AIM:TCM

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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 Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


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: TCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

TCM

2.6%

GB Communications

0.1%

GB Market


1 Year Return

-16.7%

TCM

44.1%

GB Communications

-14.0%

GB Market

Return vs Industry: TCM underperformed the UK Communications industry which returned 44.1% over the past year.

Return vs Market: TCM underperformed the UK Market which returned -14% over the past year.


Shareholder returns

TCMIndustryMarket
7 Day-4.6%2.6%0.1%
30 Day-6.6%-0.7%0.2%
90 Day13.1%17.7%-1.8%
1 Year-16.7%-16.7%45.9%44.1%-10.6%-14.0%
3 Year-31.7%-31.7%129.5%116.4%-4.5%-16.0%
5 Year-58.9%-60.4%126.2%107.4%22.5%-4.8%

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

Valuation

Is Telit Communications 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: TCM (£1.36) is trading below our estimate of fair value (£3.33)

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


Price To Earnings Ratio

PE vs Industry: TCM is good value based on its PE Ratio (22.8x) compared to the GB Communications industry average (24.3x).

PE vs Market: TCM is poor value based on its PE Ratio (22.8x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TCM is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TCM is good value based on its PB Ratio (1.7x) compared to the GB Communications industry average (1.8x).


Next Steps

Future Growth

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

43.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCM's forecast earnings growth (43.8% per year) is above the savings rate (1.2%).

Earnings vs Market: TCM's earnings (43.8% per year) are forecast to grow faster than the UK market (23.7% per year).

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

Revenue vs Market: TCM's revenue (10% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: TCM's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TCM'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?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCM has a large one-off loss of $6.7M impacting its June 30 2020 financial results.

Growing Profit Margin: TCM's current net profit margins (2.8%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: TCM's earnings have grown by 1.7% per year over the past 5 years.

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

Earnings vs Industry: TCM had negative earnings growth (-52.5%) over the past year, making it difficult to compare to the Communications industry average (6.1%).


Return on Equity

High ROE: TCM's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Telit Communications's financial position?


Financial Position Analysis

Short Term Liabilities: TCM's short term assets ($201.9M) exceed its short term liabilities ($126.2M).

Long Term Liabilities: TCM's short term assets ($201.9M) exceed its long term liabilities ($30.9M).


Debt to Equity History and Analysis

Debt Level: TCM's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: TCM's debt to equity ratio has reduced from 35.9% to 23.7% over the past 5 years.

Debt Coverage: TCM's debt is well covered by operating cash flow (147%).

Interest Coverage: TCM's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TCM is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Paolo Pino (57 yo)

1.33yrs

Tenure

US$1,250,000

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 ($USD1.25M) is above average for companies of similar size in the UK market ($USD685.32K).

Compensation vs Earnings: Paolo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Pino
CEO & Director1.33yrsUS$1.25m0.41%
$ 734.4k
Eyal Shefer
CFO & Directorno datano datano data
Itzik Molcho
Chief Operating Officerno datano datano data
Carlos Perez
President of Sales4.42yrsno datano data
Manish Watwani
Chief Marketing & Product Officer1.58yrsno datano data
Sharon Arad-Tzuk
Vice President of Human Resource1.92yrsno datano data
Yossi Moscovitz
Chief Strategy Officerno datano datano data
Gideon Rogovsky
Senior Vice President of Global Services Sales4.75yrsno datano data
Tomer Lavie
Head of the Connectivity Business Unitno datano datano data
Antonino Sgroi
Head of Global R&D0.83yrno datano data
Ricardo Buranello
Head of Platforms Business Unit0.083yrno datano data
Derick Tsang
President of APACno datano datano data

1.6yrs

Average Tenure

57yo

Average Age

Experienced Management: TCM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paolo Pino
CEO & Director1.33yrsUS$1.25m0.41%
$ 734.4k
Eyal Shefer
CFO & Directorno datano datano data
Simon Duffy
Independent Non-Executive Chairman of the Board1.33yrsUS$129.00k0.033%
$ 59.8k
Anthony Dixon
Independent Non-Executive Director0.92yrUS$8.00k0.0068%
$ 12.3k
Marco Emilio Patuano
Independent Non-Executive Director1.17yrsUS$19.00kno data
Harald Rösch
Independent Non-Executive Director1.92yrsUS$45.00k0.33%
$ 591.6k
Gil Sharon
Independent Senior Non-Executive Director1yrUS$61.00kno data
Yuxiang Yang
Non-Executive Director0.25yrno datano data

1.2yrs

Average Tenure

56yo

Average Age

Experienced Board: TCM's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Telit Communications PLC
  • Ticker: TCM
  • Exchange: AIM
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£180.924m
  • Shares outstanding: 133.03m
  • 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 Europe, the Middle East, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 04:04
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.