DB:TK6

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TalkTalk Telecom Group

Executive Summary

TalkTalk Telecom Group PLC provides telecommunications services to consumers and business to business customers in the United Kingdom.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TK6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

TK6

-0.4%

DE Telecom

0.2%

DE Market


1 Year Return

-25.7%

TK6

3.6%

DE Telecom

4.5%

DE Market

Return vs Industry: TK6 underperformed the German Telecom industry which returned 1.3% over the past year.

Return vs Market: TK6 underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

TK6IndustryMarket
7 Day-7.8%-0.4%0.2%
30 Day-17.8%3.5%6.4%
90 Day-12.5%19.2%16.9%
1 Year-23.6%-25.7%7.9%3.6%6.8%4.5%
3 Yearn/a1.6%-11.3%3.0%-5.0%
5 Yearn/a0.3%-18.6%9.9%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TK6 (€0.89) is trading below our estimate of fair value (€3.73)

Significantly Below Fair Value: TK6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TK6 is good value based on its PE Ratio (5.9x) compared to the XE Telecom industry average (19.1x).

PE vs Market: TK6 is good value based on its PE Ratio (5.9x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: TK6's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TK6 is overvalued based on its PB Ratio (2.2x) compared to the DE Telecom industry average (1.3x).


Next Steps

Future Growth

How is TalkTalk Telecom Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TK6's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: TK6's earnings are forecast to decline over the next 3 years (-17.4% per year).

High Growth Earnings: TK6's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TK6's revenue (0.2% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: TK6's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TK6's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has TalkTalk Telecom Group performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TK6 has high quality earnings.

Growing Profit Margin: TK6's current net profit margins (9.8%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: TK6's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: TK6's earnings growth over the past year (377.8%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: TK6 earnings growth over the past year (377.8%) exceeded the Telecom industry 9.9%.


Return on Equity

High ROE: Whilst TK6's Return on Equity (37.68%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is TalkTalk Telecom Group's financial position?


Financial Position Analysis

Short Term Liabilities: TK6's short term assets (£267.0M) do not cover its short term liabilities (£470.0M).

Long Term Liabilities: TK6's short term assets (£267.0M) do not cover its long term liabilities (£953.0M).


Debt to Equity History and Analysis

Debt Level: TK6's debt to equity ratio (195.3%) is considered high.

Reducing Debt: TK6's debt to equity ratio has reduced from 207.8% to 195.3% over the past 5 years.

Debt Coverage: TK6's debt is not well covered by operating cash flow (10%).

Interest Coverage: TK6's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

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

3.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TK6's dividend (3.14%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: TK6's dividend (3.14%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: TK6's dividend payments have been volatile in the past 10 years.

Growing Dividend: TK6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), TK6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TK6's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Tristia Harrison

3.25yrs

Tenure

UK£1,068,000

Compensation

Ms. Tristia Harrison has been the Chief Executive Officer at TalkTalk Telecom Group PLC since April 2017. Ms. Harrison has been an Executive Director of TalkTalk Telecom Group PLC since June 3, 2014. She h ...


CEO Compensation Analysis

Compensation vs Market: Tristia's total compensation ($USD1.35M) is about average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: Tristia's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Dunstone
Executive Chairman10.25yrsUK£382.00k29.91% £302.4m
Tristia Harrison
CEO & Executive Director3.25yrsUK£1.07m0.21% £2.1m
Kate Ferry
CFO & Director2.75yrsUK£856.00k0.012% £123.5k
Gary Steen
Managing Director of Technology6yrsno datano data
Tim Warrington
Head of Investor Relations2.5yrsno datano data
Timothy Morris
Group General Counsel & Company Secretaryno datano datano data
Daniel Kasmir
Chief People & Procurement Officer1.33yrsno datano data
Jonathan Kini
Managing Director of TalkTalk Business0.83yrno datano data
Nick Gunga
Chief Operating Officer of Consumer2.25yrsno datano data
Sian Doyle
Managing Director of Consumer0.50yrno datano data

2.5yrs

Average Tenure

Experienced Management: TK6's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Dunstone
Executive Chairman10.25yrsUK£382.00k29.91% £302.4m
Tristia Harrison
CEO & Executive Director3.25yrsUK£1.07m0.21% £2.1m
Kate Ferry
CFO & Director2.75yrsUK£856.00k0.012% £123.5k
Howard Stringer
Independent Non-Executive Director8yrsUK£53.00kno data
John Gildersleeve
Independent Deputy Chairman7.17yrsUK£80.00k0.025% £257.8k
Roger Taylor
Non-Executive Director4.67yrsUK£52.00k0.99% £10.0m
Nigel Langstaff
Independent Non-Executive Director2.67yrsUK£60.00k0.026% £264.8k
Ian West
Senior Independent Non-Executive Director7.17yrsUK£81.00k0.032% £322.2k
Paul Reynolds
Independent Non-Executive Director0.25yrno datano data
Phil Jordan
Independent Non-Executive Director1.75yrsUK£58.00k0.0037% £37.8k

5.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: TK6's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TK6 insiders have bought more shares than they have sold 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

TalkTalk Telecom Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TalkTalk Telecom Group PLC
  • Ticker: TK6
  • Exchange: DB
  • Founded: 2002
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: UK£911.018m
  • Listing Market Cap: UK£1.011b
  • Shares outstanding: 1.14b
  • Website: https://www.talktalkgroup.com

Number of Employees


Location

  • TalkTalk Telecom Group PLC
  • Soapworks
  • Ordsdall Lane
  • Salford
  • M5 3TT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TALKLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2010
TLKT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2010
TALKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2010
TK6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
TKTC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2010

Biography

TalkTalk Telecom Group PLC provides telecommunications services to consumers and business to business customers in the United Kingdom. It offers fiber, broadband, landline, TV, and mobile services under the TalkTalk and TalkTalk Business brands. Its products include HomeSafe, a home filtering service for residential customers; WorkSafe that provides protection for internet devices to business customers; SuperSafe, which offers protection from viruses and malwares; CallSafe, a security feature that screens inbound calls; and TalkSafe, a way of identifying a customer when they call using their voice. TalkTalk Telecom Group PLC was founded in 2002 and is based in Salford, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:43
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.