Telecom Plus (TEP) AI Stock Analysis

• Market Cap: £1.42B
• Dividend Yield: 7.94%
• Average Volume (3M): 95.11K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.16
• Revenue Growth: -9.86%
• EPS Growth: 7.20%
• Country: UK
• Employees: 2,493
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.61
• Shares Outstanding: 80,080,826
• 10 Day Avg. Volume: 73,105
• 30 Day Avg. Volume: 95,112
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £2,600.00
• Price Target Upside: 46.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: 1,973.00p ▲(11.09% Upside)

Telecom Plus's overall stock score is driven by its mixed financial performance, with strengths in profitability and balance sheet stability but concerns over revenue decline and cash flow conversion. The technical analysis indicates a bearish trend, while the valuation is supported by a reasonable P/E ratio and an attractive dividend yield.

Telecom Plus Business Overview & Revenue Model

Company Description

Telecom Plus (TEP) is a UK-based integrated telecom and utility service provider that operates in the telecommunications and energy sectors. The company offers a range of services including broadband, mobile, gas, and electricity to residential and business customers. Telecom Plus is known for its unique multi-utility services that provide customers with convenience and cost savings by bundling various services under one roof, enhancing customer loyalty and retention.

How the Company Makes Money

Telecom Plus generates revenue through multiple key streams, primarily by selling telecom and utility services directly to consumers. The company's business model includes a combination of subscription fees from broadband, mobile, gas, and electricity services, which are billed monthly. Additionally, Telecom Plus benefits from a network of independent distributors who sell its services, earning commission on sales. This sales model incentivizes both direct sales and referrals, leading to a wider customer base. Furthermore, the company often capitalizes on partnerships with utility providers and telecom networks to negotiate competitive pricing and improve service offerings, which contributes to its profitability. The company's ability to bundle services allows for cross-selling opportunities, effectively increasing the average revenue per user (ARPU) and boosting overall earnings.

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.

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	1.84B	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: 1776.00
• 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 1776 is below the 20-day moving average (MA) of 1828.30, below the 50-day MA of 1841.00, and below the 200-day MA of 1811.18, indicating a bearish trend. The MACD of -11.08 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 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	―	£56.56B	18.49	8.35%	4.10%	-7.42%	5.84%
PNN	―	£2.45B	-36.57	-4.44%	6.58%	15.42%	-406.43%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CNA	―	£8.15B	-35.66	-5.95%	2.69%	-4.82%	-123.58%
TEP	―	£1.42B	18.44	31.44%	7.94%	-9.86%	7.20%
UU	―	£8.19B	30.92	13.05%	4.32%	10.04%	108.60%
SVT	―	£8.37B	36.31	12.73%	4.38%	3.78%	50.18%

Telecom Plus Corporate Events

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.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1963.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

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.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £1975.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

Telecom Plus PLC Updates on Share Capital and Voting Rights

Telecom Plus PLC has announced that the total number of ordinary shares in the company is 80,057,407, excluding those held in treasury. This figure is crucial for shareholders to determine their reporting obligations under the Disclosure and Transparency Rules. The announcement highlights the company’s transparent approach to shareholder communications and its commitment to regulatory compliance.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £2039.00 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 Under DRIP

Telecom Plus PLC announced that its Chief Financial Officer, Nick Schoenfeld, acquired 188.0182 ordinary shares as part of a Dividend Reinvestment Plan (DRIP). This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to shareholder value and aligns with regulatory requirements under the EU Market Abuse Regulation.

The most recent analyst rating on (GB:TEP) stock is a Hold with a £2014.00 price target. To see the full list of analyst forecasts on Telecom Plus stock, see the GB:TEP Stock Forecast page.

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.