Telecom Plus
Market Cap
UK£1.1b
Last Updated
2021/01/26 01:06 UTC
Data Sources
Company Financials +
Executive Summary
Telecom Plus PLC provides a range of utility services in the United Kingdom. More Details
Rewards
Risk Analysis
Dividend of 4.52% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Solid track record with excellent balance sheet.
Similar Companies
Share Price & News
How has Telecom Plus's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TEP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TEP's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.0%
TEP
-1.5%
GB Integrated Utilities
-0.4%
GB Market
1 Year Return
-11.5%
TEP
-11.7%
GB Integrated Utilities
-6.3%
GB Market
Return vs Industry: TEP matched the UK Integrated Utilities industry which returned -11.7% over the past year.
Return vs Market: TEP underperformed the UK Market which returned -6.3% over the past year.
Shareholder returns
| TEP | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | -1.5% | -0.4% |
| 30 Day | -6.5% | 3.4% | 2.9% |
| 90 Day | 1.7% | 4.7% | 16.3% |
| 1 Year | -7.9%-11.5% | -8.9%-11.7% | -2.5%-6.3% |
| 3 Year | 34.3%19.0% | 24.8%9.4% | 3.8%-8.9% |
| 5 Year | 69.2%37.8% | 27.8%-0.4% | 42.5%14.7% |
Long-Term Price Volatility Vs. Market
How volatile is Telecom Plus's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Telecom Plus (LON:TEP) Has A Rock Solid Balance Sheet3 weeks ago | Simply Wall St
Here's Why I Think Telecom Plus (LON:TEP) Is An Interesting Stock1 month ago | Simply Wall St
Could The Telecom Plus PLC (LON:TEP) Ownership Structure Tell Us Something Useful?Valuation
Is Telecom Plus undervalued compared to its fair value and its price relative to the market?
37.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEP (£13.28) is trading below our estimate of fair value (£21.69)
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 (28.1x) compared to the XE Integrated Utilities industry average (19.8x).
PE vs Market: TEP is poor value based on its PE Ratio (28.1x) compared to the UK market (22.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate TEP's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TEP is overvalued based on its PB Ratio (4.8x) compared to the XE Integrated Utilities industry average (1.7x).
Next Steps
Future Growth
How is Telecom Plus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
7.1%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if TEP's forecast earnings growth is above the savings rate (1%).
Earnings vs Market: Insufficient data to determine if TEP's earnings are forecast to grow faster than the UK market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TEP's revenue (7.1% per year) is forecast to grow faster than the UK market (6.6% per year).
High Growth Revenue: TEP's revenue (7.1% 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 TEP's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Telecom Plus performed over the past 5 years?
4.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEP has high quality earnings.
Growing Profit Margin: TEP's current net profit margins (4.2%) are higher than last year (4%).
Past Earnings Growth Analysis
Earnings Trend: TEP's earnings have grown by 4.5% per year over the past 5 years.
Accelerating Growth: TEP's earnings growth over the past year (9.5%) exceeds its 5-year average (4.5% per year).
Earnings vs Industry: TEP earnings growth over the past year (9.5%) exceeded the Integrated Utilities industry 4%.
Return on Equity
High ROE: TEP's Return on Equity (17.1%) is considered low.
Next Steps
Financial Health
How is Telecom Plus's financial position?
Financial Position Analysis
Short Term Liabilities: TEP's short term assets (£187.0M) exceed its short term liabilities (£126.3M).
Long Term Liabilities: TEP's short term assets (£187.0M) exceed its long term liabilities (£88.4M).
Debt to Equity History and Analysis
Debt Level: TEP's debt to equity ratio (36.7%) is considered satisfactory.
Reducing Debt: TEP's debt to equity ratio has increased from 36.1% to 36.7% over the past 5 years.
Debt Coverage: TEP's debt is well covered by operating cash flow (68.9%).
Interest Coverage: TEP's interest payments on its debt are well covered by EBIT (21.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Telecom Plus's current dividend yield, its reliability and sustainability?
4.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TEP's dividend (4.52%) is higher than the bottom 25% of dividend payers in the UK market (1.53%).
High Dividend: TEP's dividend (4.52%) is low compared to the top 25% of dividend payers in the UK market (4.57%).
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 (120.5%), TEP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TEP's dividends in 3 years are not forecast to be well covered by earnings (104.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Andrew Lindsay (43 yo)
10.5yrs
Tenure
UK£594,000
Compensation
Mr. Andrew Lindsay, MBE, has been the Chief Executive Officer of Telecom Plus PLC since July 14, 2010 and served as its Chief Operating Officer since November 25, 2008. Mr. Lindsay joined Telecom plus PLC ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD811.60K) is below average for companies of similar size in the UK market ($USD1.76M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 10.5yrs | UK£461.00k | 12.04% £ 127.5m | |
| CEO & Director | 10.5yrs | UK£594.00k | 0.46% £ 4.9m | |
| CFO & Director | 6yrs | UK£582.00k | 0.010% £ 107.7k | |
| COO & Director | 0.50yr | no data | no data | |
| Chief Technology Officer | no data | no data | no data | |
| Legal & Compliance Director | 2yrs | no data | no data | |
| Marketing Director | 2.17yrs | no data | no data | |
| Director of People & Culture | 3yrs | no data | no data | |
| Head of Finance & Company Secretary | 11.5yrs | no data | no data |
3.0yrs
Average Tenure
47.5yo
Average Age
Experienced Management: TEP's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 10.5yrs | UK£461.00k | 12.04% £ 127.5m | |
| CEO & Director | 10.5yrs | UK£594.00k | 0.46% £ 4.9m | |
| CFO & Director | 6yrs | UK£582.00k | 0.010% £ 107.7k | |
| COO & Director | 0.50yr | no data | no data | |
| Independent Non-Executive Director | 10.67yrs | UK£45.00k | 0.24% £ 2.6m | |
| Senior Independent Director | 0.083yr | UK£45.00k | 0.0023% £ 24.4k | |
| Non-Executive Director | 0.50yr | no data | no data | |
| Non-Executive Director | 14.33yrs | UK£12.00k | 1.84% £ 19.5m | |
| Independent Non-Executive Director | 4.17yrs | UK£48.00k | no data |
6.0yrs
Average Tenure
59yo
Average Age
Experienced Board: TEP's board of directors are considered experienced (6 years average tenure).
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.
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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Telecom Plus PLC
- Ticker: TEP
- Exchange: LSE
- Founded: 1996
- Industry: Multi-Utilities
- Sector: Utilities
- Market Cap: UK£1.060b
- Shares outstanding: 78.26m
- Website: https://www.uw.co.uk
Number of Employees
Location
- Telecom Plus PLC
- Network HQ
- 508 Edgware Road
- London
- Greater London
- NW9 5AB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TEP | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jun 1997 |
| TEPL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jun 1997 |
| T8T | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1997 |
Biography
Telecom Plus PLC provides a range of utility services in the United Kingdom. It operates in two segments, Customer Acquisition and Customer Management. The Customer Acquisition segment sells a range of equ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 01:06 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.