Telenet Group Hldgs NV (TNET.BR)
BE0003826436 - Common Stock
TNET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Media industry. While TNET has a great profitability rating, there are quite some concerns on its financial health. TNET has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years TNET had a positive operating cash flow.
1.2 Ratios
TNET has a Return On Assets of 11.42%. This is amongst the best in the industry. TNET outperforms 93.55% of its industry peers.
TNET's Return On Invested Capital of 7.68% is fine compared to the rest of the industry. TNET outperforms 69.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNET is in line with the industry average of 9.78%.
| 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.
In the last couple of years the Profit Margin of TNET has grown nicely.
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.
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 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
TNET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TNET has been reduced compared to 1 year ago.
The number of shares outstanding for TNET has been reduced compared to 5 years ago.
TNET has a better debt/assets ratio than last year.
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's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. TNET is outperformed by 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 Rank | Sector 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.
TNET's Current ratio of 0.98 is in line compared 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.
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
The Earnings Per Share has grown by an impressive 86.01% over the past year.
The Earnings Per Share has been growing by 42.20% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.94% in the past year.
Measured over the past years, TNET shows a small growth in Revenue. The Revenue has been growing by 1.12% on average per year.
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
The Revenue is expected to grow by 0.51% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
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.
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 24.41. TNET is valued rather cheaply when compared to this.
TNET is valuated cheaply with a Price/Forward Earnings ratio of 6.94.
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.
TNET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 79.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.77 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The decent profitability rating of TNET 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%
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 5.26.
TNET's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| 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
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%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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