DB:TEF

Stock Analysis Report

Telit Communications

Executive Summary

Telit Communications PLC, together with its subsidiaries, provides a portfolio of integrated products and services to support and enable Internet of Things (IoT) deployments in the EMEA, the APAC, and the Americas.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Telit Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

TEF

4.2%

DE Communications

0.03%

DE Market


1 Year Return

9.9%

TEF

1.7%

DE Communications

9.9%

DE Market

Return vs Industry: TEF exceeded the German Communications industry which returned 1.7% over the past year.

Return vs Market: TEF matched the German Market which returned 9.9% over the past year.


Shareholder returns

TEFIndustryMarket
7 Day-1.6%4.2%0.03%
30 Day-10.2%4.0%4.4%
90 Day3.8%17.8%13.6%
1 Year9.9%9.9%2.3%1.7%13.4%9.9%
3 Year-39.9%-40.6%7.8%6.9%25.6%14.6%
5 Yearn/a62.6%59.8%36.9%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Telit Communications undervalued compared to its fair value and its price relative to the market?

12.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TEF (€1.79) is trading above our estimate of fair value (€0.95)

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


Price To Earnings Ratio

PE vs Industry: TEF is good value based on its PE Ratio (12.4x) compared to the Communications industry average (17.7x).

PE vs Market: TEF is good value based on its PE Ratio (12.4x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: TEF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TEF is good value based on its PB Ratio (2.1x) compared to the DE Communications industry average (2.4x).


Next Steps

Future Growth

How is Telit Communications forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-83.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEF's earnings are forecast to decline over the next 3 years (-83.6% per year).

Earnings vs Market: TEF's earnings are forecast to decline over the next 3 years (-83.6% per year).

High Growth Earnings: TEF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TEF's revenue is expected to decline over the next 3 years (-0.05% per year).

High Growth Revenue: TEF's revenue is forecast to decline over the next 3 years (-0.05% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TEF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Telit Communications performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEF has large one-off items impacting its financial results.

Growing Profit Margin: TEF's current net profit margins (5.1%) are higher than last year (-14.9%).


Past Earnings Growth Analysis

Earnings Trend: TEF's earnings have declined by -47.6% per year over the past 5 years.

Accelerating Growth: TEF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TEF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (21.6%).


Return on Equity

High ROE: TEF's Return on Equity (16.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Telit Communications's financial position?


Financial Position Analysis

Short Term Liabilities: TEF's short term assets ($215.3M) exceeds its short term liabilities ($147.3M)

Long Term Liabilities: TEF's short term assets (215.3M) exceeds its long term liabilities (37.1M)


Debt to Equity History and Analysis

Debt Level: TEF's debt to equity ratio (23.9%) is considered satisfactory

Reducing Debt: TEF's debt to equity ratio has reduced from 36.6% to 23.9% over the past 5 years.

Debt Coverage: TEF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TEF's interest payments on its debt are not well covered by EBIT (0.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: TEF's debt is covered by short term assets (assets are 7x debt).


Next Steps

Dividend

What is Telit Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.7%industryaverage3.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TEF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TEF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TEF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEF is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEF's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Paolo Pino (57yo)

0.5yrs

Tenure

US$249,000

Compensation

Mr. Paolo Dal Pino has been Chief Executive Officer of Telit Communications PLC since May 22, 2019 and serves as its Director. He served as Executive Chairman at Telit Communications PLC from September 201 ...


CEO Compensation Analysis

Compensation vs Market: Paolo's total compensation ($USD249.00K) is below average for companies of similar size in the German market ($USD506.61K).

Compensation vs Earnings: Insufficient data to compare Paolo's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TEF's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.5yrs

Average Tenure

56yo

Average Age

Experienced Board: TEF's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$536,54402 May 19
Harald Rösch
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares250,000
Max PriceUS$2.15

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Fred Yentz (54yo)

    President of Strategic Partnerships

    • Tenure: 0yrs
  • Yossi Moscovitz (62yo)

    Chief Strategy Officer

    • Tenure: 0yrs
  • Yariv Dafna (45yo)

    Finance Director

    • Tenure: 9.4yrs
    • Compensation: US$561.00k
  • Itzik Molcho

    Chief Operating Officer

    • Tenure: 0yrs
  • Paolo Pino (57yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$249.00k
  • Carlos Perez

    President of Sales

    • Tenure: 3.6yrs
  • Gideon Rogovsky

    Senior Vice President of Global Services Sales

    • Tenure: 3.9yrs
  • Tomer Lavie

    Senior Vice President of Sales for EMEA

    • Tenure: 0yrs
  • Manish Watwani

    Chief Marketing & Product Officer

    • Tenure: 0.8yrs
  • Sharon Arad-Tzuk

    Vice President of Human Resource

    • Tenure: 1.1yrs

Board Members

  • Simon Duffy (70yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: US$94.00k
  • Anthony Dixon (56yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Marco Emilio Patuano (55yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Harald Rösch (51yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: US$10.00k
  • Gil Sharon (56yo)

    Independent Senior Non-Executive Director

    • Tenure: 0.2yrs
    • Compensation: US$13.00k
  • Yariv Dafna (45yo)

    Finance Director

    • Tenure: 9.4yrs
    • Compensation: US$561.00k
  • Paolo Pino (57yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$249.00k

Company Information

Telit Communications PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telit Communications PLC
  • Ticker: TEF
  • Exchange: DB
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£209.121m
  • Listing Market Cap: UK£244.159m
  • Shares outstanding: 132.69m
  • Website: https://www.telit.com

Number of Employees


Location

  • Telit Communications PLC
  • Cannon Place
  • 78 Cannon Street
  • London
  • Greater London
  • EC4N 6AF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPApr 2005
TTCN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
TEFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005

Biography

Telit Communications PLC, together with its subsidiaries, provides a portfolio of integrated products and services to support and enable Internet of Things (IoT) deployments in the EMEA, the APAC, and the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:54
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.