Loading...

TPG Telecom

ASX:TPM
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TPM
ASX
A$6B
Market Cap
  1. Home
  2. AU
  3. Telecom
Company description

TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally. The last earnings update was 124 days ago. More info.


Add to Portfolio Compare Print
TPM Share Price and Events
7 Day Returns
-1.1%
ASX:TPM
-1.4%
AU Telecom
0%
AU Market
1 Year Returns
14.9%
ASX:TPM
27.9%
AU Telecom
4.8%
AU Market
TPM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TPG Telecom (TPM) -1.1% -3.5% -5.1% 14.9% -46.2% 19.3%
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
  • TPM underperformed the Telecom industry which returned 27.9% over the past year.
  • TPM outperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
TPM
Industry
5yr Volatility vs Market

TPM Value

 Is TPG Telecom 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 TPG Telecom 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 TPG Telecom.

ASX:TPM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 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:TPM
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%) (26.06%))
0.607
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:TPM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TPG Telecom 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:TPM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 -181.10 Analyst x1 -169.13
2021 308.20 Analyst x1 268.79
2022 483.99 Est @ 57.04% 394.20
2023 680.59 Est @ 40.62% 517.67
2024 878.84 Est @ 29.13% 624.26
2025 1,064.13 Est @ 21.08% 705.90
2026 1,228.55 Est @ 15.45% 761.09
2027 1,369.96 Est @ 11.51% 792.57
2028 1,489.84 Est @ 8.75% 804.94
2029 1,591.43 Est @ 6.82% 802.98
Present value of next 10 years cash flows A$5,503.28
ASX:TPM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$1,591.43 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$34,148.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$34,148.94 ÷ (1 + 7.08%)10
A$17,230.33
ASX:TPM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$5,503.28 + A$17,230.33
A$22,733.61
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$22,733.61 / 927.81
A$24.5
ASX:TPM Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$24.50
Current discount Discount to share price of A$6.56
= -1 x (A$6.56 - A$24.50) / A$24.50
73.2%

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

Current Discount
Amount off the current price TPG Telecom is available for.
Intrinsic value
>50%
Share price is A$6.56 vs Future cash flow value of A$24.5
Current Discount Checks
For TPG Telecom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TPG Telecom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TPG Telecom's share price is below the future cash flow value, and 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 TPG Telecom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TPG Telecom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TPM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in AUD A$0.26
ASX:TPM Share Price ** ASX (2019-07-19) in AUD A$6.56
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 TPG Telecom.

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

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

= 6.56 ÷ 0.26

24.81x

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

  • TPG Telecom is good value based on earnings compared to the AU Telecom industry average.
  • TPG Telecom is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does TPG Telecom's expected growth come at a high price?
Raw Data
ASX:TPM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
9.6%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:TPM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.81x ÷ 9.6%

2.59x

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

  • TPG Telecom is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TPG Telecom's assets?
Raw Data
ASX:TPM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in AUD A$3.02
ASX:TPM Share Price * ASX (2019-07-19) in AUD A$6.56
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:TPM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 6.56 ÷ 3.02

2.17x

* Primary Listing of TPG Telecom.

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

  • TPG Telecom is good value based on assets compared to the AU Telecom industry average.
X
Value checks
We assess TPG Telecom'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. TPG Telecom has a total score of 4/6, 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.

TPM Future Performance

 How is TPG Telecom expected to perform in the next 1 to 3 years based on estimates from 10 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
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TPG Telecom expected to grow at an attractive rate?
  • TPG Telecom's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • TPG Telecom's earnings growth is expected to exceed the Australia market average.
  • TPG Telecom's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:TPM Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:TPM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 9.6%
ASX:TPM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.3%
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:TPM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TPM Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-07-31 2,542 1
2021-07-31 2,814 604 254 7
2020-07-31 2,682 627 267 9
2019-07-31 2,576 660 222 10
ASX:TPM Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-01-31 2,476 701 245
2018-10-31 2,486 688 321
2018-07-31 2,495 674 397
2018-04-30 2,501 671 393
2018-01-31 2,504 668 388
2017-10-31 2,497 695 401
2017-07-31 2,491 723 414
2017-04-30 2,484 715 407
2017-01-31 2,477 707 401
2016-10-31 2,432 664 390
2016-07-31 2,388 620 380
2016-04-30 2,092 541 350

