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Market Cap

AU$11.7b

Last Updated

2021/04/13 08:22 UTC

Data Sources

Company Financials +

Executive Summary

TPG Telecom Limited provides telecommunications services. More Details


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

TPGIndustryMarket
7 Day0.2%2.0%1.2%
30 Day-9.6%7.2%2.9%
90 Day-10.6%8.7%4.2%
1 Yearn/a22.9%17.3%38.0%33.9%
3 Yearn/a33.6%15.6%35.1%18.8%
5 Yearn/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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 08:22
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
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.