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Telstra

ASX:TLS
Snowflake Description

Fair value with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TLS
ASX
A$46B
Market Cap
  1. Home
  2. AU
  3. Telecom
Company description

Telstra Corporation Limited, together with its subsidiaries, provides telecommunications and information services to businesses, governments, communities, and individuals in Australia and internationally. The last earnings update was 156 days ago. More info.


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TLS Share Price and Events
7 Day Returns
-1.3%
ASX:TLS
-1.4%
AU Telecom
0%
AU Market
1 Year Returns
37.6%
ASX:TLS
27.9%
AU Telecom
4.8%
AU Market
TLS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telstra (TLS) -1.3% -0.5% 12.6% 37.6% -33.8% -29.5%
AU Telecom -1.4% -1.4% 7% 27.9% -37.3% -26%
AU Market 0% 0.9% 6.8% 4.8% 20.1% 12.2%
1 Year Return vs Industry and Market
  • TLS outperformed the Telecom industry which returned 27.9% over the past year.
  • TLS outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
TLS
Industry
5yr Volatility vs Market

TLS Value

 Is Telstra undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telstra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telstra.

ASX:TLS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:TLS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.349 (1 + (1- 30%) (40.75%))
0.631
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:TLS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telstra is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:TLS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 3,366.50 Analyst x4 3,143.91
2021 3,321.00 Analyst x2 2,896.36
2022 3,312.38 Est @ -0.26% 2,697.83
2023 3,329.34 Est @ 0.51% 2,532.35
2024 3,364.36 Est @ 1.05% 2,389.79
2025 3,412.47 Est @ 1.43% 2,263.70
2026 3,470.29 Est @ 1.69% 2,149.85
2027 3,535.53 Est @ 1.88% 2,045.44
2028 3,606.57 Est @ 2.01% 1,948.59
2029 3,682.32 Est @ 2.1% 1,857.97
Present value of next 10 years cash flows A$23,925.79
ASX:TLS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$3,682.32 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$79,015.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$79,015.43 ÷ (1 + 7.08%)10
A$39,868.35
ASX:TLS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$23,925.79 + A$39,868.35
A$63,794.14
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$63,794.14 / 11,880.29
A$5.37
ASX:TLS Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.37
Current discount Discount to share price of A$3.84
= -1 x (A$3.84 - A$5.37) / A$5.37
28.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telstra is available for.
Intrinsic value
28%
Share price is A$3.84 vs Future cash flow value of A$5.37
Current Discount Checks
For Telstra to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telstra's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telstra's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telstra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telstra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TLS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.26
ASX:TLS Share Price ** ASX (2019-07-19) in AUD A$3.84
Australia Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Telecom Companies 27.72x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telstra.

ASX:TLS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:TLS Share Price ÷ EPS (both in AUD)

= 3.84 ÷ 0.26

14.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telstra is good value based on earnings compared to the AU Telecom industry average.
  • Telstra is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Telstra's expected growth come at a high price?
Raw Data
ASX:TLS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
7.8%per year
Australia Telecom Industry PEG Ratio Median Figure of 7 Publicly-Listed Telecom Companies 2.14x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:TLS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.77x ÷ 7.8%

1.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telstra is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Telstra's assets?
Raw Data
ASX:TLS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.22
ASX:TLS Share Price * ASX (2019-07-19) in AUD A$3.84
Australia Telecom Industry PB Ratio Median Figure of 14 Publicly-Listed Telecom Companies 2.4x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:TLS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TLS Share Price ÷ Book Value per Share (both in AUD)

= 3.84 ÷ 1.22

3.14x

* Primary Listing of Telstra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telstra is overvalued based on assets compared to the AU Telecom industry average.
X
Value checks
We assess Telstra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Telstra has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TLS Future Performance

