
M-Score: -2.68
WACC vs ROIC
4.13%
6.49%
WACC
ROIC
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 : 6/10

vs
industry
vs
history
Operating margin (%) 19.91
TI's Operating margin (%) is ranked higher than
82% of the 445 Companies
in the Global Telecom Services industry.

( Industry Median: 8.49 vs. TI: 19.91 )
Ranked among companies with meaningful Operating margin (%) only.
TI' s 10-Year Operating margin (%) Range
Min: -1.99  Med: 20.89 Max: 25.87
Current: 19.91
-1.99
25.87
Net-margin (%) 5.54
TI's Net-margin (%) is ranked higher than
55% of the 445 Companies
in the Global Telecom Services industry.

( Industry Median: 4.47 vs. TI: 5.54 )
Ranked among companies with meaningful Net-margin (%) only.
TI' s 10-Year Net-margin (%) Range
Min: -15.62  Med: 6.16 Max: 11.22
Current: 5.54
-15.62
11.22
ROE (%) 6.78
TI's ROE (%) is ranked lower than
56% of the 420 Companies
in the Global Telecom Services industry.

( Industry Median: 8.28 vs. TI: 6.78 )
Ranked among companies with meaningful ROE (%) only.
TI' s 10-Year ROE (%) Range
Min: -30.58  Med: 7.67 Max: 15.35
Current: 6.78
-30.58
15.35
ROA (%) 1.71
TI's ROA (%) is ranked lower than
60% of the 450 Companies
in the Global Telecom Services industry.

( Industry Median: 3.37 vs. TI: 1.71 )
Ranked among companies with meaningful ROA (%) only.
TI' s 10-Year ROA (%) Range
Min: -6.6  Med: 1.87 Max: 3.62
Current: 1.71
-6.6
3.62
ROC (Joel Greenblatt) (%) 38.89
TI's ROC (Joel Greenblatt) (%) is ranked higher than
76% of the 448 Companies
in the Global Telecom Services industry.

( Industry Median: 14.59 vs. TI: 38.89 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
TI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 11.31  Med: 39.28 Max: 62.46
Current: 38.89
11.31
62.46
Revenue Growth (3Y)(%) -12.50
TI's Revenue Growth (3Y)(%) is ranked lower than
78% of the 372 Companies
in the Global Telecom Services industry.

( Industry Median: 2.20 vs. TI: -12.50 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
TI' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0  Med: -4.10 Max: 17.9
Current: -12.5
0
17.9
EBITDA Growth (3Y)(%) 2.60
TI's EBITDA Growth (3Y)(%) is ranked higher than
55% of the 311 Companies
in the Global Telecom Services industry.

( Industry Median: 0.70 vs. TI: 2.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
TI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: -12.20 Max: 26
Current: 2.6
0
26
» TI's 10-Y Financials

Financials


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

» Details

Guru Trades

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
Q4 2014

TI Guru Trades in Q4 2014

Charles Brandes 6,133,461 sh (-11.29%)
Joel Greenblatt 10,921 sh (-24.85%)
David Dreman 5,148 sh (-53.23%)
» More
Q1 2015

TI Guru Trades in Q1 2015

David Dreman 5,148 sh (unchged)
Joel Greenblatt 10,915 sh (-0.05%)
Charles Brandes 6,035,339 sh (-1.60%)
» 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%)

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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) 19.05
TI's P/E(ttm) is ranked higher than
50% of the 298 Companies
in the Global Telecom Services industry.

( Industry Median: 19.70 vs. TI: 19.05 )
Ranked among companies with meaningful P/E(ttm) only.
TI' s 10-Year P/E(ttm) Range
Min: 6.05  Med: 12.82 Max: 37.79
Current: 19.05
6.05
37.79
Forward P/E 147.06
TI's Forward P/E is ranked higher than
60% of the 194 Companies
in the Global Telecom Services industry.

( Industry Median: 17.24 vs. TI: 147.06 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 38.00
TI's PE(NRI) is ranked lower than
76% of the 296 Companies
in the Global Telecom Services industry.

( Industry Median: 20.40 vs. TI: 38.00 )
Ranked among companies with meaningful PE(NRI) only.
TI' s 10-Year PE(NRI) Range
Min: 5.94  Med: 12.75 Max: 92.6
Current: 38
5.94
92.6
P/B 1.20
TI's P/B is ranked higher than
75% of the 420 Companies
in the Global Telecom Services industry.

( Industry Median: 2.25 vs. TI: 1.20 )
Ranked among companies with meaningful P/B only.
TI' s 10-Year P/B Range
Min: 0.53  Med: 0.92 Max: 3.13
Current: 1.2
0.53
3.13
P/S 1.09
TI's P/S is ranked higher than
64% of the 465 Companies
in the Global Telecom Services industry.

( Industry Median: 1.54 vs. TI: 1.09 )
Ranked among companies with meaningful P/S only.
TI' s 10-Year P/S Range
Min: 0.33  Med: 0.75 Max: 1.74
Current: 1.09
0.33
1.74
POCF 4.75
TI's POCF is ranked higher than
76% of the 319 Companies
in the Global Telecom Services industry.

( Industry Median: 8.22 vs. TI: 4.75 )
Ranked among companies with meaningful POCF only.
TI' s 10-Year POCF Range
Min: 1.22  Med: 3.19 Max: 14.99
Current: 4.75
1.22
14.99
EV-to-EBIT 10.75
TI's EV-to-EBIT is ranked higher than
71% of the 324 Companies
in the Global Telecom Services industry.