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TPG Telecom's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • TPG Telecom's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
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:TPM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from TPG Telecom Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TPM Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-07-31
2021-07-31 0.21 0.27 0.16 4.00
2020-07-31 0.29 0.42 0.23 6.00
2019-07-31 0.24 0.44 0.05 6.00
ASX:TPM Past Financials Data
Date (Data in AUD Millions) EPS *
2019-01-31 0.26
2018-10-31 0.35
2018-07-31 0.43
2018-04-30 0.43
2018-01-31 0.43
2017-10-31 0.45
2017-07-31 0.48
2017-04-30 0.48
2017-01-31 0.47
2016-10-31 0.46
2016-07-31 0.45
2016-04-30 0.42

*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.
  • TPG Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess TPG Telecom'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.
TPG Telecom 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.

TPM Past Performance

  How has TPG Telecom 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 TPG Telecom'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.
  • TPG Telecom's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • TPG Telecom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TPG Telecom's 1-year earnings growth is negative, it can't be compared to the AU Telecom industry average.
Earnings and Revenue History
TPG Telecom'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 TPG Telecom Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TPM Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 2,476.40 245.20
2018-10-31 2,485.80 321.05
2018-07-31 2,495.20 396.90
2018-04-30 2,500.65 392.60
2018-01-31 2,503.50 388.40
2017-10-31 2,497.10 401.10
2017-07-31 2,490.70 413.80
2017-04-30 2,483.65 407.45
2017-01-31 2,476.60 401.10
2016-10-31 2,432.20 390.35
2016-07-31 2,387.80 379.60
2016-04-30 2,092.05 349.75
2016-01-31 1,796.30 319.90
2015-10-31 1,533.45 272.00
2015-07-31 1,270.60 224.10
2015-04-30 1,237.12 206.20
2015-01-31 1,203.65 188.30
2014-10-31 1,087.27 180.00
2014-07-31 970.90 171.70
2014-04-30 866.47 166.34
2014-01-31 762.05 160.97
2013-10-31 743.29 155.07
2013-07-31 724.53 149.17
2013-04-30 710.10 131.38
2013-01-31 695.67 113.60
2012-10-31 679.40 102.28
2012-07-31 663.14 90.96

*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.
  • TPG Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TPG Telecom used its assets more efficiently than the AU Telecom industry average last year based on Return on Assets.
  • TPG Telecom has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TPG Telecom'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.
TPG Telecom has a total score of 3/6, 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.

TPM Health

 How is TPG Telecom'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 TPG Telecom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TPG Telecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TPG Telecom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TPG Telecom'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 0.1x 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 TPG Telecom Company Filings, last reported 5 months ago.

ASX:TPM Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 2,804.70 1,570.80 44.00
2018-10-31 2,804.70 1,570.80 44.00
2018-07-31 2,784.20 1,301.10 82.20
2018-04-30 2,784.20 1,301.10 82.20
2018-01-31 2,594.90 1,440.10 79.80
2017-10-31 2,594.90 1,440.10 79.80
2017-07-31 2,399.30 872.40 46.30
2017-04-30 2,399.30 872.40 46.30
2017-01-31 1,883.30 1,280.90 44.70
2016-10-31 1,883.30 1,280.90 44.70
2016-07-31 1,779.20 1,315.80 178.30
2016-04-30 1,779.20 1,315.80 178.30
2016-01-31 1,651.60 1,420.10 174.00
2015-10-31 1,651.60 1,420.10 174.00
2015-07-31 1,003.20 327.70 175.30
2015-04-30 1,003.20 327.70 175.30
2015-01-31 907.99 318.13 93.75
2014-10-31 907.99 318.13 93.75
2014-07-31 832.40 346.70 123.00
2014-04-30 832.40 346.70 123.00
2014-01-31 778.84 0.00 146.34
2013-10-31 778.84 0.00 146.34
2013-07-31 715.97 38.83 107.31
2013-04-30 715.97 38.83 107.31
2013-01-31 659.44 90.86 79.29
2012-10-31 659.44 90.86 79.29
2012-07-31 590.78 143.87 61.39
  • TPG Telecom's level of debt (56.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.5% vs 56.6% today).
  • Debt is well covered by operating cash flow (44.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 49.7x coverage).
X
Financial health checks
We assess TPG Telecom'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. TPG Telecom 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.

TPM Dividends

 What is TPG Telecom'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
0.61%
Current annual income from TPG Telecom dividends. Estimated to be 0.8% next year.
If you bought A$2,000 of TPG Telecom shares you are expected to receive A$12 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?
  • TPG Telecom's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • TPG Telecom'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:TPM 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 10 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:TPM Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-07-31 0.02 1.00
2021-07-31 0.06 7.00
2020-07-31 0.05 9.00
2019-07-31 0.05 9.00
ASX:TPM Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-03-18 0.040 0.606
2018-09-17 0.040 0.555
2017-09-19 0.100 1.718
2017-03-20 0.160 2.764
2016-10-20 0.150 2.192
2016-09-19 0.150 1.797
2016-03-21 0.140 1.185
2015-10-15 0.120 1.176
2015-09-21 0.120 1.127
2015-03-23 0.110 1.203
2014-09-22 0.095 1.329
2014-03-24 0.090 1.534
2013-10-11 0.080 1.625
2013-09-16 0.080 1.857
2013-03-18 0.070 1.998
2012-10-11 0.055 2.187
2012-09-17 0.055 2.464
2012-03-20 0.055 2.973
2011-09-20 0.045 3.158
2011-03-22 0.045 2.839
2010-09-21 0.040 2.666
2010-03-23 0.040 2.039
2009-09-22 0.030 1.971
2009-03-24 0.000 0.000
2008-09-23 0.000 0.000

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

  • TPG Telecom is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • TPG Telecom is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of TPG Telecom's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of TPG Telecom's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of TPG Telecom's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess TPG Telecom'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 TPG Telecom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TPG Telecom has a total score of 0/6, see the detailed checks below.


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

TPM Management

 What is the CEO of TPG Telecom'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
David Teoh
COMPENSATION A$3,407,000
AGE 64
CEO Bio

Mr. David Teoh has been the Chief Executive Officer of TPG Telecom Limited (formerly, SP Telecommunications Ltd.) since April 7, 2008 and TPG Holdings Pty Ltd. since 1986. Mr. Teoh is the founder and Chief Executive Officer of the TPG group of companies. He has been the Executive Chairman and Director for TPG Telecom Limited since April 21, 2008 and April 7, 2008 respectively. He serves as the Executive Chairman and Director of TPG Soul Group of TPG Internet Pty Ltd. He has been a Director of iiNet Ltd. since August 25, 2015. He has been a Director of Pipe Networks Pty Limited since March 17, 2010. He serves as a Director of SPTCom Pty Ltd. Mr. Teoh served as a Director of IntraPower Limited.

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

David Teoh

TITLE
Executive Chairman & CEO
COMPENSATION
A$3M
AGE
64

Stephen Banfield

TITLE
CFO & Company Secretary
COMPENSATION
A$1M

Craig Levy

TITLE
Chief Operating Officer
COMPENSATION
A$1M

Mandie De Ville

TITLE
Chief Information Officer
COMPENSATION
A$654K

Tony Moffatt

TITLE
General Counsel
COMPENSATION
A$897K

Wayne Springer

TITLE
General Manager of Corporate Products & Pricing

Mark Rafferty

TITLE
Group Executive of Corporate
COMPENSATION
A$1M
Board of Directors Tenure

Average tenure and age of the TPG Telecom board of directors in years:

11.3
Average Tenure
66
Average Age
  • The average tenure for the TPG Telecom board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

David Teoh

TITLE
Executive Chairman & CEO
COMPENSATION
A$3M
AGE
64
TENURE
11.3 yrs

Denis Ledbury

TITLE
Independent Non-Executive Director
COMPENSATION
A$110K
AGE
69
TENURE
19.5 yrs

Rob Millner

TITLE
Non-Executive Director
COMPENSATION
A$99K
AGE
68
TENURE
19.5 yrs

Joseph Pang

TITLE
Independent Non-Executive Director
COMPENSATION
A$99K
AGE
66
TENURE
11.3 yrs

Shane Teoh

TITLE
Non-Executive Director
COMPENSATION
A$93K
AGE
33
TENURE
7.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
X
Management checks
We assess TPG Telecom'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. TPG Telecom 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.

