Telenet Group Hldgs NV (TNET.BR) Fundamental Analysis & Valuation

EBR:TNET • BE0003826436

Current stock price

21.28 EUR
+0.08 (+0.38%)
Last:

This TNET.BR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TNET.BR Profitability Analysis

1.1 Basic Checks

  • TNET had positive earnings in the past year.
  • TNET had a positive operating cash flow in the past year.
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 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

1.2 Ratios

  • TNET's Return On Assets of 11.42% is amongst the best of the industry. TNET outperforms 93.55% of its industry peers.
  • With a decent Return On Invested Capital value of 7.68%, TNET is doing good in the industry, outperforming 69.35% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TNET is above the industry average of 7.74%.
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 2016 2017 2018 2019 2020 2021 2022 0 -50 -100 -150

1.3 Margins

  • Looking at the Profit Margin, with a value of 31.36%, TNET belongs to the top 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 has a Operating Margin of 20.11%. This is amongst the best in the industry. TNET outperforms 91.94% of its industry peers.
  • TNET's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 47.82%, TNET perfoms like the industry average, 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 2016 2017 2018 2019 2020 2021 2022 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. TNET.BR Health Analysis

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.
  • TNET has a better debt/assets ratio than last year.
TNET.BR Yearly Shares OutstandingTNET.BR Yearly Shares OutstandingYearly Shares Outstanding 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 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.
  • The Altman-Z score of TNET (0.66) is worse 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.
  • The Debt to FCF ratio of TNET (13.55) is comparable to the rest of the industry.
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 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 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 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TNET.BR Growth Analysis

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.
  • 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.
  • 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

  • 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.
TNET.BR Yearly Revenue VS EstimatesTNET.BR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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Find the best growth stocksShow best growing peers

6

4. TNET.BR Valuation Analysis

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 cheaply inside the industry as 93.55% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.18, TNET is valued rather cheaply.
  • TNET is valuated cheaply with a Price/Forward Earnings ratio of 6.94.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 75.81% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of TNET to the average of the S&P500 Index (37.96), we can say TNET is valued rather cheaply.
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 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as TNET.
  • 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 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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TNET.BR Dividend Analysis

5.1 Amount

  • TNET has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.40, TNET pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, TNET pays a better dividend.
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 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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Find the best dividend stocksShow peers with best dividend

TNET.BR Fundamentals: All Metrics, Ratios and Statistics

Telenet Group Hldgs NV

EBR:TNET (10/13/2023, 7:00:00 PM)

21.28

+0.08 (+0.38%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.31B
Revenue(TTM)2.72B
Net Income(TTM)854.00M
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
Graham NumberN/A
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%
ROICexgc growth 3Y-11.68%
ROICexgc 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%

Telenet Group Hldgs NV / TNET.BR Fundamental Analysis FAQ

What is the fundamental rating for TNET stock?

ChartMill assigns a fundamental rating of 5 / 10 to TNET.BR.


What is the valuation status for TNET stock?

ChartMill assigns a valuation rating of 7 / 10 to Telenet Group Hldgs NV (TNET.BR). This can be considered as Undervalued.


How profitable is Telenet Group Hldgs NV (TNET.BR) stock?

Telenet Group Hldgs NV (TNET.BR) has a profitability rating of 7 / 10.


What is the financial health of Telenet Group Hldgs NV (TNET.BR) stock?

The financial health rating of Telenet Group Hldgs NV (TNET.BR) is 3 / 10.


Can you provide the expected EPS growth for TNET stock?

The Earnings per Share (EPS) of Telenet Group Hldgs NV (TNET.BR) is expected to decline by -69.42% in the next year.