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TPG

TPG TelecomASX:TPG Stock Report

Last Price

AU$5.94

Market Cap

AU$11.0b

7D

-6.5%

1Y

-21.2%

Updated

26 Jan, 2022

Data

Company Financials +
TPG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends3/6

TPG Stock Overview

TPG Telecom Limited provides telecommunications services.

TPG Telecom Competitors

Pentanet

ASX:5GG

AU$123.1m

Singapore Telecommunications

SGX:Z74

S$40.8b

CK Hutchison Holdings

SEHK:1

HK$215.5b

Calix

NYSE:CALX

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for TPG Telecom
Historical stock prices
Current Share PriceAU$5.94
52 Week HighAU$7.58
52 Week LowAU$4.81
Beta0
1 Month Change-0.50%
3 Month Change-12.90%
1 Year Change-21.22%
3 Year Changen/a
5 Year Changen/a
Change since IPO-33.26%

Recent News & Updates

Jan 09
Returns On Capital At TPG Telecom (ASX:TPG) Have Hit The Brakes

Returns On Capital At TPG Telecom (ASX:TPG) Have Hit The Brakes

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Oct 05
TPG Telecom (ASX:TPG) Hasn't Managed To Accelerate Its Returns

TPG Telecom (ASX:TPG) Hasn't Managed To Accelerate Its Returns

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Aug 26
Investors Shouldn't Be Too Comfortable With TPG Telecom's (ASX:TPG) Robust Earnings

Investors Shouldn't Be Too Comfortable With TPG Telecom's (ASX:TPG) Robust Earnings

TPG Telecom Limited's ( ASX:TPG ) robust earnings report didn't manage to move the market for its stock. We did some...

Shareholder Returns

TPGAU TelecomAU Market
7D-6.5%-6.3%-5.4%
1Y-21.2%15.6%2.6%

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

Return vs Market: TPG underperformed the Australian Market which returned 2.6% over the past year.

Price Volatility

Is TPG's price volatile compared to industry and market?
TPG volatility
TPG Average Weekly Movement4.0%
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: TPG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TPG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a5,000Iñaki Berroetahttps://www.tpgtelecom.com.au

TPG Telecom Limited provides telecommunications services. It owns and operates fixed and mobile network infrastructure, including fixed voice and data network with approximately 27,000 kilometers of metropolitan and inter-capital fiber networks; international subsea cable systems connecting Australia to principal hubs in North America and Asia; and mobile network. The company provides its fixed and mobile products under the Vodafone, TPG, iiNet, Internode, Lebara, and AAPT brands.

TPG Telecom Fundamentals Summary

How do TPG Telecom's earnings and revenue compare to its market cap?
TPG fundamental statistics
Market CapAU$11.04b
Earnings (TTM)AU$734.00m
Revenue (TTM)AU$5.44b

15.0x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPG income statement (TTM)
RevenueAU$5.44b
Cost of RevenueAU$3.30b
Gross ProfitAU$2.14b
ExpensesAU$1.41b
EarningsAU$734.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.39
Gross Margin39.36%
Net Profit Margin13.49%
Debt/Equity Ratio37.7%

How did TPG perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

39%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPG (A$5.94) is trading below our estimate of fair value (A$13.66)

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


Price To Earnings Ratio

PE vs Industry: TPG is good value based on its PE Ratio (15x) compared to the Australian Telecom industry average (62x).

PE vs Market: TPG is good value based on its PE Ratio (15x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TPG is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TPG is good value based on its PB Ratio (0.9x) compared to the AU Telecom industry average (3x).


Future Growth

How is TPG Telecom forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPG's forecast earnings growth (9.1% per year) is above the savings rate (1.9%).

Earnings vs Market: TPG's earnings (9.1% per year) are forecast to grow slower than the Australian market (10.8% per year).

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

Revenue vs Market: TPG's revenue (4% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: TPG's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPG's Return on Equity is forecast to be low in 3 years time (3.5%).


Past Performance

How has TPG Telecom performed over the past 5 years?

59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPG has high quality earnings.

Growing Profit Margin: TPG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TPG has become profitable over the past 5 years, growing earnings by 59.4% per year.

Accelerating Growth: TPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-7.4%).


Return on Equity

High ROE: TPG's Return on Equity (6.1%) is considered low.


Financial Health

How is TPG Telecom's financial position?


Financial Position Analysis

Short Term Liabilities: TPG's short term assets (A$772.0M) do not cover its short term liabilities (A$1.3B).

Long Term Liabilities: TPG's short term assets (A$772.0M) do not cover its long term liabilities (A$6.0B).


Debt to Equity History and Analysis

Debt Level: TPG's net debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: TPG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: TPG's debt is well covered by operating cash flow (32.1%).

Interest Coverage: TPG's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is TPG Telecom current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPG's dividend (2.69%) is higher than the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: TPG's dividend (2.69%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether TPG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if TPG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.3%), TPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPG's dividends in 3 years are forecast to be covered by earnings (85.1% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Iñaki Berroeta

7.83yrs

Tenure

Mr. Iñaki Berroeta has been Director at TPG Telecom Limited since June 29, 2020. Mr. Berroeta has been Chief Executive Officer at TPG Telecom Limited (formerly known as, Vodafone Hutchison Australia Pty Lt...


Leadership Team

Experienced Management: TPG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: TPG's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: TPG insiders have only sold shares 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

TPG Telecom Limited's employee growth, exchange listings and data sources


Key Information

  • Name: TPG Telecom Limited
  • Ticker: TPG
  • Exchange: ASX
  • Founded: NaN
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: AU$11.044b
  • Shares outstanding: 1.86b
  • Website: https://www.tpgtelecom.com.au

Number of Employees


Location

  • TPG Telecom Limited
  • 177 Pacific Highway
  • Level 1
  • North Sydney
  • New South Wales
  • 2060
  • 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 Earnings2020/12/31


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.