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TIAJF (Telecom Italia SpA) 5-Year RORE % : 28.06% (As of Sep. 2024)


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What is Telecom Italia SpA 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Telecom Italia SpA's 5-Year RORE % for the quarter that ended in Sep. 2024 was 28.06%.

The industry rank for Telecom Italia SpA's 5-Year RORE % or its related term are showing as below:

TIAJF's 5-Year RORE % is ranked better than
73.47% of 343 companies
in the Telecommunication Services industry
Industry Median: 5.75 vs TIAJF: 28.06

Telecom Italia SpA 5-Year RORE % Historical Data

The historical data trend for Telecom Italia SpA's 5-Year RORE % can be seen below:

* 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.

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Telecom Italia SpA 5-Year RORE % Chart

Telecom Italia SpA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -288.24 82.01 330.38 27.74 37.19

Telecom Italia SpA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.72 37.19 35.53 31.91 28.06

Competitive Comparison of Telecom Italia SpA's 5-Year RORE %

For the Telecom Services subindustry, Telecom Italia SpA's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Telecom Italia SpA's 5-Year RORE % falls into.



Telecom Italia SpA 5-Year RORE % Calculation

Telecom Italia SpA's 5-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( -0.041-0.06 )/( -0.296-0.064 )
=-0.101/-0.36
=28.06 %

* 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.

In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 5-year before.


Telecom Italia SpA  (OTCPK:TIAJF) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Telecom Italia SpA 5-Year RORE % Related Terms

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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% share in the Italian mobile market and 40% share in broadband. In the mobile market, it competes with Vodafone, Wind Tre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion, TIM 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 competitors Telefonica and America Movil.