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TalkTalk Telecom Group

DB:TK6
Snowflake Description

Reasonable growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TK6
DB
£966M
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services for residential, retail, and business customers in the United Kingdom. The last earnings update was 133 days ago. More info.


Add to Portfolio Compare Print
  • TalkTalk Telecom Group has significant price volatility in the past 3 months.
TK6 Share Price and Events
7 Day Returns
21.4%
DB:TK6
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-26.2%
DB:TK6
-22.7%
DE Telecom
-14.1%
DE Market
TK6 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TalkTalk Telecom Group (TK6) 21.4% -29.2% -30.7% -26.2% - -
DE Telecom 3.7% -22.8% -18.2% -22.7% -31.2% -35.3%
DE Market 14.8% -20% -23.5% -14.1% -22.8% -26.7%
1 Year Return vs Industry and Market
  • TK6 underperformed the Telecom industry which returned -22.7% over the past year.
  • TK6 underperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
TK6
Industry
5yr Volatility vs Market
Related Companies

Value

 Is TalkTalk Telecom Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TalkTalk Telecom Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TalkTalk Telecom Group.

DB:TK6 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TK6
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 19%) (108.99%))
0.783
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:TK6 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TalkTalk Telecom Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:TK6 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 4.47%)
2020 40.32 Analyst x4 38.60
2021 93.16 Analyst x6 85.37
2022 76.07 Analyst x5 66.73
2023 148.67 Analyst x3 124.83
2024 82.00 Analyst x3 65.91
2025 51.44 Est @ -37.26% 39.58
2026 37.97 Est @ -26.2% 27.96
2027 30.96 Est @ -18.46% 21.83
2028 26.92 Est @ -13.04% 18.17
2029 24.43 Est @ -9.24% 15.78
Present value of next 10 years cash flows £504.00
DB:TK6 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £24.43 × (1 + -0.39%) ÷ (4.47% – -0.39%)
£501.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £501.20 ÷ (1 + 4.47%)10
£323.79
DB:TK6 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £504.00 + £323.79
£827.79
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £827.79 / 1,143.33
£0.72
DB:TK6 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TK6 represents 1.11657x of LSE:TALK
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.11657x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 0.72 x 1.11657
€0.81
Value per share (EUR) From above. €0.81
Current discount Discount to share price of €0.94
= -1 x (€0.94 - €0.81) / €0.81
-16.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of TalkTalk Telecom Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TalkTalk Telecom Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TalkTalk Telecom Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TK6 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.03
LSE:TALK Share Price ** LSE (2020-03-27) in GBP £0.85
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 17.13x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TalkTalk Telecom Group.

DB:TK6 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:TALK Share Price ÷ EPS (both in GBP)

= 0.85 ÷ 0.03

26.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TalkTalk Telecom Group is overvalued based on earnings compared to the Europe Telecom industry average.
  • TalkTalk Telecom Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does TalkTalk Telecom Group's expected growth come at a high price?
Raw Data
DB:TK6 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
21.1%per year
Europe Telecom Industry PEG Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.35x
Germany Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:TK6 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.85x ÷ 21.1%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TalkTalk Telecom Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TalkTalk Telecom Group's assets?
Raw Data
DB:TK6 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £0.23
LSE:TALK Share Price * LSE (2020-03-27) in GBP £0.85
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.12x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.43x
DB:TK6 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:TALK Share Price ÷ Book Value per Share (both in GBP)

= 0.85 ÷ 0.23

3.68x

* Primary Listing of TalkTalk Telecom Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TalkTalk Telecom Group is overvalued based on assets compared to the DE Telecom industry average.
X
Value checks
We assess TalkTalk Telecom Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. TalkTalk Telecom Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TalkTalk Telecom Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TalkTalk Telecom Group expected to grow at an attractive rate?
  • TalkTalk Telecom Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • TalkTalk Telecom Group's earnings growth is expected to exceed the Germany market average.
  • TalkTalk Telecom Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TK6 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TK6 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 21.1%
DB:TK6 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 1%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TK6 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TK6 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 1,654 388 63 4
2023-03-31 1,624 367 88 5
2022-03-31 1,598 271 58 12
2021-03-31 1,584 224 52 14
2020-03-31 1,577 158 32 12
2020-03-27
DB:TK6 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 1,602 143 36
2019-06-30 1,617 168 34
2019-03-31 1,632 192 32
2018-12-31 1,640 175 8
2018-09-30 1,648 136 -16
2018-06-30 1,651 136 -58
2018-03-31 1,653 136 -100
2017-12-31 1,681 -75
2017-09-30 1,708 262 -50
2017-06-30 1,746 247 4
2017-03-31 1,783 232 58
2016-12-31 1,804 44