 How is Telstra expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telstra expected to grow at an attractive rate?
  • Telstra's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Telstra's earnings growth is expected to exceed the Australia market average.
  • Telstra's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:TLS Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:TLS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 7.8%
ASX:TLS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -1.6%
Australia Telecom Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
Australia Telecom Industry Revenue Growth Rate Market Cap Weighted Average -0.6%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:TLS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TLS Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 3,400
2023-06-30 3,800
2022-06-30 3,600
2021-06-30 26,352 7,600 2,657 5
2020-06-30 27,848 7,877 2,912 7
2019-06-30 27,831 7,283 2,251 7
ASX:TLS Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 25,788 7,650 3,083
2018-09-30 25,900 8,128 3,323
2018-06-30 26,011 8,606 3,563
2018-03-31 25,965 8,496 3,693
2017-12-31 26,016 8,386 3,813
2017-09-30 26,015 8,081 3,852
2017-06-30 26,013 7,775 3,891
2016-12-31 25,428 7,618 3,573
2016-09-30 25,670 7,876 3,668
2016-06-30 25,911 8,133 3,763

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telstra's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
  • Telstra's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:TLS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Telstra Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TLS Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30
2021-06-30 0.20 0.28 0.16 6.00
2020-06-30 0.24 0.26 0.20 9.00
2019-06-30 0.19 0.23 0.14 9.00
ASX:TLS Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.26
2018-09-30 0.28
2018-06-30 0.30
2018-03-31 0.31
2017-12-31 0.32
2017-09-30 0.32
2017-06-30 0.33
2016-12-31 0.29
2016-09-30 0.30
2016-06-30 0.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Telstra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telstra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telstra has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TLS Past Performance

  How has Telstra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telstra's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telstra's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Telstra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Telstra's 1-year earnings growth is negative, it can't be compared to the AU Telecom industry average.
Earnings and Revenue History
Telstra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telstra Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TLS Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 25,788.00 3,083.00 1,415.00
2018-09-30 25,899.50 3,323.00 1,415.00
2018-06-30 26,011.00 3,563.00 1,415.00
2018-03-31 25,964.50 3,693.00 1,234.50
2017-12-31 26,016.00 3,813.00 1,054.00
2017-09-30 26,014.50 3,852.00 1,054.00
2017-06-30 26,013.00 3,891.00 1,054.00
2016-12-31 25,428.00 3,573.00 961.00
2016-09-30 25,669.50 3,668.00 961.00
2016-06-30 25,911.00 3,763.00 961.00
2015-12-31 25,803.00 3,955.00 894.00
2015-09-30 25,665.50 3,997.50 894.00
2015-06-30 25,528.00 4,040.00 894.00
2014-12-31 25,774.00 4,620.00 978.00
2014-09-30 25,580.00 4,549.50 978.00
2014-06-30 25,386.00 4,479.00 978.00
2013-12-31 24,916.00 3,900.00 862.00
2013-09-30 24,698.50 3,744.00 862.00
2013-06-30 24,481.00 3,588.00 862.00
2013-03-31 25,204.00 3,689.50 918.50
2012-12-31 25,140.00 3,550.00 910.00
2012-09-30 25,254.00 3,477.50 910.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Telstra has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Telstra used its assets more efficiently than the AU Telecom industry average last year based on Return on Assets.
  • Telstra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telstra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telstra has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TLS Health

 How is Telstra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telstra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telstra's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Telstra's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telstra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telstra Company Filings, last reported 6 months ago.

