Operating Margin

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Price: 0.5756 EUR 1.95%

Market Cap: 12.3B EUR

9.5%

Improving

by 0.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

€2B

Revenue

€20.6B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

€2B

Revenue

€20.6B

Peer Comparison

Country	Company	Market Cap	Operating Margin
IT	Telecom Italia SpA MIL:TIT	12.2B EUR	Loading...
US	AT&T Inc NYSE:T	167.1B USD	Loading...
US	Verizon Communications Inc NYSE:VZ	165.5B USD	Loading...
DE	Deutsche Telekom AG XETRA:DTE	131.8B EUR	Loading...
JP	Nippon Telegraph and Telephone Corp TSE:9432	12.9T JPY	Loading...
CN	China Telecom Corp Ltd SSE:601728	531.7B CNY	Loading...
SG	Singapore Telecommunications Ltd SGX:Z74	73.6B SGD	Loading...
SA	Saudi Telecom Company SJSC SAU:7010	189B SAR	Loading...
FR	Orange SA PAR:ORA	39.4B EUR	Loading...
CH	Swisscom AG SIX:SCMN	31B CHF	Loading...
AU	Telstra Corporation Ltd ASX:TLS	53.7B AUD	Loading...

Market Distribution

Min	-79 476%
30th Percentile	3.9%
Median	8.7%
70th Percentile	14.4%
Max	813.7%

Other Profitability Ratios

Telecom Italia SpA
Glance View

Economic Moat

None

Market Cap

12.3B EUR

Industry

Telecommunication

In the bustling world of telecommunications, Telecom Italia SpA holds a venerable place, weaving a network that connects the heart of Italy to the rest of the globe. Born from the merger of Italy's primary telecommunications companies in 1994, Telecom Italia has grown from a local service provider into a multinational force in the sector. The company offers a wide array of services, stretching beyond traditional fixed and mobile voice communications into internet services, digital solutions, and cloud platforms. Its foundations are deeply set in the Italian market, where it leads with an extensive infrastructure supporting millions of fixed-line connections and a robust mobile network. However, its influence isn't confined to domestic borders; through subsidiaries like TIM Brasil, Telecom Italia extends its operations across Latin America, capturing a significant presence in the burgeoning Brazilian market. The company's financial architecture is built upon the revenues from its core telecommunication services. It earns through providing connectivity not only to households and businesses but also increasingly through digital content and platform services, which cater to the accelerating demand for broadband and fiber-optic solutions. The strategic push into cloud computing and cybersecurity further diversifies its income streams, reflecting the industry's shift toward comprehensive digital ecosystems. Additionally, by embracing cutting-edge technologies such as 5G, Telecom Italia positions itself to capitalize on new opportunities within the digital transformation landscape. This approach aims not just to enhance profitability but also to secure its competitive edge in a rapidly evolving technological framework where consumer needs have shifted towards faster, more reliable, and integrated services.

View TIT Analysis

TIT Intrinsic Value

Undervaluation 9%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Telecom Italia SpA
MIL:TIT

Peer Comparison

Market Distribution

Other Profitability Ratios

Telecom Italia SpA
Glance View

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52 Week Range	0.2549 0.5756
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Telecom Italia SpA MIL:TIT