TPG Telecom: Moat Rating of None, but Shares Still in the Discount Boat
We downgrade our moat rating for TPG Telecom to none, from narrow, and our fair value estimate is cut by 3% to AUD 6.40 per share as a result.
TPG Telecom Ltd Ordinary Shares TPG
Bulls Say, Bears Say
Bulls
Cross-selling opportunities remain for both consumer and corporate markets.
Bears
TPG Telecom's service levels are seen as less attractive than some peers. Market share gains have been driven by pricing.
News
Trading Information
- Previous Close Price
- A$4.94
- Day Range
- A$4.88–4.96
- 52-Week Range
- A$4.14–5.59
- Bid/Ask
- A$4.92 / A$4.90
- Market Cap
- A$9.15 Bil
- Volume/Avg
- 1.1 Mil / 1.1 Mil
Key Statistics
- Price/Earnings (Normalized)
- 17.17
- Price/Sales
- 1.65
- Dividend Yield (Trailing)
- 3.66%
- Dividend Yield (Forward)
- 3.66%
- Total Yield
- 3.66%
Company Profile
TPG Telecom is Australia's third-largest integrated telecom services company. It offers mobile, fixed-line broadband and telephony, enterprise communications, and networking solutions. The value-led group caters to all market segments spanning consumer, small business, corporate and wholesale, and government. TPG Telecom has grown materially since listing on the ASX in 2008, via organic growth and acquisitions, and culminated with the July 2020 Vodafone Hutchison Australia merger, the third-ranked mobile network operator in Australia. It owns an extensive stable of infrastructure assets, including a nationwide mobile network that is upgrading to 5G, Australia's second-largest fixed-line fibre network and submarine cable connecting Sydney to Guam, and onward to the US and Asia.
- Sector
- Communication Services
- Industry
- Telecom Services
- Stock Style Box
- Mid Core
- Total Number of Employees
- 939
- Website
- https://www.tpgtelecom.com.au
Competitors
Valuation
|
Metric
|
TPG
|
SPK
|
TLS
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.17 | 19.82 | 21.64 |
Price/Book Value | 0.80 | 3.46 | 3.00 |
Price/Sales | 1.65 | 1.47 | 1.99 |
Price/Cash Flow | 6.59 | 7.24 | 7.11 |
Price/Earnings
TPG
SPK
TLS
Financial Strength
|
Metric
|
TPG
|
SPK
|
TLS
|
|---|---|---|---|
Quick Ratio | 0.69 | 0.92 | 0.42 |
Current Ratio | 0.79 | 1.01 | 0.53 |
Interest Coverage | 1.08 | 3.50 | 3.41 |
Quick Ratio
TPG
SPK
TLS
Profitability
|
Metric
|
TPG
|
SPK
|
TLS
|
|---|---|---|---|
Return on Assets (Normalized) | 2.79% | 5.74% | 5.07% |
Return on Equity (Normalized) | 4.68% | 15.26% | 15.12% |
Return on Invested Capital (Normalized) | 4.82% | 6.58% | 6.58% |
Return on Assets
TPG
SPK
TLS
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United States