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Telecom Italia SpA (Telecom Italia SpA) Profitability Rank : 5 (As of Sep. 2023)


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What is Telecom Italia SpA Profitability Rank?

Telecom Italia SpA has the Profitability Rank of 5.

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

Telecom Italia SpA's Operating Margin % for the quarter that ended in Sep. 2023 was 7.23%. As of today, Telecom Italia SpA's Piotroski F-Score is 4.


Competitive Comparison of Telecom Italia SpA's Profitability Rank

For the Telecom Services subindustry, Telecom Italia SpA's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Telecom Italia SpA's Profitability Rank Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Telecom Italia SpA's Profitability Rank falls into.



Telecom Italia SpA Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

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.

Telecom Italia SpA has the Profitability Rank of 5.

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

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Telecom Italia SpA's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=316.969 / 4383.138
=7.23 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Telecom Italia SpA has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Telecom Italia SpA operating margin has been in a 5-year decline. The average rate of decline per year is -19.3%.

4. Consistency of the profitability

5. Predictability Rank


Telecom Italia SpA Profitability Rank Related Terms

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Telecom Italia SpA (Telecom Italia SpA) Business Description

Address
Corso D'Italia, 41, Roma, ITA, 00198
Telecom Italia is the incumbent telecommunications operator in Italy with more than 30% market share in the Italian mobile market and 45% market share in broadband. In the mobile market, it competes with Vodafone, Wind Tre and Iliad. In November 2023 TIM sold its fixed network to KKR for EUR 18.8 billion, and will become a pure service provider. TIM also has a 20% wireless market share in Brazil and has started building a broadband network in the country, although its reach is very small compared with its competitors Telefonica and America Movil.

Telecom Italia SpA (Telecom Italia SpA) Headlines

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