OTCPK:TKAG.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with acceptable 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


Market Performance


7 Day Return

-0.5%

OTCPK:TKAG.Y

3.1%

US Telecom

1.2%

US Market


1 Year Return

-15.0%

OTCPK:TKAG.Y

8.4%

US Telecom

1.7%

US Market

TKAG.Y underperformed the Telecom industry which returned 8.4% over the past year.

TKAG.Y underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

TKAG.YIndustryMarket
7 Day-0.5%3.1%1.2%
30 Day0.4%7.5%4.9%
90 Day-4.0%9.8%3.7%
1 Year-12.3%-15.0%14.1%8.4%3.9%1.7%
3 Year40.1%28.8%18.1%0.9%47.2%37.7%
5 Year-5.6%-21.2%35.1%4.2%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

Telekom Austria is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Telekom Austria is poor value based on expected growth next year.


Price Based on Value of Assets

Telekom Austria is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Telekom Austria expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telekom Austria's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Telekom Austria's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Telekom Austria performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Telekom Austria has delivered over 20% year on year earnings growth in the past 5 years.

Telekom Austria's 1-year earnings growth exceeds its 5-year average (51.1% vs 30.6%)

Telekom Austria's earnings growth has exceeded the US Telecom industry average in the past year (51.1% vs -18%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

Telekom Austria's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Telekom Austria's financial position?


Financial Position Analysis

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

Telekom Austria's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Telekom Austria's level of debt (114.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (335.2% vs 114.3% today).

Debt is well covered by operating cash flow (45.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

3.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Telekom Austria's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Telekom Austria's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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 well covered by earnings (2.2x 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 Telekom Austria's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Thomas Arnoldner (42yo)

1yrs

Tenure

€653,000

Compensation

Mr. Thomas Arnoldner has been Vice President of Sales & Services and Director at T-Systems Austria GesmbH since March 15, 2017. Mr. Arnoldner has been a Member of Management Board of Telekom Austria AG sin ...


CEO Compensation Analysis

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

Insufficient data for Thomas to compare compensation growth.


Management Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

The tenure for the Telekom Austria management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the Telekom Austria board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Siegfried Mayrhofer (52yo)

    CFO & Member of Management Board

    • Tenure: 5.3yrs
    • Compensation: €1.40m
  • Marcus Grausam

    Head of Network Planning & ICT - Fixed Net Segment

    • Tenure: 0yrs
  • Alejandro Douglass Plater (52yo)

    COO & Member of Management Board

    • Tenure: 4.5yrs
    • Compensation: €1.44m
  • Susanne Aglas-Reindl

    Head of Investor Relations Department

    • Tenure: 3.1yrs
  • Thomas Arnoldner (42yo)

    CEO & Chairman of Management Board

    • Tenure: 1yrs
    • Compensation: €653.00k

Board Members

  • Oscar Von Hauske Solís (62yo)

    Member of the Supervisory Board

    • Tenure: 6.9yrs
    • Compensation: €37.20k
  • J. D. Alejandro Cantú Jiménez (47yo)

    Member of the Supervisory Board

    • Tenure: 5.1yrs
    • Compensation: €32.40k
  • Carlos José García Moreno Elizondo (62yo)

    First Deputy Chairman of the Supervisory Board

    • Tenure: 5.1yrs
    • Compensation: €46.80k
  • Edith Hlawati (62yo)

    Chairwoman of the Supervisory Board

    • Tenure: 1.3yrs
    • Compensation: €2.00k
  • Walter Hotz (60yo)

    Member of the Supervisory Board

    • Tenure: 8.3yrs
    • Compensation: €4.00k
  • Werner Luksch (52yo)

    Member of the Supervisory Board

    • Tenure: 8.7yrs
    • Compensation: €2.80k
  • Karin Exner-Wöhrer (48yo)

    Member of the Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €22.80k
  • Gottfried Kehrer (57yo)

    Member of the Supervisory Board

    • Tenure: 8.9yrs
    • Compensation: €2.80k
  • Alexander Sollak (41yo)

    Member of the Supervisory Board

    • Tenure: 8.8yrs
    • Compensation: €5.20k
  • Carlos Manuel Jarque Uribe (65yo)

    Member of the Supervisory Board

    • Tenure: 5.1yrs
    • Compensation: €35.20k

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: €4.416b
  • Listing Market Cap: €4.891b
  • 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 services to individuals, commercial and non-commercial organizations, and other national and foreign carrie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:13
End of Day Share Price2019/09/13 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.