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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

Taking everything into account, TNET scores 5 out of 10 in our fundamental rating. 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year TNET was profitable.
In the past year TNET had a positive cash flow from operations.
Each year in the past 5 years TNET has 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

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 Return On Invested Capital of 7.68%. This is in the better half of the industry: TNET outperforms 69.35% of its industry peers.
TNET had an Average Return On Invested Capital over the past 3 years of 10.60%. This is above the industry average of 8.25%.
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

The Profit Margin of TNET (31.36%) is better than 100.00% of its industry peers.
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.
Looking at the Gross Margin, with a value of 47.82%, TNET is in line with its industry, outperforming 45.16% of the companies in the same industry.
TNET's Gross Margin has improved in the last couple of years.
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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TNET is creating value.
The number of shares outstanding for TNET has been reduced compared to 1 year ago.
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

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.
TNET has a worse Altman-Z score (0.66) 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.
TNET has a Debt to FCF ratio of 13.55. This is comparable 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

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

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4

3. Growth

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.
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

The Earnings Per Share is expected to decrease by -29.76% on average over the next years. This is quite bad
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

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.
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 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.94, the valuation of TNET can be described as very cheap.
TNET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TNET is cheaper than 75.81% of the companies in the same industry.
TNET is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNET is on the same level as its industry peers.
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.
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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4

5. Dividend

5.1 Amount

TNET has a Yearly Dividend Yield of 3.29%.
TNET's Dividend Yield is a higher than the industry average which is at 4.99.
TNET's Dividend Yield is a higher than the S&P500 average which is at 2.42.
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

TNET pays out 17.45% of its income as dividend. This is a 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%