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Telstra Group (TLGPY)
OTHER OTC:TLGPY
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Telstra Group
(OTC:TLGPY)
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Rating:65Neutral
Price Target:
$17.00
▲(6.12% Upside)
Telstra Group's overall stock score reflects solid financial performance with strong profitability and operational efficiency. However, challenges such as declining revenue growth, increasing debt levels, and a high P/E ratio weigh on the score. Technical indicators suggest a neutral trend with potential overbought conditions, adding caution to the outlook.
Positive Factors
5G Network Expansion
The expansion of the 5G network enhances Telstra's competitive edge, positioning it as a leader in telecommunications and enabling future growth in mobile services.
Joint Venture with Accenture
The partnership with Accenture to boost AI capabilities strengthens Telstra's technological edge, potentially improving customer service and operational efficiency.
Dividend Increase and Share Buyback
Increasing dividends and initiating a share buyback reflect strong cash flow management and shareholder-friendly policies, enhancing investor confidence.
Negative Factors
Declining Revenue Growth
Slowing revenue growth indicates potential difficulties in market expansion, which could hinder long-term financial performance and strategic initiatives.
Increasing Debt Levels
Rising debt levels could strain Telstra's financial flexibility, potentially impacting its ability to invest in growth opportunities and manage economic downturns.
Fixed Enterprise Challenges
Ongoing challenges in the Fixed Enterprise segment may affect Telstra's ability to maintain profitability and competitiveness in key business areas.
Telstra Group (TLGPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.76B
Dividend Yield3.51%
Average Volume (3M)6.43K
Price to Earnings (P/E)27.9
Beta (1Y)0.30
Revenue Growth-0.31%
EPS Growth32.62%
CountryUS
Employees31,876
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.33
Shares Outstanding2,250,987,500
10 Day Avg. Volume0
30 Day Avg. Volume6,427
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)4.04
Price to Sales (P/S)2.47
P/FCF Ratio16.29
Enterprise Value/Market Cap1.86
Enterprise Value/Revenue3.11
Enterprise Value/Gross Profit8.34
Enterprise Value/Ebitda8.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Telstra Group Business Overview & Revenue Model
Company DescriptionTelstra Group Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunication, media and technology products and services in Australia using mobile and fixed network technologies, as well as operates call centers, retail stores, a dealership network, digital channels, distribution systems and Telstra Plus customer loyalty program. It also provides network capacity and management, unified communications, cloud, security, industry solutions, integrated and monitoring services to government and large enterprise and business customers; wholesale services, including voice and data; and telecommunication products and services to other carriers, carriage service providers, and internet service providers, as well as builds and manages digital platforms. In addition, the company operates the fixed passive network infrastructure, including data centers, exchanges, poles, ducts, pits and pipes, and fiber network; provides wholesale customers with access to network infrastructure; provides long-term access to components of infrastructure under the infrastructure services agreement; designs and constructs fiber, exchanges, and other infrastructure; and operates the passive and physical mobile tower assets owned or operated by the Amplitel Pty Ltd. The company was formerly known as Telstra Corporation Limited and changed its name to Telstra Group Limited in November 2022. Telstra Group Limited was founded in 1901 and is based in Melbourne, Australia.
How the Company Makes MoneyTelstra generates revenue through multiple streams, primarily from its telecommunications services, which include mobile services (postpaid and prepaid), fixed-line services (broadband and telephony), and wholesale services to other carriers. The company's mobile segment is a significant contributor, driven by its extensive customer base and the rollout of 5G technology. Telstra also earns revenue from its media and entertainment offerings, including subscription services and advertising. Additionally, the company has formed strategic partnerships with various technology and content providers, enhancing its service portfolio and creating new revenue opportunities. Factors such as the increasing demand for data and connectivity, as well as ongoing investment in infrastructure, play a crucial role in driving its earnings.
Telstra Group Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Telstra's strong financial performance and strategic investments, particularly in the mobile and infrastructure sectors, demonstrating confidence in future growth. However, challenges remain in the fixed enterprise segment, Digicel Pacific operations, and managing cost pressures in infrastructure projects.Q2-2025 Updates
Positive Updates
Strong Financial Performance
EBITDA increased by 6% to $4.2 billion, profit for the period increased by 7.1% to $1.1 billion, earnings per share up 6% to $0.089, and ROIC up 0.2 points to 8%.
Dividend and Share Buyback
The Board resolved to pay a fully franked interim dividend of $0.095 per share, representing a 5.6% increase, and announced an on-market share buyback of up to $750 million.
Mobile Business Growth
Mobile services revenue grew by 3.1% with 119,000 net new mobile handheld customers and ARPU growth.
Infrastructure Investment
Investment in digital infrastructure with 3,000 kilometers of fiber under construction and expansion of the 5G network to cover 91% of the population.
Cost Management Success
Reduced core fixed costs by 4.8% or $161 million, on track to achieve $350 million in reductions by end of FY '25.
International Business Growth
International business EBITDA grew by $29 million due to strong growth in wholesale and enterprise sectors.
Negative Updates
Challenges in Fixed Enterprise
Fixed Enterprise business EBITDA grew by $25 million, but there is ongoing work to reset the business with a focus on simplifying the product portfolio.
