Telenet Group Hldgs NV (TNET.BR) Fundamental Analysis & Valuation

EBR:TNET • BE0003826436

21.28 EUR
+0.08 (+0.38%)
Last: Oct 13, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This TNET.BR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall TNET gets a fundamental rating of 4 out of 10. We evaluated TNET against 70 industry peers in the Media industry. While TNET is still in line with the averages on profitability rating, there are concerns on its financial health. TNET has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. TNET.BR Profitability Analysis

1.1 Basic Checks

  • In the past year TNET was profitable.
  • TNET had a positive operating cash flow in the past year.
TNET.BR Yearly Net Income VS EBIT VS OCF VS FCFTNET.BR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 11.42%, TNET belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 7.68%, TNET is doing good in the industry, outperforming 69.35% of the companies in the same industry.
  • TNET had an Average Return On Invested Capital over the past 3 years of 10.60%. This is above the industry average of 7.61%.
Industry RankSector Rank
ROA 11.42%
ROE N/A
ROIC 7.68%
ROA(3y)8.71%
ROA(5y)6.91%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.6%
ROIC(5y)11.51%
TNET.BR Yearly ROA, ROE, ROICTNET.BR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -50 -100 -150

1.3 Margins

  • TNET has a better Profit Margin (31.36%) than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of TNET has grown nicely.
  • TNET has a Operating Margin of 20.11%. This is amongst the best in the industry. TNET outperforms 91.94% of its industry peers.
  • In the last couple of years the Operating Margin of TNET has grown nicely.
  • TNET has a Gross Margin (47.82%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of TNET has grown nicely.
Industry RankSector Rank
OM 20.11%
PM (TTM) 31.36%
GM 47.82%
OM growth 3Y-6.63%
OM growth 5Y4.33%
PM growth 3Y60.37%
PM growth 5Y53.73%
GM growth 3Y1.2%
GM growth 5Y5.97%
TNET.BR Yearly Profit, Operating, Gross MarginsTNET.BR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. TNET.BR Health Analysis

2.1 Basic Checks

  • TNET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • TNET has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, TNET has an improved debt to assets ratio.
TNET.BR Yearly Shares OutstandingTNET.BR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
TNET.BR Yearly Total Debt VS Total AssetsTNET.BR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

2.2 Solvency

  • Based on the Altman-Z score of 0.66, we must say that TNET is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.66, TNET is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of TNET is 13.55, which is on the high side as it means it would take TNET, 13.55 years of fcf income to pay off all of its debts.
  • TNET has a Debt to FCF ratio (13.55) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 13.55
Altman-Z 0.66
ROIC/WACC1.74
WACC4.41%
TNET.BR Yearly LT Debt VS Equity VS FCFTNET.BR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.98 indicates that TNET may have some problems paying its short term obligations.
  • With a Current ratio value of 0.98, TNET perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
  • TNET has a Quick Ratio of 0.98. This is a bad value and indicates that TNET is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.96, TNET is in line with its industry, outperforming 54.84% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.96
TNET.BR Yearly Current Assets VS Current LiabilitesTNET.BR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TNET.BR Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 86.01% over the past year.
  • Measured over the past years, TNET shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.20% on average per year.
  • The Revenue has been growing slightly by 4.94% in the past year.
  • TNET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.12% yearly.
EPS 1Y (TTM)86.01%
EPS 3Y57.52%
EPS 5Y42.2%
EPS Q2Q%-88.51%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y1.04%
Revenue growth 5Y1.12%
Sales Q2Q%9%

3.2 Future

  • Based on estimates for the next years, TNET will show a very negative growth in Earnings Per Share. The EPS will decrease by -29.76% on average per year.
  • The Revenue is expected to grow by 0.51% on average over the next years.
EPS Next Y-69.42%
EPS Next 2Y-42.95%
EPS Next 3Y-34.17%
EPS Next 5Y-29.76%
Revenue Next Year8.1%
Revenue Next 2Y4.22%
Revenue Next 3Y2.83%
Revenue Next 5Y0.51%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TNET.BR Yearly Revenue VS EstimatesTNET.BR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B 2.5B
TNET.BR Yearly EPS VS EstimatesTNET.BR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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Find the best growth stocksShow best growing peers

6

4. TNET.BR Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 2.62, which indicates a rather cheap valuation of TNET.
  • Compared to the rest of the industry, the Price/Earnings ratio of TNET indicates a rather cheap valuation: TNET is cheaper than 93.55% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, TNET is valued rather cheaply.
  • The Price/Forward Earnings ratio is 6.94, which indicates a rather cheap valuation of TNET.
  • Based on the Price/Forward Earnings ratio, TNET is valued a bit cheaper than 75.81% of the companies in the same industry.
  • TNET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.60.
Industry RankSector Rank
PE 2.62
Fwd PE 6.94
TNET.BR Price Earnings VS Forward Price EarningsTNET.BR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNET is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 79.03% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.77
EV/EBITDA 6.09
TNET.BR Per share dataTNET.BR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 -30

4.3 Compensation for Growth

  • TNET has a very decent profitability rating, which may justify a higher PE ratio.
  • TNET's earnings are expected to decrease with -34.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-42.95%
EPS Next 3Y-34.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TNET.BR Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.29%, TNET has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.42, TNET pays a bit more dividend than its industry peers.
  • TNET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.29%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
TNET.BR Yearly Dividends per shareTNET.BR Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 1 2 3 4 5

