ASX:TPM

Stock Analysis Report

Executive Summary

TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally.

Snowflake

Fundamentals

Fair value with acceptable track record.


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


Market Performance


7 Day Return

2.2%

ASX:TPM

-0.01%

AU Telecom

1.8%

AU Market


1 Year Return

-14.6%

ASX:TPM

7.2%

AU Telecom

2.2%

AU Market

TPM underperformed the Telecom industry which returned 2.6% over the past year.

TPM underperformed the Market in Australia which returned 1.9% over the past year.


Share holder returns

TPMIndustryMarket
7 Day2.2%-0.01%1.8%
30 Day-2.9%-3.1%-3.7%
90 Day5.6%1.3%1.1%
1 Year-14.2%-14.6%12.4%7.2%8.0%2.2%
3 Year-44.7%-46.8%-24.4%-34.0%32.9%15.6%
5 Year16.7%9.5%-9.4%-29.2%39.3%8.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

TPG Telecom is poor value based on expected growth next year.


Price Based on Value of Assets

TPG Telecom is overvalued based on assets compared to the AU Telecom industry average.


Next Steps

Future Growth

How is TPG Telecom expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TPG Telecom's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

TPG Telecom's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

TPG Telecom's revenue growth is positive but not above the Australia market average.

TPG Telecom's earnings growth is positive but not above the Australia market average.

TPG Telecom's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

TPG Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has TPG Telecom performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

TPG Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TPG Telecom used its assets more efficiently than the AU Telecom industry average last year based on Return on Assets.


Return on Capital Employed

TPG Telecom has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TPG Telecom's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

TPG Telecom's level of debt (56%) 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% today).

Debt is well covered by operating cash flow (44.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 49.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

0.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (5.8%).

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

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.


Next Steps

Management

What is the CEO of TPG Telecom's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average board tenure


CEO

David Teoh (64yo)

0.0yrs

Tenure

AU$3,407,000

Compensation

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 Chie ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in Australia.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

11.3yrs

Average Tenure

66yo

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.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • David Teoh (64yo)

    Executive Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: AU$3.41m
  • Stephen Banfield

    CFO & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: AU$1.05m
  • Mandie De Ville

    Chief Information Officer

    • Tenure: 0.0yrs
    • Compensation: AU$654.00k
  • Craig Levy

    Chief Operating Officer

    • Tenure: 0.0yrs
    • Compensation: AU$1.15m
  • Wayne Springer

    General Manager of Corporate Products & Pricing

    • Tenure: 0.0yrs
  • Tony Moffatt

    General Counsel

    • Tenure: 0.0yrs
    • Compensation: AU$897.00k
  • Mark Rafferty

    Group Executive of Corporate

    • Tenure: 0.0yrs
    • Compensation: AU$1.02m

Board Members

  • Rob Millner (68yo)

    Non-Executive Director

    • Tenure: 19.6yrs
    • Compensation: AU$99.00k
  • Denis Ledbury (69yo)

    Independent Non-Executive Director

    • Tenure: 19.6yrs
    • Compensation: AU$110.00k
  • David Teoh (64yo)

    Executive Chairman & CEO

    • Tenure: 0.0yrs
    • Compensation: AU$3.41m
  • Joseph Pang (66yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$99.00k
  • Shane Teoh (33yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$93.00k

Company Information

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


Key Information

  • Name: TPG Telecom Limited
  • Ticker: TPM
  • Exchange: ASX
  • Founded: 2000
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AU$6.068b
  • Shares outstanding: 927.81m
  • Website: https://www.tpg.com.au

Number of Employees


Location

  • TPG Telecom Limited
  • 65 Waterloo Road
  • North Ryde
  • New South Wales
  • 2113
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2001
YSTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2001
TPMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2001

Biography

TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 10:33
End of Day Share Price2019/08/23 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.