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TPG Telecom Limited (AU:TPG)
ASX:TPG
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TPG Telecom Limited (TPG) AI Stock Analysis

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AU:TPG

TPG Telecom Limited

(Sydney:TPG)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
AU$5.00
▼(-11.50% Downside)
TPG Telecom's overall score is primarily driven by its strong cash flow and operational efficiency, despite recent profitability challenges. Technical indicators suggest neutral market momentum, while valuation concerns arise from a negative P/E ratio. The dividend yield offers some compensation, but the company needs to address profitability issues to improve its stock performance.

TPG Telecom Limited (TPG) vs. iShares MSCI Australia ETF (EWA)

TPG Telecom Limited Business Overview & Revenue Model

Company DescriptionTPG Telecom Limited (TPG) is a leading telecommunications and internet service provider based in Australia. The company operates in the telecommunications sector, focusing on delivering high-speed broadband, mobile, and voice services to residential and business customers. TPG's core products include NBN (National Broadband Network) services, ADSL internet, mobile plans, and various bundled offerings that combine these services to meet the diverse needs of its customer base.
How the Company Makes MoneyTPG generates revenue primarily through its various telecommunications services, including fixed-line broadband and mobile subscriptions. The company's revenue model is driven by monthly subscription fees from customers using its internet and mobile services. Key revenue streams include retail broadband plans, mobile phone plans, and wholesale services provided to other telecommunications companies. TPG also benefits from significant partnerships, such as those with infrastructure providers that allow it to offer competitive pricing and enhanced services. Additionally, the company's recent merger with Vodafone Hutchison Australia has expanded its market presence and customer base, further contributing to its earnings.

TPG Telecom Limited Financial Statement Overview

Summary
TPG Telecom maintains strong operational efficiency with consistent EBITDA margins and improved free cash flow. However, recent negative net income and absence of EBIT in 2024 are concerning for profitability. The balance sheet is stable with low leverage, but the diminishing equity ratio and operating cash flow issues need attention.
Income Statement
45
Neutral
TPG Telecom's revenue has seen minimal growth over the years, with a slight decline recently. The gross profit margin improved significantly from 2023 to 2024, but net income turned negative in the latest period, negatively impacting net profit margins. EBITDA margin remains strong, indicating operational efficiency. However, the absence of EBIT in 2024 is a concern.
Balance Sheet
55
Neutral
The company maintains a relatively low debt-to-equity ratio, suggesting a cautious approach towards leveraging. Although Stockholders' equity remains strong, indicating financial stability, the decrease in equity ratio over time poses a concern for asset utilization efficiency.
Cash Flow
60
Neutral
Free cash flow has shown a substantial increase, highlighting effective cash management and capital expenditure strategies. The absence of operating cash flow in 2024 raises questions, but the historical data demonstrates good free cash flow to net income conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.26B5.52B5.53B5.42B5.29B4.35B
Gross Profit1.60B3.20B764.00M676.00M636.00M580.00M
EBITDA1.49B1.34B1.54B2.14B1.73B1.39B
Net Income-75.00M-107.00M49.00M513.00M110.00M741.00M
Balance Sheet
Total Assets19.01B19.09B19.67B20.33B20.13B19.75B
Cash, Cash Equivalents and Short-Term Investments45.00M42.00M116.00M114.00M202.00M120.00M
Total Debt6.16B6.30B6.31B5.66B5.71B5.47B
Total Liabilities7.93B7.92B8.05B8.43B8.41B7.86B
Stockholders Equity11.08B11.17B11.62B11.90B11.72B11.89B
Cash Flow
Free Cash Flow986.00M1.14B660.00M79.00M532.00M265.00M
Operating Cash Flow1.73B1.93B1.52B1.07B1.47B949.00M
Investing Cash Flow-1.02B-1.16B-1.15B-97.00M-920.00M-1.14B
Financing Cash Flow-540.00M-838.00M-370.00M-1.06B-467.00M-423.00M

TPG Telecom Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.65
Price Trends
50DMA
5.18
Positive
100DMA
5.24
Positive
200DMA
4.98
Positive
Market Momentum
MACD
0.10
Negative
RSI
72.16
Negative
STOCH
65.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TPG, the sentiment is Positive. The current price of 5.65 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 5.18, and above the 200-day MA of 4.98, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 72.16 is Negative, neither overbought nor oversold. The STOCH value of 65.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TPG.

TPG Telecom Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$1.71B52.195.89%1.16%18.74%14.89%
68
Neutral
AU$3.85B403.451.57%34.09%
64
Neutral
$56.51B26.5114.73%3.80%0.86%34.33%
61
Neutral
AU$1.73B49.657.40%1.75%0.42%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
56
Neutral
€1.56B1,688.890.21%31.16%
52
Neutral
$10.51B-0.93%3.19%-5.04%-349.38%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TPG
TPG Telecom Limited
5.65
1.42
33.44%
AU:TLS
Telstra Corporation Limited
5.00
1.29
34.81%
AU:SLC
Superloop Ltd.
2.98
1.03
52.82%
AU:MAQ
Macquarie Telecom Group Limited
65.56
-24.59
-27.28%
AU:TUA
Tuas Ltd.
6.90
1.72
33.20%
AU:ABB
Aussie Broadband Ltd.
5.53
1.90
52.34%

TPG Telecom Limited Corporate Events

TPG Telecom Announces AUD 3 Billion Capital Return to Shareholders
Oct 16, 2025

TPG Telecom Limited has announced a cash return of capital to its shareholders, amounting to AUD 1.61 per share, following the proceeds from the Vocus Group Limited transaction. This move, pending shareholder approval, is set to return up to 3 billion dollars and is scheduled for trading on an ‘ex return of capital’ basis from November 14, 2025, with the payment date set for November 24, 2025. The announcement signifies a strategic financial decision potentially enhancing shareholder value and reflecting the company’s robust financial position.

