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U.K. (FTSE) Telecom Sector Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies79
- 7D-3.7%
- 3M-6.2%
- 1Y12.1%
- YTD6.7%
Over the last 7 days, the Telecom industry has dropped 3.7%, driven by a pullback from Vodafone Group of 5.7%. Meanwhile, Future actually outperformed within the industry, gaining 7.1% in the last week. This takes the industry's 12 month performance to a gain of 12%.
Sector Valuation and Performance
Has the U.K. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Wed, 01 Dec 2021 | UK£124.8b | UK£92.6b | UK£1.8b | 35.4x |
| Fri, 29 Oct 2021 | UK£125.2b | UK£91.6b | UK£1.9b | 38.9x |
| Sun, 26 Sep 2021 | UK£130.9b | UK£92.0b | UK£1.9b | 35.6x |
| Tue, 24 Aug 2021 | UK£134.9b | UK£91.6b | UK£1.9b | 35.6x |
| Wed, 30 Jun 2021 | UK£133.3b | UK£91.5b | UK£1.9b | 34.6x |
| Sat, 03 Apr 2021 | UK£125.6b | UK£90.8b | UK£124.2m | 33.9x |
| Tue, 05 Jan 2021 | UK£113.8b | UK£92.7b | -UK£1,169,796,755.89 | 35.6x |
| Fri, 09 Oct 2020 | UK£93.7b | UK£94.9b | UK£728.6m | 27.9x |
| Thu, 02 Jul 2020 | UK£99.3b | UK£98.5b | -UK£1,121,345,002.34 | 28.2x |
| Sun, 05 Apr 2020 | UK£87.5b | UK£99.9b | UK£612.9m | 19.1x |
| Wed, 08 Jan 2020 | UK£132.5b | UK£99.7b | UK£3.7b | 22.7x |
| Tue, 01 Oct 2019 | UK£128.2b | UK£99.5b | UK£3.0b | 25.6x |
| Fri, 05 Jul 2019 | UK£122.3b | UK£99.2b | UK£2.1b | 21.2x |
| Mon, 08 Apr 2019 | UK£122.9b | UK£95.1b | UK£1.3b | 20.7x |
| Thu, 10 Jan 2019 | UK£123.6b | UK£97.7b | UK£2.7b | 18.6x |
PE Ratio
21x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 35.6x which is higher than its 3-year average PE of 27.0x. 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 Communication Services industry have declined 27% per year over the last three years, and revenues have also declined 2.2% per year. This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.K. Telecom sector?
| Entertainment | -0.43% | |
| Telecom Services and Carriers | -0.84% | |
| Interactive Media and Services | -1.92% | |
| Media | -4.23% | |
| Wireless Telecom | -5.59% | |
Industry PE: Investors are most optimistic about the Interactive Media and Services industry which is trading above its 3-year average PE ratio of 33.0x. This is likely because analysts are expecting annual earnings growth of 33%, which is higher than its past year's earnings growth of 19% per year. Meanwhile, investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 58.2x.
Forecasted Growth: Analysts are most optimistic on the Interactive Media and Services industry, expecting annual earnings growth of 33% over the next 5 years. This is better than it's past earnings growth rate of 19% per year. Meanwhile, the Telecom Services and Carriers 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 | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| FUTR Future | 7.1%+UK£285.1m | 99.1% | PE65.3x | |
| AUTO Auto Trader Group | 0.6%+UK£38.1m | 28.8% | PE35.6x | |
| TM17 Team17 Group | 3.1%+UK£25.9m | -18.3% | PE38.6x | |
| YOU YouGov | 1.0%+UK£16.7m | 65.4% | PE145.4x | |
| FDEV Frontier Developments | 1.4%+UK£9.4m | -29.3% | PE32.2x |
