OTCPK:TFAO.F

Stock Analysis Report

Executive Summary

O2 Czech Republic a.s. provides integrated telecommunication services for households, small and medium sized businesses, corporations, and government customers in the Czech Republic and Slovakia.

Snowflake

Fundamentals

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has O2 Czech Republic's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

TFAO.F

-0.0001%

US Telecom

-0.6%

US Market


1 Year Return

-22.9%

TFAO.F

8.1%

US Telecom

0.7%

US Market

TFAO.F underperformed the Telecom industry which returned 7.1% over the past year.

TFAO.F underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

TFAO.FIndustryMarket
7 Day0%-0.0001%-0.6%
30 Day-2.6%6.3%2.9%
90 Dayn/a10.0%1.3%
1 Year-22.9%-22.9%13.9%8.1%2.9%0.7%
3 Year-5.6%-5.6%15.7%-1.1%44.6%35.2%
5 Yearn/a36.3%5.1%61.9%44.2%

Price Volatility Vs. Market

How volatile is O2 Czech Republic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is O2 Czech Republic undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

O2 Czech Republic's share price is below the future cash flow value, and at a moderate discount (> 20%).

O2 Czech Republic's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

O2 Czech Republic is good value based on earnings compared to the US Telecom industry average.

O2 Czech Republic is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

O2 Czech Republic is poor value based on expected growth next year.


Price Based on Value of Assets

O2 Czech Republic is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is O2 Czech Republic expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

O2 Czech Republic's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

O2 Czech Republic's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

O2 Czech Republic's revenue growth is positive but not above the United States of America market average.

O2 Czech Republic's earnings growth is positive but not above the United States of America market average.

O2 Czech Republic's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

O2 Czech Republic is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has O2 Czech Republic performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

O2 Czech Republic's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

O2 Czech Republic's 1-year earnings growth is negative, it can't be compared to the 5-year average.

O2 Czech Republic's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Whilst O2 Czech Republic made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

O2 Czech Republic used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

O2 Czech Republic's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is O2 Czech Republic's financial position?


Financial Position Analysis

O2 Czech Republic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

O2 Czech Republic's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

O2 Czech Republic's level of debt (127.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (5.8% vs 127.2% today).

Debt is well covered by operating cash flow (58.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 27.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is O2 Czech Republic's current dividend yield, its reliability and sustainability?

9.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

O2 Czech Republic's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

O2 Czech Republic's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).


Next Steps

Management

What is the CEO of O2 Czech Republic's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Jindrich Fremuth (44yo)

1.7yrs

Tenure

0

Mr. Jindrich Fremuth has been Chief Executive Officers and Director of O2 Czech Republic, A.S. since January 1, 2018 and has been its Chairman since 2018. He served Chief Commercial Officer at the company  ...


Management Age and Tenure

1.7yrs

Average Tenure

44.5yo

Average Age

The average tenure for the O2 Czech Republic management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

45yo

Average Age

The average tenure for the O2 Czech Republic 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

  • Jindrich Fremuth (44yo)

    Chairman of the Board of Directors & CEO

    • Tenure: 1.7yrs
  • Tomáš Kouril (45yo)

    Vice-Chairman of the Board of Directors

    • Tenure: 4.7yrs
  • Jakub Minarik

    Head of Start-Up Accelerator

    • Tenure: 3.8yrs
  • Katerina Pospíšilová (37yo)

    Member of the Supervisory Board and Director of Strategy & Innovation

    • Tenure: 1.6yrs
  • Václav Zakouril (45yo)

    Director of Legal & Regulatory Affairs Division and Director

    • Tenure: 1.5yrs
  • Richard Siebenstich

    Chief Commercial Officer & Director of Commercial Division

    • Tenure: 1.5yrs
  • Jan Hruška

    CTO & Director of Technology Division

    • Tenure: 1.5yrs
  • Jakub Hampl

    Head of Investor Relations

    • Tenure: 0yrs
  • Pavel Milec

    Vice-Chairman of the Supervisory Board & Director of Human Resources

    • Tenure: 0.7yrs
  • Hany Farghali

    Director of Corporate Communication & CSR

    • Tenure: 0.5yrs

Board Members

  • Ladislav Bartonícek (55yo)

    Chairman of the Supervisory Board

    • Tenure: 1.3yrs
  • Jindrich Fremuth (44yo)

    Chairman of the Board of Directors & CEO

    • Tenure: 1.7yrs
  • Tomáš Kouril (45yo)

    Vice-Chairman of the Board of Directors

    • Tenure: 4.7yrs
  • Katerina Pospíšilová (37yo)

    Member of the Supervisory Board and Director of Strategy & Innovation

    • Tenure: 1.6yrs
  • Václav Zakouril (45yo)

    Director of Legal & Regulatory Affairs Division and Director

    • Tenure: 1.5yrs
  • Pavel Milec

    Vice-Chairman of the Supervisory Board & Director of Human Resources

    • Tenure: 0.7yrs

Company Information

O2 Czech Republic a.s.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: O2 Czech Republic a.s.
  • Ticker: TFAO.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: Kč66.335b
  • Listing Market Cap: Kč2.818b
  • Shares outstanding: 301.52m
  • Website: https://www.o2.cz

Number of Employees


Location

  • O2 Czech Republic a.s.
  • Za Brumlovkou 266/2
  • Prague 4
  • Prague
  • 140 22
  • Czech Republic

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TELECSEP (The Stock Exchange Prague Co. Ltd.)YesOrdinary Bearer SharesCZCZKMar 1995
TEEDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURMar 1995
TFAO.FOTCPK (Pink Sheets LLC)YesOrdinary Bearer SharesUSUSDMar 1995
0OHLLSE (London Stock Exchange)YesOrdinary Bearer SharesGBCZKMar 1995

Biography

O2 Czech Republic a.s. provides integrated telecommunication services for households, small and medium sized businesses, corporations, and government customers in the Czech Republic and Slovakia. It operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:05
End of Day Share Price2019/08/27 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.