Stock of the Day

Telefónica (TEF)

$5.30

-$0.05 (-0.8%)

Market Cap: $29.97B

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services.

It also provides fixed telecommunication services, including PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment and telephony information services. It also provides Internet and broadband multimedia services comprising internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, security, internet through fibre to the home, and voice over internet protocol services. In addition, the company offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and application, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; Aura; open gateway, living apps; smart Wi-Fi, Phoenix, NT, Solar 360, and Movistar Home devices. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.

Telefónica Bull Case

Here are some ways that investors could benefit from investing in Telefónica, S.A.:

• The current stock price is around $5.28, which reflects a recent increase, indicating potential upward momentum.
• Telefónica, S.A. has recently raised its semi-annual dividend to $0.1703 per share, offering a dividend yield of 4.5%, which can provide a steady income stream for investors.
• Analysts have recently upgraded the stock rating from "hold" to "buy," suggesting a positive outlook for future performance.
• The company reported earnings per share of $0.08, meeting analysts' expectations, which indicates stability in its earnings performance.
• Telefónica, S.A. has a market capitalization of approximately $29.94 billion, which positions it as a significant player in the telecommunications sector, potentially offering growth opportunities.

Telefónica Bear Case

Investors should be bearish about investing in Telefónica, S.A. for these reasons:

• Despite the recent dividend increase, the company's dividend payout ratio is currently negative, indicating that it may not be sustainable in the long term.
• Telefónica, S.A. has a negative net margin of 2.84%, which suggests that the company is not currently profitable, raising concerns about its financial health.
• There are two analysts who have rated the stock as a "sell," indicating some skepticism about its future performance.
• The stock has a price-to-earnings (P/E) ratio of -20.31, which is a sign of potential financial distress, as it indicates that the company is not generating profits relative to its share price.
• Telefónica, S.A. has a debt-to-equity ratio of 1.33, which suggests that the company is heavily reliant on debt financing, potentially increasing financial risk.

Recent News

• Telefónica investiga posible ciberataque que afecta a un millón de clientes peruanos (es.investing.com)
• Telefonica investigates potential cyberattack after release of data from Peru (reuters.com)
• El IBEX se da la vuelta y sube el 0,35 %, con Acerinox disparada por aranceles al acero (es.investing.com)