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U.K. (FTSE) Telecom Sector Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies82
- 7D-1.1%
- 3M-4.4%
- 1Y-20.4%
- YTD-23.4%
Over the last 7 days, the Telecom industry has dropped 1.1%, driven by a pullback from Vodafone Group of 3.0%. On the other hand Airtel Africa is actually up 5.1%. However, the industry is down 20% over the past year. Earnings are forecast to grow by 15% annually.
Sector Valuation and Performance
Has the U.K. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | UK£97.4b | UK£99.6b | UK£5.6b | 18.4x | 17.4x | 1x |
| Sat, 29 Oct 2022 | UK£95.4b | UK£99.0b | UK£5.1b | 17.5x | 18.6x | 1x |
| Mon, 26 Sep 2022 | UK£99.6b | UK£100.5b | UK£5.3b | 18.7x | 19x | 1x |
| Wed, 24 Aug 2022 | UK£107.3b | UK£97.4b | UK£5.0b | 22.7x | 21.4x | 1.1x |
| Fri, 22 Jul 2022 | UK£117.6b | UK£96.3b | UK£4.0b | 22.2x | 29.3x | 1.2x |
| Sun, 19 Jun 2022 | UK£111.2b | UK£96.4b | UK£4.0b | 19.9x | 27.8x | 1.2x |
| Tue, 17 May 2022 | UK£115.2b | UK£94.8b | UK£2.2b | 23.6x | 52.9x | 1.2x |
| Thu, 14 Apr 2022 | UK£125.5b | UK£92.8b | UK£2.6b | 25.4x | 48.4x | 1.4x |
| Sat, 12 Mar 2022 | UK£119.2b | UK£92.8b | UK£2.4b | 29.2x | 49.2x | 1.3x |
| Mon, 07 Feb 2022 | UK£132.9b | UK£92.9b | UK£2.1b | 31.3x | 64.7x | 1.4x |
| Wed, 05 Jan 2022 | UK£130.8b | UK£92.1b | UK£1.9b | 35.5x | 67.7x | 1.4x |
| Fri, 03 Dec 2021 | UK£128.1b | UK£92.8b | UK£1.8b | 34.5x | 70x | 1.4x |
| Sun, 31 Oct 2021 | UK£124.5b | UK£91.9b | UK£1.9b | 38.4x | 64.3x | 1.4x |
| Tue, 28 Sep 2021 | UK£131.5b | UK£91.8b | UK£1.9b | 34.9x | 69.8x | 1.4x |
| Thu, 26 Aug 2021 | UK£135.4b | UK£91.6b | UK£1.9b | 35.5x | 72.4x | 1.5x |
| Fri, 02 Jul 2021 | UK£133.3b | UK£91.5b | UK£1.9b | 34.6x | 71.3x | 1.5x |
| Mon, 05 Apr 2021 | UK£125.6b | UK£90.8b | UK£124.2m | 33.9x | 1011.1x | 1.4x |
| Thu, 07 Jan 2021 | UK£113.8b | UK£92.7b | -UK£1,169,796,755.89 | 35.6x | -97.3x | 1.2x |
| Wed, 30 Sep 2020 | UK£93.7b | UK£94.9b | UK£728.6m | 27.9x | 128.6x | 1x |
| Sat, 04 Jul 2020 | UK£99.3b | UK£98.5b | -UK£1,121,345,002.34 | 28.2x | -88.5x | 1x |
| Tue, 07 Apr 2020 | UK£87.5b | UK£99.9b | UK£612.9m | 19.1x | 142.7x | 0.9x |
| Fri, 10 Jan 2020 | UK£132.5b | UK£99.7b | UK£3.7b | 22.7x | 35.9x | 1.3x |
Price to Earnings Ratio
42.9x
Current Industry PE
- Investors are pessimistic on the British Communication Services 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 17.4x which is lower than its 3-year average PE of 125x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.98x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 23% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the U.K. Telecom sector?
| GB Market | 0.94% | |
| Telecom | -1.07% | |
| Media | 0.19% | |
| Entertainment | -0.43% | |
| Wireless Telecom | -1.81% | |
| Interactive Media and Services | -1.88% | |
| Telecom Services and Carriers | -2.47% | |
Industry PE
- Investors are most optimistic about the Interactive Media and Services industry even though it's trading below its 3-year average PE ratio of 186x.
- Analysts are expecting annual earnings growth of 12.7%, which is lower than the prior year's growth of 22.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings growth rate of 11% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| AAF Airtel Africa | UK£1.23 | 5.1% +UK£225.2m | -2.2% | PE8.6x | |
| PSON Pearson | UK£9.95 | 1.4% +UK£91.1m | 70.6% | PE26.1x | |
| YOU YouGov | UK£9.80 | 6.5% +UK£66.2m | -36.4% | PE63.2x | |
| FOUR 4imprint Group | UK£42.25 | 5.6% +UK£63.1m | 47.7% | PE26.5x | |
| TRMR Tremor International | UK£3.18 | 8.2% +UK£33.7m | -43.3% | PE13x |
