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Australian (ASX) Telecom Sector Analysis

UpdatedApr 19, 2024
DataAggregated Company Financials
Companies47
  • 7D-2.8%
  • 3M-4.7%
  • 1Y-0.5%
  • YTD-5.8%

Over the last 7 days, the Telecom industry has dropped 2.8%, driven by a pullback from Telstra Group of 2.9%. Meanwhile, Hutchison Telecommunications (Australia) actually outperformed within the industry, gaining 13% in the last week. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 20 Apr 2024AU$108.8bAU$43.6bAU$2.9b29x37.7x2.5x
Mon, 18 Mar 2024AU$112.3bAU$43.6bAU$2.9b30.6x39x2.6x
Wed, 14 Feb 2024AU$116.0bAU$43.1bAU$2.8b24.3x41.6x2.7x
Fri, 12 Jan 2024AU$116.8bAU$43.2bAU$3.4b20.9x34.6x2.7x
Sun, 10 Dec 2023AU$111.4bAU$43.2bAU$3.4b20x33x2.6x
Tue, 07 Nov 2023AU$110.0bAU$43.2bAU$3.4b21.4x32.6x2.5x
Thu, 05 Oct 2023AU$110.4bAU$43.2bAU$3.4b19.9x32.7x2.6x
Sat, 02 Sep 2023AU$114.9bAU$43.2bAU$3.4b19.9x34.2x2.7x
Mon, 31 Jul 2023AU$117.1bAU$42.4bAU$3.3b21x35.7x2.8x
Wed, 28 Jun 2023AU$110.6bAU$42.4bAU$3.3b19.5x33.7x2.6x
Fri, 26 May 2023AU$114.1bAU$42.4bAU$3.3b20.7x34.8x2.7x
Sun, 23 Apr 2023AU$113.8bAU$42.4bAU$3.3b22.9x34.7x2.7x
Tue, 21 Mar 2023AU$109.0bAU$42.4bAU$3.3b21.9x33.2x2.6x
Thu, 16 Feb 2023AU$108.9bAU$40.4bAU$3.3b33.6x32.7x2.7x
Sat, 14 Jan 2023AU$106.5bAU$40.3bAU$3.0b34x35.3x2.6x
Mon, 12 Dec 2022AU$105.9bAU$40.3bAU$3.0b35x35.1x2.6x
Wed, 09 Nov 2022AU$104.8bAU$40.3bAU$3.0b32.1x34.7x2.6x
Fri, 07 Oct 2022AU$104.6bAU$40.3bAU$3.0b31x34.7x2.6x
Sun, 04 Sep 2022AU$107.5bAU$40.1bAU$3.0b34.3x35.7x2.7x
Tue, 02 Aug 2022AU$109.2bAU$38.6bAU$2.8b42.8x39x2.8x
Thu, 30 Jun 2022AU$102.4bAU$38.6bAU$2.8b36.8x36.5x2.7x
Sat, 28 May 2022AU$106.4bAU$38.8bAU$2.8b38.2x37.7x2.7x
Mon, 25 Apr 2022AU$115.2bAU$38.8bAU$2.8b42.6x40.8x3x
Wed, 23 Mar 2022AU$115.5bAU$38.8bAU$2.8b44.6x41.4x3x
Fri, 18 Feb 2022AU$115.8bAU$37.5bAU$3.4b26.8x34.2x3.1x
Sun, 16 Jan 2022AU$124.9bAU$38.0bAU$3.6b27.6x34.3x3.3x
Tue, 14 Dec 2021AU$129.1bAU$38.2bAU$3.7b29.3x35.3x3.4x
Thu, 11 Nov 2021AU$127.1bAU$38.2bAU$3.7b32.4x34.7x3.3x
Sat, 09 Oct 2021AU$125.0bAU$38.3bAU$3.7b28.6x34.2x3.3x
Mon, 06 Sep 2021AU$124.6bAU$38.2bAU$3.7b29.3x34.1x3.3x
Wed, 04 Aug 2021AU$119.4bAU$38.2bAU$3.7b28.4x32.6x3.1x
Sat, 08 May 2021AU$110.8bAU$37.5bAU$3.0b35.4x36.5x3x
Price to Earnings Ratio

36.5x


Total Market Cap: AU$110.8bTotal Earnings: AU$3.0bTotal Revenue: AU$37.5bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Telecom Sector Price to Earnings3Y Average 35.4x202220232024
Current Industry PE
  • Investors are relatively neutral on the Australian Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 35.4x.
  • The 3-year average PS ratio of 2.8x is higher than the industry's current PS ratio of 2.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 5.1% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

AU Market-2.22%
Telecom-2.83%
Wireless Telecom2.68%
Entertainment0.37%
Interactive Media and Services-2.59%
Telecom Services and Carriers-3.19%
Media-3.21%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 31.0x.
    • Analysts are expecting annual earnings growth of 29.9%, which is higher than its past year's earnings growth of 2.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 2.9% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
HTA Hutchison Telecommunications (Australia)AU$0.03612.5%
+AU$54.3m
-21.7%PS570.1x
SWM Seven West MediaAU$0.202.6%
+AU$7.6m
-50.6%PE3.5x
EVT EVTAU$11.870.3%
+AU$6.5m
-2.8%PE52.2x
RMY RMA GlobalAU$0.08213.9%
+AU$5.6m
-21.9%PS2.5x
FRX FlexiroamAU$0.02926.1%
+AU$4.4m
-25.6%PS2.4x
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