OTCPK:TLSY.Y

Stock Analysis Report

Executive Summary

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally.

Snowflake

Fundamentals

Average dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

TLSY.Y

-1.0%

US Telecom

-0.6%

US Market


1 Year Return

7.0%

TLSY.Y

7.1%

US Telecom

0.6%

US Market

TLSY.Y matched the Telecom industry (7%) over the past year.

TLSY.Y outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

TLSY.YIndustryMarket
7 Day-0.5%-1.0%-0.6%
30 Day-1.5%5.7%2.2%
90 Day-6.2%8.9%1.1%
1 Year10.4%7.0%12.8%7.1%2.9%0.6%
3 Year-26.7%-37.8%14.6%-2.1%44.6%35.2%
5 Year-31.4%-47.5%34.9%4.0%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Telstra's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Telstra's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Telstra is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Telstra is poor value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Telstra expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telstra's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).

Telstra's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Telstra performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

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


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Telstra's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Telstra's level of debt (119.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (115.3% vs 119.1% today).

Debt is well covered by operating cash flow (38.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

4.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

Telstra'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 covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Andy Penn (56yo)

4.3yrs

Tenure

AU$5,119,000

Compensation

Mr. Andrew Richard Penn, also known as Andy, MBA (Kingston), AMP (Harvard), BEc, FCCA, HFAIPM has been the Chief Executive Officer, Managing Director and Director of Telstra Corporation Limited since May 1 ...


CEO Compensation Analysis

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

Andy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

The tenure for the Telstra management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

59yo

Average Age

The tenure for the Telstra board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Andy Penn (56yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: AU$5.12m
  • Håkan Eriksson (53yo)

    Chief Technology Officer

    • Tenure: 2.6yrs
  • R. Howard

    Managing Director of Voice & Convergence

    • Tenure: 14.5yrs
  • Ross Moffat

    Head of Investor Relations

    • Tenure: 0yrs
  • Brendon Riley

    Group Executive & CEO of Telstra InfraCo

    • Tenure: 0.9yrs
    • Compensation: AU$2.69m
  • Carmel Mulhern

    Group General Counsel and Group Executive

    • Tenure: 7.7yrs
  • Vicki Brady

    CFO and Group Executive of Strategy & Finance

    • Tenure: 0.2yrs
    • Compensation: AU$348.00k
  • Alex Badenoch

    Group Executive of Human Resources

    • Tenure: 3.1yrs
    • Compensation: AU$1.51m
  • Upendra Kohli

    Managing Director of India Operations

    • Tenure: 5.1yrs
  • Jo Thompson

    Head of HR Strategy

    • Tenure: 0yrs

Board Members

  • Peter Hearl (68yo)

    Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$294.00k
  • Andy Penn (56yo)

    CEO, MD & Director

    • Tenure: 4.3yrs
    • Compensation: AU$5.12m
  • Craig Dunn (56yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: AU$284.00k
  • NL Scheinkestel (59yo)

    Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: AU$304.00k
  • Eelco Blok (62yo)

    Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$88.00k
  • John Mullen (64yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: AU$779.00k
  • Roy Chestnutt (59yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$260.00k
  • Nicolaas John van Damme (58yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$186.00k
  • Margie Seale (58yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$270.00k

Company Information

Telstra Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Telstra Corporation Limited
  • Ticker: TLSY.Y
  • Exchange: OTCPK
  • Founded: 1901
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: AU$43.373b
  • Listing Market Cap: AU$29.366b
  • Shares outstanding: 11.88b
  • Website: https://www.telstra.com.au

Number of Employees


Location

  • Telstra Corporation Limited
  • 242 Exhibition Street
  • Level 41
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTRA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1997
TLSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1997
TLSNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDNov 1997
TSTADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1997
TLSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1997
TLSY.YOTCPK (Pink Sheets LLC)FINAL ADS EACH REPR 5 ORD SHS NPVUSUSDOct 1998
TSTDDB (Deutsche Boerse AG)FINAL ADS EACH REPR 5 ORD SHS NPVDEEUROct 1998

Biography

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:46
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.