Telstra Corporation Limited (TTRAF) AI Stock Analysis

• Market Cap: $36.16B
• Dividend Yield: 3.87%
• Average Volume (3M): 1.13K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 31,876
• Sector: Communication Services
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.06
• Shares Outstanding: 11,419,500,000
• 10 Day Avg. Volume: 1,180
• 30 Day Avg. Volume: 1,133
• PEG Ratio: 4.42
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.87
• 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: $3.02
• Price Target Upside: -4.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Telstra Corporation Limited 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, 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 Money

Telstra Corporation Limited Financial Statement Overview

Summary

Telstra Corporation shows stable income with a consistent gross profit margin of 24.9% and moderate profitability with a net profit margin of 7.1%. The balance sheet indicates moderate leverage with a debt-to-equity ratio of 1.14, and cash flow challenges are evident with a negative free cash flow growth rate of -41.5%. Overall, the financials highlight stability but also suggest a need for enhanced cost management and cash flow optimization.

Income Statement

Telstra Corporation shows a stable income performance with a consistent gross profit margin of around 24.9% over the recent year. The net profit margin stands at 7.1%, reflecting moderate profitability. Revenue growth is modest at 1.0%, indicating a slight upward trend in sales. EBIT and EBITDA margins are healthy at 14.4% and 33.0%, respectively, showcasing operational efficiency. However, the slight decline in net income from the previous year suggests challenges in cost management or market conditions.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 1.14, indicating moderate leverage. Return on equity is 10.9%, which is respectable but shows room for improvement in enhancing shareholder returns. The equity ratio of 32.8% reflects a balanced capital structure, although the company could benefit from reducing its debt load to enhance financial stability.

Cash Flow

Telstra's cash flow performance indicates challenges with a negative free cash flow growth rate of -41.5%, suggesting a decline in cash reserves. The operating cash flow to net income ratio is robust at 3.98, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio of 0.86 suggests limited cash available for reinvestment or debt reduction after covering capital expenditures.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
23.11B	22.93B	22.70B	21.28B	21.56B	23.71B
	Gross Profit
10.77B	14.49B	5.75B	5.07B	3.69B	3.89B
	EBIT
10.47B	3.30B	3.22B	2.78B	2.25B	2.28B
	EBITDA
6.85B	7.58B	7.99B	7.40B	8.97B	10.54B
	Net Income Common Stockholders
1.69B	1.62B	1.93B	1.69B	1.86B	1.82B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02B	1.05B	932.00M	1.04B	1.13B	499.00M
	Total Assets
45.60B	45.55B	45.03B	41.63B	42.52B	44.40B
	Total Debt
18.00B	16.97B	15.87B	14.27B	17.44B	19.13B
	Net Debt
16.97B	15.92B	14.93B	13.23B	16.32B	18.63B
	Total Liabilities
28.36B	28.20B	27.21B	24.65B	27.25B	29.26B
	Stockholders Equity
14.81B	14.92B	15.41B	15.49B	14.59B	14.47B
Cash Flow		Free Cash Flow
4.85B	1.39B	2.37B	3.73B	3.52B	2.87B
	Operating Cash Flow
7.19B	6.45B	6.24B	6.82B	6.66B	6.31B
	Investing Cash Flow
-4.78B	-4.99B	-6.03B	-3.50B	-2.38B	-2.39B
	Financing Cash Flow
-2.15B	-1.18B	-333.00M	-3.44B	-3.62B	-4.02B

Telstra Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTRAF		$36.16B	32.74	11.34%	3.87%	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
TPGTF		$6.28B	280.66	-0.95%	―	―	―
9SL		€816.54M	―	-1.05%	―	―	―
MAQ		AU$1.62B	43.74	8.93%	―	―	―
VGL		AU$780.28M	―	-0.74%	―	―	―
SPK		AU$3.93B	21.32	12.57%	13.38%	―	―