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TLS

TelstraASX:TLS Stock Report

Last Price

AU$3.93

Market Cap

AU$46.1b

7D

-6.2%

1Y

25.2%

Updated

26 Jan, 2022

Data

Company Financials +
TLS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends2/6

TLS Stock Overview

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally.

Telstra Competitors

Pentanet

ASX:5GG

AU$123.1m

Comms Group

ASX:CCG

AU$35.7m

Apple

NasdaqGS:AAPL

US$2.6t

Samsung Electronics

KOSE:A005930

₩497.3t

Price History & Performance

Summary of all time highs, changes and price drops for Telstra
Historical stock prices
Current Share PriceAU$3.93
52 Week HighAU$4.31
52 Week LowAU$3.04
Beta0.51
1 Month Change-5.30%
3 Month Change0.26%
1 Year Change25.16%
3 Year Change23.20%
5 Year Change-22.49%
Change since IPO5.93%

Recent News & Updates

Dec 19
Telstra (ASX:TLS) Will Be Hoping To Turn Its Returns On Capital Around

Telstra (ASX:TLS) Will Be Hoping To Turn Its Returns On Capital Around

If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...

Dec 01
Telstra Corporation Limited's (ASX:TLS) Intrinsic Value Is Potentially 28% Above Its Share Price

Telstra Corporation Limited's (ASX:TLS) Intrinsic Value Is Potentially 28% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of Telstra Corporation Limited ( ASX:TLS ) by...

Oct 05
Shareholders May Not Be So Generous With Telstra Corporation Limited's (ASX:TLS) CEO Compensation And Here's Why

Shareholders May Not Be So Generous With Telstra Corporation Limited's (ASX:TLS) CEO Compensation And Here's Why

Despite strong share price growth of 40% for Telstra Corporation Limited ( ASX:TLS ) over the last few years, earnings...

Sep 26
Telstra (ASX:TLS) Seems To Use Debt Quite Sensibly

Telstra (ASX:TLS) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

TLSAU TelecomAU Market
7D-6.2%-6.3%-5.4%
1Y25.2%15.6%2.6%

Return vs Industry: TLS exceeded the Australian Telecom industry which returned 15.6% over the past year.

Return vs Market: TLS exceeded the Australian Market which returned 2.6% over the past year.

Price Volatility

Is TLS's price volatile compared to industry and market?
TLS volatility
TLS Average Weekly Movement2.3%
Telecom Industry Average Movement7.0%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.4%
10% least volatile stocks in AU Market3.7%

Stable Share Price: TLS is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TLS's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190127,015Andy Pennhttps://www.telstra.com.au

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, media, and digital content in prepaid and post-paid services, as well as operates call centers, Telstra shops, and the Telstra dealership network.

Telstra Fundamentals Summary

How do Telstra's earnings and revenue compare to its market cap?
TLS fundamental statistics
Market CapAU$46.11b
Earnings (TTM)AU$1.86b
Revenue (TTM)AU$21.56b

24.8x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TLS income statement (TTM)
RevenueAU$21.56b
Cost of RevenueAU$12.08b
Gross ProfitAU$9.48b
ExpensesAU$7.63b
EarningsAU$1.86b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)0.16
Gross Margin43.99%
Net Profit Margin8.61%
Debt/Equity Ratio94.9%

How did TLS perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

64%

Payout Ratio

Valuation

Is Telstra undervalued compared to its fair value and its price relative to the market?

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLS (A$3.93) is trading below our estimate of fair value (A$5.19)

Significantly Below Fair Value: TLS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLS is good value based on its PE Ratio (24.8x) compared to the Australian Telecom industry average (62x).

PE vs Market: TLS is poor value based on its PE Ratio (24.8x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TLS is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: TLS is overvalued based on its PB Ratio (3.2x) compared to the AU Telecom industry average (3x).


Future Growth

How is Telstra forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLS's forecast earnings growth (5.2% per year) is above the savings rate (1.9%).

Earnings vs Market: TLS's earnings (5.2% per year) are forecast to grow slower than the Australian market (10.8% per year).

High Growth Earnings: TLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TLS's revenue (2.6% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: TLS's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLS's Return on Equity is forecast to be low in 3 years time (14.3%).


Past Performance

How has Telstra performed over the past 5 years?

-18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLS has a large one-off gain of A$835.0M impacting its June 30 2021 financial results.

Growing Profit Margin: TLS's current net profit margins (8.6%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: TLS's earnings have declined by 18.7% per year over the past 5 years.

Accelerating Growth: TLS's earnings growth over the past year (2.1%) exceeds its 5-year average (-18.7% per year).

Earnings vs Industry: TLS earnings growth over the past year (2.1%) exceeded the Telecom industry -7.4%.


Return on Equity

High ROE: TLS's Return on Equity (12.5%) is considered low.


Financial Health

How is Telstra's financial position?


Financial Position Analysis

Short Term Liabilities: TLS's short term assets (A$7.1B) do not cover its short term liabilities (A$10.4B).

Long Term Liabilities: TLS's short term assets (A$7.1B) do not cover its long term liabilities (A$16.8B).


Debt to Equity History and Analysis

Debt Level: TLS's net debt to equity ratio (87.2%) is considered high.

Reducing Debt: TLS's debt to equity ratio has reduced from 110.4% to 94.9% over the past 5 years.

Debt Coverage: TLS's debt is well covered by operating cash flow (49.9%).

Interest Coverage: TLS's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

What is Telstra current dividend yield, its reliability and sustainability?

4.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TLS's dividend (4.07%) is higher than the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: TLS's dividend (4.07%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).


Stability and Growth of Payments

Stable Dividend: TLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: TLS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.9%), TLS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLS's dividends in 3 years are not forecast to be well covered by earnings (94% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Andy Penn (58 yo)

6.67yrs

Tenure

AU$5,781,000

Compensation

Mr. Andrew Richard Penn, also known as Andy, MBA (Kingston), AMP (Harvard), BEc, FCCA, HFAIPM has been the Chief Executive Officer, Managing Director and Director of Telstra Corporation Limited since May 1...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD4.13M) is about average for companies of similar size in the Australian market ($USD3.92M).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TLS's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: TLS's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TLS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Telstra Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Telstra Corporation Limited
  • Ticker: TLS
  • Exchange: ASX
  • Founded: 1901
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: AU$46.113b
  • Shares outstanding: 11.73b
  • Website: https://www.telstra.com.au

Number of Employees


Location

  • Telstra Corporation Limited
  • 242 Exhibition Street
  • Level 41
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 07:03
End of Day Share Price2022/01/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.