ASX:TCL

Stock Analysis Report

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Executive Summary

Transurban Group develops, operates, manages, and maintains toll road networks. More Details


Snowflake Analysis

Moderate growth potential unattractive 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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TCL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

TCL

-2.4%

AU Infrastructure

-0.06%

AU Market


1 Year Return

-8.0%

TCL

-8.2%

AU Infrastructure

1.0%

AU Market

Return vs Industry: TCL matched the Australian Infrastructure industry which returned -8.2% over the past year.

Return vs Market: TCL underperformed the Australian Market which returned 1% over the past year.


Shareholder returns

TCLIndustryMarket
7 Day-1.9%-2.4%-0.06%
30 Day0.8%4.2%9.3%
90 Day-1.8%-0.7%12.0%
1 Year-5.0%-8.0%-5.2%-8.2%4.4%1.0%
3 Year29.0%12.5%26.4%10.9%23.9%8.5%
5 Year72.6%37.9%69.8%36.9%60.2%27.7%

Long-Term 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?

4.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TCL (A$13.89) is trading above our estimate of fair value (A$9.5)

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


Price To Earnings Ratio

PE vs Industry: TCL is unprofitable, so we can't compare its PE Ratio to the XO Infrastructure industry average.

PE vs Market: TCL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TCL is overvalued based on its PB Ratio (4.8x) compared to the AU Infrastructure industry average (1.7x).


Next Steps

Future Growth

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

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: TCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TCL's is expected to become profitable in the next 3 years.

Revenue vs Market: TCL's revenue (4.4% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: TCL's revenue (4.4% 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 (10.6%).


Next Steps

Past Performance

How has Transurban Group performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCL is currently unprofitable.

Growing Profit Margin: TCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TCL is unprofitable, but has reduced losses over the past 5 years at a rate of 15.2% per year.

Accelerating Growth: Unable to compare TCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TCL is unprofitable, making it difficult to compare its past year earnings growth to the Infrastructure industry (-22.4%).


Return on Equity

High ROE: TCL has a negative Return on Equity (-1.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Transurban Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCL's short term assets (A$2.8B) do not cover its short term liabilities (A$3.9B).

Long Term Liabilities: TCL's short term assets (A$2.8B) do not cover its long term liabilities (A$23.9B).


Debt to Equity History and Analysis

Debt Level: TCL's debt to equity ratio (247.6%) is considered high.

Reducing Debt: TCL's debt to equity ratio has increased from 206.8% to 247.6% over the past 5 years.

Debt Coverage: TCL's debt is not well covered by operating cash flow (5.2%).

Interest Coverage: TCL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCL's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: TCL's dividend (3.38%) is low compared to the top 25% of dividend payers in the Australian market (5.02%).


Stability and Growth of Payments

Stable Dividend: TCL's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: TCL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: TCL's dividends in 3 years are not forecast to be well covered by earnings (240.8% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Scott Charlton (56 yo)

8.42yrs

Tenure

AU$4,548,568

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 and serves as Chief Executive Officer of Tr...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD3.39M) is about average for companies of similar size in the Australian market ($USD3.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Charlton
CEO & Executive Director8.42yrsAU$4.55m0.013%
A$ 4.9m
Jennifer Aument
President of North America & GM of North America7.5yrsAU$1.58m0.00051%
A$ 193.4k
Henry Byrne
Group General Manager of Corporate Affairs3.42yrsAU$404.28k0.00029%
A$ 110.0k
Sue Johnson
Group Executive of Queensland2.83yrsAU$1.26m0.0033%
A$ 1.3m
Michele Huey
Group Executive of New South Wales5.92yrsAU$1.08m0.0069%
A$ 2.6m
Tom McKay
Interim CFO and GM of Treasury & Capital Markets0.083yrno datano data
Tess Palmer
Head of Investor Relationsno datano datano data
Julie Galligan
General Counsel & Joint Company Secretary8.83yrsno datano data
Sarah Chapman
Manager of Media & Communicationsno datano datano data
Suzette Corr
Group Executive of People & Cultureno datano datano data
Andrew Head
Chief Executive Officer of WestConnex2.25yrsAU$947.19kno data
Tim Salathiel
Head of Group Communicationsno datano datano data

4.7yrs

Average Tenure

Experienced Management: TCL's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Charlton
CEO & Executive Director8.42yrsAU$4.55m0.013%
A$ 4.9m
Françoise Bertrand
Member of North American Advisory Board0.92yrno datano data
Samantha Mostyn
Independent Non-Executive Director10yrsAU$250.00k0.0010%
A$ 386.9k
Neil Chatfield
Independent Non-Executive Director11.83yrsAU$250.00k0.0024%
A$ 914.1k
Robert Whitfield
Independent Non-Executive Director0.083yrno datano data
Terence Bowen
Independent Non-Executive Director0.83yrAU$85.42k0.0015%
A$ 557.5k
Mark Birrell
Independent Non-Executive Director2.58yrsAU$230.00k0.00045%
A$ 170.7k
Timothy Reed
Independent Non-Executive Director0.083yrno datano data
Elizabeth Wilson
Independent Non-Executive Director3.92yrsAU$225.00k0.00050%
A$ 189.6k
Peter Scott
Independent Non-Executive Director4.75yrsAU$230.00k0.0011%
A$ 428.6k
Lindsay Maxsted
Independent Non-Executive Chairman of the Board10.33yrsAU$600.00k0.0033%
A$ 1.3m

3.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TCL's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TCL insiders have sold more shares than they have bought 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

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$37.929b
  • 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, and maintains toll road networks. It operates 20 toll roads in Sydney, Melbourne, and Brisbane in Australia; the Greater Washington area of Virginia, the Unite...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 07:01
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.