LSE:TEP

Stock Analysis Report

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Executive Summary

Telecom Plus PLC provides a range of utility services in the United Kingdom. More Details


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

-3.9%

TEP

-1.7%

GB Integrated Utilities

-0.5%

GB Market


1 Year Return

-14.4%

TEP

-11.6%

GB Integrated Utilities

-8.2%

GB Market

Return vs Industry: TEP underperformed the UK Integrated Utilities industry which returned -11.6% over the past year.

Return vs Market: TEP underperformed the UK Market which returned -8.2% over the past year.


Shareholder returns

TEPIndustryMarket
7 Day-3.9%-1.7%-0.5%
30 Day-8.3%3.2%3.0%
90 Day0.3%3.7%14.1%
1 Year-11.0%-14.4%-8.8%-11.6%-4.5%-8.2%
3 Year29.9%15.1%24.6%9.2%3.7%-9.0%
5 Year61.4%31.5%27.9%-0.4%42.1%14.4%

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

Valuation

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

38.8%

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?

4.52%

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 ($USD811.60K) is below average for companies of similar size in the UK market ($USD1.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Wigoder
Executive Chairman10.5yrsUK£461.00k12.04%
£ 125.1m
Andrew Lindsay
CEO & Director10.5yrsUK£594.00k0.46%
£ 4.8m
Nicholas Schoenfeld
CFO & Director6yrsUK£582.00k0.010%
£ 105.6k
Stuart Burnett
COO & Director0.50yrno datano data
Damon Petta
Chief Technology Officerno datano datano data
Luci Ingram
Legal & Compliance Director2yrsno datano data
Matt Roskill
Marketing Director2.17yrsno datano data
Debbie Scola
Director of People & Culture3yrsno datano data
David Baxter
Head of Finance & Company Secretary11.5yrsno datano data

3.0yrs

Average Tenure

47.5yo

Average Age

Experienced Management: TEP's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Wigoder
Executive Chairman10.5yrsUK£461.00k12.04%
£ 125.1m
Andrew Lindsay
CEO & Director10.5yrsUK£594.00k0.46%
£ 4.8m
Nicholas Schoenfeld
CFO & Director6yrsUK£582.00k0.010%
£ 105.6k
Stuart Burnett
COO & Director0.50yrno datano data
Julian Schild
Independent Non-Executive Director10.67yrsUK£45.00k0.24%
£ 2.5m
Beatrice Hannah Hollond
Senior Independent Director0.083yrUK£45.00k0.0023%
£ 23.9k
Suzi Williams
Non-Executive Director0.50yrno datano data
Melvin Lawson
Non-Executive Director14.33yrsUK£12.00k1.84%
£ 19.1m
Andrew Blowers
Independent Non-Executive Director4.17yrsUK£48.00kno 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£1.039b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEPLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1997
TEPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1997
T8TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 01:36
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.