Macquarie Telecom Group (ASX:MAQ) May Have Issues Allocating Its Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Has the Australian Telecom Services and Carriers Industry valuation changed over the past few years?
|Sun, 28 Nov 2021||AU$68.4b||AU$28.4b||AU$2.6b||63.3x|
|Tue, 26 Oct 2021||AU$66.6b||AU$28.4b||AU$2.6b||57.6x|
|Thu, 23 Sep 2021||AU$67.3b||AU$28.4b||AU$2.6b||45.8x|
|Sat, 21 Aug 2021||AU$67.2b||AU$28.4b||AU$2.6b||43.8x|
|Sat, 05 Jun 2021||AU$56.9b||AU$28.2b||AU$2.5b||55.3x|
|Tue, 09 Mar 2021||AU$54.0b||AU$28.0b||AU$2.5b||34.6x|
|Mon, 30 Nov 2020||AU$54.7b||AU$28.0b||AU$2.1b||40.9x|
|Thu, 03 Sep 2020||AU$52.9b||AU$27.8b||AU$1.8b||45.9x|
|Sun, 07 Jun 2020||AU$40.8b||AU$25.0b||AU$1.9b||47.2x|
|Sat, 29 Feb 2020||AU$42.5b||AU$25.6b||AU$2.0b||25.8x|
|Tue, 03 Dec 2019||AU$47.7b||AU$25.8b||AU$2.0b||26.6x|
|Fri, 06 Sep 2019||AU$45.7b||AU$25.9b||AU$2.1b||29.3x|
|Mon, 10 Jun 2019||AU$44.8b||AU$26.1b||AU$2.6b||24.9x|
|Sun, 03 Mar 2019||AU$38.3b||AU$26.3b||AU$3.1b||23.9x|
|Wed, 05 Dec 2018||AU$36.0b||AU$26.4b||AU$3.4b||27.3x|
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 63.3x which is higher than its 3-year average PE of 36.0x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Telecom industry have declined 8.8% per year over the last three years, while revenues for these companies have grown 2.6% 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, which has decreased profits.
Which industries have driven the changes within the Australian Telecom Services and Carriers industry?
|Integrated Telecom Services||-0.32%|
Industry PE: Investors are most optimistic about the Alternative Carriers industry which is trading above its 3-year average PE ratio of 52.8x. However analysts are expecting annual earnings growth of 44%, which is lower than the prior year's growth of 65% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Integrated Telecom Services industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 24.6x.
Forecasted Growth: Analysts are most optimistic on the Alternative Carriers industry, expecting annual earnings growth of 44% over the next 5 years. However this is lower than its past earnings growth rate of 65% per year. Meanwhile, the Integrated Telecom Services industry is expected to see its earnings grow by 5.9% per year over the next few years.
Which companies have driven the market over the last 7 days?
|TPG TPG Telecom||0.8%+AU$93.0m||-15.7%||PE16.6x|
Macquarie Telecom Group
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