KLSE:TM

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Telekom Malaysia Berhad

Executive Summary

Telekom Malaysia Berhad engages in the establishment, maintenance, and provision of telecommunications and related services in Malaysia and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Telekom Malaysia Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

8.3%

TM

4.9%

MY Telecom

-1.5%

MY Market


1 Year Return

25.7%

TM

24.7%

MY Telecom

0.6%

MY Market

Return vs Industry: TM matched the MY Telecom industry which returned 24.7% over the past year.

Return vs Market: TM exceeded the MY Market which returned 0.6% over the past year.


Shareholder returns

TMIndustryMarket
7 Day8.3%4.9%-1.5%
30 Day15.2%8.0%4.8%
90 Day17.2%19.9%1.7%
1 Year31.3%25.7%29.7%24.7%3.7%0.6%
3 Year-13.1%-19.1%-2.6%-9.2%-0.6%-12.0%
5 Year-15.3%-26.2%-0.007%-12.3%8.6%-9.5%

Long-Term Price Volatility Vs. Market

How volatile is Telekom Malaysia Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Telekom Malaysia Berhad undervalued compared to its fair value and its price relative to the market?

28.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TM (MYR4.84) is trading above our estimate of fair value (MYR2.78)

Significantly Below Fair Value: TM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TM is poor value based on its PE Ratio (28.6x) compared to the MY Telecom industry average (26.2x).

PE vs Market: TM is poor value based on its PE Ratio (28.6x) compared to the MY market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: TM is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: TM is overvalued based on its PB Ratio (2.5x) compared to the MY Telecom industry average (1.8x).


Next Steps

Future Growth

How is Telekom Malaysia Berhad forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TM's forecast earnings growth (6.1% per year) is above the savings rate (3.9%).

Earnings vs Market: TM's earnings (6.1% per year) are forecast to grow slower than the MY market (19% per year).

High Growth Earnings: TM's earnings are forecast to grow, but not significantly.

Revenue vs Market: TM's revenue (1.4% per year) is forecast to grow slower than the MY market (7.9% per year).

High Growth Revenue: TM's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TM's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Telekom Malaysia Berhad performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TM has a large one-off loss of MYR377.8M impacting its June 30 2020 financial results.

Growing Profit Margin: TM's current net profit margins (5.8%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: TM's earnings have declined by 10.9% per year over the past 5 years.

Accelerating Growth: TM's earnings growth over the past year (98.4%) exceeds its 5-year average (-10.9% per year).

Earnings vs Industry: TM earnings growth over the past year (98.4%) exceeded the Telecom industry 4.7%.


Return on Equity

High ROE: TM's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Telekom Malaysia Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: TM's short term assets (MYR8.5B) exceed its short term liabilities (MYR6.2B).

Long Term Liabilities: TM's short term assets (MYR8.5B) do not cover its long term liabilities (MYR12.3B).


Debt to Equity History and Analysis

Debt Level: TM's debt to equity ratio (132.8%) is considered high.

Reducing Debt: TM's debt to equity ratio has increased from 86.2% to 132.8% over the past 5 years.

Debt Coverage: TM's debt is well covered by operating cash flow (35.4%).

Interest Coverage: TM's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Telekom Malaysia Berhad current dividend yield, its reliability and sustainability?

2.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TM's dividend (2.81%) is higher than the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: TM's dividend (2.81%) is low compared to the top 25% of dividend payers in the MY market (4.63%).


Stability and Growth of Payments

Stable Dividend: TM's dividend payments have been volatile in the past 10 years.

Growing Dividend: TM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.2%), TM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TM's dividends in 3 years are forecast to be covered by earnings (57% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Shazril Bin Mokhtar (46 yo)

0.25

Tenure

Mr. Shazril Imri Bin Mokhtar serves as Managing Director, Director and Group Chief Executive Officer at Telekom Malaysia Berhad since August 1, 2020. He was as Chief Operations Officer (COO) at Celcom Axia...


Leadership Team

NamePositionTenureCompensationOwnership
Shazril Bin Mokhtar
MD, Group CEO & Director0.25yrno data0.000080%
MYR 14.6k
Razidan bin Ghazalli
Group Chief Financial Officer1yrno datano data
Delano Kadir
VP of Corporate Finance & Investor Relations and Head of Corporate Finance & Investor Relations Unitno datano datano data
M. Sivan
Chief Information Officer1.25yrsno datano data
Rizani Bin Hassan
Chief Legal & Secretarial Officer0.83yrno datano data
Izlyn Ramli
Vice President of Group Brand & Communications6.42yrsno datano data
Mohd Farid Mohd Basir
Chief Human Capital Officer2.08yrsno datano data
Ahmad Ismail
Chief Corporate & Regulatory officer10.08yrsno datano data
Asmawati Yusof
Chief Experience Officer & Chief Customer Officer1.25yrsno datano data
Azizi Hadi
Chief Network Officer9.42yrsno datano data
Mohamad Zain
Chief Risk Officer6.17yrsno datano data
Amar Md Deris
Executive Vice President of TM WHOLESALE2.17yrsno datano data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Management: TM's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shazril Bin Mokhtar
MD, Group CEO & Director0.25yrno data0.000080%
MYR 14.6k
Ibrahim Bin Marsidi
Independent Non Executive Director1.42yrsRM460.05kno data
Siti Binti Mohd Desa
Independent & Non Executive Director0.42yrRM3.00kno data
Anis Binti Mohd Zainudin
Non-Independent & Non-Executive Director0.33yrno datano data
Y. M. Tunku Binti Tunku A. Malek
Independent Non-Executive Director4.58yrsRM675.27kno data
Mohd Salleh
Chairman0.50yrno datano data
Mohamed Bin Sallehuddin
Non-Independent Non-Executive Director1.25yrsRM1.54kno data
Balasingham Namasiwayam
Independent & Non-Executive Director4.58yrsRM805.02k0.00042%
MYR 76.7k
Saheran Sockanathan
Independent & Non-Executive Director2.08yrsRM390.23kno data
Mohd Bin Daruwish
Non-Independent Non-Executive Director2.08yrsRM248.57kno data
Hisham bin Zainal Mokhtar
Independent Non-Executive Director2.08yrsRM535.26kno data
Iszad Bin Ismail
Non-Independent & Non-Executive Director0.33yrno datano data

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: TM's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

Telekom Malaysia Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telekom Malaysia Berhad
  • Ticker: TM
  • Exchange: KLSE
  • Founded: 1946
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: RM18.264b
  • Shares outstanding: 3.77b
  • Website: https://www.tm.com.my

Number of Employees


Location

  • Telekom Malaysia Berhad
  • Menara TM
  • Jalan Pantai Baharu
  • Kuala Lumpur
  • 50672
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992
MYTE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Telekom Malaysia Berhad engages in the establishment, maintenance, and provision of telecommunications and related services in Malaysia and internationally. It operates through unifi, TM ONE, TM GLOBAL, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 15:23
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.