Telstra Group (TLGPY)
OTHER OTC:TLGPY
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Telstra Group
(OTC:TLGPY)
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Rating:68Neutral
Price Target:
$20.00
▲(24.84% Upside)
Action:ReiteratedDate:02/20/26
The score is driven primarily by solid profitability/ROE but offset by weak revenue and free-cash-flow growth. The earnings call was supportive due to strong cash performance and shareholder returns, though notable H2 headwinds and regulatory/spectrum uncertainty remain. Technically, the trend is positive but extremely overbought signals raise near-term pullback risk, and valuation looks high versus the growth profile.
Positive Factors
Strong profitability and ROE
Sustained high gross and operating margins alongside a 15.6% ROE indicate structural cost advantage and efficient capital use. These fundamentals support durable cash generation, dividend capacity and reinvestment into networks, underpinning long‑term shareholder returns and strategic flexibility.
Negative Factors
Declining revenue and free cash flow conversion
Negative top‑line growth and a sharp decline in free cash flow undermine the firm's ability to self‑fund large infrastructure projects and maintain cushion for buybacks/dividends. Persistent weak FCF conversion increases reliance on debt or tighter capital allocation over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Sustained high gross and operating margins alongside a 15.6% ROE indicate structural cost advantage and efficient capital use. These fundamentals support durable cash generation, dividend capacity and reinvestment into networks, underpinning long‑term shareholder returns and strategic flexibility.
Read all positive factors
Telstra Group (TLGPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.88B
Dividend Yield3.51%
Average Volume (3M)6.43K
Price to Earnings (P/E)12.7
Beta (1Y)0.32
Revenue Growth-0.31%
EPS Growth32.62%
CountryUS
Employees31,876
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding2,247,441,200
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 Cap1.88
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit12.54
Enterprise Value/Ebitda9.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.72
Revenue Forecast (FY)$16.61B
Telstra Group Business Overview & Revenue Model
Company Description
Telstra 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, Network...
How the Company Makes Money
Telstra 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 ...
Telstra Group Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call communicated a generally constructive operational and financial performance: solid headline growth in earnings, strong cash metrics (cash EPS +20%), disciplined capital management (higher dividend and an increased buyback), clear progress on major infrastructure (Aura halfway) and measurable gains from digitisation and AI. That said, several material challenges were highlighted — Fixed Enterprise revenue pressure, ongoing SIO losses in consumer fixed, international one‑offs creating H2 volatility, higher mobile operating costs (remediation and satellite), LEOsat reliability issues for some remote deployments, and regulatory uncertainty around spectrum renewal. Management positioned these as manageable trade‑offs while emphasising cost discipline, balance sheet strength and strategic investment to drive medium‑term growth.Positive Updates
Strong headline earnings and cash growth
Reported EBITDAaL up 4.9% to $4.2bn; underlying EBITDAaL up 5.5% to $4.2bn. EBIT up 9.2% to ~$2.0bn. Profit for the period (NPAT / profit to shareholders) up ~8–9% (~$1.1–1.2bn). Underlying/cash metrics: cash EBIT up 14% to $2.5bn and cash EPS up 20% to $0.14. Underlying ROIC improved +0.9pp to 8.9%.
Negative Updates
Fixed Enterprise (DAC) revenue and profitability decline
Data & Connectivity (DAC) income fell ~9% in the half; DAC EBITDA declined to $25m as revenue declines (service rationalisation, in‑period credits) outpaced cost reductions. Fixed Enterprise EBITDA declined by $9m as the reset continues.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong headline earnings and cash growth
Reported EBITDAaL up 4.9% to $4.2bn; underlying EBITDAaL up 5.5% to $4.2bn. EBIT up 9.2% to ~$2.0bn. Profit for the period (NPAT / profit to shareholders) up ~8–9% (~$1.1–1.2bn). Underlying/cash metrics: cash EBIT up 14% to $2.5bn and cash EPS up 20% to $0.14. Underlying ROIC improved +0.9pp to 8.9%.
Read all positive updates
Company Guidance
Telstra tightened FY26 underlying EBITDAaL guidance to $8.2–$8.4bn (mid‑point unchanged) and reconfirmed other guidance, while reiterating its Connected Future 30 targets of mid‑single‑digit cash‑earnings growth and a long‑term underlying ROIC goal of 10% (current underlying ROIC 8.9%). Management expects full‑year cash EBIT growth of roughly 5–10% (H1 cash EBIT was $2.5bn, up 14%), noted H1 BAU CapEx was $1.5bn (down 5%) but flagged higher BAU CapEx in H2, and confirmed ~$1.6bn of incremental Aura/Viasat spend above BAU (mostly by end FY27, some into FY28) with a targeted mid‑teens IRR. Capital management guidance included an interim dividend of $0.105/share (90.5% franked, ~75% of H1 cash EPS of $0.14), an increase in the on‑market buyback programme to up to $1.25bn (H1 buybacks $637m at $4.90 avg), net debt around 1.9x and an average cost of debt reduced to ~4.8%, all supporting the Board’s aim of a sustainable, growing dividend and an A‑band rating.Telstra Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.95B | 22.72B | 22.93B | 22.70B | 20.92B | 21.00B |
| Gross Profit | 6.43B | 14.51B | 10.53B | 5.75B | 12.69B | 12.68B |
| EBITDA | 8.57B | 8.58B | 7.53B | 7.86B | 7.29B | 8.86B |
| Net Income | 2.25B | 2.17B | 1.62B | 1.93B | 1.69B | 1.86B |
Balance Sheet | ||||||
| Total Assets | 44.59B | 44.97B | 45.55B | 45.03B | 41.63B | 42.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.01B | 1.05B | 932.00M | 1.04B | 1.13B |
| Total Debt | 21.23B | 18.00B | 16.97B | 15.87B | 14.27B | 17.44B |
| Total Liabilities | 28.87B | 28.65B | 28.20B | 27.21B | 24.79B | 27.25B |
| Stockholders Equity | 13.32B | 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 | 6.95B | 7.32B | 7.05B | 6.24B | 6.82B | 6.66B |
| Investing Cash Flow | -3.23B | -3.37B | -4.99B | -6.03B | -3.40B | -2.34B |
| Financing Cash Flow | -3.27B | -4.00B | -1.94B | -333.00M | -3.97B | -4.24B |
Telstra Group Technical Analysis
Positive
16.02
Price Trends
17.92
Positive
16.88
Positive
16.23
Positive
Market Momentum
0.25
Negative
71.32
Negative
98.56
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 18.55, below the 50-day MA of 17.92, and below the 200-day MA of 16.23, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 98.56 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $33.11B | 26.19 | 10.15% | 3.15% | 5.74% | 7.12% | |
77 Outperform | $18.49B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
68 Neutral | $42.88B | 12.70 | 16.66% | 3.51% | -0.31% | 32.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $36.68B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% | |
57 Neutral | $30.89B | 5.66 | 31.24% | ― | 0.42% | 13.46% |
* Communication Services Sector Average
TLGPY
Telstra Group
19.16
5.66
41.96%
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VOD
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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.