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TITR:MILTelecom Italia Rsp Analysis

Data as of 2026-05-22 - not real-time

€0.77

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Telecom Italia trades at a striking price‑to‑earnings ratio of 77, far above the industry average of 17, indicating a significant overvaluation despite a modest revenue growth of 1.4%. The stock shows a bullish trend on moving averages (20‑day SMA above 50‑day SMA) and is currently priced near its technical support at 0.748, but the MACD histogram is negative and the RSI sits at 47, suggesting limited upside momentum. Financially, the company carries a heavy debt load (debt‑to‑equity over 108) with thin profitability (ROE ~3% and profit margin Overall, the stock presents a mixed picture: technical indicators are mildly supportive, but fundamental metrics point to overvaluation and financial strain, making it a cautious hold pending clearer earnings momentum or a valuation correction.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 5/10

Key Factors

  • Bullish moving‑average crossover
  • MACD histogram negative
  • Price near technical support

Medium Term

1–3 years
Neutral
Model confidence: 6/10

Key Factors

  • Extreme overvaluation (P/E 77 vs industry 17)
  • High debt‑to‑equity ratio
  • Low profitability and zero dividend

Long Term

> 3 years
Cautious
Model confidence: 7/10

Key Factors

  • Sustained earnings pressure from debt burden
  • Limited growth outlook in a mature telecom market
  • Potential for valuation correction as fundamentals lag

Key Metrics & Analysis

Financial Health

Revenue Growth1.40%
Profit Margin0.93%
P/E Ratio77.1
ROE3.10%
ROA2.08%
Debt/Equity108.63
P/B Ratio1.3
Op. Cash Flow€2.4B
Free Cash Flow€688.4M
Industry P/E17.1

Technical Analysis

TrendBullish
RSI47.2
Support€0.75
Resistance€0.83
MA 20€0.79
MA 50€0.75
MA 200€0.63
MACDBearish
VolumeIncreasing
Fear & Greed Index91.54

Valuation

Target Price€0.81
Upside/Downside5.09%
GradeOvervalued
TypeValue

Risk Assessment

Beta0.27
Volatility22.94%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.