Telecom Plus (TEP) AI Stock Analysis

• Market Cap: £1.35B
• Dividend Yield: 4.92%
• Average Volume (3M): 100.18K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.09
• Revenue Growth: -33.73%
• EPS Growth: N/A
• Country: UK
• Employees: 2,493
• Sector: Utilities
• Sector Strength: 83
• Industry: Regulated Utilities
• EPS (TTM): 0.95
• Shares Outstanding: 79,651,890
• 10 Day Avg. Volume: 127,763
• 30 Day Avg. Volume: 100,183
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 12.50
• P/FCF Ratio: 12.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Telecom Plus scores a moderate 65.5, reflecting a balanced view of strengths and challenges. Profit margins and cost management are positives, but declining revenue and negative cash flow are concerns. The technical outlook is stable, supported by current price trends. Valuation appears reasonable, with a fair P/E ratio and an attractive dividend yield. The corporate event of a block listing is a positive, yet secondary factor.

Telecom Plus Business Overview & Revenue Model

Company Description

Telecom Plus PLC, operating under the brand name Utility Warehouse, is a multi-utility provider based in the United Kingdom. The company is engaged in offering a range of essential services to residential and small business customers, including energy, broadband, mobile, and insurance products. Telecom Plus aims to simplify the customer experience by bundling these services into a single monthly bill, providing convenience and potential cost savings.

How the Company Makes Money

Telecom Plus makes money primarily through the sale of bundled utility services, which are marketed under the Utility Warehouse brand. By offering a diverse range of essential services, the company generates revenue from multiple streams such as energy supply (electricity and gas), telecommunications (broadband and mobile services), and insurance products. A significant portion of its income comes from recurring subscription fees paid by customers for these services. Telecom Plus also benefits from economies of scale and strategic partnerships with major energy and telecom providers, which help in offering competitive rates to customers. Additionally, the company utilizes a network of independent distributors to expand its customer base and increase sales, which in turn contributes to its revenue growth.

Telecom Plus Financial Statement Overview

Summary

Telecom Plus shows mixed financial performance with improved profit margins but challenges in declining revenue and negative cash flow. The balance sheet is moderately leveraged, providing stability, yet the cash flow issues may hinder future growth.

Income Statement

Telecom Plus shows a mixed income statement performance. The net profit margin for the latest year is 3.5%, which is modest. Gross profit margin improved from 12% to 17.4% year-over-year, indicating better cost management. However, revenue declined significantly by 17.6% compared to the previous year, suggesting potential challenges in sustaining sales momentum.

Balance Sheet

The balance sheet presents a stable yet cautious picture. The debt-to-equity ratio stands at 0.78, reflecting moderate leverage. Return on equity is calculated at 3.1%, which is relatively low, indicating limited profitability on shareholders' equity. The equity ratio is 35.7%, suggesting a reasonable proportion of equity financing, though potential risk exists with substantial liabilities.

Cash Flow

Cash flow analysis indicates significant challenges. Operating cash flow turned negative in the most recent year, dropping from a positive $232 million to a negative $132.5 million, highlighting cash generation issues. Free cash flow also followed a similar negative trajectory, impacting the company's ability to invest or return capital to shareholders.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.04B	2.48B	967.43M	861.20M	875.77M
	Gross Profit
355.21M	294.97M	177.25M	161.87M	156.47M
	EBIT
106.25M	84.65M	50.01M	44.57M	48.79M
	EBITDA
131.35M	106.03M	70.26M	63.85M	67.94M
	Net Income Common Stockholders
71.04M	68.43M	35.47M	32.58M	35.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.83M	193.80M	29.65M	25.06M	43.61M
	Total Assets
651.39M	794.74M	465.79M	462.66M	482.66M
	Total Debt
180.33M	90.38M	99.98M	96.47M	102.99M
	Net Debt
122.50M	-103.42M	70.33M	71.42M	59.38M
	Total Liabilities
418.76M	564.03M	260.21M	250.29M	260.71M
	Stockholders Equity
232.63M	230.71M	206.48M	212.82M	222.38M
Cash Flow		Free Cash Flow
-144.98M	221.11M	38.86M	31.41M	26.41M
	Operating Cash Flow
-132.49M	232.13M	48.80M	41.45M	36.73M
	Investing Cash Flow
-8.15M	-11.52M	-8.38M	-9.94M	-10.23M
	Financing Cash Flow
4.66M	-57.16M	-35.12M	-50.07M	-7.05M

Telecom Plus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1712.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TEP, the sentiment is Positive. The current price of 1712 is above the 20-day moving average (MA) of 1696.90, above the 50-day MA of 1685.12, and below the 200-day MA of 1730.80, indicating a neutral trend. The MACD of 3.10 indicates Negative momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 40.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TEP.

