BATS-CHIXE:TLT1VH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Teleste Corporation provides video and broadband solutions, and network services in Finland and internationally. More Details


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TLT1VH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

TLT1VH

-3.3%

GB Communications

-5.1%

GB Market


1 Year Return

-33.0%

TLT1VH

41.3%

GB Communications

-20.0%

GB Market

Return vs Industry: TLT1VH underperformed the UK Communications industry which returned 39.9% over the past year.

Return vs Market: TLT1VH underperformed the UK Market which returned -19.3% over the past year.


Shareholder returns

TLT1VHIndustryMarket
7 Day2.9%-3.3%-5.1%
30 Day-1.3%-1.4%-4.3%
90 Day-8.4%-3.0%-4.5%
1 Year-33.0%-33.0%43.0%41.3%-17.0%-20.0%
3 Year-48.1%-50.6%120.0%107.7%-13.6%-24.3%
5 Year-40.4%-46.6%152.4%131.8%10.2%-14.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLT1VH (€3.94) is trading below our estimate of fair value (€5.78)

Significantly Below Fair Value: TLT1VH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLT1VH is poor value based on its PE Ratio (28.6x) compared to the GB Communications industry average (22.7x).

PE vs Market: TLT1VH is poor value based on its PE Ratio (28.6x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TLT1VH is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TLT1VH is good value based on its PB Ratio (1.2x) compared to the GB Communications industry average (1.6x).


Next Steps

Future Growth

How is Teleste forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

88.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLT1VH's forecast earnings growth (88.9% per year) is above the savings rate (1.2%).

Earnings vs Market: TLT1VH's earnings (88.9% per year) are forecast to grow faster than the UK market (23.8% per year).

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

Revenue vs Market: TLT1VH's revenue (5% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: TLT1VH's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLT1VH's Return on Equity is forecast to be low in 3 years time (17.6%).


Next Steps

Past Performance

How has Teleste performed over the past 5 years?

-32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLT1VH has a large one-off gain of €1.0M impacting its September 30 2020 financial results.

Growing Profit Margin: TLT1VH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TLT1VH's earnings have declined by 32.1% per year over the past 5 years.

Accelerating Growth: TLT1VH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TLT1VH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-39.2%).


Return on Equity

High ROE: TLT1VH's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Teleste's financial position?


Financial Position Analysis

Short Term Liabilities: TLT1VH's short term assets (€86.5M) exceed its short term liabilities (€50.8M).

Long Term Liabilities: TLT1VH's short term assets (€86.5M) exceed its long term liabilities (€28.9M).


Debt to Equity History and Analysis

Debt Level: TLT1VH's debt to equity ratio (37.4%) is considered satisfactory.

Reducing Debt: TLT1VH's debt to equity ratio has reduced from 48.3% to 37.4% over the past 5 years.

Debt Coverage: TLT1VH's debt is well covered by operating cash flow (70.5%).

Interest Coverage: TLT1VH's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Teleste current dividend yield, its reliability and sustainability?

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TLT1VH's dividend (2.5%) is higher than the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: TLT1VH's dividend (2.5%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: TLT1VH's dividend payments have been volatile in the past 10 years.

Growing Dividend: TLT1VH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.4%), TLT1VH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLT1VH's dividends in 3 years are forecast to be well covered by earnings (18.3% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Jukka Rinnevaara (59 yo)

17.92yrs

Tenure

€535,000

Compensation

Mr. Jukka Rinnevaara, M.Sc. (Econ.) serves as Independent Director of Vaisala Oyj since March 26, 2019. He has been the Chief Executive Officer and President of Teleste Corporation since November 01, 2002 ...


CEO Compensation Analysis

Compensation vs Market: Jukka's total compensation ($USD623.47K) is above average for companies of similar size in the UK market ($USD349.56K).

Compensation vs Earnings: Jukka's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jukka Rinnevaara
President & CEO17.92yrs€535.00k0.57%
€ 417.5k
Juha Hyytiäinen
Chief Financial Officer6.75yrsno data0.046%
€ 33.8k
Markus Mattila
Senior Vice President of Operations12.58yrsno data0.059%
€ 43.2k
Esa Harju
Senior Vice President of Video Security & Information3.83yrsno data0.061%
€ 44.2k
Johan Slotte
Deputy CEO & Head of Corporate Business Development and Legal Affairsno datano data0.061%
€ 44.2k
Mika Kavanti
Vice President of Marketing and Channel Sales9.17yrsno datano data
Tuomas Vanne
Senior Vice President of People & Competence1.75yrsno datano data
Hanno Narjus
Senior Vice President of Network Products13.75yrsno data0.038%
€ 27.8k
Pasi Järvenpää
Senior Vice President of Research & Development7.75yrsno data0.025%
€ 18.6k

8.5yrs

Average Tenure

53yo

Average Age

Experienced Management: TLT1VH's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kai Telanne
Independent Director12.5yrs€32.00k0.14%
€ 100.9k
Heikki Mäkijärvi
Independent Director2.5yrs€32.00k0.022%
€ 16.3k
Timo Luukkainen
Chairman of the Board0.50yr€32.00k0.037%
€ 27.3k
Jussi Himanen
Independent Director1.5yrs€32.00k0.012%
€ 8.7k
Vesa Korpimies
Non-Independent Director1.5yrs€33.00k0.017%
€ 12.7k
Mirel Leino
Director0.50yrno datano data

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: TLT1VH's board of directors are not considered experienced ( 1.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Teleste Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teleste Corporation
  • Ticker: TLT1VH
  • Exchange: BATS-CHIXE
  • Founded: 1954
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €72.837m
  • Shares outstanding: 18.21m
  • Website: https://www.teleste.com

Number of Employees


Location

  • Teleste Corporation
  • Telestenkatu 1
  • Littoinen
  • Finland Proper
  • 20660
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLT1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURMar 1999
TS6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1999
0K1QLSE (London Stock Exchange)YesOrdinary SharesGBEURMar 1999
TLT1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 1999

Biography

Teleste Corporation provides video and broadband solutions, and network services in Finland and internationally. The company’s Video and Broadband Solutions segment focuses on product solutions for broadba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 19:36
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
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.