Telenet Group Hldgs NV (TNET.BR)

BE0003826436 - Common Stock

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 67 industry peers in the Media industry. While TNET belongs to the best of the industry regarding profitability, there are concerns on its financial health. TNET has a decent growth rate and is not valued too expensively.



7

1. Profitability

1.1 Basic Checks

TNET had positive earnings in the past year.
In the past year TNET had a positive cash flow from operations.
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

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.
The Average Return On Invested Capital over the past 3 years for TNET is in line with the industry average of 8.80%.
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%

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.
TNET's Operating Margin has improved in the last couple of years.
The Gross Margin of TNET (47.82%) is comparable to the rest of the 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%

3

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.
Compared to 1 year ago, TNET has less shares outstanding
Compared to 5 years ago, TNET has less shares outstanding
The debt/assets ratio for TNET has been reduced compared to a year ago.

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.
Looking at the Altman-Z score, with a value of 0.66, TNET is doing worse than 80.65% of the companies in the same industry.
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 RankSector 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.
The Quick ratio of TNET (0.96) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.98
Quick Ratio 0.96

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.
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.
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.

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.
Compared to an average S&P500 Price/Earnings ratio of 28.24, TNET is valued rather cheaply.
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.
The average S&P500 Price/Forward Earnings ratio is at 19.93. TNET is valued rather cheaply when compared to this.
Industry RankSector 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.
79.03% of the companies in the same industry are more expensive than TNET, based on the Price/Free Cash Flow ratio.
Industry RankSector 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%

4

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 4.16.
Compared to an average S&P500 Dividend Yield of 2.37, 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

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%

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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.31B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.29%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 2.62
Fwd PE 6.94
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.06
Profitability
Industry RankSector Rank
ROA 11.42%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 20.11%
PM (TTM) 31.36%
GM 47.82%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.98
Quick Ratio 0.96
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)86.01%
EPS 3Y57.52%
EPS 5Y
EPS Q2Q%
EPS Next Y-69.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.94%
Revenue growth 3Y1.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y