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Telenet Group Hldgs NV (TNET.BR) Stock Fundamental Analysis

EBR:TNET - Euronext Brussels - BE0003826436 - Common Stock - Currency: EUR

21.28  +0.08 (+0.38%)

Fundamental Rating

5

TNET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Media industry. TNET scores excellent on profitability, but there are concerns on its financial health. TNET is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
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 2015 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.
Looking at the Return On Invested Capital, with a value of 7.68%, TNET is in the better half of 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 8.60%.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 -50 -100 -150

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.
TNET's Profit Margin has improved in the last couple of years.
TNET's Operating Margin of 20.11% is amongst the best of 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 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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2

2. Health

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.
Compared to 1 year ago, TNET has less shares outstanding
The debt/assets ratio for TNET has been reduced compared to a year ago.
TNET.BR Yearly Shares OutstandingTNET.BR Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
TNET has a worse Altman-Z score (0.66) than 80.65% of its industry peers.
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's Debt to FCF ratio of 13.55 is in line compared to the rest of the industry. TNET outperforms 41.94% of 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 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

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.
The Current ratio of TNET (0.98) is comparable to the rest of the industry.
A Quick Ratio of 0.96 indicates that TNET may have some problems paying its short term obligations.
TNET has a Quick ratio of 0.96. This is comparable to the rest of the industry: TNET outperforms 54.84% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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4

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.
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

TNET is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -29.76% yearly.
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.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.62 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.
TNET is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.94, the valuation of TNET can be described as very cheap.
75.81% of the companies in the same industry are more expensive than TNET, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.44. TNET is valued rather cheaply when compared to this.
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 5 10 15 20 25

4.2 Price Multiples

TNET's Enterprise Value to EBITDA ratio is in line with the industry average.
TNET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TNET is cheaper than 79.03% of the companies 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.
A cheap valuation may be justified as TNET's earnings are expected to decrease with -34.17% in the coming years.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-42.95%
EPS Next 3Y-34.17%

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4

5. Dividend

5.1 Amount

TNET has a Yearly Dividend Yield of 3.29%.
Compared to an average industry Dividend Yield of 4.55, TNET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TNET pays a bit more dividend than the S&P500 average.
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 2015 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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Telenet Group Hldgs NV

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)N/A N/A
Earnings (Next)N/A N/A
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 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
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%
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 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%