ASX:TLS Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 14,505.00 18,589.00 541.00
2018-09-30 14,505.00 18,589.00 541.00
2018-06-30 15,014.00 16,975.00 632.00
2018-03-31 15,014.00 16,975.00 632.00
2017-12-31 14,347.00 18,112.00 587.00
2017-09-30 14,347.00 18,112.00 587.00
2017-06-30 14,560.00 17,521.00 942.00
2016-12-31 14,569.00 17,728.00 1,188.00
2016-09-30 14,569.00 17,728.00 1,188.00
2016-06-30 15,907.00 17,552.00 3,599.00
2015-12-31 14,820.00 17,388.00 2,171.00
2015-09-30 14,820.00 17,388.00 2,171.00
2015-06-30 14,510.00 15,912.00 1,398.00
2014-12-31 13,653.00 16,338.00 1,669.00
2014-09-30 13,653.00 16,338.00 1,669.00
2014-06-30 13,960.00 16,097.00 5,529.00
2013-12-31 13,117.00 16,695.00 2,455.00
2013-09-30 13,117.00 16,695.00 2,455.00
2013-06-30 12,875.00 15,371.00 2,501.00
2013-03-31 12,875.00 15,371.00 2,501.00
2012-12-31 11,871.00 14,494.00 2,585.00
2012-09-30 11,871.00 14,494.00 2,585.00
  • Telstra's level of debt (128.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (127.2% vs 128.2% today).
  • Debt is well covered by operating cash flow (41.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess Telstra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Telstra has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TLS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.39%
Current annual income from Telstra dividends. Estimated to be 4.59% next year.
If you bought A$2,000 of Telstra shares you are expected to receive A$68 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telstra's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Telstra's dividend is below the markets top 25% of dividend payers in Australia (5.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:TLS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Oceania Telecom Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:TLS Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.25 1.00
2023-06-30 0.24 1.00
2022-06-30 0.23 1.00
2021-06-30 0.17 10.00
2020-06-30 0.17 12.00
2019-06-30 0.16 12.00
ASX:TLS Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-13 0.130 3.753
2018-08-15 0.150 4.915
2018-02-15 0.150 5.023
2017-08-16 0.310 8.629
2017-02-15 0.310 7.033
2016-08-11 0.310 6.097
2016-02-18 0.310 5.687
2016-02-17 0.310 5.757
2015-10-12 0.310 5.713
2015-02-11 0.300 4.895
2014-08-14 0.300 5.229
2014-02-12 0.290 5.551
2013-08-07 0.280 5.546
2013-02-06 0.280 5.915
2012-08-09 0.280 6.805
2012-05-02 0.280 7.534
2011-08-11 0.280 8.713
2011-02-10 0.280 9.670
2010-11-19 0.280 10.016
2010-02-11 0.280 9.460
2009-08-13 0.280 8.415
2009-02-26 0.280 8.537
2008-08-13 0.280 7.014

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Telstra's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Telstra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telstra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telstra has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TLS Management

 What is the CEO of Telstra's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andy Penn
COMPENSATION A$4,518,000
AGE 56
TENURE AS CEO 4.2 years
CEO Bio

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, 2015. Mr. Penn is an experienced executive with a career spanning almost 40 years. He served as Head of Asian Business at Telstra Corporation Limited since May 2014. He joined Telstra in 2012. Mr. Penn served as the Chief Financial Officer and Group Managing Director of Finance & Strategy at Telstra Corporation Limited since 2012 and also served as its Group Executive of International. Mr. Penn served as a the Group Chief Executive Officer of AMP AAPH Limited (formerly AXA Asia Pacific Holdings Ltd.) at AXA Group from October 1, 2006 to March 29, 2011. He served as the Chief Executive Officer for Australia and New Zealand of Axa Asia Pacific Holdings Ltd. from August 01, 2006 to October 1, 2006 and Chief Executive for Asia. Mr. Penn served as Managing Director of Group Strategic Development for Axa Asia Pacific Holdings Ltd., since September 16, 2005 and its Chief Financial Officer until May 2004 and also served as its Group Chief Financial Officer, General Manager of Operations and Chief Executive of International. He joined AXA APH in 1990 in the UK and has held a variety of senior positions with AXA APH. He serves as Director of AllianceBernstein Australia Limited, AllianceBernstein New Zealand Limited, AXA-Minmetals, Bharti AXA Life and various AXA APH subsidiaries. He served as a Director of Autohome Inc. from March 2012 to June 20, 2016. Mr. Penn served as a Director of FOXTEL Cable Television Pty Limited until April 30, 2015. He served in the Board of Telstra Ventures Pty Limited and served as an Executive Director at AXA Asia Pacific Holdings Ltd., from October 1, 2006 to March 29, 2011. He has also contributed widely to not-forprofit and community organisations. He is Life Governor of Very Special Kids from 2003 and is its Foundation Board member. He is also a member of the Juvenile Diabetes Research Foundation Advisory Council and The Big Issue Advisory Group and an Amy Gillet Foundation Ambassador. Mr. Penn is a fellow of the Chartered Association of Certified Accountants. He served as Director at Foxtel Management Pty Ltd until April 30, 2015. He holds an MBA from Kingston University, London and is a Graduate of Harvard Business School’s Advanced Management Program.

