AIM:TCM

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


Market Performance


7 Day Return

7.2%

TCM

2.0%

GB Communications

-0.4%

GB Market


1 Year Return

7.2%

TCM

38.4%

GB Communications

2.9%

GB Market

Return vs Industry: TCM underperformed the UK Communications industry which returned 38.4% over the past year.

Return vs Market: TCM exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

TCMIndustryMarket
7 Day7.2%2.0%-0.4%
30 Day8.3%-0.4%-1.4%
90 Day7.2%15.3%-2.1%
1 Year7.2%7.2%40.9%38.4%8.0%2.9%
3 Year-31.7%-32.5%59.6%50.2%18.0%3.6%
5 Year-21.4%-24.4%97.7%78.8%35.8%6.4%

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?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCM (£1.77) is trading below our estimate of fair value (£2.07)

Significantly Below Fair Value: TCM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TCM is good value based on its PE Ratio (13.9x) compared to the Communications industry average (16x).

PE vs Market: TCM is good value based on its PE Ratio (13.9x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TCM is overvalued based on its PB Ratio (2.3x) compared to the GB Communications industry average (1.6x).


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

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

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

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

High Growth Revenue: TCM'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 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?

-47.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TCM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (31.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: TCM's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: TCM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Telit Communications's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: TCM's debt is covered by short term assets (assets are 6.992720x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

0.8yrs

Average management tenure


CEO

Paolo Pino (57yo)

0.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

0.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TCM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: TCM's board of directors are not considered experienced ( 0.7 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$461,50002 May 19
Harald Rösch
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares250,000
Max PriceUS$1.85
BuyUS$330,78024 Oct 18
Paolo Pino
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares200,000
Max PriceUS$1.65

Ownership Breakdown


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: 9.3yrs
    • Compensation: US$561.00k
  • Itzik Molcho

    Chief Operating Officer

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

    CEO & Director

    • Tenure: 0.4yrs
    • Compensation: US$249.00k
  • Carlos Perez

    President of Sales

    • Tenure: 3.5yrs
  • Gideon Rogovsky

    Senior Vice President of Global Services Sales

    • Tenure: 3.8yrs
  • Tomer Lavie

    Senior Vice President of Sales for EMEA

    • Tenure: 0yrs
  • Manish Watwani

    Chief Marketing & Product Officer

    • Tenure: 0.7yrs
  • Sharon Arad-Tzuk

    Vice President of Human Resource

    • Tenure: 1yrs

Board Members

  • Simon Duffy (70yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$94.00k
  • Marco Emilio Patuano (55yo)

    Independent Non-Executive Director

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

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: US$10.00k
  • Gil Sharon (56yo)

    Independent Senior Non-Executive Director

    • Tenure: 0.08yrs
    • Compensation: US$13.00k
  • Yariv Dafna (45yo)

    Finance Director

    • Tenure: 9.3yrs
    • Compensation: US$561.00k
  • Paolo Pino (57yo)

    CEO & Director

    • Tenure: 0.4yrs
    • 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: TCM
  • Exchange: AIM
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: UK£234.598m
  • 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 Analysis2019/10/20 20:43
End of Day Share Price2019/10/18 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.