| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
TPG Stock Overview
TPG Telecom Limited provides telecommunications services.
TPG Telecom Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$5.94 |
| 52 Week High | AU$7.58 |
| 52 Week Low | AU$4.81 |
| Beta | 0 |
| 1 Month Change | -0.50% |
| 3 Month Change | -12.90% |
| 1 Year Change | -21.22% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -33.26% |
Recent News & Updates
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...
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...
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
| TPG | AU Telecom | AU 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
| TPG volatility | |
|---|---|
| TPG Average Weekly Movement | 4.0% |
| Telecom Industry Average Movement | 7.0% |
| Market Average Movement | 8.5% |
| 10% most volatile stocks in AU Market | 15.4% |
| 10% least volatile stocks in AU Market | 3.7% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 5,000 | Iñaki Berroeta | https://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
| TPG fundamental statistics | |
|---|---|
| Market Cap | AU$11.04b |
| Earnings (TTM) | AU$734.00m |
| Revenue (TTM) | AU$5.44b |
15.0x
P/E Ratio2.0x
P/S RatioIs TPG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TPG income statement (TTM) | |
|---|---|
| Revenue | AU$5.44b |
| Cost of Revenue | AU$3.30b |
| Gross Profit | AU$2.14b |
| Expenses | AU$1.41b |
| Earnings | AU$734.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 24, 2022
| Earnings per share (EPS) | 0.39 |
| Gross Margin | 39.36% |
| Net Profit Margin | 13.49% |
| Debt/Equity Ratio | 37.7% |
How did TPG perform over the long term?
See historical performance and comparisonDividends
2.7%
Current Dividend Yield39%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/26 07:03 |
| End of Day Share Price | 2022/01/25 00:00 |
| Earnings | 2021/06/30 |
| 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.