Telstra Group Limited
Telstra Group Limited Fundamental Analysis
Telstra Group Limited (TLGPY) shows weak financial fundamentals with a PE ratio of 25.79, profit margin of 9.80%, and ROE of 16.52%. The company generates $23.0B in annual revenue with weak year-over-year growth of -0.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TLGPY's fundamental strength across five key dimensions:
Efficiency Score
WeakTLGPY struggles to generate sufficient returns from assets.
Valuation Score
WeakTLGPY trades at a premium to fair value.
Growth Score
ModerateTLGPY shows steady but slowing expansion.
Financial Health Score
WeakTLGPY carries high financial risk with limited liquidity.
Profitability Score
ModerateTLGPY maintains healthy but balanced margins.
Key Financial Metrics
Is TLGPY Expensive or Cheap?
P/E Ratio
TLGPY trades at 25.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TLGPY's PEG of 3.47 indicates potential overvaluation.
Price to Book
The market values Telstra Group Limited at 4.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.48 times EBITDA. This is generally considered low.
How Well Does TLGPY Make Money?
Net Profit Margin
For every $100 in sales, Telstra Group Limited keeps $9.80 as profit after all expenses.
Operating Margin
Core operations generate 17.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.52 in profit for every $100 of shareholder equity.
ROA
Telstra Group Limited generates $5.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telstra Group Limited generates strong operating cash flow of $6.98B, reflecting robust business health.
Free Cash Flow
Telstra Group Limited generates strong free cash flow of $4.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.01 in free cash annually.
FCF Yield
TLGPY converts 7.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How TLGPY Stacks Against Its Sector Peers
| Metric | TLGPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.79 | 21.66 | Worse (Expensive) |
| ROE | 16.52% | 1190.00% | Weak |
| Net Margin | 9.80% | -55754.00% (disorted) | Weak |
| Debt/Equity | 1.59 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.58 | 1.59 | Weak Liquidity |
| ROA | 5.04% | -202359.00% (disorted) | Weak |
TLGPY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telstra Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.14%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
23.20%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
19.82%
Industry Style: Growth, Technology, Streaming
High Growth