Chunghwa Telecom Co., Ltd. (CHT) vs Telefonica SA (TELFY)

Chunghwa Telecom Co., Ltd. and Telefonica SA are both Telecom Services companies. Chunghwa Telecom Co., Ltd. is the larger, with a market value of $35.7B against $21.5B — 1.7× the size. Telefonica SA has negative trailing earnings, so its P/E is not meaningful; Chunghwa Telecom Co., Ltd. trades at 28.0×. Chunghwa Telecom Co., Ltd. grew revenue faster over the last twelve months: 9.72% against −6.91%. Chunghwa Telecom Co., Ltd. has the higher net margin (16.1% vs −10.6%) and the higher return on invested capital (9.58% vs 1.78%). Both pay a dividend; Telefonica SA yields more (8.46% vs 4.06%). Across the 22 metrics below, Chunghwa Telecom Co., Ltd. leads on 15 and Telefonica SA on 7.

Valuation

Metric CHT TELFY Telecom Services median
P/E 27.97 n/m 13.27
P/S 4.57 0.55 0.95
P/B 2.96 1.02 1.47
Price to free cash flow 21.10 12.19 8.72
EV/EBITDA 11.87 35.36 6.85
EV/Sales 4.35 1.34 1.87
Earnings yield 3.58% (18.86%) 1.66%
Free cash flow yield 4.74% 8.20% 5.53%

Profitability

Metric CHT TELFY Telecom Services median
Gross margin 36.51% 66.84% 51.26%
Operating margin 20.37% 3.78% 7.62%
Net margin 16.13% (10.56%) 4.22%
Free cash flow margin 21.67% 4.54% 4.73%
Return on equity 10.33% (17.31%) 5.80%
Return on assets 7.16% (3.95%) 0.00%
Return on invested capital 9.58% 1.78% 3.41%

Growth

Metric CHT TELFY Telecom Services median
Revenue growth (TTM) 9.72% (6.91%) 3.31%
EPS growth (last fiscal year) 7.38% (1,433.33%) —
Revenue growth, 5-year CAGR 0.36% (4.19%) 1.50%
Net income growth, 5-year CAGR 0.73% 0.00% 0.00%

Health

Metric CHT TELFY Telecom Services median
Debt to equity 0.07 1.84 0.63
Current ratio 1.22 0.92 1.13
Net debt to EBITDA (0.37) 20.40 1.86

Dividend

Metric CHT TELFY Telecom Services median
Dividend yield 4.06% 8.46% 4.06%
Payout ratio 0.96 1.15 0.00

Size

Metric CHT TELFY Telecom Services median
Market cap 35.74b 21.48b 3.06b

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