Here's Why We Think Telstra Group (ASX:TLS) Is Well Worth Watching
Apr 09
Australian (ASX) Telecom Services and Carriers Industry Analysis
UpdatedApr 19, 2024
DataAggregated Company Financials
Companies12
- 7D-3.2%
- 3M-7.8%
- 1Y-12.3%
- YTD-7.9%
Over the last 7 days, the Telecom Services and Carriers industry has dropped 3.2%, driven by a pullback from Telstra Group of 2.9%. Meanwhile, Flexiroam actually outperformed within the industry, gaining 26% in the last week. The industry has fallen 12% in the last year. As for the next few years, earnings are expected to grow by 12% per annum.
Industry Valuation and Performance
Has the Australian Telecom Services and Carriers Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 20 Apr 2024 | AU$53.9b | AU$30.1b | AU$2.0b | 45.6x | 27.1x | 1.8x |
| Mon, 18 Mar 2024 | AU$56.0b | AU$30.0b | AU$2.0b | 45.6x | 28.3x | 1.9x |
| Wed, 14 Feb 2024 | AU$58.9b | AU$29.8b | AU$2.2b | 24.5x | 26.5x | 2x |
| Fri, 12 Jan 2024 | AU$61.0b | AU$30.0b | AU$2.3b | 23.9x | 26.8x | 2x |
| Sun, 10 Dec 2023 | AU$59.3b | AU$30.0b | AU$2.3b | 23x | 26.1x | 2x |
| Tue, 07 Nov 2023 | AU$60.2b | AU$30.0b | AU$2.3b | 25.2x | 26.5x | 2x |
| Thu, 05 Oct 2023 | AU$60.4b | AU$30.0b | AU$2.3b | 24.7x | 26.5x | 2x |
| Sat, 02 Sep 2023 | AU$62.5b | AU$30.0b | AU$2.3b | 26.3x | 27.5x | 2.1x |
| Mon, 31 Jul 2023 | AU$65.9b | AU$29.5b | AU$2.3b | 57.4x | 28.9x | 2.2x |
| Wed, 28 Jun 2023 | AU$65.7b | AU$29.5b | AU$2.3b | 58x | 28.8x | 2.2x |
| Fri, 26 May 2023 | AU$67.0b | AU$29.5b | AU$2.3b | 59.6x | 29.4x | 2.3x |
| Sun, 23 Apr 2023 | AU$66.1b | AU$29.5b | AU$2.3b | 63.1x | 29x | 2.2x |
| Tue, 21 Mar 2023 | AU$63.7b | AU$29.4b | AU$2.3b | 60.8x | 28x | 2.2x |
| Thu, 16 Feb 2023 | AU$63.2b | AU$28.3b | AU$1.8b | 62.8x | 35.2x | 2.2x |
| Sat, 14 Jan 2023 | AU$62.1b | AU$28.3b | AU$1.8b | 62.8x | 34.6x | 2.2x |
| Mon, 12 Dec 2022 | AU$62.1b | AU$28.3b | AU$1.8b | 62.8x | 34.6x | 2.2x |
| Wed, 09 Nov 2022 | AU$60.9b | AU$28.3b | AU$1.8b | 62.8x | 33.9x | 2.1x |
| Fri, 07 Oct 2022 | AU$60.4b | AU$28.3b | AU$1.8b | 62.8x | 33.7x | 2.1x |
| Sun, 04 Sep 2022 | AU$62.2b | AU$28.3b | AU$1.8b | 72.3x | 34.5x | 2.2x |
| Tue, 02 Aug 2022 | AU$64.9b | AU$27.8b | AU$1.6b | 62.8x | 41.6x | 2.3x |
| Thu, 30 Jun 2022 | AU$62.8b | AU$27.8b | AU$1.6b | 62x | 40.4x | 2.3x |
| Sat, 28 May 2022 | AU$63.0b | AU$27.8b | AU$1.6b | 61.4x | 40.4x | 2.3x |
| Mon, 25 Apr 2022 | AU$66.6b | AU$27.8b | AU$1.6b | 103.1x | 42.7x | 2.4x |
| Wed, 23 Mar 2022 | AU$63.5b | AU$27.8b | AU$1.6b | 95.3x | 40.7x | 2.3x |
| Fri, 18 Feb 2022 | AU$63.6b | AU$27.0b | AU$2.1b | 65.4x | 29.7x | 2.4x |
| Sun, 16 Jan 2022 | AU$69.1b | AU$28.2b | AU$2.5b | 63.8x | 27.1x | 2.5x |
| Tue, 14 Dec 2021 | AU$67.6b | AU$28.4b | AU$2.6b | 60.9x | 26.5x | 2.4x |
| Thu, 11 Nov 2021 | AU$66.8b | AU$28.4b | AU$2.6b | 66.3x | 26.2x | 2.3x |
| Sat, 09 Oct 2021 | AU$67.4b | AU$28.4b | AU$2.6b | 52.8x | 26.4x | 2.4x |
| Mon, 06 Sep 2021 | AU$66.5b | AU$28.4b | AU$2.6b | 44.3x | 26x | 2.3x |
| Wed, 04 Aug 2021 | AU$63.2b | AU$28.4b | AU$2.6b | 42.8x | 24.7x | 2.2x |
| Sat, 08 May 2021 | AU$56.1b | AU$28.2b | AU$2.5b | 56.3x | 22.3x | 2x |
Price to Earnings Ratio
22.3x
Current Industry PE
- Investors are pessimistic on the Australian Telecom industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 27.1x which is lower than its 3-year average PE of 30.3x.
- The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Telecom industry have declined 7.6% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.2% 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.
Industry Trends
Which industries have driven the changes within the Australian Telecom industry?
| AU Market | -2.22% | |
| Telecom | -2.83% | |
| Telecom Services and Carriers | -3.19% | |
| Alternative Carriers | -1.66% | |
| Integrated Telecom Services | -3.25% | |
Industry PE
- Investors are most optimistic about the Integrated Telecom Services industry, which is trading close to its 3-year average PE ratio of 28.0x.
- Analysts are expecting annual earnings growth of 10.9%, which is higher than its past year's earnings decline of 40.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Alternative Carriers industry, expecting annual earnings growth of 56% over the next 5 years.
- However this is lower than its past earnings growth rate of 84% per year.
- In contrast, the Integrated Telecom Services industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| FRX Flexiroam | AU$0.029 | 26.1% +AU$4.4m | -25.6% | PS2.4x | |
| ST1 Spirit Technology Solutions | AU$0.048 | 2.1% +AU$1.4m | -22.6% | PS0.6x | |
| SWP Swoop Holdings | AU$0.20 | 2.5% +AU$1.0m | -12.8% | PS0.5x |
