OTCPK:TKAG.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Telekom Austria AG, together with its subsidiaries, provides fixed-line and mobile communications solutions to individuals, commercial and non-commercial organizations, and other national and international carriers. More Details


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TKAG.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TKAG.Y

0.4%

US Telecom

0.08%

US Market


1 Year Return

0.5%

TKAG.Y

-11.6%

US Telecom

12.8%

US Market

Return vs Industry: TKAG.Y exceeded the US Telecom industry which returned -11.6% over the past year.

Return vs Market: TKAG.Y underperformed the US Market which returned 12.6% over the past year.


Shareholder returns

TKAG.YIndustryMarket
7 Day0%0.4%0.08%
30 Day3.0%-0.2%-1.8%
90 Dayn/a2.3%7.2%
1 Year0.5%0.5%-7.1%-11.6%15.3%12.8%
3 Year-9.1%-14.2%7.4%-8.0%39.2%29.9%
5 Year50.9%37.5%32.1%2.5%88.3%67.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TKAG.Y ($15.35) is trading below our estimate of fair value ($30.07)

Significantly Below Fair Value: TKAG.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TKAG.Y is good value based on its PE Ratio (11.1x) compared to the US Telecom industry average (11.9x).

PE vs Market: TKAG.Y is good value based on its PE Ratio (11.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TKAG.Y is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TKAG.Y is overvalued based on its PB Ratio (1.5x) compared to the US Telecom industry average (1.3x).


Next Steps

Future Growth

How is Telekom Austria forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TKAG.Y's forecast earnings growth (8.6% per year) is above the savings rate (2.2%).

Earnings vs Market: TKAG.Y's earnings (8.6% per year) are forecast to grow slower than the US market (23.2% per year).

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

Revenue vs Market: TKAG.Y's revenue (0.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: TKAG.Y's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TKAG.Y's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Telekom Austria performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TKAG.Y has high quality earnings.

Growing Profit Margin: TKAG.Y's current net profit margins (8.2%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: TKAG.Y's earnings have declined by 1% per year over the past 5 years.

Accelerating Growth: TKAG.Y's earnings growth over the past year (19.6%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: TKAG.Y earnings growth over the past year (19.6%) exceeded the Telecom industry -12.9%.


Return on Equity

High ROE: TKAG.Y's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Telekom Austria's financial position?


Financial Position Analysis

Short Term Liabilities: TKAG.Y's short term assets (€1.5B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: TKAG.Y's short term assets (€1.5B) do not cover its long term liabilities (€4.1B).


Debt to Equity History and Analysis

Debt Level: TKAG.Y's debt to equity ratio (90.5%) is considered high.

Reducing Debt: TKAG.Y's debt to equity ratio has reduced from 163.2% to 90.5% over the past 5 years.

Debt Coverage: TKAG.Y's debt is well covered by operating cash flow (60.9%).

Interest Coverage: TKAG.Y's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TKAG.Y's dividend (3.68%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: TKAG.Y's dividend (3.68%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), TKAG.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TKAG.Y's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Telecom industry.

Management

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

4.8yrs

Average management tenure


CEO

Thomas Arnoldner (43 yo)

2yrs

Tenure

€977,000

Compensation

Mr. Thomas Arnoldner serves as Chief Executive Officer of Telekom Austria at América Móvil, S.A.B. de C.V. since 2020. Mr. Arnoldner has been Vice President of Sales & Services and Director at T-Systems Au ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD1.16M) is below average for companies of similar size in the US market ($USD7.41M).

Compensation vs Earnings: Thomas's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Arnoldner
CEO & Chairman of Management Board2yrs€977.00k0.0040%
€ 196.3k
Siegfried Mayrhofer
CFO & Member of Management Board6.25yrs€1.41m0.0037%
€ 183.0k
Alejandro Douglass Plater
COO & Member of Management Board5.5yrs€1.68m0.0055%
€ 269.9k
Susanne Aglas-Reindl
Head of Investor Relations Department4.08yrsno datano data
Marcus Grausam
Head of Network Planning & ICT - Fixed Net Segmentno datano datano data

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: TKAG.Y's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oscar Von Hauske Solís
Independent Member of the Supervisory Board7.92yrs€37.60kno data
J. D. Alejandro Cantú Jiménez
Independent Member of the Supervisory Board6.08yrs€32.00kno data
Carlos Jose Garcia Moreno Elizondo
Independent First Deputy Chairman of the Supervisory Boardno data€46.80kno data
Edith Hlawati
Independent Chairwoman of the Supervisory Board2.33yrs€34.37kno data
Walter Hotz
Member of the Supervisory Board9.33yrs€4.00kno data
Werner Luksch
Member of the Supervisory Board9.67yrs€2.40kno data
Karin Exner-Wöhrer
Independent Member of the Supervisory Board5.33yrs€22.80kno data
Gottfried Kehrer
Member of the Supervisory Board9.92yrs€2.80kno data
Alexander Sollak
Member of the Supervisory Board9.83yrs€4.40kno data
Carlos Manuel Jarque Uribe
Independent Member of the Supervisory Board6.08yrs€34.80kno data
Peter Hagen
Independent Member of the Supervisory Board4.33yrs€34.80kno data
Daniela Lecuona Torras
Independent Supervisory Board Member2.33yrs€14.64kno data

6.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: TKAG.Y's board of directors are considered experienced (6.1 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

Telekom Austria AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telekom Austria AG
  • Ticker: TKAG.Y
  • Exchange: OTCPK
  • Founded:
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €4.151b
  • Listing Market Cap: €4.907b
  • Shares outstanding: 664.08m
  • Website: https://www.a1.group

Number of Employees


Location

  • Telekom Austria AG
  • Lassallestrasse 9
  • Vienna
  • Vienna
  • 1020
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKAG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 2000
TKAWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2000
TA1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2000
0NKLLSE (London Stock Exchange)YesCommon StockGBEURNov 2000
TA1XTRA (XETRA Trading Platform)YesCommon StockDEEURNov 2000
TKAVBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURNov 2000

Biography

Telekom Austria AG, together with its subsidiaries, provides fixed-line and mobile communications solutions to individuals, commercial and non-commercial organizations, and other national and international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:21
End of Day Share Price2020/08/25 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.