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Telecom Italia S.p.A.

TIT.MI
47
Telecommunications Services · Communication Services
Price
€7.59
-0.01 (-0.17%)
Market Cap
€16.20B
Exchange
Italian Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 10, 2026 · filings through Jun 30, 2026

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.

Winston Score History

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

Gross Margin
34.6%
Modest — 34.6% gross margin
Operating Margin
12.7%
Healthy — 12.7% operating margin
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

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

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Cash Flow

Cash Conversion
1486%
Turns 1486% of profit into real cash
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

Debt / Equity
0.89
Moderate — manageable debt (0.89)
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

P/E Ratio (TTM)
65.5x
Expensive — P/E 65.5

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

P/E vs Forward
+46.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (65.5 → 19.4)

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Dividends

Not applicable for this business.
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