| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
TEP Stock Overview
Telecom Plus Plc provides a range of utility services in the United Kingdom.
Telecom Plus Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£14.88 |
| 52 Week High | UK£16.52 |
| 52 Week Low | UK£9.94 |
| Beta | 0.095 |
| 1 Month Change | -5.10% |
| 3 Month Change | 18.47% |
| 1 Year Change | 10.71% |
| 3 Year Change | 5.23% |
| 5 Year Change | 22.37% |
| Change since IPO | 2,876.00% |
Recent News & Updates
These 4 Measures Indicate That Telecom Plus (LON:TEP) Is Using Debt Reasonably Well
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Telecom Plus' (LON:TEP) Returns Have Hit A Wall
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...
Telecom Plus (LON:TEP) Is Due To Pay A Dividend Of UK£0.27
Telecom Plus Plc's ( LON:TEP ) investors are due to receive a payment of UK£0.27 per share on 17th of December. This...
Shareholder Returns
| TEP | GB Integrated Utilities | GB Market | |
|---|---|---|---|
| 7D | -1.3% | -2.4% | -3.0% |
| 1Y | 10.7% | 16.0% | 2.8% |
Return vs Industry: TEP underperformed the UK Integrated Utilities industry which returned 15.9% over the past year.
Return vs Market: TEP exceeded the UK Market which returned 5.1% over the past year.
Price Volatility
| TEP volatility | |
|---|---|
| TEP Average Weekly Movement | 5.3% |
| Integrated Utilities Industry Average Movement | 3.1% |
| Market Average Movement | 5.2% |
| 10% most volatile stocks in GB Market | 10.9% |
| 10% least volatile stocks in GB Market | 2.6% |
Stable Share Price: TEP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TEP's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | 1,994 | Andrew Lindsay | https://www.telecomplus.co.uk |
Telecom Plus Plc provides a range of utility services in the United Kingdom. It offers various services, including gas, electricity, fixed line telephony, mobile telephony, broadband, and insurance, as well as bill protection and life cover, home insurance, boiler cover, and cashback card services under the Utility Warehouse and TML brands. The company was incorporated in 1996 and is based in London, the United Kingdom.
Telecom Plus Fundamentals Summary
| TEP fundamental statistics | |
|---|---|
| Market Cap | UK£1.17b |
| Earnings (TTM) | UK£30.64m |
| Revenue (TTM) | UK£883.11m |
38.2x
P/E Ratio1.3x
P/S RatioIs TEP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TEP income statement (TTM) | |
|---|---|
| Revenue | UK£883.11m |
| Cost of Revenue | UK£707.68m |
| Gross Profit | UK£175.43m |
| Expenses | UK£144.80m |
| Earnings | UK£30.64m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.39 |
| Gross Margin | 19.87% |
| Net Profit Margin | 3.47% |
| Debt/Equity Ratio | 46.4% |
How did TEP perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield146%
Payout RatioValuation
Is Telecom Plus undervalued compared to its fair value and its price relative to the market?
36.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEP (£14.88) is trading below our estimate of fair value (£23.58)
Significantly Below Fair Value: TEP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TEP is poor value based on its PE Ratio (38.2x) compared to the European Integrated Utilities industry average (12.5x).
PE vs Market: TEP is poor value based on its PE Ratio (38.2x) compared to the UK market (18x).
Price to Earnings Growth Ratio
PEG Ratio: TEP is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: TEP is overvalued based on its PB Ratio (5.7x) compared to the XE Integrated Utilities industry average (1.7x).
Future Growth
How is Telecom Plus forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
18.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEP's forecast earnings growth (18.3% per year) is above the savings rate (0.9%).
Earnings vs Market: TEP's earnings (18.3% per year) are forecast to grow faster than the UK market (12.1% per year).
High Growth Earnings: TEP's earnings are forecast to grow, but not significantly.
Revenue vs Market: TEP's revenue (15% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: TEP's revenue (15% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TEP's Return on Equity is forecast to be low in 3 years time (5.6%).
Past Performance
How has Telecom Plus performed over the past 5 years?
3.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEP has high quality earnings.
Growing Profit Margin: TEP's current net profit margins (3.5%) are lower than last year (4.2%).
Past Earnings Growth Analysis
Earnings Trend: TEP's earnings have grown by 3% per year over the past 5 years.
Accelerating Growth: TEP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TEP had negative earnings growth (-17.3%) over the past year, making it difficult to compare to the Integrated Utilities industry average (11%).
Return on Equity
High ROE: TEP's Return on Equity (14.9%) is considered low.
Financial Health
How is Telecom Plus's financial position?
Financial Position Analysis
Short Term Liabilities: TEP's short term assets (£187.4M) exceed its short term liabilities (£114.8M).
Long Term Liabilities: TEP's short term assets (£187.4M) exceed its long term liabilities (£102.7M).
Debt to Equity History and Analysis
Debt Level: TEP's net debt to equity ratio (35%) is considered satisfactory.
Reducing Debt: TEP's debt to equity ratio has increased from 26.3% to 46.4% over the past 5 years.
Debt Coverage: TEP's debt is well covered by operating cash flow (24.6%).
Interest Coverage: TEP's interest payments on its debt are well covered by EBIT (23.8x coverage).
Balance Sheet
Dividend
What is Telecom Plus's current dividend yield, its reliability and sustainability?
3.83%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TEP's dividend (3.83%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).
High Dividend: TEP's dividend (3.83%) is low compared to the top 25% of dividend payers in the UK market (4.24%).
Stability and Growth of Payments
Stable Dividend: TEP's dividends per share have been stable in the past 10 years.
Growing Dividend: TEP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (146.1%), TEP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TEP's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Andrew Lindsay (44 yo)
0.17
Tenure
UK£1,141,000
Compensation
Mr. Andrew Lindsay, MBE, serves as Co - Chief Executive Officer at Telecom Plus Plc since November 2021. He had been the Chief Executive Officer of Telecom Plus PLC since July 14, 2010 until November 2021...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD1.54M) is about average for companies of similar size in the UK market ($USD1.59M).
Compensation vs Earnings: Andrew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: TEP's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: TEP's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TEP insiders have only sold shares 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
Telecom Plus Plc's employee growth, exchange listings and data sources
Key Information
- Name: Telecom Plus Plc
- Ticker: TEP
- Exchange: LSE
- Founded: 1996
- Industry: Multi-Utilities
- Sector: Utilities
- Implied Market Cap: UK£1.172b
- Shares outstanding: 78.74m
- Website: https://www.telecomplus.co.uk
Number of Employees
Location
- Telecom Plus Plc
- Network HQ
- 508 Edgware Road
- London
- Greater London
- NW9 5AB
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/25 21:33 |
| End of Day Share Price | 2022/01/25 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.