Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish telecom giant Telefonica (NYSE: TEF ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Telefonica's business and see what CAPS investors are saying about the stock right now.
Telefonica facts
| Headquarters (founded) |
Madrid (1924) |
| Market Cap |
$85.0 billion |
| Industry |
Integrated telecom services |
| Trailing-12-Month Revenue |
$86.7 billion |
| Management |
Chairman/CEO Cesar Izuel
COO Julio Lopez |
| Return on Equity (average, past 3 years) |
32.4% |
| Cash/Debt |
$7.5 billion / $81.9 billion |
| Dividend Yield |
10.9% |
| Competitors |
America Movil (NYSE: AMX ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 900 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward. These bulls include MajorBob04 and mwlove.
Earlier this fall, MajorBob04 highlighted Telefonica as too cheap to pass up: "This is a great company whose stock price is getting hurt by Euro and European financial problems. Long-term they will do very well as they are well entrenched in Latin America as well."
In fact, Telefonica sports a cheapish forward P/E of 8.4. That represents a discount to other telecom giants such as America Movil (11.1), AT&T (NYSE: T ) (11.7), and Verizon (NYSE: VZ ) (15.0).
CAPS member mwlove elaborates on the bargain oportunity:
More than Spain, Telefonica is big in Latin America, especially with the cellular business. Undervalued, plus a huge dividend at current prices. Europe won't blow up, and Latin America will grow: that's a winning combination.
What do you think about Telefonica, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Telefonica? Add it to your watchlist.
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