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1. Company Snapshot

1.a. Company Description

Telecom Plus Plc provides a range of utility services in the United Kingdom.It offers various services, including gas, electricity, fixed line telephony, mobile telephony, broadband, and insurance, as well as bill protection and life cover, home insurance, boiler cover, and cashback card services under the Utility Warehouse and TML brands.The company was incorporated in 1996 and is based in London, the United Kingdom.

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1.b. Last Insights on TEP

Telecom Plus Plc faces challenges, with a recent dividend announcement of £0.38, to be paid on December 19. This move may be perceived as a response to investor expectations, rather than a driver of growth. With no recent earnings release providing a clear catalyst, investors may be focusing on the company's ability to maintain its dividend payout. According to a September 8 report, the company's fair value is estimated at UK£26.17, based on a 2-stage free cash flow to equity model.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Telecom Plus (LON:TEP) Will Pay A Dividend Of £0.38

Nov -28

Source:

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Form 8.3 - IQE Plc

Sep -09

Source:

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Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

Sep -09

Source:

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Assessing Diageo (LSE:DGE) Shares: Is the Current Valuation a Missed Opportunity?

Sep -09

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Does Lloyds Offer More Value After Latest UK Interest Rate Decision?

Sep -09

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HSBC sees gradual unwinding of OPEC+ voluntary cuts over next year

Sep -09

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HSBC HOLDINGS PLC ANNOUNCES RESULTS OF ITS TENDER OFFERS FOR FOUR SERIES OF NOTES

Sep -09

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Form 8.3 - UNITE GROUP PLC

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.69%)

6. Segments

Electricity

Expected Growth: 6.47%

Telecom Plus Plc's 6.47% growth in electricity is driven by increasing demand for energy-efficient solutions, government incentives for renewable energy, and strategic partnerships with suppliers. Additionally, the company's focus on cost savings, operational efficiency, and customer acquisition have contributed to this growth.

Gas

Expected Growth: 4.73%

Telecom Plus Plc's Gas segment growth of 4.73% is driven by increasing demand for energy-efficient solutions, strategic partnerships with suppliers, and expansion into new markets. Additionally, the company's focus on customer acquisition and retention, as well as investments in digital infrastructure, have contributed to this growth.

Landline and Broadband

Expected Growth: 4.4%

Telecom Plus Plc's 4.4% growth in Landline and Broadband is driven by increasing demand for bundled services, competitive pricing, and strategic partnerships. Additionally, the company's focus on customer acquisition and retention, as well as investments in network infrastructure and technology, have contributed to this growth.

Mobile

Expected Growth: 8.23%

Telecom Plus Plc's Mobile segment growth of 8.23% is driven by increasing demand for mobile services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer acquisition and retention, competitive pricing, and investment in network infrastructure have contributed to this growth.

Other

Expected Growth: 7.4%

Telecom Plus Plc's 7.4% growth is driven by increasing demand for energy and insurance services, expansion into new markets, and strategic partnerships. Additionally, the company's diversified product offerings, cost savings initiatives, and effective marketing strategies contribute to its growth momentum.

7. Detailed Products

Utility Warehouse

A multi-utility provider offering a range of services including gas, electricity, broadband, mobile, and insurance

Telecom Plus Mobile

A mobile phone service offering competitive tariffs and handsets

Telecom Plus Broadband

A range of broadband services including ADSL, fibre, and fibre-to-the-cabinet (FTTC) connections

Telecom Plus Insurance

A range of insurance products including home, life, and motor insurance

Telecom Plus Energy

A range of energy services including gas and electricity supply

8. Telecom Plus Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Telecom Plus Plc operates in a highly competitive market, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Telecom Plus Plc's customers have significant bargaining power due to the availability of alternative service providers, which can lead to price sensitivity and churn.

Bargaining Power Of Suppliers

Telecom Plus Plc has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's scale of operations also gives it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecom industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The telecom industry is highly competitive, with multiple players vying for market share, which leads to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.00%
Debt Cost 6.60%
Equity Weight 72.00%
Equity Cost 6.60%
WACC 6.60%
Leverage 38.89%

11. Quality Control: Telecom Plus Plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
REN

A-Score: 7.3/10

Value: 6.6

Growth: 4.7

Quality: 5.7

Yield: 8.1

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
ENGIE

A-Score: 7.2/10

Value: 7.0

Growth: 5.6

Quality: 3.6

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Telecom Plus

A-Score: 6.7/10

Value: 4.5

Growth: 7.7

Quality: 6.1

Yield: 8.1

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
ACEA

A-Score: 6.6/10

Value: 5.8

Growth: 5.6

Quality: 4.9

Yield: 8.1

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
A2A

A-Score: 6.6/10

Value: 7.6

Growth: 6.4

Quality: 3.8

Yield: 7.5

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
EVN

A-Score: 5.9/10

Value: 6.6

Growth: 6.6

Quality: 5.6

Yield: 5.6

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.96$

Current Price

13.96$

Potential

-0.00%

Expected Cash-Flows