Executive Summary
TPG Telecom Limited provides telecommunications services. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 9.3% per year for the next 3 years
Snowflake Analysis
Undervalued with mediocre balance sheet.
Similar Companies
Share Price & News
How has TPG Telecom's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TPG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TPG's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.2%
TPG
2.0%
AU Telecom
1.2%
AU Market
1 Year Return
n/a
TPG
17.3%
AU Telecom
33.9%
AU Market
Return vs Industry: Insufficient data to determine how TPG performed against the Australian Telecom industry.
Return vs Market: Insufficient data to determine how TPG performed against the Australian Market.
Shareholder returns
| TPG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 2.0% | 1.2% |
| 30 Day | -9.6% | 7.2% | 2.9% |
| 90 Day | -10.6% | 8.7% | 4.2% |
| 1 Year | n/a | 22.9%17.3% | 38.0%33.9% |
| 3 Year | n/a | 33.6%15.6% | 35.1%18.8% |
| 5 Year | n/a | -14.2%-34.2% | 65.6%33.2% |
Long-Term Price Volatility Vs. Market
How volatile is TPG Telecom's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
How Many TPG Telecom Limited (ASX:TPG) Shares Did Insiders Buy, In The Last Year?2 months ago | Simply Wall St
TPG Telecom Limited's (ASX:TPG) About To Shift From Loss To Profit4 months ago | Simply Wall St
What Kind Of Investors Own Most Of TPG Telecom Limited (ASX:TPG)?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$6.24) is trading below our estimate of fair value (A$13.33)
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 (9.7x) compared to the AU Telecom industry average (31.6x).
PE vs Market: TPG is good value based on its PE Ratio (9.7x) compared to the Australian market (20.8x).
Price to Earnings Growth Ratio
PEG Ratio: TPG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TPG is good value based on its PB Ratio (1x) compared to the AU Telecom industry average (2.8x).
Future Growth
How is TPG Telecom forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TPG's earnings are forecast to decline over the next 3 years (-9.3% per year).
Earnings vs Market: TPG's earnings are forecast to decline over the next 3 years (-9.3% per year).
High Growth Earnings: TPG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TPG's revenue (7.7% per year) is forecast to grow faster than the Australian market (5.7% per year).
High Growth Revenue: TPG's revenue (7.7% 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 (4.3%).
Past Performance
How has TPG Telecom performed over the past 5 years?
44.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TPG has a large one-off loss of A$45.0M impacting its December 31 2020 financial results.
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 44.6% 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 (-10.1%).
Return on Equity
High ROE: TPG's Return on Equity (6.2%) is considered low.
Financial Health
How is TPG Telecom's financial position?
Financial Position Analysis
Short Term Liabilities: TPG's short term assets (A$683.0M) do not cover its short term liabilities (A$1.5B).
Long Term Liabilities: TPG's short term assets (A$683.0M) do not cover its long term liabilities (A$5.5B).
Debt to Equity History and Analysis
Debt Level: TPG's debt to equity ratio (36.4%) 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 (27.4%).
Interest Coverage: TPG's interest payments on its debt are not well covered by EBIT (0.8x coverage).
Balance Sheet
Dividend
What is TPG Telecom current dividend yield, its reliability and sustainability?
1.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TPG's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2%).
High Dividend: TPG's dividend (1.2%) is low compared to the top 25% of dividend payers in the Australian market (5.37%).
Stability and Growth of Payments
Stable Dividend: TPG is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: TPG is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TPG is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TPG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.7yrs
Average management tenure
CEO
Iñaki Berroeta
7.08yrs
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 ( 0.8 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 bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: TPG only recently listed within the past 12 months.
Top Shareholders
Company Information
TPG Telecom Limited's company bio, 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
- Market Cap: AU$11.714b
- 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
Biography
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 metrop...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 08:22 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.