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 66 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

In the past year TNET was profitable.
TNET had a positive operating cash flow in the past year.
Each year in the past 5 years TNET has been profitable.
TNET had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

TNET has a better Return On Assets (11.42%) than 93.55% of its industry peers.
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 6.95%.
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

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.
In the last couple of years the Profit Margin of TNET has grown nicely.
The Operating Margin of TNET (20.11%) is better 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.
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%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNET is creating value.
TNET has less shares outstanding than it did 1 year ago.
TNET has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TNET has an improved debt to assets ratio.

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.
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.
Looking at the Debt to FCF ratio, with a value of 13.55, TNET is in line with its industry, 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

A Current Ratio of 0.98 indicates that TNET may have some problems paying its short term obligations.
The Current ratio of TNET (0.98) 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.
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 RankSector Rank
Current Ratio 0.98
Quick Ratio 0.96

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.
TNET shows a small growth in Revenue. In the last year, the Revenue has grown by 4.94%.
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 growth Q2Q-88.51%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y1.04%
Revenue growth 5Y1.12%
Revenue growth Q2Q9%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

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.
93.55% of the companies in the same industry are more expensive than TNET, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TNET to the average of the S&P500 Index (26.48), we can say TNET is valued rather cheaply.
A Price/Forward Earnings ratio of 6.94 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 2.62
Fwd PE 6.94

4.2 Price Multiples

TNET's Enterprise Value to EBITDA ratio is in line with 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%.
Compared to an average industry Dividend Yield of 4.64, TNET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 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)
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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)
Growth
EPS 1Y (TTM)86.01%
EPS 3Y57.52%
EPS 5Y
EPS growth 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
Revenue growth 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