Telecom Plus Plc (TEP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Telecom Plus Plc

Jersey Electricity Plc

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EQTEC Plc

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Powerhouse Energy Group Plc

Rurelec Plc

Why is Telecom Plus Plc ?

Strong Long Term Fundamental Strength with a 16.67% CAGR growth in Net Sales

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.89
The company has been able to generate a Return on Capital Employed (avg) of 32.52% signifying high profitability per unit of total capital (equity and debt)

Positive results in Mar 25

RAW MATERIAL COST(Y) Fallen by -71.06% (YoY)
DIVIDEND PER SHARE(HY) Highest at GBP 5.37
OPERATING PROFIT(Q) Highest at GBP 82.79 MM

With ROE of 30.26%, it has a expensive valuation with a 5.95 Price to Book Value

Over the past year, while the stock has generated a return of -21.97%, its profits have risen by 7.1% ; the PEG ratio of the company is 3.1

Below par performance in long term as well as near term

Along with generating -21.97% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Telecom Plus Plc should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Telecom Plus Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Telecom Plus Plc

-21.97%

-1.09

21.99%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.67%

EBIT Growth (5y)

15.13%

EBIT to Interest (avg)

14.89

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

4.64

Tax Ratio

28.18%

Dividend Payout Ratio

97.59%

Pledged Shares

Institutional Holding

ROCE (avg)

32.52%

ROE (avg)

24.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.95

EV to EBIT

14.07

EV to EBITDA

11.71

EV to Capital Employed

4.42

EV to Sales

0.88

PEG Ratio

3.13

Dividend Yield

499.54%

ROCE (Latest)

31.39%

ROE (Latest)

30.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -71.06% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 5.37

OPERATING PROFIT(Q)

Highest at GBP 82.79 MM

PRE-TAX PROFIT(Q)

Highest at GBP 66.96 MM

NET PROFIT(Q)

Highest at GBP 48.47 MM

EPS(Q)

Highest at GBP 0.6

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP -38.74 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.37%

Here's what is working for Telecom Plus Plc

Operating Profit

Highest at GBP 82.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Pre-Tax Profit

Highest at GBP 66.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 48.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Dividend per share

Highest at GBP 5.37

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -71.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 11.78 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Telecom Plus Plc

Operating Cash Flow

Lowest at GBP -38.74 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Debtors Turnover Ratio

Lowest at 5.37%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio