Telstra's performance during and since the depth of COVID-19 demonstrates the resilience of its earnings and the strength of its balance sheet, especially given the negative impact on high-margin roaming revenue was material during the pandemic. The AUD 2.7 billion cost-out program under T22 has been delivered and management is now focused on hitting the AUD 500 million cost reduction target under the T25 plan.
Telstra has market-leading shares across all vital telecommunications segments and is likely to maintain these positions in the future.
Regulatory risks are real. Wholesale NBN prices are high and could increase further, while government decision on mobile roaming could force Telstra to open up its network to other operators in regional and rural areas.
|
Metric
|
TLS
|
SPK
|
TPG
|
|---|---|---|---|
Price/Earnings (Normalized) | 37.91 | 21.66 | 13.04 |
Price/Book Value | 2.75 | 5.06 | 0.66 |
Price/Sales | 1.87 | 2.60 | 1.39 |
Price/Cash Flow | 6.73 | 11.71 | 6.39 |
|
Metric
|
TLS
|
SPK
|
TPG
|
|---|---|---|---|
Quick Ratio | 0.52 | 0.90 | 0.63 |
Current Ratio | 0.66 | 1.00 | 0.75 |
Interest Coverage | 4.61 | 5.08 | 1.17 |
|
Metric
|
TLS
|
SPK
|
TPG
|
|---|---|---|---|
Return on Assets (Normalized) | 5.03% | 0.13% | 3.00% |
Return on Equity (Normalized) | 14.83% | 0.31% | 4.96% |
Return on Invested Capital (Normalized) | 6.62% | −0.02% | 4.81% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TMUS
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VZ
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T
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DTEGY
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KDDIY
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AMX
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CHTR
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BCE
| BCE Inc | Jrtzmynv | Syndb | $29.9 Bil | |
ORAN
| Orange SA ADR | Lyssglv | Sqfs | $29.8 Bil |
