OTCPK:TKTC.Y

Stock Analysis Report

Executive Summary

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services for residential and business customers.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:TKTC.Y

-0.5%

US Telecom

0.8%

US Market


1 Year Return

n/a

OTCPK:TKTC.Y

7.0%

US Telecom

1.9%

US Market

No trading data on TKTC.Y.

No trading data on TKTC.Y.


Share holder returns

TKTC.YIndustryMarket
7 Day0%-0.5%0.8%
30 Day0%5.8%3.4%
90 Day0%8.9%2.1%
1 Yearn/a12.6%7.0%4.2%1.9%
3 Yearn/a17.6%0.6%46.7%37.2%
5 Yearn/a34.6%3.7%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is TalkTalk Telecom Group 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

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

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


Price Based on Earnings

TalkTalk Telecom Group is overvalued based on earnings compared to the US Telecom industry average.

TalkTalk Telecom Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

TalkTalk Telecom Group is poor value based on expected growth next year.


Price Based on Value of Assets

TalkTalk Telecom Group is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is TalkTalk Telecom Group expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

49.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TalkTalk Telecom Group's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

TalkTalk Telecom Group's earnings are expected to grow significantly at over 20% yearly.

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

TalkTalk Telecom Group's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

TalkTalk Telecom Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has TalkTalk Telecom Group performed over the past 5 years?

-48.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TalkTalk Telecom Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

TalkTalk Telecom Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

TalkTalk Telecom Group has become profitable in the last year making it difficult to compare the US Telecom industry average.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

TalkTalk Telecom Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TalkTalk Telecom Group's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

TalkTalk Telecom Group's level of debt (332.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (134.9% vs 332.1% today).

Debt is not well covered by operating cash flow (11.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

TalkTalk Telecom Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

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

TalkTalk Telecom Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

TalkTalk Telecom Group has only been paying a dividend for 8 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Tristia Harrison 0

1.9yrs

Tenure

UK£541,000

Compensation

Ms. Tristia Harrison has been the Chief Executive Officer at TalkTalk Telecom Group PLC since May 2017. Ms. Harrison has been an Executive Director of TalkTalk Telecom Group PLC since June 3, 2014. She has ...


CEO Compensation Analysis

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

Tristia's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

The tenure for the TalkTalk Telecom Group management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

54yo

Average Age

The tenure for the TalkTalk Telecom Group board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Charles Dunstone (54yo)

    Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: UK£366.00k
  • Mal Patel

    Head of Investor Relations

    • Tenure: 7.3yrs
  • Gary Steen

    Chief Technology Officer

    • Tenure: 4.7yrs
  • Tim Morris

    Group General Counsel & Company Secretary

    • Tenure: 0yrs
  • Kate Ferry

    CFO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£419.16k
  • Tristia Harrison

    CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£541.00k
  • Alex Birtles

    Head of Online Product

    • Tenure: 5.9yrs
  • Mark Dickinson

    Chief People Officer

    • Tenure: 0yrs

Board Members

  • Howard Stringer (76yo)

    Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£50.00k
  • John Gildersleeve (73yo)

    Deputy Chairman

    • Tenure: 5.8yrs
    • Compensation: UK£80.00k
  • Charles Dunstone (54yo)

    Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: UK£366.00k
  • John Allwood (66yo)

    Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: UK£69.00k
  • Roger Taylor (53yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£52.00k
  • Cath Keers (53yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£171.00k
  • Nigel Langstaff

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£19.00k
  • Ian West (53yo)

    Senior Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£80.00k
  • Kate Ferry

    CFO & Director

    • Tenure: 1.4yrs
    • Compensation: UK£419.16k
  • Tristia Harrison

    CEO & Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£541.00k

Company Information

TalkTalk Telecom Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TalkTalk Telecom Group PLC
  • Ticker: TKTC.Y
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: UK£1.267b
  • Listing Market Cap: UK£1.674b
  • Shares outstanding: 1.14b
  • Website: https://www.talktalkgroup.com

Number of Employees


Location

  • TalkTalk Telecom Group PLC
  • 11 Evesham Street
  • London
  • Greater London
  • W11 4AR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TALKLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2010
TLKT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2010
TALKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2010
TKTC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2010

Biography

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services for residential and business customers. It offers landline, broadband, fiber, TV, and mobile services, including f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/27 00:22
End of Day Share Price2018/12/27 00:00
Earnings2018/09/30
Annual Earnings2018/03/31


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.