Telecom Plus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSE	68 Neutral	£16.41B	8.36	21.94%	4.10%	-13.09%	231.40%
NG	67 Neutral	£46.81B	22.15	5.28%	5.75%	-6.68%	-77.57%
TEP	66 Neutral	£1.35B	17.90	33.57%	4.92%	-33.73%	―
Sector *	65 Neutral	$11.99B	15.63	6.50%	4.40%	7.00%	0.55%
SVT	61 Neutral	£7.39B	30.78	17.17%	4.78%	5.38%	86.34%
UU	56 Neutral	£6.76B	59.71	5.50%	5.09%	8.61%	―

Telecom Plus Corporate Events

Telecom Plus PLC Announces Block Listing for Share Options

Telecom Plus PLC has announced a block listing application for 115,000 ordinary shares on the London Stock Exchange, which are reserved under existing share option plans. This move is expected to enhance the company’s financial flexibility and potentially strengthen its market position by aligning employee and consultant interests with corporate growth.

Telecom Plus PLC Announces Total Voting Rights and Share Capital Update

Telecom Plus PLC has announced that the total number of ordinary shares is 79,536,895, excluding those held in treasury, which amounts to 1,132,705 shares. The total voting rights also stand at 79,536,895, a figure that shareholders can use to determine their notification requirements under the Disclosure and Transparency Rules. Additionally, 252,638 shares held in the JSOP Share Trust have waived voting rights but are included in the total voting rights figure.

Schroders Plc Increases Stake in Telecom Plus PLC to Over 5%

Telecom Plus PLC has announced a significant change in its voting rights with Schroders Plc now holding over 5% of the company’s voting rights, which was reached on 12-Feb-2025. This acquisition or disposal of voting rights could influence the company’s decision-making processes and potentially impact its strategic direction, highlighting Schroders Plc’s increased influence within the organization.

Telecom Plus Announces Director Appointment to HBX Group

Telecom Plus PLC has announced the appointment of Carla Stent, a non-executive director of the company, to the board of HBX Group International plc. The appointment of Stent to a prominent position within a company listed on several major Spanish stock exchanges may enhance Telecom Plus’s industry connections and influence, potentially impacting its strategic positioning and stakeholder interests.

Telecom Plus Sees Increase in JPMorgan Holdings

Telecom Plus has announced a change in its major holdings, with JPMorgan Asset Management Holdings Inc. increasing its voting rights to 5.236289%. This adjustment reflects a slight rise from the previous position, indicating a strengthened stake by JPMorgan in the company. Such moves could influence the company’s strategic decisions and market positioning, potentially impacting stakeholders by aligning more closely with JPMorgan’s investment strategies.

Telecom Plus PLC Announces Total Voting Rights and Share Capital Update

Telecom Plus PLC has announced its total voting rights and share capital, with a total of 79,497,755 ordinary shares of 5 pence each, excluding shares held in treasury. This figure is crucial for shareholders to calculate their interests under the Disclosure and Transparency Rules. Additionally, 252,638 ordinary shares are held in the JSOP Share Trust, with voting rights waived, but included in the total voting rights figure. This announcement provides clarity on the company’s share capital structure, impacting shareholder decisions and corporate governance compliance.

Telecom Plus PLC’s Shareholding Shift: JPMorgan Increases Stake

Telecom Plus PLC announced changes in its shareholdings with JPMorgan Asset Management Holdings Inc. acquiring voting rights above the 5% threshold, now holding 5.16% of the total. This acquisition on January 29, 2025, signifies a slight increase from the previous holding of 5.11%, potentially impacting the company’s governance and strategic decisions due to JPMorgan’s enhanced voting influence.

Telecom Plus PLC Announces Change in Major Shareholder Holdings

Telecom Plus PLC announced a change in its major holdings as JPMorgan Asset Management Holdings Inc. has altered its voting rights in the company. The adjustment sees JPMorgan’s total voting rights increase to 5.110380%, which signifies a slight rise in their shareholding. This change in holdings reflects an increased influence in Telecom Plus, potentially impacting future company decisions and emphasizing the interest of major institutional investors in the company’s strategic direction.

JPMorgan Increases Stake in Telecom Plus

Telecom Plus PLC, a UK-based company, has experienced a change in its major holdings as JPMorgan Asset Management Holdings Inc. has crossed a 5% threshold in voting rights, indicating a significant stake in the company. This acquisition was completed on January 23, 2025, and reflects JPMorgan’s increased influence within the company, with a total of 5.003575% of voting rights now in their control. The transaction signifies a strategic move by JPMorgan to strengthen its position in the telecom sector, potentially impacting the company’s decision-making processes and future strategy.

Telecom Plus PLC Updates Voting Rights and Share Capital

Telecom Plus PLC, a company involved in providing telecommunication services, has announced the total number of ordinary shares and voting rights it holds. As of the latest update, the company has 79,452,915 ordinary shares, excluding those held in treasury, which affect the voting rights available to shareholders. This update is crucial for shareholders to understand their stake and any changes required in their interest under regulatory rules.