Telenet Group Hldgs NV (TNET.BR) Stock Fundamental Analysis
Europe - EBR:TNET - BE0003826436 - Common Stock
21.28 EUR
+0.08 (+0.38%)
We assign a fundamental rating of 5 out of 10 to TNET. TNET was compared to 62 industry peers in the Media industry. TNET has an excellent profitability rating, but there are concerns on its financial health. TNET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TNET had positive earnings in the past year.
TNET had a positive operating cash flow in the past year.
In the past 5 years TNET has always been profitable.
Each year in the past 5 years TNET had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.42%, TNET belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
TNET has a better Return On Invested Capital (7.68%) than 69.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNET is above the industry average of 7.68%.
| Industry Rank | Sector 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%
1.3 Margins
TNET's Profit Margin of 31.36% is amongst the best of the industry. TNET outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TNET has grown nicely.
With an excellent Operating Margin value of 20.11%, TNET belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
In the last couple of years the Operating Margin of TNET has grown nicely.
TNET's Gross Margin of 47.82% is in line compared to the rest of the industry. TNET outperforms 45.16% of its industry peers.
In the last couple of years the Gross Margin of TNET has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNET is creating value.
Compared to 1 year ago, TNET has less shares outstanding
TNET has a better debt/assets ratio than last year.
2.2 Solvency
TNET has an Altman-Z score of 0.66. This is a bad value and indicates that TNET is not financially healthy and even 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.55 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.74
WACC4.41%
2.3 Liquidity
TNET has a Current 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.
TNET has a Current ratio of 0.98. This is comparable to the rest of the industry: TNET outperforms 48.39% of its industry peers.
A Quick Ratio of 0.96 indicates that TNET may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, TNET perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
TNET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.01%, which is quite impressive.
TNET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.20% yearly.
The Revenue has been growing slightly by 4.94% in the past year.
The Revenue has been growing slightly by 1.12% on average over the past years.
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.
TNET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.51% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.62, the valuation of TNET can be described as very cheap.
Based on the Price/Earnings ratio, TNET is valued cheaper than 93.55% of the companies in the same industry.
TNET is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.94, which indicates a rather cheap valuation of TNET.
75.81% of the companies in the same industry are more expensive than TNET, based on the Price/Forward Earnings ratio.
TNET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.62 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
TNET's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TNET is valued a bit cheaper than 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.77 | ||
| EV/EBITDA | 6.09 |
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%
5. Dividend
5.1 Amount
TNET has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, TNET pays a bit more dividend than its industry peers.
TNET's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
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%
EBR:TNET (10/13/2023, 7:00:00 PM)
21.28
+0.08 (+0.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
Can you provide the valuation status for Telenet Group Hldgs NV?
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.
Can you provide the expected EPS growth for TNET stock?
The Earnings per Share (EPS) of Telenet Group Hldgs NV (TNET.BR) is expected to decline by -69.42% in the next year.
How sustainable is the dividend of Telenet Group Hldgs NV (TNET.BR) stock?
The dividend rating of Telenet Group Hldgs NV (TNET.BR) is 4 / 10 and the dividend payout ratio is 17.45%.