Telecom Plus (TEP) AI Stock Analysis

• Market Cap: £1.51B
• Dividend Yield: 7.48%
• Average Volume (3M): 122.83K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.15
• Revenue Growth: -9.86%
• EPS Growth: N/A
• Country: UK
• Employees: 2,493
• Sector: Utilities
• Sector Strength: 85
• Industry: Diversified Utilities
• EPS (TTM): 0.61
• Shares Outstanding: 80,024,970
• 10 Day Avg. Volume: 124,237
• 30 Day Avg. Volume: 122,831
• 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: £2,414.33
• Price Target Upside: 28.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: 2,063.00p ▲(9.50% Upside)

Telecom Plus's overall stock score is driven by its strong corporate events and attractive valuation, which are offset by mixed financial performance and technical indicators. The company's strategic acquisitions and shareholder support position it well for future growth, but challenges in revenue and cash flow conversion need to be addressed to enhance long-term prospects.

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 through a multi-service offering that includes broadband, telephony, and energy supply. The company operates on a subscription-based model, where customers pay a monthly fee for their chosen services. Key revenue streams include charges for broadband packages, telephony services, and energy consumption, often bundled together for cost savings. Additionally, Telecom Plus benefits from a referral and commission structure, incentivizing existing customers to recommend services to new clients. The company has established partnerships with various service providers and regulatory bodies, enhancing its market presence and enabling competitive pricing. A significant factor contributing to its earnings is the high customer retention rate, driven by the convenience of bundled services and customer satisfaction.

Telecom Plus Financial Statement Overview

Summary

Telecom Plus shows strengths in profit margins with a gross profit margin improvement from 12% to 17.4%. However, revenue declined by 17.6% and cash flow turned negative, impacting financial flexibility and growth opportunities. The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.78 and reasonable equity financing.

Income Statement

Telecom Plus shows a mixed income statement performance. The net profit margin for the latest year is 3.5%, which is modest. Gross profit margin improved from 12% to 17.4% year-over-year, indicating better cost management. However, revenue declined significantly by 17.6% compared to the previous year, suggesting potential challenges in sustaining sales momentum.

Balance Sheet

The balance sheet presents a stable yet cautious picture. The debt-to-equity ratio stands at 0.78, reflecting moderate leverage. Return on equity is calculated at 3.1%, which is relatively low, indicating limited profitability on shareholders' equity. The equity ratio is 35.7%, suggesting a reasonable proportion of equity financing, though potential risk exists with substantial liabilities.

Cash Flow

Cash flow analysis indicates significant challenges. Operating cash flow turned negative in the most recent year, dropping from a positive $232 million to a negative $132.5 million, highlighting cash generation issues. Free cash flow also followed a similar negative trajectory, impacting the company's ability to invest or return capital to shareholders.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.84B	2.04B	2.48B	967.43M	861.20M
Gross Profit	352.45M	358.07M	355.21M	294.97M	177.25M	161.87M
EBITDA	136.96M	142.13M	131.35M	106.03M	70.26M	63.85M
Net Income	76.10M	76.10M	71.04M	68.43M	35.47M	32.58M
Balance Sheet
Total Assets	736.39M	736.39M	651.39M	794.74M	465.79M	462.66M
Cash, Cash Equivalents and Short-Term Investments	79.02M	79.02M	57.83M	193.80M	29.65M	25.06M
Total Debt	194.88M	194.88M	180.33M	90.38M	99.98M	96.47M
Total Liabilities	484.88M	484.88M	418.76M	564.03M	260.21M	250.29M
Stockholders Equity	251.51M	251.51M	232.63M	230.71M	206.48M	212.82M
Cash Flow
Free Cash Flow	102.12M	91.58M	-144.98M	221.11M	38.86M	31.41M
Operating Cash Flow	102.51M	108.75M	-132.49M	232.13M	48.80M	41.45M
Investing Cash Flow	-29.13M	-26.08M	-8.15M	-11.52M	-8.38M	-9.94M
Financing Cash Flow	-47.08M	-61.48M	4.66M	-57.16M	-35.12M	-50.07M

Telecom Plus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1884.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1884 is below the 20-day moving average (MA) of 1902.81, below the 50-day MA of 1933.49, and above the 200-day MA of 1756.42, indicating a neutral trend. The MACD of -14.71 indicates Negative momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 67.17 is Neutral, 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	71 Outperform	£52.19B	17.06	8.35%	4.44%	-7.42%	5.84%
CNA	70 Outperform	£7.83B	6.18	-5.95%	2.49%	-4.82%	-123.58%
TEP	69 Neutral	£1.51B	19.56	31.44%	7.48%	-9.86%	―
PNN	64 Neutral	£2.34B	―	-4.44%	6.87%	15.42%	-406.43%
UU	64 Neutral	£7.74B	29.24	13.05%	4.57%	10.04%	―
SVT	62 Neutral	£7.85B	34.04	12.73%	4.67%	3.78%	50.18%
Sector *	56 Neutral	AU$1.97B	7.01	12.22%	3.97%	24.17%	-114.27%

