Telefónica is mid-restructuring with Spanish government stake building (SEPI 10%) and STC Saudi stake creating overhang on capital allocation. Brazil and Germany operations stable; UK Virgin Media O2 JV underperforming. Dividend yield supportive but limited multiple expansion.
Thesis reviewed May 29, 2026
Telefónica, S.A. is headquartered in Spain, which is currently showing elevated risk signals.
🇪🇸Spain72WATCHView Spain risk detail →📡Telecom18NEUTRAL| Ticker | Company | Score | Gap | Signal Δ | Action |
|---|---|---|---|---|---|
| ORAN | Orange S.A. | 25 | +1% | ↑1% | NEUTRAL |
| T | AT&T Inc. | 25 | +2% | ↑1% | NEUTRAL |
| CHA | China Telecom Corporation Ltd | 25 | +8% | ↑1% | NEUTRAL |
| ERIC | Telefonaktiebolaget LM Ericsson | 25 | +5% | ↑1% | EARLY |
| TEF | Telefónica, S.A. | 25 | 0% | ↑1% | NEUTRAL |
| VOD | Vodafone Group PLC | 25 | +9% | ↑1% | NEUTRAL |
| NOK | Nokia Oyj | 23 | +1% | ↑1% | NEUTRAL |
Investors who hold TEF may also have indirect exposure through these country funds.
Telefónica reaffirms FY26 guidance; Hispam restructuring continues