Telecom Plus (TEP) AI Stock Analysis

• Market Cap: £1.40B
• Dividend Yield: 6.8%
• Average Volume (3M): 95.11K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.16
• Revenue Growth: 1.71%
• EPS Growth: -12.49%
• Country: UK
• Employees: 2,493
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.31
• Shares Outstanding: 80,080,826
• 10 Day Avg. Volume: 73,105
• 30 Day Avg. Volume: 95,112
• PEG Ratio: 2.71
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 15.01
• 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: £2,400.00
• Price Target Upside: 74.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: 1,487.00p ▲(7.91% Upside)

Telecom Plus's overall stock score reflects a mixed outlook. The most significant strength is the company's strong customer growth and strategic expansion, which supports future growth prospects. However, the bearish technical indicators and revenue decline pose risks. The attractive valuation and high dividend yield provide a buffer, making it appealing for income-focused investors despite the current technical weakness.

Positive Factors

Profitability Margins

Improved profitability margins indicate effective cost management and pricing strategies, enhancing long-term financial health.

Balance Sheet Stability

A stable balance sheet with manageable debt levels supports financial resilience and flexibility for future growth.

Cash Flow Generation

Strong free cash flow growth enhances the company's ability to reinvest in business operations and return value to shareholders.

Negative Factors

Revenue Decline

A decline in revenue can hinder growth prospects and may indicate challenges in market demand or competitive positioning.

Operating Cash Flow Conversion

Low cash flow conversion from operations suggests inefficiencies in turning profits into cash, potentially impacting liquidity.

Revenue Growth Trend

Negative revenue growth trend raises concerns about the company's ability to expand its market share and sustain long-term growth.

Telecom Plus Business Overview & Revenue Model

Company Description

Telecom Plus Plc provides a range of utility services in the United Kingdom. It offers various services, including gas, electricity, fixed line telephony, mobile telephony, broadband, and insurance, as well as bill protection and life cover, home insurance, boiler cover, and cashback card services under the Utility Warehouse and TML brands. The company was incorporated in 1996 and is based in London, the United Kingdom.

How the Company Makes Money

Telecom Plus generates revenue primarily through its subscription-based model, where customers pay monthly fees for bundled services such as broadband, telephony, and energy. Key revenue streams include the sale of broadband and telecommunication services, as well as energy supply to residential and business customers. The company also benefits from a network of independent distributors who sell its services, providing a commission-based income model that incentivizes growth and customer acquisition. Additionally, strategic partnerships with other service providers and suppliers enhance its product offerings and contribute to revenue stability.

Telecom Plus Financial Statement Overview

Summary

Telecom Plus demonstrates a mixed financial performance. The company shows strength in profitability margins and a stable balance sheet with a healthy return on equity. However, the significant revenue decline and challenges in operating cash flow conversion highlight areas for improvement. The company needs to focus on reversing the revenue decline and enhancing cash flow efficiency to sustain long-term growth.

Income Statement

Telecom Plus has shown a mixed performance in its income statement. The gross profit margin has improved over the years, reaching 19.48% in 2025 from 17.42% in 2024. However, the company experienced a significant revenue decline of 8.14% in 2025, which is a concern. The net profit margin has improved slightly to 4.14% in 2025, indicating better cost management. Overall, while profitability margins are improving, the revenue decline poses a risk.

Balance Sheet

The balance sheet of Telecom Plus reflects a stable financial position with a manageable debt-to-equity ratio of 0.77 in 2025, slightly improved from 0.78 in 2024. The return on equity is strong at 30.26%, indicating efficient use of equity capital. The equity ratio is stable, suggesting a balanced capital structure. The company maintains a healthy balance between debt and equity, supporting financial stability.