Telecom Plus Corporate Events

Telecom Plus PLC Passes All Resolutions at 2025 AGM

Telecom Plus PLC announced that all resolutions proposed at its 2025 Annual General Meeting were passed, including the approval of the 2025 Annual Report, Directors’ Remuneration Report, and a final dividend payment. The successful passing of these resolutions reflects strong shareholder support and positions the company well for continued stability and growth in its market.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Expands Customer Base with TalkTalk Acquisition

Telecom Plus is progressing well towards its medium-term goal of reaching 2 million customers, with a recent acquisition of 120,000 customers from TalkTalk, building on a previous acquisition of 95,000. The company is optimistic about enhancing customer value through cross-selling additional services, despite short-term costs associated with onboarding new customers. The acquisition is expected to increase total customer numbers by 25%, aligning with their FY26 financial guidance.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus PLC Announces New Share Listing on LSE

Telecom Plus PLC has applied for the listing of 840,000 ordinary shares on the London Stock Exchange, which are reserved under existing block listings. These shares, expected to be admitted by 31 July 2025, will be issued as a result of exercised share options from various company plans, potentially enhancing employee and networker engagement and aligning with the company’s growth strategies.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Executives Exercise Share Options Under Bonus Plan

Telecom Plus PLC announced that its Chief Executive, Stuart Burnett, and Chief Financial Officer, Nick Schoenfeld, exercised options to acquire ordinary shares under the company’s Deferred Shares Bonus Plan. Following the exercise, both executives sold a portion of their shares to cover tax liabilities and exercise costs, retaining the remaining shares. This transaction reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting its market positioning positively.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Releases 2025 Annual Report and AGM Details

Telecom Plus PLC has announced the submission of its Annual Report & Accounts for the year ended 31 March 2025 to the National Storage Mechanism. The company has also dispatched documents related to its 2025 Annual General Meeting, including the AGM Circular, Notice, and Proxy form, to shareholders. These documents will be available on the company’s website, and the AGM is scheduled for 6 August 2025. This announcement ensures transparency and provides shareholders with essential information for the upcoming meeting, potentially impacting shareholder engagement and company governance.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus PLC Announces Total Voting Rights and Share Capital

Telecom Plus PLC has announced its total voting rights and share capital, revealing that the company has 79,858,458 ordinary shares in circulation, excluding those held in treasury. This information is crucial for shareholders to determine their notification requirements under the Disclosure and Transparency Rules, as 252,638 shares held in the JSOP Share Trust have waived voting rights but are still included in the total count.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £25.80 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Reports Record Profits Amidst Strong Customer Growth

Telecom Plus PLC reported strong financial results for the year ending March 2025, with record profits and dividends despite a decrease in overall revenues due to lower energy prices. The company achieved a 15% increase in customer numbers, bolstered by the acquisition of 25,000 customers from TalkTalk and a 12.6% organic growth rate. The company anticipates continued growth, projecting a 15% increase in customer numbers for FY26 and aims to reach two million customers in the medium term. The favorable market conditions and innovative business model position Telecom Plus well for future growth, offering stakeholders promising returns.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £2600.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Appoints New Non-Executive Directors

Telecom Plus PLC has announced the appointment of Gemma Godfrey and Phil Bunker as new Non-Executive Directors, effective after the upcoming AGM on 6 August 2025. These appointments come as Bea Hollond and Andrew Blowers step down from the Board after nine years of service. The new directors bring a wealth of experience in digital business, governance, insurance, and entrepreneurial leadership, which is expected to enhance the company’s strategic direction and governance capabilities.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £2600.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Aberdeen Group Increases Stake in Telecom Plus

Telecom Plus PLC has announced that Aberdeen Group plc has crossed a significant threshold of voting rights in the company, now holding 7.68% of total voting rights due to an in-specie transfer of shares. This change reflects an increase in the voting rights held indirectly by abrdn Investments (Holdings) Limited and managed by abrdn Investment Management Limited, indicating a strategic move by Aberdeen Group to strengthen its influence within Telecom Plus.

The most recent analyst rating on (GB:TEP) stock is a Buy with a £3180.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.