TEP

Telecom PlusLSE:TEP Stock Report

Market Cap

UK£793.1m

7D

-0.6%

1Y

-23.8%

Updated

18 Sep, 2021

Data

Company Financials +
TEP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

TEP Overview

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

Telecom Plus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Telecom Plus
Historical stock prices
Current Share PriceUK£10.10
52 Week HighUK£9.97
52 Week LowUK£15.14
Beta0.15
1 Month Change-2.89%
3 Month Change-12.78%
1 Year Change-23.83%
3 Year Change-1.75%
5 Year Change-7.34%
Change since IPO1,920.00%

Recent News & Updates

Jun 22
Telecom Plus' (LON:TEP) Dividend Will Be UK£0.30

Telecom Plus' (LON:TEP) Dividend Will Be UK£0.30

Telecom Plus PLC ( LON:TEP ) will pay a dividend of UK£0.30 on the 30th of July. This means the annual payment is 5.1...

Jun 21
Is Telecom Plus (LON:TEP) Using Too Much Debt?

Is Telecom Plus (LON:TEP) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jun 02
Is There An Opportunity With Telecom Plus PLC's (LON:TEP) 28% Undervaluation?

Is There An Opportunity With Telecom Plus PLC's (LON:TEP) 28% Undervaluation?

In this article we are going to estimate the intrinsic value of Telecom Plus PLC ( LON:TEP ) by taking the expected...

Shareholder Returns

TEPGB Integrated UtilitiesGB Market
7D-0.6%0.07%-1.0%
1Y-23.8%13.2%19.2%

Return vs Industry: TEP underperformed the UK Integrated Utilities industry which returned 13.1% over the past year.

Return vs Market: TEP underperformed the UK Market which returned 19.2% over the past year.

Price Volatility

Is TEP's price volatile compared to industry and market?
TEP volatility
TEP Beta0.15
Industry Beta0.84
Market Beta1

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.

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.

Valuation

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

46.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEP (£10.1) is trading below our estimate of fair value (£18.89)

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 (24.3x) compared to the European Integrated Utilities industry average (16.8x).

PE vs Market: TEP is poor value based on its PE Ratio (24.3x) compared to the UK market (23.5x).


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 (3.7x) 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 2 analysts?

8.9%

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 (0.9%).

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 (8.9% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: TEP's revenue (8.9% 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


Past Performance

How has Telecom Plus performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEP has high quality earnings.

Growing Profit Margin: TEP's current net profit margins (3.8%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: TEP's earnings have grown by 5.5% 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 (-9.3%) over the past year, making it difficult to compare to the Integrated Utilities industry average (28.8%).


Return on Equity

High ROE: TEP's Return on Equity (15.3%) is considered low.


Financial Health

How is Telecom Plus's financial position?


Financial Position Analysis

Short Term Liabilities: TEP's short term assets (£224.7M) exceed its short term liabilities (£152.7M).

Long Term Liabilities: TEP's short term assets (£224.7M) exceed its long term liabilities (£97.6M).


Debt to Equity History and Analysis

Debt Level: TEP's debt to equity ratio (42.1%) is considered high.

Reducing Debt: TEP's debt to equity ratio has increased from 35.3% to 42.1% over the past 5 years.

Debt Coverage: TEP's debt is well covered by operating cash flow (48.5%).

Interest Coverage: TEP's interest payments on its debt are well covered by EBIT (25.4x coverage).


Balance Sheet


Dividend

What is Telecom Plus's current dividend yield, its reliability and sustainability?

5.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TEP's dividend (5.64%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: TEP's dividend (5.64%) is in the top 25% of dividend payers in the UK market (3.92%)


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 (137.2%), 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 (85.8% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Andrew Lindsay (44 yo)

11.17yrs

Tenure

UK£1,141,000

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 ($USD1.57M) is above average for companies of similar size in the UK market ($USD969.47K).

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 (3.7 years average tenure).


Board Members

Experienced Board: TEP's board of directors are considered experienced (6.7 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.


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
  • Market Cap: UK£793.150m
  • Shares outstanding: 78.53m
  • 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 Analysis2021/09/18 17:33
End of Day Share Price2021/09/17 00:00
Earnings2021/03/31
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.