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
Flawless balance sheet and undervalued.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StIs Now An Opportune Moment To Examine Telit Communications PLC (LON:TCM)?
3 weeks ago | Simply Wall StTelit Communications PLC's (LON:TCM) Earnings Haven't Escaped The Attention Of Investors
1 month ago | Simply Wall StWe're Not Counting On Telit Communications (LON:TCM) To Sustain Its Statutory Profitability
Is Telit Communications undervalued compared to its fair value and its price relative to the market?
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).
How is Telit Communications forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
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
How has Telit Communications performed over the past 5 years?
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.
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 ($30.9M).
Debt to Equity History and Analysis
Debt Level: TCM's debt to equity ratio (23.7%) is considered satisfactory.
Reducing Debt: TCM's debt to equity ratio has reduced from 35.9% to 23.7% over the past 5 years.
Debt Coverage: TCM's debt is well covered by operating cash flow (147%).
Interest Coverage: TCM's interest payments on its debt are well covered by EBIT (16.9x coverage).
What is Telit Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TCM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TCM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TCM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TCM is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TCM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paolo Pino (57 yo)
Mr. Paolo Dal Pino has been Chief Executive Officer of Telit Communications PLC since May 22, 2019 and serves as its Director. He served as Executive Chairman at Telit Communications PLC from September 201 ...
CEO Compensation Analysis
Compensation vs Market: Paolo's total compensation ($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.
|CEO & Director||1.33yrs||US$1.25m||0.41% |
|CFO & Director||no data||no data||no data|
|Chief Operating Officer||no data||no data||no data|
|President of Sales||4.42yrs||no data||no data|
|Chief Marketing & Product Officer||1.58yrs||no data||no data|
|Vice President of Human Resource||1.92yrs||no data||no data|
|Chief Strategy Officer||no data||no data||no data|
|Senior Vice President of Global Services Sales||4.75yrs||no data||no data|
|Head of the Connectivity Business Unit||no data||no data||no data|
|Head of Global R&D||0.83yr||no data||no data|
|Head of Platforms Business Unit||0.083yr||no data||no data|
|President of APAC||no data||no data||no data|
Experienced Management: TCM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
|CEO & Director||1.33yrs||US$1.25m||0.41% |
|CFO & Director||no data||no data||no data|
|Independent Non-Executive Chairman of the Board||1.33yrs||US$129.00k||0.033% |
|Independent Non-Executive Director||0.92yr||US$8.00k||0.0068% |
|Independent Non-Executive Director||1.17yrs||US$19.00k||no data|
|Independent Non-Executive Director||1.92yrs||US$45.00k||0.33% |
|Independent Senior Non-Executive Director||1yr||US$61.00k||no data|
|Non-Executive Director||0.25yr||no data||no data|
Experienced Board: TCM's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Telit Communications PLC's company bio, employee growth, exchange listings and data sources
- 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
- Telit Communications PLC
- Cannon Place
- 78 Cannon Street
- Greater London
- EC4N 6AF
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TCM||AIM (London Stock Exchange AIM Market)||Yes||Ordinary Shares||GB||GBP||Apr 2005|
|TTCN.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Apr 2005|
|TEF||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Apr 2005|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/20 04:04|
|End of Day Share Price||2020/09/18 00:00|
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.