Cash Flow

Telecom Plus's cash flow statement shows a positive trend in free cash flow growth, with a 45.50% increase in 2025. However, the operating cash flow to net income ratio is low at 0.38, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 0.84, suggesting good cash generation relative to net income. Overall, while free cash flow is improving, the operating cash flow conversion needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.84B	2.04B	2.48B	967.43M	861.20M
Gross Profit	336.66M	358.07M	355.21M	294.97M	177.25M	161.87M
EBITDA	130.37M	142.13M	131.35M	106.03M	70.26M	65.07M
Net Income	66.17M	76.10M	71.04M	68.43M	35.47M	32.58M
Balance Sheet
Total Assets	662.45M	736.39M	651.39M	794.74M	465.79M	462.66M
Cash, Cash Equivalents and Short-Term Investments	90.89M	79.02M	57.83M	193.80M	29.65M	25.06M
Total Debt	234.77M	194.88M	180.33M	90.38M	99.98M	96.47M
Total Liabilities	430.89M	484.88M	418.76M	564.03M	260.21M	250.29M
Stockholders Equity	231.56M	251.51M	232.63M	230.71M	206.48M	212.82M
Cash Flow
Free Cash Flow	109.39M	91.58M	-144.98M	221.11M	38.86M	31.41M
Operating Cash Flow	109.74M	108.75M	-132.49M	232.13M	48.80M	41.45M
Investing Cash Flow	-71.43M	-26.08M	-8.15M	-11.52M	-8.38M	-9.94M
Financing Cash Flow	-18.24M	-61.48M	4.66M	-57.16M	-35.12M	-50.07M

Telecom Plus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1378.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TEP, the sentiment is Negative. The current price of 1378 is below the 20-day moving average (MA) of 1530.70, below the 50-day MA of 1664.64, and below the 200-day MA of 1762.14, indicating a bearish trend. The MACD of -87.86 indicates Positive momentum. The RSI at 27.76 is Positive, neither overbought nor oversold. The STOCH value of 8.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TEP.

Telecom Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NG	76 Outperform	£56.78B	18.56	7.87%	4.23%	-9.52%	35.74%
UU	72 Outperform	£8.19B	30.92	20.43%	4.41%	15.76%	254.82%
SVT	71 Outperform	£8.34B	36.17	17.41%	4.58%	10.68%	35.18%
PNN	67 Neutral	£2.41B	-36.04	2.50%	6.56%	19.50%	―
CNA	66 Neutral	£8.21B	-35.94	-5.95%	2.92%	-4.82%	-123.58%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TEP	63 Neutral	£1.40B	18.23	28.80%	6.80%	1.71%	-12.49%

Telecom Plus Corporate Events

Telecom Plus PLC Announces Total Voting Rights and Share Capital

Telecom Plus PLC has announced its total number of ordinary shares and voting rights, which stands at 80,081,517, excluding shares held in treasury. This information is crucial for shareholders to determine their interest or changes in their interest in the company under the Disclosure and Transparency Rules. Additionally, 252,638 ordinary shares held in the Telecom Plus PLC JSOP Share Trust have waived voting rights but are included in the total voting rights figure.

Telecom Plus Reports Strong Customer Growth Amid Strategic Expansion

Telecom Plus PLC has reported its half-year results, highlighting a continued compound double-digit customer growth for the fourth consecutive year. The company has seen a significant increase in customer numbers, driven by successful cross-selling to acquired TalkTalk broadband customers. Despite a slight decrease in gross and pre-tax profits compared to the previous year, Telecom Plus remains confident in meeting its fiscal year guidance, aiming for a 25% total customer growth. The company’s scalable platform and competitive offerings in mobile, energy, broadband, and insurance are expected to drive future growth, with a target of reaching two million customers.

Telecom Plus Announces Total Voting Rights and Share Capital Update

Telecom Plus PLC has announced that the total number of ordinary shares, excluding those held in treasury, is 80,080,823. This figure is significant for shareholders as it determines the calculations for notifying changes in their interest under the Disclosure and Transparency Rules. The announcement also notes that 252,638 shares held in the JSOP Share Trust have waived voting rights, yet are included in the total voting rights figure.

Telecom Plus Reports Strong Customer Growth and Optimistic Outlook

Telecom Plus has reported a significant increase in customer numbers, with a 19% growth in the first half of FY25, largely due to the acquisition of TalkTalk customers. The company is exceeding expectations in cross-selling to these new customers and is optimistic about future opportunities. The launch of a competitive mobile offering enhances their market-leading position in other services, driving strong momentum into the second half of the year. Despite changes in profit phasing due to industry cost allocations, Telecom Plus remains confident in its growth and profit guidance for the full year.

Telecom Plus Announces Total Voting Rights and Share Capital

Telecom Plus PLC has announced its total number of ordinary shares at 80,077,140, excluding treasury shares, with 1,132,705 shares currently held in treasury. The total voting rights stand at the same figure, providing a basis for shareholders to assess their interests under the Disclosure and Transparency Rules. Additionally, 252,638 shares in the JSOP Share Trust have waived voting rights but are included in the total voting rights figure.