The most recent analyst rating on (AU:TPG) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Receives ‘BBB’ Rating from Fitch with Stable Outlook
Oct 8, 2025

Fitch Ratings has assigned TPG Telecom Limited a ‘BBB’ Long-Term Issuer Default Rating with a Stable Outlook, reflecting its competitive market position and solid financial standing. The rating considers TPG’s reduced leverage following the sale of its enterprise, government, and wholesale fixed business to Vocus Group Limited, with expectations of maintaining a strong financial position through reduced debt and improved cash flow, benefiting stakeholders and reinforcing its market presence.

The most recent analyst rating on (AU:TPG) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Reports Modest Revenue Growth in 2025
Aug 28, 2025

TPG Telecom Limited is a leading telecommunications provider in Australia, offering a range of services to consumers, businesses, and government entities under various brands including Vodafone, TPG, and iiNet. The company focuses on mobile and fixed telecommunications services, leveraging a network of over 7,700 mobile sites. Recently, TPG Telecom has transitioned to a more mobile-centric business model following the sale of its fibre network infrastructure to Vocus Group Limited.

TPG Telecom Limited Releases Half-Year Financial Results
Aug 28, 2025

TPG Telecom Limited has released its financial results for the half year ending June 30, 2025, indicating a strategic focus on maintaining robust investor relations. This announcement is poised to impact the company’s operational strategies and market positioning, potentially influencing stakeholder confidence and investment decisions.

The most recent analyst rating on (AU:TPG) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Announces Dividend Distribution for Shareholders
Aug 28, 2025

TPG Telecom Limited has announced a dividend distribution of AUD 0.09 per ordinary fully paid share, relating to the six-month period ending June 30, 2025. The ex-dividend date is set for September 4, 2025, with a record date of September 5, 2025, and payment scheduled for October 3, 2025. This announcement reflects TPG’s continued commitment to returning value to shareholders and may influence investor perceptions positively, reinforcing the company’s stable financial performance.

The most recent analyst rating on (AU:TPG) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Limited Appoints New Director John Otty
Aug 18, 2025

TPG Telecom Limited has announced the appointment of John Otty as a director, effective from August 18, 2025. This announcement does not indicate any current interests in securities or contracts for the new director, suggesting a fresh start in his role. The appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Appoints John Otty as Non-Executive Director
Aug 18, 2025

TPG Telecom Limited announced the appointment of John Otty as a non-executive director, replacing Serpil Timuray, a nominee of Vodafone Group Plc, which owns a substantial share in the company. This change is expected to enhance the board’s expertise in telecommunications, given Mr. Otty’s extensive experience with Vodafone and his familiarity with the Australian market, potentially benefiting shareholders and customers.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Trading Resumes After Temporary Pause
Aug 6, 2025

TPG Telecom Limited, a company listed on the Australian Securities Exchange (ASX), experienced a temporary pause in trading of its securities. The ASX has announced that trades made before the pause at 10:15:18 am have been cancelled, and the pause in trading will be lifted, allowing TPG’s securities to resume trading.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Clarifies Erroneous ASX Announcement
Aug 6, 2025

TPG Telecom Limited announced that a previous announcement made by Infomedia Ltd regarding a scheme implementation agreement with McQueen BidCo Pty Ltd was mistakenly associated with TPG Telecom Limited by the ASX. This announcement was unrelated to TPG Telecom Limited and is being removed by ASX. As a result, trades in TPG that occurred prior to a trading pause will be canceled, and TPG will remain in a trading pause until further notice.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

Infomedia Agrees to Acquisition by TPG at Premium Price
Aug 6, 2025

Infomedia Limited, a company listed on the ASX, has entered into a scheme implementation agreement with TPG Capital Asia, under which TPG will acquire all shares of Infomedia at a cash consideration of $1.72 per share. This offer represents a significant premium over recent trading prices and includes the potential for additional value through franking credits. The Infomedia Board unanimously recommends the transaction, highlighting the premium and certainty it provides to shareholders amidst market uncertainties. The scheme is subject to customary conditions, including shareholder and regulatory approvals.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Assigned ‘BBB’ Rating with Negative Outlook Amid Capital Management Plans
Aug 5, 2025

TPG Telecom Limited has been assigned a ‘BBB’ long-term issuer credit rating by S&P Global Ratings, with a negative outlook due to uncertainties in its capital reinvestment plan and debt reduction timeline. The company plans to use approximately A$4.7 billion from asset sales to Vocus Group Ltd. to manage its capital, aiming to maintain a debt-to-EBITDA ratio of about 2.5x. Despite competitive pressures, TPG’s network sharing agreements are expected to enhance its competitive position and scale in the telecommunications sector.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

TPG Telecom Unveils Capital Management Plans Post-Vocus Transaction
Aug 4, 2025

TPG Telecom Limited has announced a series of capital management plans following the completion of a significant transaction with Vocus Group Limited, which generated net cash proceeds of approximately $4.7 billion. The company plans to return up to $3 billion to shareholders through a capital reduction and offer a reinvestment plan to minority shareholders, aiming to improve liquidity and maintain its ASX200 index position. Additionally, TPG intends to repay up to $2.4 billion in bank borrowings, targeting a stronger financial position deemed ‘investment grade.’ The strategic shareholders have expressed support for these initiatives, which are expected to enhance shareholder value and position TPG for sustainable growth in the telecommunications market.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 03, 2025