NYSE:CHA

Stock Analysis Report

Executive Summary

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has China Telecom's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

CHA

-1.1%

US Telecom

-0.2%

US Market


1 Year Return

-5.6%

CHA

7.0%

US Telecom

1.1%

US Market

CHA underperformed the Telecom industry which returned 7.9% over the past year.

CHA underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

CHAIndustryMarket
7 Day-2.8%-1.1%-0.2%
30 Day0.7%5.6%2.5%
90 Day-9.1%8.8%1.6%
1 Year-2.7%-5.6%12.7%7.0%3.4%1.1%
3 Year-2.7%-10.4%14.4%-2.2%45.2%35.8%
5 Year-19.0%-28.3%34.8%3.9%62.6%44.8%

Price Volatility Vs. Market

How volatile is China Telecom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Telecom undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Telecom's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Telecom's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

China Telecom is good value based on earnings compared to the US Telecom industry average.

China Telecom is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

China Telecom is poor value based on expected growth next year.


Price Based on Value of Assets

China Telecom is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is China Telecom expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Telecom's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

China Telecom's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

China Telecom's revenue growth is positive but not above the United States of America market average.

China Telecom's earnings growth is positive but not above the United States of America market average.

China Telecom's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

China Telecom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has China Telecom performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Telecom's year on year earnings growth rate has been positive over the past 5 years.

China Telecom's 1-year earnings growth exceeds its 5-year average (9.8% vs 2.6%)

China Telecom's earnings growth has exceeded the US Telecom industry average in the past year (9.8% vs -18%).


Return on Equity

China Telecom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Telecom used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

China Telecom's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is China Telecom's financial position?


Financial Position Analysis

China Telecom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Telecom's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Telecom's level of debt (22%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (34.9% vs 22% today).

Debt is well covered by operating cash flow (132.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

3.76%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Telecom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

China Telecom's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of China Telecom's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Ruiwen Ke (57yo)

0.3yrs

Tenure

CN¥779,000

Compensation

Mr. Ruiwen Ke has been Chairman and Chief Executive Officer of China Telecom Corporation Limited since May 22, 2019. Mr. Ke has been President and Chief Operating Officer of China Telecom Corporation Limit ...


CEO Compensation Analysis

Ruiwen's remuneration is lower than average for companies of similar size in United States of America.

Ruiwen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.2yrs

Average Tenure

54yo

Average Age

The average tenure for the China Telecom management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

The average tenure for the China Telecom board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Yuzhu Ma (65yo)

    Managing Director of Corporate Culture Department

    • Tenure: 0yrs
    • Compensation: CN¥415.00k
  • Tongqing Gao (55yo)

    Executive VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥765.00k
  • Ruiwen Ke (57yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: CN¥779.00k
  • Jinxue Xiao (55yo)

    General Manager of Xinjiang Branch

    • Tenure: 0yrs
    • Compensation: CN¥500.00k
  • Zhongyue Chen (48yo)

    Executive VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥763.00k
  • Rebecca Wong

    Joint Company Secretary

    • Tenure: 2.8yrs
  • Zhiyong Zhang (53yo)

    Executive Vice President

    • Tenure: 1.2yrs
  • Guiqing Liu (52yo)

    Executive VP & Director

    • Tenure: 0.08yrs
  • Min Zhu (54yo)

    Executive VP

    • Tenure: 0.9yrs
    • Compensation: CN¥272.42k
  • Guoquan Wang (47yo)

    Executive VP & Director

    • Tenure: 0.08yrs

Board Members

  • Aloysius Tse (71yo)

    Independent Non-Executive Director

    • Tenure: 14yrs
    • Compensation: CN¥471.00k
  • Tongqing Gao (55yo)

    Executive VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥765.00k
  • Ruiwen Ke (57yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: CN¥779.00k
  • Erming Xu (70yo)

    Independent Non-Executive Director

    • Tenure: 14yrs
    • Compensation: CN¥250.00k
  • Wang Hsuehming (69yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥257.00k
  • Zhongyue Chen (48yo)

    Executive VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥763.00k
  • Yixun Sui (55yo)

    Chairman of Supervisory Committee

    • Tenure: 0yrs
  • Guiqing Liu (52yo)

    Executive VP & Director

    • Tenure: 0.08yrs
  • Min Zhu (54yo)

    Executive VP

    • Tenure: 0.9yrs
    • Compensation: CN¥272.42k
  • Guoquan Wang (47yo)

    Executive VP & Director

    • Tenure: 0.08yrs

Company Information

China Telecom Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Telecom Corporation Limited
  • Ticker: CHA
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$291.357b
  • Listing Market Cap: HK$37.200b
  • Shares outstanding: 80.93b
  • Website: https://www.chinatelecom-h.com/en/global/home.php

Number of Employees


Location

  • China Telecom Corporation Limited
  • Everbright Centre
  • 28th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHANYSE (New York Stock Exchange)SPONS ADR EACH REPR 100'H'COM CNY1USUSDNov 2002
ZCHADB (Deutsche Boerse AG)SPONS ADR EACH REPR 100'H'COM CNY1DEEURNov 2002
CHJH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 2002
728SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2002
ZCHDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2002
728SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2002
728SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2002

Biography

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People’s Republic of China. It offers wireline voice services, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:22
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.