Fact based stock research
TPG Telecom (ASX:TPG)
AU0000090128
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
TPG Telecom stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 39 (worse than 61% compared with investment alternatives), TPG Telecom (Integrated Telecommunication, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of TPG Telecom are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 27), and are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 39, is a hold recommendation based on TPG Telecom's financial characteristics. As the company TPG Telecom's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 27) and risky financing practices (Obermatt Safety Rank of 30), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | Australia |
Industry | Integrated Telecommunication |
Index | ASX 100, ASX 200, ASX 300, Telecommunications |
Size class | X-Large |
This stock has achievements: Top 10 Stock.
21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: TPG Telecom
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 57 |
|
45 |
|
53 |
|
67 |
|
GROWTH | ||||||||
GROWTH | 37 |
|
39 |
|
71 |
|
27 |
|
SAFETY | ||||||||
SAFETY | 10 |
|
30 |
|
20 |
|
30 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
38 |
|
24 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
21 |
|
29 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 39 (worse than 61% compared with investment alternatives), TPG Telecom (Integrated Telecommunication, Australia) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of TPG Telecom are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 27), and are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 39, is a hold recommendation based on TPG Telecom's financial characteristics. As the company TPG Telecom's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 27) and risky financing practices (Obermatt Safety Rank of 30), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 57 |
|
45 |
|
53 |
|
67 |
|
GROWTH | ||||||||
GROWTH | 37 |
|
39 |
|
71 |
|
27 |
|
SAFETY | ||||||||
SAFETY | 10 |
|
30 |
|
20 |
|
30 |
|
COMBINED | ||||||||
COMBINED | 10 |
|
24 |
|
44 |
|
39 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), TPG Telecom shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for TPG Telecom. Price-to-Sales (P/S) is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for TPG Telecom's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 95. Finally, compared with other companies in the same industry, dividend yields of TPG Telecom are expected to be higher than for 53% of all competitors (a Dividend Yield rank of 53). The only low rank is for expected profits with a Price-to-Profit Rank of 12, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on TPG Telecom's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 30 |
|
40 |
|
48 |
|
56 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 70 |
|
14 |
|
14 |
|
12 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 77 |
|
70 |
|
84 |
|
95 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 60 |
|
50 |
|
41 |
|
53 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 57 |
|
45 |
|
53 |
|
67 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), TPG Telecom shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for TPG Telecom. While Profit Growth has a good rank of 64, as professionals currently expect the company to grow its profits more than 64% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 39, which means that currently professionals expect the company to grow less than 61% of its competitors, while Capital Growth has a rank of 34 and Stock Returns have been below market median, with a rank of 17 (83% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 77 |
|
49 |
|
50 |
|
39 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | n/a |
|
27 |
|
57 |
|
64 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
65 |
|
61 |
|
34 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 6 |
|
31 |
|
59 |
|
17 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 37 |
|
39 |
|
71 |
|
27 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company TPG Telecom has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of TPG Telecom is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for TPG Telecom and the other two below average. Leverage is at a rank of 62 meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors.Refinancing is at a rank of 26, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 74% of its competitors. Liquidity is at a rank of 20, meaning that the company generates less profit to service its debt than 80% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), TPG Telecom has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of TPG Telecom are on the safer side. Investors may have a short-term debt challenge and liquidity issues with TPG Telecom and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 23 |
|
66 |
|
66 |
|
62 |
|
REFINANCING | ||||||||
REFINANCING | 34 |
|
33 |
|
3 |
|
26 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 18 |
|
18 |
|
25 |
|
20 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 10 |
|
30 |
|
20 |
|
30 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
60 |
|
40 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
64 |
|
28 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
12 |
|
35 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
43 |
|
55 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
38 |
|
24 |
|
new |
Stock analysis by the purely fact based Obermatt Method for TPG Telecom from March 21, 2024.
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