# Telecom Italia (TIT.MI)

Canonical: https://gigainvestors.com/s/TIT.MI

Analysis as of: 2026-10-16T07:34:52.762Z. Financial observations: FY2013–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 5.56 per share; close as of 2026-10-14.

## Checklist

### understandable: fail

- 7 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 7

- Years with a net loss: 5

- Operating margin variation: 1.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.22×

- FY2017: 0.22×

- FY2018: 0.20×

- FY2019: 0.21×

- FY2020: 0.13×

- FY2021: -0.23×

- FY2022: 0.07×

- FY2023: 0.09×

- FY2024: 0.12×

- FY2025: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 21.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.6%

- ROIC, second-lowest year: 4.0%

- Typical minus recent gross margin: 21.3 pp

- Typical gross margin (annual median): 60.4%

- Recent gross margin (lower of latest and 3-year median): 39.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.7%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.7%

- FY2017: 17.5%

- FY2018: 15.6%

- FY2019: 10.7%

- FY2020: 6.9%

- FY2021: -11.6%

- FY2022: 4.0%

- FY2023: 4.6%

- FY2024: 8.5%

- FY2025: 10.6%

### economics: fail

- Cash conversion uses consolidated free cash flow after all capital expenditure and consolidated net income (informational).

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: Yes

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: 3.1 pp

- Working capital / revenue, final three-year average: 1.9%

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.7% vs 8.5%

- Per-share earnings: 0.53 to -0.29 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.9%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: EUR -6.8B

- Cumulative retained earnings: EUR -16B

- Diluted shares, 10-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: EUR -0.81

- Per-share value, starting three-year median: EUR 0.53

- Per-share value, ending three-year median: EUR -0.29

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 830M

- Cumulative net income, 10 years: EUR -3.7B

- ROIC, first three-year median: 15.7%

- ROIC, last three-year median: 8.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 0.85

- FY2017: EUR 0.53

- FY2018: EUR -0.66

- FY2019: EUR 0.43

- FY2020: EUR 3.38

- FY2021: EUR -4.05

- FY2022: EUR -1.37

- FY2023: EUR -0.67

- FY2024: EUR -0.29

- FY2025: EUR 0.14

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 8.55×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.35×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: -6.2%

- FY2018: -9.1%

- FY2019: -7.2%

- FY2020: 0.9%

- FY2021: -18.8%

- FY2022: -12.6%

- FY2023: -7.9%

- FY2024: -10.1%

- FY2025: -6.1%

## Holders

## Price story

Down 30% since Jun 2026 · sales +0.6%

Story as of 2026-10-16T10:00:02.890Z; price observation 2026-10-14.

### Sales · FY2024–2025

sales +0.6%; source https://filings.xbrl.org/549300W384M3RI3VXU42/2025-12-31/ESEF/IT/0/tim-2025-12-31-it/reports/tim-2025-12-31-it.xhtml; observed 2026-03-24.

- FY2016: EUR 19B 

- FY2017: EUR 20B 

- FY2018: EUR 19B 

- FY2019: EUR 18B 

- FY2020: EUR 16B 

- FY2021: EUR 15B 

- FY2022: EUR 16B 

- FY2023: EUR 14B 

- FY2024: EUR 14B 

- FY2025: EUR 14B 

### Gross margin · FY2025

gross margin 39.1%; source https://filings.xbrl.org/549300W384M3RI3VXU42/2025-12-31/ESEF/IT/0/tim-2025-12-31-it/reports/tim-2025-12-31-it.xhtml; observed 2026-03-24.

- FY2016: 62.4% 

- FY2017: 61.0% 

- FY2018: 60.3% 

- FY2019: 66.3% 

- FY2020: 64.1% 

- FY2021: 60.4% 

- FY2022: 57.8% 

- FY2023: 50.5% 

- FY2024: 48.1% 

- FY2025: 39.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are EUR 13.7 billion.