Digicel Pacific Challenges
Continued operation in a challenging environment with modest sequential growth and a 3% decline in EBITDA excluding currency impacts.
Cost Pressures and Delays
Intercity Fiber project facing delays and cost pressures, with a commitment to manage within a $1.6 billion envelope.
Regulatory and Competitive Pressures
Ongoing competitive pressures in the fixed enterprise segment and regulatory challenges in the broader telecommunications sector.
Company Guidance
During the call, Telstra provided several key metrics and updates regarding their financial performance and strategic initiatives for the first half of the fiscal year 2025. The company reported a 6% increase in EBITDA to $4.2 billion and a 7.1% rise in net profit to $1.1 billion. Earnings per share also grew by 6% to $0.089, while the return on invested capital (ROIC) improved by 0.2 percentage points to 8%. Telstra maintained its FY '25 guidance and announced a fully franked interim dividend of $0.095 per share, a 5.6% increase from the previous period. Additionally, Telstra initiated an on-market share buyback of up to $750 million, supported by its strong balance sheet and fiscal discipline. The company reported growth in underlying EBITDA across multiple business segments, including mobiles, InfraCo fixed, and international businesses. Furthermore, Telstra highlighted its ongoing focus on cost management, reducing core fixed costs by 4.8% or $161 million, and emphasized the importance of its digital infrastructure investments, including a significant $800 million allocation to enhance its mobile network over the next four years.Telstra Group Financial Statement Overview
Summary
Telstra Group demonstrates solid profitability and operational efficiency, with strong margins and return on equity. However, declining revenue growth and increasing debt levels present potential risks. Cash flow management needs attention due to declining free cash flow growth. The company should focus on revenue expansion and debt management to sustain its financial health.Income Statement
Telstra Group's income statement shows a stable gross profit margin of 63.85% in 2025, indicating strong cost management. However, the revenue growth rate has declined by 1.68%, reflecting challenges in expanding sales. The net profit margin improved to 9.56%, suggesting enhanced profitability. EBIT and EBITDA margins are healthy at 17.12% and 37.77%, respectively, highlighting operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 1.29, indicating moderate leverage. Return on equity is strong at 15.63%, reflecting effective use of shareholder funds. The equity ratio stands at 30.91%, suggesting a balanced capital structure. However, the increase in debt levels over the years could pose a risk if not managed carefully.70
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 28.84%, which could impact future investments. The operating cash flow to net income ratio is 0.64, indicating sufficient cash generation relative to profits. The free cash flow to net income ratio of 0.47 suggests a reasonable conversion of profits into cash.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.13B | 22.72B | 22.93B | 22.70B | 20.92B | 21.00B |
| Gross Profit | 8.64B | 14.51B | 10.53B | 5.75B | 12.69B | 12.68B |
| EBITDA | 8.53B | 8.58B | 7.53B | 7.86B | 7.29B | 8.86B |
| Net Income | 2.17B | 2.17B | 1.62B | 1.93B | 1.69B | 1.86B |
Balance Sheet | ||||||
| Total Assets | 44.97B | 44.97B | 45.55B | 45.03B | 41.63B | 42.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 1.01B | 1.05B | 932.00M | 1.04B | 1.13B |
| Total Debt | 18.00B | 18.00B | 16.97B | 15.87B | 14.27B | 17.44B |
| Total Liabilities | 28.65B | 28.65B | 28.20B | 27.21B | 24.79B | 27.25B |
| Stockholders Equity | 13.90B | 13.90B | 14.92B | 15.41B | 15.35B | 14.59B |
Cash Flow | ||||||
| Free Cash Flow | 4.56B | 3.45B | 1.99B | 2.37B | 3.73B | 3.52B |
| Operating Cash Flow | 6.94B | 7.32B | 7.05B | 6.24B | 6.82B | 6.66B |
| Investing Cash Flow | -3.38B | -3.37B | -4.99B | -6.03B | -3.40B | -2.34B |
| Financing Cash Flow | -3.60B | -4.00B | -1.94B | -333.00M | -3.97B | -4.24B |
Telstra Group Technical Analysis
Positive
16.02
Price Trends
16.21
Positive
16.13
Positive
15.72
Positive
Market Momentum
0.20
Negative
74.32
Negative
96.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLGPY, the sentiment is Positive. The current price of 16.02 is below the 20-day moving average (MA) of 16.35, below the 50-day MA of 16.21, and above the 200-day MA of 15.72, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 74.32 is Negative, neither overbought nor oversold. The STOCH value of 96.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLGPY.
Telstra Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $20.68B | 15.49 | 15.54% | 6.14% | -5.21% | -7.45% | |
72 Outperform | $32.67B | 26.12 | 10.10% | 3.15% | 5.74% | 7.12% | |
65 Neutral | $38.76B | 27.91 | 14.73% | 3.51% | -0.31% | 32.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $35.06B | -8.33 | -7.08% | 3.77% | 19.67% | -278.51% | |
57 Neutral | $30.36B | 5.87 | 31.52% | ― | 0.42% | 13.46% |
* Communication Services Sector Average
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44.94%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.