5.3 Sustainability

  • 17.45% of the earnings are spent on dividend by TNET. This is a low number and sustainable payout ratio.
DP17.45%
EPS Next 2Y-42.95%
EPS Next 3Y-34.17%
TNET.BR Yearly Income VS Free CF VS DividendTNET.BR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M
TNET.BR Dividend Payout.TNET.BR Dividend Payout, showing the Payout Ratio.TNET.BR Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

TNET.BR Fundamentals: All Metrics, Ratios and Statistics

Telenet Group Hldgs NV

EBR:TNET (10/13/2023, 7:00:00 PM)

21.28

+0.08 (+0.38%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.31B
Revenue(TTM)2.72B
Net Income(TTM)854.00M
Analysts50.59
Price Target21 (-1.32%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.29%
Yearly Dividend1.37
Dividend Growth(5Y)N/A
DP17.45%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-82.97%
Min EPS beat(2)-90.9%
Max EPS beat(2)-75.03%
EPS beat(4)2
Avg EPS beat(4)92.34%
Min EPS beat(4)-90.9%
Max EPS beat(4)438.72%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.23%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)2.65%
Revenue beat(4)1
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.65%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.59%
Revenue NQ rev (1m)99900.7%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.03%
Valuation
Industry RankSector Rank
PE 2.62
Fwd PE 6.94
P/S 0.85
P/FCF 4.77
P/OCF 2.2
P/B N/A
P/tB N/A
EV/EBITDA 6.09
EPS(TTM)8.11
EY38.11%
EPS(NY)3.07
Fwd EY14.41%
FCF(TTM)4.47
FCFY20.99%
OCF(TTM)9.66
OCFY45.4%
SpS25.09
BVpS-4.66
TBVpS-32.83
PEG (NY)N/A
PEG (5Y)0.06
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 11.42%
ROE N/A
ROCE 9.31%
ROIC 7.68%
ROICexc 9.28%
ROICexgc 24.96%
OM 20.11%
PM (TTM) 31.36%
GM 47.82%
FCFM 17.8%
ROA(3y)8.71%
ROA(5y)6.91%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.6%
ROIC(5y)11.51%
ROICexc(3y)11.41%
ROICexc(5y)12.11%
ROICexgc(3y)31.35%
ROICexgc(5y)33.92%
ROCE(3y)12.86%
ROCE(5y)13.96%
ROICexgc growth 3Y-11.68%
ROICexgc growth 5Y-0.43%
ROICexc growth 3Y-10.53%
ROICexc growth 5Y1.06%
OM growth 3Y-6.63%
OM growth 5Y4.33%
PM growth 3Y60.37%
PM growth 5Y53.73%
GM growth 3Y1.2%
GM growth 5Y5.97%
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 13.55
Debt/EBITDA 4.7
Cap/Depr 75.84%
Cap/Sales 20.7%
Interest Coverage 2.33
Cash Conversion 81.21%
Profit Quality 56.74%
Current Ratio 0.98
Quick Ratio 0.96
Altman-Z 0.66
F-Score6
WACC4.41%
ROIC/WACC1.74
Cap/Depr(3y)67.8%
Cap/Depr(5y)64.16%
Cap/Sales(3y)18.78%
Cap/Sales(5y)17.64%
Profit Quality(3y)123.27%
Profit Quality(5y)185.04%
High Growth Momentum
Growth
EPS 1Y (TTM)86.01%
EPS 3Y57.52%
EPS 5Y42.2%
EPS Q2Q%-88.51%
EPS Next Y-69.42%
EPS Next 2Y-42.95%
EPS Next 3Y-34.17%
EPS Next 5Y-29.76%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y1.04%
Revenue growth 5Y1.12%
Sales Q2Q%9%
Revenue Next Year8.1%
Revenue Next 2Y4.22%
Revenue Next 3Y2.83%
Revenue Next 5Y0.51%
EBIT growth 1Y-5.6%
EBIT growth 3Y-5.66%
EBIT growth 5Y5.49%
EBIT Next Year134.77%
EBIT Next 3Y32.91%
EBIT Next 5Y16.57%
FCF growth 1Y-15.75%
FCF growth 3Y-5.66%
FCF growth 5Y10.53%
OCF growth 1Y-0.06%
OCF growth 3Y0%
OCF growth 5Y5.61%

Telenet Group Hldgs NV / TNET.BR FAQ

What is the fundamental rating for TNET stock?

ChartMill assigns a fundamental rating of 5 / 10 to TNET.BR.


What is the valuation status for TNET stock?

ChartMill assigns a valuation rating of 7 / 10 to Telenet Group Hldgs NV (TNET.BR). This can be considered as Undervalued.


What is the profitability of TNET stock?

Telenet Group Hldgs NV (TNET.BR) has a profitability rating of 7 / 10.


How financially healthy is Telenet Group Hldgs NV?

The financial health rating of Telenet Group Hldgs NV (TNET.BR) is 3 / 10.


Can you provide the dividend sustainability for TNET stock?

The dividend rating of Telenet Group Hldgs NV (TNET.BR) is 4 / 10 and the dividend payout ratio is 17.45%.