- Source: https://filings.xbrl.org/549300W384M3RI3VXU42/2025-12-31/ESEF/IT/0/tim-2025-12-31-it.json (filed 2026-03-24); FY2025: revenue 13734000000; grossProfit 5366000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 39.1% to 50.5% during 2023–25; it earns 9.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2023-12-31 (filed 2026-03-24); FY2023: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2024-12-31 (filed 2026-03-24); FY2024: grossProfit / revenue = 48.1%.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2025-12-31 (filed 2026-03-24); FY2025: grossProfit / revenue = 39.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); 10-year return on capital observations [[2016,0.15677865656150047],[2017,0.1753537093777101],[2018,0.15607978863936592],[2019,0.10659011500772447],[2020,0.06853196964268266],[2021,-0.11594551881888127],[2022,0.04007453247809197],[2023,0.045865455332035475],[2024,0.08528694968553459],[2025,0.10640562843673212]]; median 0.09584628906113335. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.1% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2016-12-31 (filed 2026-03-24); FY2016: growth capex 0; upkeep 4658000000; owner earnings 1441000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2017-12-31 (filed 2026-03-24); FY2017: growth capex 0; upkeep 3022000000; owner earnings 2377000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TQI.F.json#2019-12-31 (filed 2026-03-24); FY2019: growth capex 0; upkeep 3649000000; owner earnings 1151000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2020: growth capex 0; upkeep 3335000000; owner earnings 7539000000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/549300W384M3RI3VXU42/2025-12-31/ESEF/IT/0/tim-2025-12-31-it/reports/tim-2025-12-31-it.xhtml (filed 2026-03-24); FY2025: growth capex 0; upkeep 1849000000; cash acquisitions 1000000; owner earnings 787800000. Growth capex plus acquisitions / owner earnings = 0.0012693577050012694.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Dividend observations: [[2016,227000000],[2017,235000000],[2018,256000000],[2019,279000000],[2020,390000000],[2021,368000000],[2022,68000000],[2023,273000000],[2024,159000000],[2025,273000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 0.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Closing price 5.563000202178955 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 6.430600723465196; price multiple 0.8650825080586366. FY2025 cash earnings/share 0.368867573172119. Closing-price date 2026-10-14.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 7.14 per share

