Telenet Group Hldgs NV (TNET.BR) Stock Fundamental Analysis
Europe - EBR:TNET - BE0003826436 - Common Stock
21.28 EUR
+0.08 (+0.38%)
TNET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Media industry. TNET scores excellent on profitability, but there are concerns on its financial health. TNET has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TNET was profitable.
TNET had a positive operating cash flow in the past year.
TNET had positive earnings in each of the past 5 years.
In the past 5 years TNET always reported a positive cash flow from operatings.
1.2 Ratios
TNET's Return On Assets of 11.42% is amongst the best of the industry. TNET outperforms 93.55% of its industry peers.
The Return On Invested Capital of TNET (7.68%) is better than 69.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNET is above the industry average of 8.10%.
| 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
With an excellent Profit Margin value of 31.36%, TNET belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TNET's Profit Margin has improved in the last couple of years.
TNET has a better Operating Margin (20.11%) than 91.94% of its industry peers.
In the last couple of years the Operating Margin of TNET has grown nicely.
The Gross Margin of TNET (47.82%) is comparable to the rest of the industry.
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
The debt/assets ratio for TNET has been reduced compared to a year ago.
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.
The Altman-Z score of TNET (0.66) is worse than 80.65% of its industry peers.
TNET has a debt to FCF ratio of 13.55. This is a negative value and a sign of low solvency as TNET would need 13.55 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.55, TNET perfoms like the industry average, outperforming 41.94% of the companies in the same 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.
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 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.
Looking at the last year, TNET shows a small growth in Revenue. The Revenue has grown by 4.94% in the last 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
The Earnings Per Share is expected to decrease by -29.76% on average over the next years. This is quite bad
Based on estimates for the next years, TNET will show a small growth in Revenue. The Revenue will grow by 0.51% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 2.62, the valuation of TNET can be described as very cheap.
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.
The average S&P500 Price/Earnings ratio is at 27.41. TNET is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.94 indicates a rather cheap valuation of TNET.
Based on the Price/Forward Earnings ratio, TNET is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TNET to the average of the S&P500 Index (22.87), we can say TNET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.62 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TNET.
Based on the Price/Free Cash Flow ratio, TNET is valued a bit cheaper than the industry average as 79.03% of the companies are valued more expensively.
| 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.
TNET's Dividend Yield is a higher than the industry average which is at 6.02.
Compared to an average S&P500 Dividend Yield of 2.38, TNET pays a bit more dividend than the S&P500 average.
| 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
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
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%
ROICexcg growth 3Y-11.68%
ROICexcg 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%