CEO Compensation
  • Andy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andy's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Telstra management team in years:

2.9
Average Tenure
  • The tenure for the Telstra management team is about average.
Management Team

Andy Penn

TITLE
CEO, MD & Director
COMPENSATION
A$5M
AGE
56
TENURE
4.2 yrs

Vicki Brady

TITLE
Chief Financial Officer and Group Executive of Strategy & Finance
COMPENSATION
A$2M
TENURE
0.5 yrs

Brendon Riley

TITLE
Chief Executive Officer of Telstra InfraCo
COMPENSATION
A$3M
TENURE
0.8 yrs

Håkan Eriksson

TITLE
Chief Technology Officer
AGE
53
TENURE
2.4 yrs

Nikos Katinakis

TITLE
Group Executive of Networks & IT
TENURE
0.8 yrs

Ross Moffat

TITLE
Head of Investor Relations

Carmel Mulhern

TITLE
Group General Counsel and Group Executive
TENURE
7.5 yrs

Alex Badenoch

TITLE
Group Executive of Human Resources
TENURE
2.9 yrs

R. Howard

TITLE
Managing Director of Voice & Convergence
TENURE
14.3 yrs

Upendra Kohli

TITLE
Managing Director of India Operations
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the Telstra board of directors in years:

3.3
Average Tenure
59
Average Age
  • The tenure for the Telstra board of directors is about average.
Board of Directors

John Mullen

TITLE
Chairman of the Board
COMPENSATION
A$781K
AGE
63
TENURE
3.3 yrs

Andy Penn

TITLE
CEO, MD & Director
COMPENSATION
A$5M
AGE
56
TENURE
4.2 yrs

NL Scheinkestel

TITLE
Non-Executive Director
COMPENSATION
A$307K
AGE
59
TENURE
8.9 yrs

Peter Hearl

TITLE
Non Executive Director
COMPENSATION
A$298K
AGE
68
TENURE
4.9 yrs

Margie Seale

TITLE
Non-Executive Director
COMPENSATION
A$270K
AGE
58
TENURE
7.2 yrs

Craig Dunn

TITLE
Non-Executive Director
COMPENSATION
A$270K
AGE
56
TENURE
3.3 yrs

Roy Chestnutt

TITLE
Non-Executive Director
COMPENSATION
A$33K
AGE
59
TENURE
1.2 yrs

Nicolaas John van Damme

TITLE
Non-Executive Director
AGE
58
TENURE
0.8 yrs

Eelco Blok

TITLE
Non-Executive Director
AGE
62
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
14. Mar 19 Buy Roy Chestnutt Individual 12. Mar 19 12. Mar 19 43,000 A$3.22 A$138,629
05. Mar 19 Buy Nora Scheinkestel Individual 04. Mar 19 04. Mar 19 7,875 A$3.17 A$24,960
22. Feb 19 Sell Andrew Penn Individual 22. Feb 19 22. Feb 19 -300,000 A$3.24 A$-972,000
20. Feb 19 Buy Eelco Blok Individual 19. Feb 19 19. Feb 19 75,000 A$3.24 A$242,976
X
Management checks
We assess Telstra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Telstra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TLS News

Simply Wall St News

Can You Imagine How Telstra's (ASX:TLS) Shareholders Feel About The 37% Share Price Increase?

To wit, the Telstra Corporation Limited (ASX:TLS) share price is 37% higher than it was a year ago, much better than the market return of around 5.1% (not including dividends) in the same period. … During the last year, Telstra actually saw its earnings per share drop 19%. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Read This Before Buying Telstra Corporation Limited (ASX:TLS) For Its Dividend

Today we'll take a closer look at Telstra Corporation Limited (ASX:TLS) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. In this case, Telstra likely looks attractive to investors, given its 3.4% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Some simple research can reduce the risk of buying Telstra for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Telstra! ASX:TLS Historical Dividend Yield, July 1st 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Telstra paid out 48% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. The company paid out 78% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's positive to see that Telstra's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Telstra's Balance Sheet Risky? As Telstra has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Dividend Growth Potential Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Is Telstra (ASX:TLS) A Risky Investment?