TPM News

Simply Wall St News

Why We’re Not Impressed By TPG Telecom Limited’s (ASX:TPM) 13% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

What Should You Know About TPG Telecom Limited's (ASX:TPM) Capital Returns?

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in TPG Telecom, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … What is Return on Capital Employed (ROCE)?

Simply Wall St -

Has TPG Telecom Limited (ASX:TPM) Improved Earnings In Recent Times?

After looking at TPG Telecom Limited's (ASX:TPM) latest earnings announcement (31 January 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … How Did TPM's Recent Performance Stack Up Against Its Past. … TPM's trailing twelve-month earnings (from 31 January 2018) of AU$388.50m has

Simply Wall St -

Should You Be Tempted To Buy TPG Telecom Limited (ASX:TPM) At Its Current PE Ratio?

Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will explain what the P/E ratio is as well as what you should look out for when using it … Demystifying the P/E ratio

Simply Wall St -

Who Owns TPG Telecom Limited (ASX:TPM)?

In this analysis, my focus will be on developing a perspective on TPG Telecom Limited’s (ASX:TPM) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … ASX:TPM Ownership Summary July 16th 18

Simply Wall St -

What Investors Should Know About TPG Telecom Limited's (ASX:TPM) Financial Strength

Let’s take a look at TPM’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further. … View out our latest analysis for TPG Telecom

Simply Wall St -

Does TPG Telecom Limited's (ASX:TPM) PE Ratio Signal A Selling Opportunity?

slightly lower than the 21.78x average multiple of the Telecom. … However, a static multiple such as PE is never conclusive on its own. … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

Is There Now An Opportunity In TPG Telecom Limited (ASX:TPM)?

TPG Telecom Limited (ASX:TPM), a telecom company based in Australia, saw a decent share price growth in the teens level on the ASX over the last few months. … Great news for investors – TPG Telecom is still trading at a fairly cheap price. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Will TPG Telecom Limited (ASX:TPM) Continue To Underperform Its Industry?

View our latest analysis for TPG Telecom Breaking down Return on Equity Return on Equity (ROE) is a measure of TPG Telecom’s profit relative to its shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:TPM Last Perf May 1st 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Should You Be Tempted To Buy TPG Telecom Limited (ASX:TPM) Because Of Its PE Ratio?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TPM Price per share = A$5.25 Earnings per share = A$0.43 ∴ Price-Earnings Ratio = A$5.25 ÷ A$0.43 = 12.2x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … TPM’s P/E of 12.2x is lower than its industry peers (20.7x), which implies that each dollar of TPM’s earnings is being undervalued by investors.

Simply Wall St -

TPM Company Info

Description

TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally. The company offers ADSL2+, NBN, fiber optic and Ethernet broadband access, telephony services, Internet protocol television, SIM only mobile plans, and various business networking solutions. It also provides various bundle plans; Internet products, including broadband off-net; POP3 and Internet message access protocol email accounts; phone cards; and video surveillance and business VOIP products. In addition, it offers dark fiber, point-to-point Ethernet, Ethernet multipoint connectivity, and Internet protocol virtual private network, and wavelength services; SIP and inbound voice, ISDN PRI and PSTN, and BizPhone services; and private cloud, virtual data center, national AWS connect, and co-location services. The company was formerly known as SP Telemedia Limited and changed its name to TPG Telecom Limited in December 2009. TPG Telecom Limited was incorporated in 2000 and is headquartered in North Ryde, Australia.

Details
Name: TPG Telecom Limited
TPM
Exchange: ASX
Founded: 2000
A$6,086,443,394
927,811,493
Website: http://www.tpg.com.au
Address: TPG Telecom Limited
65 Waterloo Road,
North Ryde,
New South Wales, 2113,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TPM Ordinary Shares Australian Securities Exchange AU AUD 10. May 2001
DB YST Ordinary Shares Deutsche Boerse AG DE EUR 10. May 2001
CHIA TPM Ordinary Shares Chi-X Australia AU AUD 10. May 2001
Number of employees
Current staff
Staff numbers
5,056
TPG Telecom employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 10:34
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/03/18
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


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.