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Telecom Italia S.p.A.

TIT.MI
48
Telecommunications Services · Communication Services
Price
€7.65
+0.01 (+0.12%)
Market Cap
€16.31B
Exchange
Italian Stock Exchange
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Mixed
Valuation
Good

Winston Score History

The full picture

Telecom Italia (also called TIM) is Italy's largest and oldest telephone company. It provides mobile phone service, home internet, and fixed-line phone connections to millions of households and businesses across Italy. TIM also operates a separate business in Brazil called TIM Brasil, making it one of the bigger mobile carriers in South America.

The company earns money by charging monthly fees for mobile plans, broadband subscriptions, and business communication services. Most of its revenue comes from Italy, where it still owns much of the country's original copper and fiber network infrastructure — a significant structural advantage. However, TIM carries a very heavy debt load built up over many years, and its Italian business has faced steady revenue pressure from fierce competition and slow economic growth. The key challenge ahead is completing the sale and transition of its fixed network to a separate entity, which could reshape its cost structure but also introduces significant execution risk.

Share count broadly stable

+0.3% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.12B (2021) → 2.13B (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
34.6%
Modest — 34.6% gross margin
Profit after running costs
Operating Margin
12.7%
Healthy — 12.7% operating margin
Return on the money invested
ROCE
6.8%
Weak — 6.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-0.1%
Shrinking sales (-0.1% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
1486%
Turns 1486% of profit into real cash
Spare cash per sale
FCF Margin
9.8%
Modest free cash flow (9.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.89
Moderate — manageable debt (0.89)
Covers its interest
Interest Cover
1.73x
Dangerous — barely covers interest (1.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
66.0x
Expensive — P/E 66.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+46.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (66.0 → 19.4)

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Dividends

Not applicable for this business.
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