# Telecom Plus PLC (TEP.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Multi-Utilities. Price 840p, market value 652 millionp.

## Valuation
- **P/E (trailing): 8.4×** (5-yr avg 2112.9×, 3-yr avg 1650.0×). Telecom Plus PLC trades at 8.4× trailing earnings, well below its own five-year average of 2112.9×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 8.8×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 1.67**. A PEG of 1.67 is in the range usually read as fairly priced for its growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.5×**. The shares trade at 2.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 2.7×**. Enterprise value is 2.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 32.0%** (5-yr avg 0.0%). Free cash flow equals 32.0% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.9%**. The inverse of the P/E: 11.9% of the price is earned each year.

## Profitability
- **Gross margin: 19.3%**. Telecom Plus PLC keeps 19.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 6.3%**. 6.3% of revenue is left after running the business.
- **Net margin: 4.2%**. 4.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 30.2%**. 30.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 41.9%**. Return on all capital, debt included, is 41.9%: comfortably above what that capital costs.
- **Return on assets: 19.6%**. Each dollar of assets produces 19.6% of profit.

## Growth
- **Revenue growth (1 yr): 5.6%** (3-yr -7.8%/yr, 5-yr 17.6%/yr). Revenue grew 5.6% over the last year, against 17.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 5.3%** (3-yr 5.6%/yr, 5-yr 19.5%/yr). Earnings per share rose 5.3%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): -21.6%/yr**. Free cash flow has compounded at -21.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.88**. Debt is 0.88 times equity, moderate leverage.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 8.4×**. Operating profit covers interest 8.4× over, a safe margin.
- **Current ratio: 1.58** (quick 1.57). Current assets cover the next year's liabilities 1.58 times.
- **Altman Z-score: 4.42**. A Z-score of 4.42 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 5.81%** (1p per share, trailing). Telecom Plus PLC yields 5.81%, an income-level yield.
- **Payout ratio: 94%** (68% of free cash flow). 94% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 19**. 19 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 10.8%/yr** (1-yr 13.1%). The dividend has compounded at 10.8% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 4.1%**. Dividends plus net buybacks return 4.1% of the market value a year.

## Price and momentum
- **Total return (1 yr): -53.2%** (YTD -36.2%, 3-mo -11.8%). The shares are down 53.2% over twelve months including dividends.
- **From 52-week high: -56.1%** (31.6% above the low). Trading 56% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.20** (volatility 41%). Beta of 0.20 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TEP.L · Page: https://foliofundamentals.com/stocks/tep.l

Not investment advice.