Returns On Capital At SEEK (ASX:SEK) Paint A Concerning Picture
Jul 12
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Australian (ASX) Telecom Sector Analysis
UpdatedJul 16, 2025
DataAggregated Company Financials
Companies45
- 7D0.8%
- 3M9.5%
- 1Y20.5%
- YTD13.2%
Over the last 7 days, the Telecom industry has remained flat. As for the the longer term, the industry is up 19% over the past 12 months. As for the next few years, earnings are expected to grow by 14% per annum.
Sector Valuation and Performance
Has the Australian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 16 Jul 2025 | AU$136.9b | AU$44.4b | AU$2.2b | 35.2x | 61.1x | 3.1x |
| Fri, 13 Jun 2025 | AU$136.1b | AU$44.4b | AU$2.2b | 40.1x | 60.7x | 3.1x |
| Sun, 11 May 2025 | AU$131.7b | AU$44.4b | AU$2.2b | 41.9x | 58.8x | 3x |
| Tue, 08 Apr 2025 | AU$120.6b | AU$44.4b | AU$2.2b | 36.8x | 53.8x | 2.7x |
| Thu, 06 Mar 2025 | AU$127.7b | AU$44.4b | AU$2.2b | 34x | 57.1x | 2.9x |
| Sat, 01 Feb 2025 | AU$124.8b | AU$44.0b | AU$1.9b | 23.8x | 66x | 2.8x |
| Mon, 30 Dec 2024 | AU$122.5b | AU$44.0b | AU$1.9b | 24.3x | 64.8x | 2.8x |
| Wed, 27 Nov 2024 | AU$125.3b | AU$44.0b | AU$1.9b | 23.7x | 66.3x | 2.8x |
| Fri, 25 Oct 2024 | AU$120.5b | AU$44.0b | AU$1.9b | 23.2x | 63.8x | 2.7x |
| Sun, 22 Sep 2024 | AU$117.0b | AU$44.0b | AU$1.9b | 24.5x | 63.1x | 2.7x |
| Tue, 20 Aug 2024 | AU$117.2b | AU$43.9b | AU$2.1b | 28.2x | 56.3x | 2.7x |
| Thu, 18 Jul 2024 | AU$115.5b | AU$43.6b | AU$2.8b | 22.9x | 40.6x | 2.6x |
| Sat, 15 Jun 2024 | AU$109.3b | AU$43.6b | AU$2.8b | 22.9x | 38.4x | 2.5x |
| Mon, 13 May 2024 | AU$111.0b | AU$43.6b | AU$2.8b | 30.2x | 39x | 2.5x |
| Wed, 10 Apr 2024 | AU$112.2b | AU$43.6b | AU$2.9b | 30x | 38.9x | 2.6x |
| Fri, 08 Mar 2024 | AU$114.1b | AU$43.6b | AU$2.9b | 31.4x | 39.6x | 2.6x |
| Sun, 04 Feb 2024 | AU$121.3b | AU$43.2b | AU$3.4b | 21.9x | 36x | 2.8x |
| Tue, 02 Jan 2024 | AU$118.5b | AU$43.2b | AU$3.4b | 20.9x | 35.1x | 2.7x |
| Thu, 30 Nov 2023 | AU$108.9b | AU$43.2b | AU$3.4b | 19.9x | 32.3x | 2.5x |
| Sat, 28 Oct 2023 | AU$106.4b | AU$43.2b | AU$3.4b | 21.3x | 31.6x | 2.5x |
| Mon, 25 Sep 2023 | AU$111.1b | AU$43.2b | AU$3.4b | 19.9x | 32.9x | 2.6x |
| Wed, 23 Aug 2023 | AU$112.8b | AU$42.8b | AU$3.6b | 18.2x | 31.5x | 2.6x |
| Fri, 21 Jul 2023 | AU$114.1b | AU$42.4b | AU$3.3b | 20.5x | 34.7x | 2.7x |
| Sun, 18 Jun 2023 | AU$113.9b | AU$42.4b | AU$3.3b | 20x | 34.7x | 2.7x |
| Tue, 16 May 2023 | AU$114.2b | AU$42.4b | AU$3.3b | 21.3x | 34.8x | 2.7x |
| Thu, 13 Apr 2023 | AU$113.8b | AU$42.4b | AU$3.3b | 22.6x | 34.7x | 2.7x |
| Sat, 11 Mar 2023 | AU$108.7b | AU$42.4b | AU$3.3b | 22.3x | 33.2x | 2.6x |
| Mon, 06 Feb 2023 | AU$110.7b | AU$40.3b | AU$3.0b | 38.8x | 36.7x | 2.7x |
| Wed, 04 Jan 2023 | AU$103.0b | AU$40.3b | AU$3.0b | 32.7x | 34.1x | 2.6x |
| Fri, 02 Dec 2022 | AU$107.7b | AU$40.3b | AU$3.0b | 33.3x | 35.7x | 2.7x |
| Sun, 30 Oct 2022 | AU$103.0b | AU$40.3b | AU$3.0b | 31.2x | 34.1x | 2.6x |
| Tue, 27 Sep 2022 | AU$101.2b | AU$40.1b | AU$3.0b | 31.4x | 33.7x | 2.5x |
| Thu, 25 Aug 2022 | AU$110.2b | AU$39.5b | AU$3.0b | 36.3x | 37x | 2.8x |
| Sat, 23 Jul 2022 | AU$109.3b | AU$38.6b | AU$2.8b | 37.9x | 39x | 2.8x |
Price to Earnings Ratio
39x
Current Industry PE
- Investors are optimistic on the Australian Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 60.5x which is higher than its 3-year average PE of 43.3x.
- The 3-year average PS ratio of 2.7x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 7.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.7% 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 sector?
| AU Market | 0.63% | |
| Telecom | 0.78% | |
| Media | 2.62% | |
| Telecom Services and Carriers | 1.61% | |
| Entertainment | 1.44% | |
| Wireless Telecom | 0% | 0 |
| Interactive Media and Services | -0.43% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 171x.
- Analysts are expecting annual earnings growth of 28.5%, which is higher than its past year's earnings decline of 37.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings decline of 37% per year.
- In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| TLS Telstra Group | AU$4.93 | 1.2% +AU$682.4m | 27.1% | PE33.3x | |
| TPG TPG Telecom | AU$5.58 | 2.4% +AU$241.0m | 18.0% | PS1.9x | |
| REA REA Group | AU$236.17 | 0.5% +AU$151.8m | 15.0% | PE50.6x | |
| CAR CAR Group | AU$37.44 | 0.6% +AU$83.1m | 4.9% | PE55.2x | |
| FDV Frontier Digital Ventures | AU$0.34 | 36.0% +AU$39.0m | -26.1% | PS2.2x |
