OTCPK:TLKT.F

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%

TLKT.F

1.0%

US Telecom

1.8%

US Market


1 Year Return

-15.5%

TLKT.F

10.4%

US Telecom

7.3%

US Market


Shareholder returns

TLKT.FIndustryMarket
7 Day0%1.0%1.8%
30 Day0%0.9%-0.7%
90 Day0%10.1%0.06%
1 Year-15.5%-15.5%16.2%10.4%9.7%7.3%
3 Year-58.2%-58.2%22.5%4.7%46.3%36.9%
5 Year-73.7%-73.7%41.9%9.5%64.5%46.5%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TLKT.F ($1.42) is trading below our estimate of fair value ($3.5)

Significantly Undervalued: TLKT.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLKT.F is poor value based on its PE Ratio (235.1x) compared to the Telecom industry average (18.8x).

PE vs Market: TLKT.F is poor value based on its PE Ratio (235.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TLKT.F is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: TLKT.F is overvalued based on its PB Ratio (5x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is TalkTalk Telecom Group forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLKT.F's forecast earnings growth (49.6% per year) is above the savings rate (2.7%).

Earnings vs Market: TLKT.F's earnings (49.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TLKT.F's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TLKT.F's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


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

Earnings Trend: TLKT.F's earnings have declined by -48.1% per year over the past 5 years.

Accelerating Growth: TLKT.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TLKT.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-23%).


Return on Equity

High ROE: TLKT.F's Return on Equity (2%) is considered low.


Return on Assets

ROA vs Industry: TLKT.F's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: TLKT.F has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TalkTalk Telecom Group's financial position?


Financial Position Analysis

Short Term Liabilities: TLKT.F's short term assets (£484.0M) do not cover its short term liabilities (£657.0M)

Long Term Liabilities: TLKT.F's short term assets (484.0M) do not cover its long term liabilities (784.0M)


Debt to Equity History and Analysis

Debt Level: TLKT.F's debt to equity ratio (332.1%) is considered high

Reducing Debt: TLKT.F's debt to equity ratio has increased from 134.9% to 332.1% over the past 5 years.

Debt Coverage: TLKT.F's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: TLKT.F's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.7%industryaverage4.8%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TLKT.F's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TLKT.F's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: TLKT.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TLKT.F has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (535.8%), TLKT.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLKT.F's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


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

1.8yrs

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

Information is not available.

Compensation vs Earnings: Tristia's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: TLKT.F's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: TLKT.F's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£4,954,83211 Sep 19
Charles Dunstone
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,870,639
Max PriceUK£1.28
BuyUK£7,733,42709 Sep 19
Charles Dunstone
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares6,000,000
Max PriceUK£1.30
BuyUK£1,150,88914 Dec 18
Charles Dunstone
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares783,902
Max PriceUK£1.47
BuyUK£465,24227 Nov 18
Charles Dunstone
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares307,085
Max PriceUK£1.52
BuyUK£570,43526 Nov 18
Charles Dunstone
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares379,593
Max PriceUK£1.50

Ownership Breakdown


Management Team

  • Charles Dunstone (54yo)

    Executive Chairman

    • Tenure: 8.8yrs
    • 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: 1.8yrs
    • Compensation: UK£541.00k
  • Alex Birtles

    Head of Online Product

    • Tenure: 5.8yrs
  • 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: 8.8yrs
    • 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: 1.8yrs
    • 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: TLKT.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: UK£1.260b
  • Listing Market Cap: UK£1.641b
  • 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 Analysis2019/03/31 00:25
End of Day Share Price2018/12/31 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.