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TEP

Telecom PlusLSE:TEP Stock Report

Last Price

UK£14.88

Market Cap

UK£1.2b

7D

-1.3%

1Y

10.7%

Updated

25 Jan, 2022

Data

Company Financials +
TEP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends4/6

TEP Stock Overview

Telecom Plus Plc provides a range of utility services in the United Kingdom.

Telecom Plus Competitors

Natura &Co Holding

BOVESPA:NTCO3

R$31.9b

Herbalife Nutrition

NYSE:HLF

US$4.5b

Nu Skin Enterprises

NYSE:NUS

US$2.5b

Tupperware Brands

NYSE:TUP

US$739.1m

Price History & Performance

Summary of all time highs, changes and price drops for Telecom Plus
Historical stock prices
Current Share PriceUK£14.88
52 Week HighUK£16.52
52 Week LowUK£9.94
Beta0.095
1 Month Change-5.10%
3 Month Change18.47%
1 Year Change10.71%
3 Year Change5.23%
5 Year Change22.37%
Change since IPO2,876.00%

Recent News & Updates

Jan 22
These 4 Measures Indicate That Telecom Plus (LON:TEP) Is Using Debt Reasonably Well

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...

Jan 06
Telecom Plus' (LON:TEP) Returns Have Hit A Wall

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...

Nov 25
Telecom Plus (LON:TEP) Is Due To Pay A Dividend Of UK£0.27

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

TEPGB Integrated UtilitiesGB Market
7D-1.3%-2.4%-3.0%
1Y10.7%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

Is TEP's price volatile compared to industry and market?
TEP volatility
TEP Average Weekly Movement5.3%
Integrated Utilities Industry Average Movement3.1%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.9%
10% least volatile stocks in GB Market2.6%

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

FoundedEmployeesCEOWebsite
19961,994Andrew Lindsayhttps://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

How do Telecom Plus's earnings and revenue compare to its market cap?
TEP fundamental statistics
Market CapUK£1.17b
Earnings (TTM)UK£30.64m
Revenue (TTM)UK£883.11m

38.2x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEP income statement (TTM)
RevenueUK£883.11m
Cost of RevenueUK£707.68m
Gross ProfitUK£175.43m
ExpensesUK£144.80m
EarningsUK£30.64m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.39
Gross Margin19.87%
Net Profit Margin3.47%
Debt/Equity Ratio46.4%

How did TEP perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

146%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 21:33
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.