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Australian (ASX) Telecom Sector Analysis

UpdatedDec 07, 2021
DataAggregated Company Financials
  • 7D-2.7%
  • 3M-0.01%
  • 1Y19.4%
  • YTD18.2%

Over the last 7 days, the Telecom industry has dropped 2.7%, driven by a pullback from TPG Telecom of 13%. Meanwhile, Tuas actually outperformed within the industry, gaining 13% in the last week. This takes the industry's 12 month performance to a gain of 21%.

Sector Valuation and Performance

Has the Australian Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Tue, 07 Dec 2021AU$125.8bAU$38.3bAU$3.7b29x
Thu, 04 Nov 2021AU$127.5bAU$38.2bAU$3.7b30.3x
Sat, 02 Oct 2021AU$123.9bAU$38.3bAU$3.7b27.7x
Mon, 30 Aug 2021AU$120.9bAU$38.2bAU$3.7b27.7x
Tue, 06 Jul 2021AU$119.5bAU$38.2bAU$3.7b25x
Fri, 09 Apr 2021AU$107.2bAU$37.5bAU$3.0b34.1x
Thu, 31 Dec 2020AU$102.6bAU$36.5bAU$2.5b22.2x
Sun, 04 Oct 2020AU$88.4bAU$36.5bAU$2.1b26.4x
Wed, 08 Jul 2020AU$93.6bAU$36.1bAU$1.7b27.7x
Tue, 31 Mar 2020AU$64.0bAU$34.4bAU$2.6b17.5x
Fri, 03 Jan 2020AU$80.8bAU$35.7bAU$2.8b24.2x
Mon, 07 Oct 2019AU$80.3bAU$35.6bAU$2.7b23.7x
Sun, 30 Jun 2019AU$81.8bAU$35.4bAU$2.6b21.4x
Wed, 03 Apr 2019AU$71.1bAU$36.4bAU$2.9b20.2x
Sat, 05 Jan 2019AU$65.0bAU$36.5bAU$3.6b20.2x
PE Ratio


Total Market Cap: AU$65.0bTotal Earnings: AU$3.6bTotal Revenue: AU$36.5b0%0%0%3 Year10 Year

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 24.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: Both revenue and earnings for companies in the Communication Services industry have remained mostly flat over the last three years. This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.

Industry Trends

Which industries have driven the changes within the Australian Telecom sector?

Wireless Telecom4.52%
Interactive Media and Services-1.30%
Telecom Services and Carriers-3.88%

Industry PE: Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 36.5x. This is likely because analysts are expecting annual earnings growth of 9.5%, which is higher than its past year's earnings decline of 2.7% per year. Meanwhile, investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 49.0x.

Forecasted Growth: Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 56% over the next 5 years. This is better than it's past earnings growth rate of 33% per year. Meanwhile, the Telecom Services and Carriers industry is expected to see its earnings grow by 9.5% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

NEC Nine Entertainment Holdings3.1%+AU$153.3m19.4%PE29.8x
DHG Domain Holdings Australia3.3%+AU$99.7m18.0%PE91.9x
HTA Hutchison Telecommunications (Australia)4.5%+AU$67.9m-20.7%PE18.2x
OML oOh!media6.1%+AU$59.9m-3.1%PS2.2x
SWM Seven West Media6.0%+AU$55.7m148.0%PE3.1x
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