( Industry Median: 15.37 vs. TI: 10.75 )
Ranked among companies with meaningful EV-to-EBIT only.
TI' s 10-Year EV-to-EBIT Range
Min: -85.9  Med: 9.80 Max: 49
Current: 10.75
-85.9
49
Current Ratio 1.21
TI's Current Ratio is ranked higher than
51% of the 432 Companies
in the Global Telecom Services industry.

( Industry Median: 1.20 vs. TI: 1.21 )
Ranked among companies with meaningful Current Ratio only.
TI' s 10-Year Current Ratio Range
Min: 0.76  Med: 0.94 Max: 1.27
Current: 1.21
0.76
1.27
Quick Ratio 1.19
TI's Quick Ratio is ranked higher than
55% of the 432 Companies
in the Global Telecom Services industry.

( Industry Median: 1.10 vs. TI: 1.19 )
Ranked among companies with meaningful Quick Ratio only.
TI' s 10-Year Quick Ratio Range
Min: 0.73  Med: 0.91 Max: 1.24
Current: 1.19
0.73
1.24
Days Inventory 14.16
TI's Days Inventory is ranked higher than
54% of the 340 Companies
in the Global Telecom Services industry.

( Industry Median: 16.40 vs. TI: 14.16 )
Ranked among companies with meaningful Days Inventory only.
TI' s 10-Year Days Inventory Range
Min: 7.52  Med: 12.48 Max: 110.09
Current: 14.16
7.52
110.09
Days Sales Outstanding 107.00
TI's Days Sales Outstanding is ranked lower than
84% of the 377 Companies
in the Global Telecom Services industry.

( Industry Median: 47.48 vs. TI: 107.00 )
Ranked among companies with meaningful Days Sales Outstanding only.
TI' s 10-Year Days Sales Outstanding Range
Min: 55.2  Med: 95.64 Max: 108.57
Current: 107
55.2
108.57

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.85
TI's Dividend Yield is ranked lower than
60% of the 653 Companies
in the Global Telecom Services industry.

( Industry Median: 3.64 vs. TI: 1.85 )
Ranked among companies with meaningful Dividend Yield only.
TI' s 10-Year Dividend Yield Range
Min: 2.13  Med: 5.84 Max: 11.53
Current: 1.85
2.13
11.53
Dividend growth (3y) -100.00
TI's Dividend growth (3y) is ranked lower than
88% of the 183 Companies
in the Global Telecom Services industry.

( Industry Median: 2.40 vs. TI: -100.00 )
Ranked among companies with meaningful Dividend growth (3y) only.
TI' s 10-Year Dividend growth (3y) Range
Min: 0  Med: -29.10 Max: 90.5
Current: -100
0
90.5
Yield on cost (5-Year) 1.85
TI's Yield on cost (5-Year) is ranked lower than
64% of the 653 Companies
in the Global Telecom Services industry.

( Industry Median: 4.03 vs. TI: 1.85 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
TI' s 10-Year Yield on cost (5-Year) Range
Min: 2.13  Med: 5.84 Max: 11.53
Current: 1.85
2.13
11.53
Share Buyback Rate -2.70
TI's Share Buyback Rate is ranked lower than
65% of the 292 Companies
in the Global Telecom Services industry.

( Industry Median: -0.60 vs. TI: -2.70 )
Ranked among companies with meaningful Share Buyback Rate only.
TI' s 10-Year Share Buyback Rate Range
Min: 0  Med: -0.10 Max: -27.2
Current: -2.7

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 0.70
TI's Price/Projected FCF is ranked higher than
79% of the 214 Companies
in the Global Telecom Services industry.

( Industry Median: 1.33 vs. TI: 0.70 )
Ranked among companies with meaningful Price/Projected FCF only.
TI' s 10-Year Price/Projected FCF Range
Min: 0.27  Med: 0.40 Max: 1.29
Current: 0.7
0.27
1.29
Price/Median PS Value 1.40
TI's Price/Median PS Value is ranked lower than
74% of the 414 Companies
in the Global Telecom Services industry.

( Industry Median: 1.06 vs. TI: 1.40 )
Ranked among companies with meaningful Price/Median PS Value only.
TI' s 10-Year Price/Median PS Value Range
Min: 0.48  Med: 1.00 Max: 2.2
Current: 1.4
0.48
2.2
Earnings Yield (Greenblatt) (%) 9.30
TI's Earnings Yield (Greenblatt) (%) is ranked higher than
79% of the 440 Companies
in the Global Telecom Services industry.

( Industry Median: 4.60 vs. TI: 9.30 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
TI' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 2  Med: 10.10 Max: 39.1
Current: 9.3
2
39.1
Forward Rate of Return (Yacktman) (%) -4.10
TI's Forward Rate of Return (Yacktman) (%) is ranked lower than
82% of the 232 Companies
in the Global Telecom Services industry.

( Industry Median: 9.23 vs. TI: -4.10 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
TI' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -7.9  Med: 15.05 Max: 70.1
Current: -4.1
-7.9
70.1

Business Description

Industry: Communication Services » Telecom Services
Compare:CHU, VOD, T, VZ, AMOV » details
Traded in other countries:TIT.Italy, 0H6I.UK, TITR.Italy, 0GA3.UK, TIT.Mexico, TI.Argentina, TIT.Switzerland, TIT.Netherlands, TIAOF.USA, TQI1.Germany, TQI.Germany, TQIA.Germany, TQIR.Germany, TIAJF.USA, TIN.Mexico,
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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