- 2016-12: EUR 8.37 per share

- 2017-01: EUR 7.95 per share

- 2017-02: EUR 7.66 per share

- 2017-03: EUR 8.43 per share

- 2017-04: EUR 8.15 per share

- 2017-05: EUR 8.33 per share

- 2017-06: EUR 8.08 per share

- 2017-07: EUR 8.70 per share

- 2017-08: EUR 8.05 per share

- 2017-09: EUR 7.93 per share

- 2017-10: EUR 7.45 per share

- 2017-11: EUR 7.03 per share

- 2017-12: EUR 7.20 per share

- 2018-01: EUR 7.25 per share

- 2018-02: EUR 7.40 per share

- 2018-03: EUR 7.71 per share

- 2018-04: EUR 8.18 per share

- 2018-05: EUR 6.87 per share

- 2018-06: EUR 6.37 per share

- 2018-07: EUR 6.59 per share

- 2018-08: EUR 5.49 per share

- 2018-09: EUR 5.23 per share

- 2018-10: EUR 5.19 per share

- 2018-11: EUR 5.75 per share

- 2018-12: EUR 4.83 per share

- 2019-01: EUR 4.86 per share

- 2019-02: EUR 5.36 per share

- 2019-03: EUR 5.54 per share

- 2019-04: EUR 4.99 per share

- 2019-05: EUR 4.40 per share

- 2019-06: EUR 4.80 per share

- 2019-07: EUR 5.11 per share

- 2019-08: EUR 4.84 per share

- 2019-09: EUR 5.24 per share

- 2019-10: EUR 5.25 per share

- 2019-11: EUR 5.68 per share

- 2019-12: EUR 5.56 per share

- 2020-01: EUR 4.87 per share

- 2020-02: EUR 5.00 per share

- 2020-03: EUR 3.72 per share

- 2020-04: EUR 3.62 per share

- 2020-05: EUR 3.32 per share

- 2020-06: EUR 3.50 per share

- 2020-07: EUR 3.41 per share

- 2020-08: EUR 3.99 per share

- 2020-09: EUR 3.42 per share

- 2020-10: EUR 2.91 per share

- 2020-11: EUR 3.92 per share

- 2020-12: EUR 3.77 per share

- 2021-01: EUR 3.53 per share

- 2021-02: EUR 3.93 per share

- 2021-03: EUR 4.61 per share

- 2021-04: EUR 4.56 per share

- 2021-05: EUR 4.39 per share

- 2021-06: EUR 4.19 per share

- 2021-07: EUR 3.71 per share

- 2021-08: EUR 3.83 per share

- 2021-09: EUR 3.39 per share

- 2021-10: EUR 3.08 per share

- 2021-11: EUR 4.60 per share

- 2021-12: EUR 4.34 per share

- 2022-01: EUR 4.16 per share

- 2022-02: EUR 3.78 per share

- 2022-03: EUR 3.34 per share

- 2022-04: EUR 2.78 per share

- 2022-05: EUR 2.98 per share

- 2022-06: EUR 2.50 per share

- 2022-07: EUR 2.16 per share

- 2022-08: EUR 2.06 per share

- 2022-09: EUR 1.90 per share

- 2022-10: EUR 1.98 per share

- 2022-11: EUR 2.06 per share

- 2022-12: EUR 2.16 per share

- 2023-01: EUR 2.64 per share

- 2023-02: EUR 3.09 per share

- 2023-03: EUR 3.04 per share

- 2023-04: EUR 2.67 per share

- 2023-05: EUR 2.48 per share

- 2023-06: EUR 2.58 per share

- 2023-07: EUR 2.62 per share

- 2023-08: EUR 2.87 per share

- 2023-09: EUR 2.96 per share

- 2023-10: EUR 2.44 per share

- 2023-11: EUR 2.67 per share

- 2023-12: EUR 2.94 per share

- 2024-01: EUR 2.79 per share

- 2024-02: EUR 2.78 per share

- 2024-03: EUR 2.25 per share

- 2024-04: EUR 2.23 per share

- 2024-05: EUR 2.42 per share

- 2024-06: EUR 2.23 per share

- 2024-07: EUR 2.27 per share

- 2024-08: EUR 2.39 per share

- 2024-09: EUR 2.49 per share

- 2024-10: EUR 2.33 per share

- 2024-11: EUR 2.27 per share

- 2024-12: EUR 2.47 per share

- 2025-01: EUR 2.65 per share

- 2025-02: EUR 2.71 per share

- 2025-03: EUR 3.11 per share

- 2025-04: EUR 3.48 per share

- 2025-05: EUR 3.76 per share

- 2025-06: EUR 4.19 per share

- 2025-07: EUR 4.04 per share

- 2025-08: EUR 4.10 per share

- 2025-09: EUR 4.45 per share

- 2025-10: EUR 5.11 per share

- 2025-11: EUR 4.85 per share

- 2025-12: EUR 5.14 per share

- 2026-01: EUR 5.70 per share

- 2026-02: EUR 6.36 per share

- 2026-03: EUR 5.99 per share

- 2026-04: EUR 6.71 per share

- 2026-05: EUR 7.29 per share

- 2026-06: EUR 7.96 per share

- 2026-07: EUR 7.35 per share

- 2026-08: EUR 7.84 per share

- 2026-09: EUR 6.68 per share

- 2026-10: EUR 5.67 per share

## Annual estimated value (EUR per share)

- FY2017: low EUR 9.74 per share, central EUR 10.81 per share, high EUR 12.23 per share

- FY2018: low EUR 8.64 per share, central EUR 9.66 per share, high EUR 11.01 per share

- FY2019: low EUR 7.65 per share, central EUR 8.46 per share, high EUR 9.55 per share

- FY2020: low EUR 8.24 per share, central EUR 9.08 per share, high EUR 10.21 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300W384M3RI3VXU42/2025-12-31/ESEF/IT/0/tim-2025-12-31-it/reports/tim-2025-12-31-it.xhtml); period 2025-12-31, filed 2026-03-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations