Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. More Details
Fair value with mediocre balance sheet.
Share Price & News
How has Telstra's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TLS is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TLS's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: TLS underperformed the Australian Telecom industry which returned 16.8% over the past year.
Return vs Market: TLS underperformed the Australian Market which returned 37.1% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Telstra's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StTelstra (ASX:TLS) Has A Somewhat Strained Balance Sheet
1 month ago | Simply Wall StTelstra (ASX:TLS) Shareholders Received A Total Return Of Negative 20% In The Last Five Years
1 month ago | Simply Wall StJust Four Days Till Telstra Corporation Limited (ASX:TLS) Will Be Trading Ex-Dividend
Is Telstra undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TLS (A$3.49) is trading below our estimate of fair value (A$6.2)
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 (23.4x) compared to the AU Telecom industry average (31.2x).
PE vs Market: TLS is poor value based on its PE Ratio (23.4x) compared to the Australian market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: TLS is poor value based on its PEG Ratio (10.4x)
Price to Book Ratio
PB vs Industry: TLS is overvalued based on its PB Ratio (2.9x) compared to the AU Telecom industry average (2.7x).
How is Telstra forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TLS's forecast earnings growth (2.2% per year) is above the savings rate (2%).
Earnings vs Market: TLS's earnings (2.2% per year) are forecast to grow slower than the Australian market (15.3% per year).
High Growth Earnings: TLS's earnings are forecast to grow, but not significantly.
Revenue vs Market: TLS's revenue (1.1% per year) is forecast to grow slower than the Australian market (5.7% per year).
High Growth Revenue: TLS's revenue (1.1% 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 (12.5%).
How has Telstra performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TLS has a large one-off gain of A$1.5B impacting its December 31 2020 financial results.
Growing Profit Margin: TLS's current net profit margins (7.9%) are lower than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: TLS's earnings have declined by 17.6% per year over the past 5 years.
Accelerating Growth: TLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TLS had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the Telecom industry average (-10.1%).
Return on Equity
High ROE: TLS's Return on Equity (11.9%) is considered low.
How is Telstra's financial position?
Financial Position Analysis
Short Term Liabilities: TLS's short term assets (A$7.4B) do not cover its short term liabilities (A$9.6B).
Long Term Liabilities: TLS's short term assets (A$7.4B) do not cover its long term liabilities (A$18.6B).
Debt to Equity History and Analysis
Debt Level: TLS's debt to equity ratio (100.1%) is considered high.
Reducing Debt: TLS's debt to equity ratio has reduced from 114.8% to 100.1% over the past 5 years.
Debt Coverage: TLS's debt is well covered by operating cash flow (50.8%).
Interest Coverage: TLS's interest payments on its debt are well covered by EBIT (3x coverage).
What is Telstra current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TLS's dividend (4.58%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: TLS's dividend (4.58%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).
Stability and Growth of Payments
Stable Dividend: TLS's dividend payments have been volatile in the past 10 years.
Growing Dividend: TLS's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67%), TLS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TLS's dividends in 3 years are not forecast to be well covered by earnings (98.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andy Penn (57 yo)
Mr. Andrew Richard Penn, also known as Andy, MBA (Kingston), AMP (Harvard), BEc, FCCA, HFAIPM has been the Chief Executive Officer, Managing Director and Director of Telstra Corporation Limited since May 1...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD3.84M) is about average for companies of similar size in the Australian market ($USD3.43M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Experienced Management: TLS's management team is considered experienced (4.2 years average tenure).
Experienced Board: TLS's board of directors are considered experienced (5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Telstra Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: Telstra Corporation Limited
- Ticker: TLS
- Exchange: ASX
- Founded: 1901
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: AU$40.763b
- Shares outstanding: 11.88b
- Website: https://www.telstra.com.au
Number of Employees
- Telstra Corporation Limited
- 242 Exhibition Street
- Level 41
Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/12 08:08|
|End of Day Share Price||2021/04/12 00:00|
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.