TPG Telecom Limited (TPG) AI Stock Analysis

• Market Cap: $9.97B
• Dividend Yield: 3.36%
• Average Volume (3M): 941.21K
• Price to Earnings (P/E): 276.5
• Beta (1Y): 0.44
• Revenue Growth: -0.23%
• EPS Growth: -318.56%
• Country: AU
• Employees: 3,300
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 1,859,341,700
• 10 Day Avg. Volume: 1,120,260
• 30 Day Avg. Volume: 941,210
• PEG Ratio: 0.05
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 115.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.28
• Price Target Upside: -3.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: ―

The overall score reflects TPG Telecom's operational efficiency and strong cash flow, which are its main strengths. However, significant challenges in profitability, as evidenced by its negative P/E ratio and recent financial performance, weigh heavily on the stock. Additionally, technical indicators suggest potential overbought conditions, which could lead to short-term volatility.

TPG Telecom Limited Business Overview & Revenue Model

Company Description

TPG Telecom Limited provides telecommunications to consumers, business, enterprise, government and wholesale customers services. The company owns and operates fixed and mobile network infrastructure, including fixed voice and data network with approximately 28,000 kilometers of metropolitan and inter-capital fiber networks; and 7,000 submarine cable systems; and fiber internet, enterprise ethernet, cloud, SD-WAN, mobility, internet of things, and answering and messaging services. It provides its fixed and mobile products under the Vodafone, TPG, iiNet, Internode, Lebara, and AAPT brands. The company was formerly known as Vodafone Hutchison Australia Limited and changed its name to TPG Telecom Limited in June 2020.TPG Telecom Limited was founded in 1993 and is based in North Sydney, Australia.

How the Company Makes Money

TPG Telecom Limited generates revenue primarily through its telecommunications services. The company's key revenue streams include fixed broadband subscriptions, mobile phone plans, and data services. TPG offers various packages that cater to different customer needs, from individual consumers to large businesses. Additionally, TPG capitalizes on its retail brands, such as Vodafone, which contributes significantly to its earnings through mobile services and device sales. The company also engages in strategic partnerships and network sharing agreements that enhance its service offerings and expand its market reach. These factors, along with continuous investment in network infrastructure and technology, play a crucial role in TPG's ability to maintain a strong revenue flow.

TPG Telecom Limited Financial Statement Overview

Summary

TPG Telecom shows resilience in maintaining operational efficiency through consistent EBITDA margins and improved free cash flow. However, the recent negative net income and lack of EBIT in 2024 raise red flags regarding profitability. While the balance sheet supports financial stability with low leverage, the diminishing equity ratio and operating cash flow issues warrant attention. Overall, TPG needs to address profitability challenges while leveraging its strong cash flow position.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.52B	5.53B	5.42B	5.29B	4.35B
Gross Profit	3.20B	764.00M	676.00M	636.00M	580.00M
EBITDA	1.34B	1.54B	2.14B	1.73B	1.04B
Net Income	-107.00M	49.00M	513.00M	110.00M	741.00M
Balance Sheet
Total Assets	19.09B	19.67B	20.33B	20.13B	19.75B
Cash, Cash Equivalents and Short-Term Investments	42.00M	116.00M	114.00M	202.00M	120.00M
Total Debt	6.30B	6.31B	5.66B	5.71B	5.47B
Total Liabilities	7.92B	8.05B	8.43B	8.41B	7.86B
Stockholders Equity	11.17B	11.62B	11.90B	11.72B	11.89B
Cash Flow
Free Cash Flow	912.00M	368.00M	79.00M	532.00M	265.00M
Operating Cash Flow	1.55B	1.20B	1.07B	1.47B	949.00M
Investing Cash Flow	-1.16B	-1.15B	-97.00M	-920.00M	-1.14B
Financing Cash Flow	-462.00M	-370.00M	-1.06B	-467.00M	-423.00M

TPG Telecom Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.44 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 5.20, and above the 200-day MA of 4.68, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.07B	-0.81	-14.21%	3.83%	2.45%	-73.69%
TPG	55 Neutral	$9.97B	276.54	-0.95%	3.36%	-0.23%	-318.56%
TTRAF		$36.17B	33.26	11.34%	3.74%	―	―
9SL		€866.94M	―	-1.05%	―	―	―
MAQ		AU$1.69B	45.67	8.93%	―	―	―
ABB	66 Neutral	AU$1.12B	39.27	5.66%	0.82%	33.62%	4.97%
TUA	61 Neutral	AU$2.71B	1,101.89	0.49%	―	35.57%	―

TPG Telecom Limited Corporate Events

TPG Telecom Announces Board Resignation

TPG Telecom Limited has announced a change in its board of directors, with Serpil Timuray resigning as a director effective 30 June 2025. The company expressed gratitude for her contributions and stated that a new director will be appointed to fill the vacancy, which may impact the company’s governance and strategic direction.

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 Announces Director’s Interest Change

TPG Telecom Limited announced a change in the director’s interest, specifically for Iñaki Berroeta, with the acquisition of additional Deferred Share Rights and Performance Rights as part of the company’s incentive plans. This move, approved by shareholders, reflects TPG Telecom’s commitment to aligning its leadership’s interests with long-term company performance and shareholder value, potentially impacting its strategic direction and market positioning.

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 Issues New Equity Securities Under Employee Incentive Scheme

TPG Telecom Limited announced the issuance of unquoted equity securities, specifically 1,704,840 deferred share rights and 2,013,010 performance rights, under an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and market positioning positively.

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’s 2025 AGM Resolutions Passed Successfully

TPG Telecom Limited successfully held its 2025 Annual General Meeting, where all proposed resolutions were passed through a poll. The outcomes of the AGM, including the adoption of the 2024 Remuneration Report and the election and re-election of board members, indicate strong shareholder support and are likely to impact the company’s governance and strategic direction positively.

TPG Telecom Strengthens Market Position with Strategic Moves

TPG Telecom Limited held its 2025 Annual General Meeting, highlighting a strong financial performance in 2024 with significant growth in mobile service revenue and strategic milestones achieved. The company expanded its mobile network reach through a regional network sharing arrangement with Optus, covering 98.4% of the Australian population. Additionally, TPG announced the sale of its fibre network infrastructure assets to Vocus Group Limited, aiming to streamline operations and prioritize investments in customer-impacting areas. These moves are expected to enhance TPG’s market position and provide long-term value to shareholders.

TPG Telecom Schedules 2025 Annual General Meeting

TPG Telecom Limited has announced the details for its 2025 Annual General Meeting (AGM), scheduled for May 7, 2025, in Sydney. The meeting will be held in-person and webcast live, allowing shareholders to participate, ask questions, and vote. This announcement underscores TPG Telecom’s commitment to engaging with its stakeholders and maintaining transparency in its operations.

TPG Telecom Announces Director’s Interest Changes

TPG Telecom Limited announced a change in the director’s interest, specifically for Director Iñaki Berroeta. The changes include the acquisition of 335,102 Fully Paid Ordinary Shares and the disposal of 212,175 Deferred Share Rights and 486,842 Performance Rights. These changes are part of the company’s incentive plans, reflecting the vesting and conversion of various rights to ordinary shares. This adjustment in director’s interest showcases TPG Telecom’s ongoing commitment to aligning executive interests with company performance, potentially impacting shareholder value and market perception.