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TEP

Telecom Plus LSE:TEP Stock Report

Last Price

UK£17.50

Market Cap

UK£1.4b

7D

-2.5%

1Y

45.3%

Updated

25 Sep, 2022

Data

Company Financials +
TEP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance4/6
Financial Health5/6
Dividends3/6

TEP Stock 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£17.50
52 Week HighUK£22.65
52 Week LowUK£11.68
Beta0.045
1 Month Change-12.72%
3 Month Change-10.07%
1 Year Change45.35%
3 Year Change49.83%
5 Year Change61.14%
Change since IPO3,400.00%

Recent News & Updates

Aug 11
Telecom Plus (LON:TEP) Hasn't Managed To Accelerate Its Returns

Telecom Plus (LON:TEP) Hasn't Managed To Accelerate Its Returns

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Jul 12
Telecom Plus (LON:TEP) Has A Rock Solid Balance Sheet

Telecom Plus (LON:TEP) Has A Rock Solid Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jun 24
Telecom Plus (LON:TEP) Will Pay A Dividend Of UK£0.30

Telecom Plus (LON:TEP) Will Pay A Dividend Of UK£0.30

Telecom Plus Plc ( LON:TEP ) has announced that it will pay a dividend of UK£0.30 per share on the 5th of August. This...

Jun 22
Estimating The Fair Value Of Telecom Plus Plc (LON:TEP)

Estimating The Fair Value Of Telecom Plus Plc (LON:TEP)

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-2.5%-4.0%-3.1%
1Y45.3%-8.6%-14.4%

Return vs Industry: TEP exceeded the UK Integrated Utilities industry which returned -8.6% over the past year.

Return vs Market: TEP exceeded the UK Market which returned -14.4% over the past year.

Price Volatility

Is TEP's price volatile compared to industry and market?
TEP volatility
TEP Average Weekly Movement3.5%
Integrated Utilities Industry Average Movement4.4%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: TEP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TEP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,551Andrew 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£1.38b
Earnings (TTM)UK£35.47m
Revenue (TTM)UK£967.43m

39.0x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEP income statement (TTM)
RevenueUK£967.43m
Cost of RevenueUK£778.96m
Gross ProfitUK£188.48m
Other ExpensesUK£153.01m
EarningsUK£35.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.45
Gross Margin19.48%
Net Profit Margin3.67%
Debt/Equity Ratio48.3%

How did TEP perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

126%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TEP?

Other financial metrics that can be useful for relative valuation.

TEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA21.5x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does TEP's PE Ratio compare to its peers?

TEP PE Ratio vs Peers
The above table shows the PE ratio for TEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average47.1x
NG. National Grid
17x4.2%UK£37.1b
GLO ContourGlobal
10x-21.3%UK£1.7b
DRX Drax Group
13.1x17.8%UK£2.8b
PNN Pennon Group
148.2x35.8%UK£2.3b
TEP Telecom Plus
39x23.8%UK£1.4b

Price-To-Earnings vs Peers: TEP is good value based on its Price-To-Earnings Ratio (39x) compared to the peer average (47.1x).


Price to Earnings Ratio vs Industry

How does TEP's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

Price-To-Earnings vs Industry: TEP is expensive based on its Price-To-Earnings Ratio (39x) compared to the Global Integrated Utilities industry average (17x)


Price to Earnings Ratio vs Fair Ratio

What is TEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39x
Fair PE Ratio25.7x

Price-To-Earnings vs Fair Ratio: TEP is expensive based on its Price-To-Earnings Ratio (39x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).


Share Price vs Fair Value

What is the Fair Price of TEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TEP (£17.5) is trading below our estimate of fair value (£17.56)

Significantly Below Fair Value: TEP is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Telecom Plus forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEP's forecast earnings growth (23.8% per year) is above the savings rate (0.9%).

Earnings vs Market: TEP's earnings (23.8% per year) are forecast to grow faster than the UK market (8.9% per year).

High Growth Earnings: TEP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TEP's revenue (26.9% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: TEP's revenue (26.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEP's Return on Equity is forecast to be high in 3 years time (34%)


Discover growth companies

Past Performance

How has Telecom Plus performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TEP has high quality earnings.

