Telecom Plus (TEP) AI Stock Analysis

• Market Cap: £1.07B
• Dividend Yield: 7.01%
• Average Volume (3M): 95.11K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.79
• 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: 80,085,620
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.26
• Revenue Forecast (FY): £1.94B

• Rating: 63 Neutral
• Price Target: 1,487.00p ▲(8.54% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

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

Multi-product bundling and recurring revenue

Telecom Plus's bundled offering drives higher ARPU and customer stickiness by embedding multiple utility and telecom services in one relationship. This structural cross-sell model supports durable recurring revenue, smoother churn profiles and stronger lifetime value versus single-product providers.

Strong customer growth and strategic expansion

Sustained customer base expansion increases scale for distribution and fixed-cost absorption, enhancing long-term revenue potential and cross-sell opportunities. A 25% growth target reflects structural market penetration that can improve unit economics and margins over multiple reporting periods.

High return on equity and balanced leverage

A high ROE paired with a moderate debt-to-equity ratio signals efficient capital use and a stable capital structure. This durable financial strength supports reinvestment, dividend capacity and resilience to industry shocks, helping sustain long-term operations and strategic initiatives.

Negative Factors

Recent revenue decline

An 8% revenue drop is a structural concern: durable growth is needed to fund margins and reinvestment. If sustained, it undermines scale benefits from bundling, pressures fixed-cost absorption and could limit capital for customer acquisition or network/technology improvements.

Weak operating cash conversion

Low conversion of accounting earnings into operating cash reduces financial flexibility and increases reliance on financing for growth or dividends. Over months this can constrain capex and partner incentives, and makes earnings less reliable as a source of durable free cash flow.

Dependence on partner distribution and commission costs

Heavy reliance on third-party partners creates structural dependency on external incentives and commission-driven costs. This can compress margins, introduce variability in acquisition rates, and reduce control over customer experience, limiting sustainably higher profitability.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 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: 1370.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1370 is above the 20-day moving average (MA) of 1361.60, above the 50-day MA of 1357.72, and below the 200-day MA of 1668.20, indicating a bearish trend. The MACD of -5.71 indicates Positive momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.69 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
SSE	74 Outperform	£31.98B	16.49	9.92%	2.98%	1.78%	-50.72%
YU	74 Outperform	£287.40M	9.39	53.08%	4.14%	16.62%	-7.97%
JEL	70 Outperform	£140.94M	12.63	4.41%	4.38%	7.70%	-5.33%
DRX	69 Neutral	£2.92B	0.40	19.64%	2.78%	-19.04%	-34.52%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TEP	63 Neutral	£1.07B	21.07	28.80%	7.01%	1.71%	-12.49%
CNA	59 Neutral	£8.72B	-112.68	-5.95%	2.86%	-4.82%	-123.58%

Telecom Plus Corporate Events

Telecom Plus Updates Share Capital and Voting Rights

Telecom Plus PLC has confirmed that, as of 27 February 2026, it has 80,085,617 ordinary shares in issue (excluding treasury shares), which also represents the total number of voting rights in the company. The group holds 1,132,705 shares in treasury and has 252,638 shares in its JSOP Share Trust with voting rights waived, providing investors with an updated denominator for regulatory disclosure calculations under the Disclosure and Transparency Rules.

The update ensures shareholders and market participants have accurate information on the company’s capital structure and voting rights base, which is essential for monitoring significant holdings and compliance with notification requirements. By clarifying the status of treasury shares and those held in the JSOP Share Trust, Telecom Plus supports transparency and facilitates proper reporting of changes in investor interests.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1495.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Confirms Total Voting Rights and Share Capital

Telecom Plus PLC has confirmed that, as of 30 January 2026, it has 80,085,617 ordinary shares of 5 pence each in issue (excluding 1,132,705 shares held in treasury), with the same number of voting rights in the company. The company noted that this voting rights figure, which includes 252,638 shares held in a JSOP Share Trust on which voting rights have been waived, should be used by shareholders as the denominator when assessing whether they must disclose holdings or changes in holdings under UK disclosure and transparency rules, providing clarity for investors on the current capital and voting structure.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1396.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus CFO Acquires Shares Through Dividend Reinvestment Plan

Telecom Plus PLC has disclosed that its Chief Financial Officer, Nick Schoenfeld, acquired 177.81295 ordinary shares in the company on 30 December 2025 through the firm’s automatic Dividend Reinvestment Plan. The transaction, executed on the London Stock Exchange at a price of £13.58 per share, was notified in accordance with UK market abuse regulations and underscores ongoing executive participation in the company’s equity through reinvestment of dividends.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1487.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus Updates Total Voting Rights and Share Capital

Telecom Plus PLC has reported that, as of 31 December 2025, it has 80,083,567 ordinary shares of 5 pence each in issue, excluding 1,132,705 shares held in treasury, giving a total of 80,083,567 voting rights for shareholder disclosure purposes under the Disclosure and Transparency Rules. The company confirmed that this figure includes 252,638 ordinary shares held in the Telecom Plus PLC JSOP Share Trust on which voting rights have been waived, providing investors with an updated baseline for calculating notifiable holdings and any changes in their interests in the company.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1487.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.