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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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 01 Dec 2022UKĀ£97.4bUKĀ£99.6bUKĀ£5.6b18.4x17.4x1x
Sat, 29 Oct 2022UKĀ£95.4bUKĀ£99.0bUKĀ£5.1b17.5x18.6x1x
Mon, 26 Sep 2022UKĀ£99.6bUKĀ£100.5bUKĀ£5.3b18.7x19x1x
Wed, 24 Aug 2022UKĀ£107.3bUKĀ£97.4bUKĀ£5.0b22.7x21.4x1.1x
Fri, 22 Jul 2022UKĀ£117.6bUKĀ£96.3bUKĀ£4.0b22.2x29.3x1.2x
Sun, 19 Jun 2022UKĀ£111.2bUKĀ£96.4bUKĀ£4.0b19.9x27.8x1.2x
Tue, 17 May 2022UKĀ£115.2bUKĀ£94.8bUKĀ£2.2b23.6x52.9x1.2x
Thu, 14 Apr 2022UKĀ£125.5bUKĀ£92.8bUKĀ£2.6b25.4x48.4x1.4x
Sat, 12 Mar 2022UKĀ£119.2bUKĀ£92.8bUKĀ£2.4b29.2x49.2x1.3x
Mon, 07 Feb 2022UKĀ£132.9bUKĀ£92.9bUKĀ£2.1b31.3x64.7x1.4x
Wed, 05 Jan 2022UKĀ£130.8bUKĀ£92.1bUKĀ£1.9b35.5x67.7x1.4x
Fri, 03 Dec 2021UKĀ£128.1bUKĀ£92.8bUKĀ£1.8b34.5x70x1.4x
Sun, 31 Oct 2021UKĀ£124.5bUKĀ£91.9bUKĀ£1.9b38.4x64.3x1.4x
Tue, 28 Sep 2021UKĀ£131.5bUKĀ£91.8bUKĀ£1.9b34.9x69.8x1.4x
Thu, 26 Aug 2021UKĀ£135.4bUKĀ£91.6bUKĀ£1.9b35.5x72.4x1.5x
Fri, 02 Jul 2021UKĀ£133.3bUKĀ£91.5bUKĀ£1.9b34.6x71.3x1.5x
Mon, 05 Apr 2021UKĀ£125.6bUKĀ£90.8bUKĀ£124.2m33.9x1011.1x1.4x
Thu, 07 Jan 2021UKĀ£113.8bUKĀ£92.7b-UKĀ£1,169,796,755.8935.6x-97.3x1.2x
Wed, 30 Sep 2020UKĀ£93.7bUKĀ£94.9bUKĀ£728.6m27.9x128.6x1x
Sat, 04 Jul 2020UKĀ£99.3bUKĀ£98.5b-UKĀ£1,121,345,002.3428.2x-88.5x1x
Tue, 07 Apr 2020UKĀ£87.5bUKĀ£99.9bUKĀ£612.9m19.1x142.7x0.9x
Fri, 10 Jan 2020UKĀ£132.5bUKĀ£99.7bUKĀ£3.7b22.7x35.9x1.3x
Price to Earnings Ratio

42.9x


Total Market Cap: UKĀ£129.6bTotal Earnings: UKĀ£3.0bTotal Revenue: UKĀ£99.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 125.2x202020212022
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 Market0.94%
Telecom-1.07%
Media0.19%
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?

CompanyLast Price7D1YValuation
AAF Airtel AfricaUKĀ£1.235.1%
+UKĀ£225.2m
-2.2%PE8.6x
PSON PearsonUKĀ£9.951.4%
+UKĀ£91.1m
70.6%PE26.1x
YOU YouGovUKĀ£9.806.5%
+UKĀ£66.2m
-36.4%PE63.2x
FOUR 4imprint GroupUKĀ£42.255.6%
+UKĀ£63.1m
47.7%PE26.5x
TRMR Tremor InternationalUKĀ£3.188.2%
+UKĀ£33.7m
-43.3%PE13x
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FUTR

UKĀ£14.05

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-7.6%

1Y

-60.4%

RMV

UKĀ£5.53

Rightmove

7D

-0.9%

1Y

-27.4%

ASCL

UKĀ£2.16

Ascential

7D

2.9%

1Y

-50.9%

YOU

UKĀ£9.80

YouGov

7D

6.5%

1Y

-36.4%

VOD

UKĀ£0.92

Vodafone Group

7D

-3.0%

1Y

-17.3%

PSON

UKĀ£9.95

Pearson

7D

1.4%

1Y

70.6%

MONY

UKĀ£1.90

Moneysupermarket.com Group

7D

-5.1%

1Y

-6.8%

WPP

UKĀ£8.66

WPP

7D

-0.3%

1Y

-19.3%

AAF

UKĀ£1.23

Airtel Africa

7D

5.1%

1Y

-2.2%

HTWS

UKĀ£1.15

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7D

-5.0%

1Y

-30.4%

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UKĀ£1.16

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7D

5.5%

1Y

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