The first step when considering a company's debt levels is to consider its cash and debt together. … Either way, since Telstra does have more debt than cash, it's worth keeping an eye on its balance sheet. … Over the most recent three years, Telstra recorded free cash flow worth 72% of its EBIT, which is around normal, given free cash flow excludes interest and tax.

Simply Wall St -

How Many Telstra Corporation Limited (ASX:TLS) Shares Do Institutions Own?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. … Insider Ownership Of Telstra While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

What You Must Know About Telstra Corporation Limited's (ASX:TLS) Financial Strength

At this current level of debt, the current cash and short-term investment levels stands at AU$541m to keep the business going. … On top of this, TLS has generated cash from operations of AU$7.7b over the same time period, resulting in an operating cash to total debt ratio of 41%, meaning that TLS’s debt is appropriately covered by operating cash. … Next Steps: TLS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Telstra Corporation Limited (ASX:TLS): What Does The Future Look Like?

However, this pessimism is not unsubstantiated given the negative past 5-year average earnings growth. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … ASX:TLS Past and Future Earnings, May 17th 2019 By 2022, TLS's earnings should reach AU$2.8b, from current levels of AU$3.6b, resulting in an annual growth rate of -2.0%.

Simply Wall St -

Does Telstra Corporation Limited's (ASX:TLS) CEO Pay Compare Well With Peers?

Andy Penn has been the CEO of Telstra Corporation Limited (ASX:TLS) since 2015. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Andy Penn's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should We Be Delighted With Telstra Corporation Limited's (ASX:TLS) ROE Of 21%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every A$1 worth of shareholders' equity, it generated A$0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Many Telstra Corporation Limited (ASX:TLS) Shares Have Insiders Sold, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in Telstra Corporation Limited (ASX:TLS). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.

Simply Wall St -

Does Telstra Corporation Limited's (ASX:TLS) P/E Ratio Signal A Buying Opportunity?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Telstra Corporation Limited's (ASX:TLS) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

TLS Company Info

Description

Telstra Corporation Limited, together with its subsidiaries, provides telecommunications and information services to businesses, governments, communities, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Telstra Operations, and Telstra Wholesale. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, telephony and pay television/Internet protocol, and digital content; and online self-service capabilities, including buying, billing, and servicing requests, as well as operates inbound and outbound call centers, owned and licensed Telstra shops, and the Telstra dealership network. It also provides sales and contract management services for medium to large business and government customers; and product management services for advanced technology solutions and services, such as data and Internet protocol networks, and mobility applications and services, as well as network applications and services products comprising managed network, unified communications, cloud, industry solutions, and integrated services and monitoring. In addition, the company engages in the development of industry vertical solutions; planning, design, engineering architecture, and construction of Telstra networks, technology, and information technology solutions; and provision of a range of telecommunication products and services to other carriers, carriage service providers, and Internet service providers through its networks and related support systems. Further, it provides disconnection, media and marketing, and other services. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.

Details
Name: Telstra Corporation Limited
TLS
Exchange: ASX
Founded: 1901
A$45,620,315,040
11,880,290,375
Website: http://www.telstra.com.au
Address: Telstra Corporation Limited
242 Exhibition Street,
Level 41,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TLS Ordinary Shares Australian Securities Exchange AU AUD 17. Nov 1997
OTCPK TTRA.F Ordinary Shares Pink Sheets LLC US USD 17. Nov 1997
DB TSTA Ordinary Shares Deutsche Boerse AG DE EUR 17. Nov 1997
NZSE TLS Ordinary Shares New Zealand Stock Exchange NZ NZD 17. Nov 1997
CHIA TLS Ordinary Shares Chi-X Australia AU AUD 17. Nov 1997
OTCPK TLSY.Y FINAL ADS EACH REPR 5 ORD SHS NPV Pink Sheets LLC US USD 19. Oct 1998
DB TSTD FINAL ADS EACH REPR 5 ORD SHS NPV Deutsche Boerse AG DE EUR 19. Oct 1998
Number of employees
Current staff
Staff numbers
29,297
Telstra employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:33
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.