ASX:TCL

Stock Analysis Report

Executive Summary

Transurban Group develops, operates, manages, maintains, and finances urban toll road networks.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Transurban Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

TCL

-6.1%

AU Infrastructure

-6.2%

AU Market


1 Year Return

22.5%

TCL

21.0%

AU Infrastructure

7.9%

AU Market

Return vs Industry: TCL matched the Australian Infrastructure industry which returned 23.3% over the past year.

Return vs Market: TCL exceeded the Australian Market which returned 10.9% over the past year.


Shareholder returns

TCLIndustryMarket
7 Day-6.0%-6.1%-6.2%
30 Day-4.1%-3.5%-5.9%
90 Day-0.5%-0.2%-2.7%
1 Year27.5%22.5%26.0%21.0%12.6%7.9%
3 Year60.0%38.0%61.5%40.3%31.3%13.8%
5 Year107.2%63.2%104.9%63.9%42.6%10.6%

Price Volatility Vs. Market

How volatile is Transurban Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Transurban Group undervalued compared to its fair value and its price relative to the market?

178.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCL (A$15.41) is trading above our estimate of fair value (A$13.14)

Significantly Below Fair Value: TCL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCL is poor value based on its PE Ratio (179.8x) compared to the Infrastructure industry average (28.5x).

PE vs Market: TCL is poor value based on its PE Ratio (179.8x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TCL is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: TCL is overvalued based on its PB Ratio (4.9x) compared to the AU Infrastructure industry average (1.8x).


Next Steps

Future Growth

How is Transurban Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCL's forecast earnings growth (36.4% per year) is above the savings rate (1.1%).

Earnings vs Market: TCL's earnings (36.4% per year) are forecast to grow faster than the Australian market (9.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCL's revenue (2.3% per year) is forecast to grow slower than the Australian market (4.1% per year).

High Growth Revenue: TCL's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCL's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Transurban Group performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCL has a large one-off loss of A$11.0M impacting its December 31 2019 financial results.

Growing Profit Margin: TCL's current net profit margins (5.5%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: TCL's earnings have grown significantly by 34.3% per year over the past 5 years.

Accelerating Growth: TCL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCL had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Infrastructure industry average (-16.3%).


Return on Equity

High ROE: TCL's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Transurban Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCL's short term assets (A$2.3B) do not cover its short term liabilities (A$4.7B).

Long Term Liabilities: TCL's short term assets (A$2.3B) do not cover its long term liabilities (A$21.8B).


Debt to Equity History and Analysis

Debt Level: TCL's debt to equity ratio (208.6%) is considered high.

Reducing Debt: TCL's debt to equity ratio has increased from 174.9% to 208.6% over the past 5 years.

Debt Coverage: TCL's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: TCL's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: TCL has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCL's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Transurban Group's current dividend yield, its reliability and sustainability?

4.06%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.4%markettop25%5.7%industryaverage3.5%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: TCL's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: TCL's dividend (4.02%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).


Stability and Growth of Payments

Stable Dividend: TCL's dividends per share have been stable in the past 10 years.

Growing Dividend: TCL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (711.7%), TCL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCL's dividends in 3 years are not forecast to be well covered by earnings (405.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Scott Charlton (54yo)

7.6yrs

Tenure

AU$7,168,727

Compensation

Mr. Scott Charlton, BSci, BEng (Elec), MBA, Member of FEI, FTA, has been the Chief Executive Officer at Transurban Ltd., and Transurban Group since July 16, 2012. Mr. Charlton has been the Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD4.73M) is about average for companies of similar size in the Australian market ($USD3.69M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Charlton
CEO & Executive Director7.6yrsAU$7.17m0.069% A$29.0m
Adam Watson
Chief Financial Officer5.2yrsAU$2.01m0.0046% A$1.9m
Jennifer Aument
President of North America2yrsAU$2.01mno data
Andrew Head
Chief Executive Officer – WestConnex0yrsAU$947.19kno data
Anthony Adams
Group Executive of Project Delivery5.6yrsAU$1.65m0.0022% A$944.1k
Michele Huey
Group Executive of New South Wales5.1yrsAU$1.07m0.0057% A$2.4m
Tess Palmer
Head of Investor Relations0yrsno datano data
Julie Galligan
General Counsel & Joint Company Secretary8yrsno datano data
Sarah Chapman
Manager of Media & Communications0yrsno datano data
Suzette Corr
Group Executive of People & Culture0yrsno datano data

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: TCL's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Charlton
CEO & Executive Director7.6yrsAU$7.17m0.069% A$29.0m
Samantha Mostyn
Independent Non-Executive Director9.2yrsAU$250.00k0.0010% A$425.7k
Christine O'Reilly
Independent Non-Executive Director7.8yrsAU$255.00k0.0010% A$425.7k
Neil Chatfield
Independent Non-Executive Director11yrsAU$250.00k0.0024% A$1.0m
Terence Bowen
Non-Executive Director0yrsno datano data
Mark Birrell
Independent Non-executive Director1.8yrsAU$207.08k0.00022% A$92.7k
Elizabeth Wilson
Independent Non-executive Director3.1yrsAU$225.00k0.00050% A$210.7k
Peter Scott
Independent Non-Executive Director3.9yrsAU$230.00k0.0011% A$472.0k
Lindsay Maxsted
Independent Chairman of the Board9.5yrsAU$600.00k0.0033% A$1.4m

7.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TCL's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Company Information

Transurban Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transurban Group
  • Ticker: TCL
  • Exchange: ASX
  • Founded:
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: AU$42.147b
  • Shares outstanding: 2.74b
  • Website: https://www.transurban.com.au

Number of Employees


Location

  • Transurban Group
  • Tower Five
  • Level 31
  • Melbourne
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCLASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDApr 1996
TRAU.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDApr 1996
TU9DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURApr 1996
TCLCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDApr 1996
TU9DUSE (Dusseldorf Stock Exchange)YesStapled SecuritiesDEEURApr 1996

Biography

Transurban Group develops, operates, manages, maintains, and finances urban toll road networks. It holds 17 toll roads in Sydney, Melbourne, and Brisbane, Australia, as well as the Greater Washington area and Montreal, North America. The company is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:34
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.