Growing Profit Margin: TEP's current net profit margins (3.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: TEP's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: TEP's earnings growth over the past year (8.9%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: TEP earnings growth over the past year (8.9%) exceeded the Integrated Utilities industry 4.2%.


Return on Equity

High ROE: TEP's Return on Equity (17%) is considered low.


Discover strong past performing companies

Financial Health

How is Telecom Plus's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TEP's short term assets (£242.2M) exceed its short term liabilities (£159.2M).

Long Term Liabilities: TEP's short term assets (£242.2M) exceed its long term liabilities (£101.1M).


Debt to Equity History and Analysis

Debt Level: TEP's net debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: TEP's debt to equity ratio has increased from 0.2% to 48.3% over the past 5 years.

Debt Coverage: TEP's debt is well covered by operating cash flow (51.7%).

Interest Coverage: TEP's interest payments on its debt are well covered by EBIT (22.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TEP's dividend (3.26%) is higher than the bottom 25% of dividend payers in the UK market (2.06%).

High Dividend: TEP's dividend (3.26%) is low compared to the top 25% of dividend payers in the UK market (5.81%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (126.3%), TEP's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (109%), TEP's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure


CEO

Andrew Lindsay (45 yo)

0.83yr

Tenure

UK£1,214,000

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 ($USD1.33M) is below average for companies of similar size in the UK market ($USD2.16M).

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


Leadership Team

Experienced Management: TEP's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: TEP's board of directors are considered experienced (5.9 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

LSE:TEP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
21 Mar 22BuyUK£567,738Julian SchildIndividual38,698UK£14.67
21 Mar 22SellUK£567,700Julian SchildIndividual38,698UK£14.67
30 Nov 21SellUK£29,000,000Charles WigoderIndividual2,000,000UK£14.50
30 Nov 21SellUK£7,250,000Wigoder Family Foundation, Endowment ArmCompany500,000UK£14.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 69.25% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.39%
Charles Wigoder
7,421,486£129.9m0%no data
8.83%
abrdn plc
6,980,098£122.2m-28.09%0.14%
4.54%
Wigoder Family Foundation, Endowment Arm
3,592,683£62.9m0%no data
4.22%
Ignis Investment Services Limited
3,338,361£58.4m-10.64%0.25%
4.04%
BlackRock, Inc.
3,194,547£55.9m27.88%no data
3.87%
Schroder Investment Management Limited
3,062,973£53.6m-15.26%0.05%
3.68%
The Vanguard Group, Inc.
2,910,444£50.9m-0.38%no data
3.58%
J.P. Morgan Asset Management, Inc.
2,831,054£49.5m38.1%0.01%
2.96%
PrimeStone Capital LLP
2,343,066£41.0m4.88%9.37%
2.39%
Jupiter Fund Management Plc
1,889,950£33.1m-4.58%0.12%
2.34%
Hargreave Hale Limited, Asset Management Arm
1,850,000£32.4m-17.96%0.89%
2.14%
Unicorn Asset Management Limited
1,690,000£29.6m-20.03%3.35%
1.87%
Columbia Management Investment Advisers, LLC
1,481,443£25.9m25.25%0.01%
1.82%
Melvin Lawson
1,436,744£25.1m0%no data
1.8%
Royal London Asset Management Limited
1,422,008£24.9m-8.38%0.05%
1.68%
Legal & General Investment Management Limited
1,327,019£23.2m8.4%0.01%
1.53%
Dimensional Fund Advisors LP
1,211,169£21.2m1.44%0.01%
1.47%
Norges Bank Investment Management
1,165,714£20.4m4.32%no data
1.18%
M&G Investment Management Limited
933,313£16.3m-4.43%0.04%
1.14%
SEI Investments Company
904,578£15.8m-27%0.03%
1.03%
Herald Investment Management Limited
815,500£14.3m0%1.58%
1%
FMR LLC
791,332£13.8m-0.03%no data
0.98%
MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH
771,553£13.5m6.31%0.34%
0.93%
Barclays Investment Solutions Limited
735,397£12.9m-1.47%0.43%
0.83%
Chelverton Asset Management Limited
656,510£11.5m0%0.69%

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£1.384b
  • Shares outstanding: 79.07m
  • 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

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.