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TalkTalk Telecom Group's earnings are expected to grow significantly at over 20% yearly.
  • TalkTalk Telecom Group's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TK6 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from TalkTalk Telecom Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TK6 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 0.09 0.11 0.07 2.00
2023-03-31 0.08 0.09 0.07 3.00
2022-03-31 0.05 0.08 0.01 9.00
2021-03-31 0.05 0.06 0.03 8.00
2020-03-31 0.03 0.05 0.01 10.00
2020-03-27
DB:TK6 Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.03
2019-06-30 0.03
2019-03-31 0.03
2018-12-31 0.01
2018-09-30 -0.01
2018-06-30 -0.06
2018-03-31 -0.10
2017-12-31 -0.08
2017-09-30 -0.05
2017-06-30 0.00
2017-03-31 0.06
2016-12-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TalkTalk Telecom Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess TalkTalk Telecom Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TalkTalk Telecom Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TalkTalk Telecom Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TalkTalk Telecom Group's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TalkTalk Telecom Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • TalkTalk Telecom Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • TalkTalk Telecom Group has become profitable in the last year making it difficult to compare the Europe Telecom industry average.
Earnings and Revenue History
TalkTalk Telecom Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TalkTalk Telecom Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TK6 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,602.00 36.00 551.00
2019-06-30 1,617.00 34.00 582.00
2019-03-31 1,632.00 32.00 613.00
2018-12-31 1,640.00 8.00 616.00
2018-09-30 1,648.00 -16.00 619.00
2018-06-30 1,650.50 -58.00 623.50
2018-03-31 1,653.00 -100.00 628.00
2017-12-31 1,680.50 -75.00 619.00
2017-09-30 1,708.00 -50.00 610.00
2017-06-30 1,745.50 4.00 601.00
2017-03-31 1,783.00 58.00 592.00
2016-12-31 1,804.00 44.00 621.00
2016-09-30 1,825.00 30.00 650.00
2016-06-30 1,830.00 16.00 691.50
2016-03-31 1,835.00 2.00 733.00
2015-12-31 1,835.50 26.00 745.50
2015-09-30 1,836.00 50.00 758.00
2015-06-30 1,815.50 61.00 744.00
2015-03-31 1,795.00 72.00 730.00
2014-12-31 1,772.50 61.00 728.00
2014-09-30 1,750.00 50.00 726.00
2014-06-30 1,736.00 39.00 735.50
2014-03-31 1,722.00 28.00 745.00
2013-12-31 1,703.50 41.50 728.50
2013-09-30 1,685.00 55.00 712.00
2013-06-30 1,677.50 77.50 670.50
2013-03-31 1,670.00 100.00 629.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TalkTalk Telecom Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TalkTalk Telecom Group used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • TalkTalk Telecom Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TalkTalk Telecom Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TalkTalk Telecom Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TalkTalk Telecom Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TalkTalk Telecom Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TalkTalk Telecom Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TalkTalk Telecom Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TalkTalk Telecom Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TalkTalk Telecom Group Company Filings, last reported 5 months ago.

DB:TK6 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 263.00 837.00 12.00
2019-06-30 263.00 837.00 12.00
2019-03-31 288.00 809.00 67.00
2018-12-31 288.00 809.00 67.00
2018-09-30 252.00 797.00 37.00
2018-06-30 252.00 797.00 37.00
2018-03-31 280.00 788.00 43.00
2017-12-31 280.00 788.00 43.00
2017-09-30 39.00 894.00 56.00
2017-06-30 39.00 894.00 56.00
2017-03-31 140.00 871.00 50.00
2016-12-31 140.00 871.00 50.00
2016-09-30 157.00 880.00
2016-06-30 157.00 880.00
2016-03-31 231.00 709.00 10.00
2015-12-31 231.00 709.00 10.00
2015-09-30 274.00 667.00 23.00
2015-06-30 274.00 667.00 23.00
2015-03-31 297.00 615.00 10.00
2014-12-31 297.00 615.00 10.00
2014-09-30 286.00 574.00 14.00
2014-06-30 286.00 574.00 14.00
2014-03-31 347.00 497.00
2013-12-31 347.00 497.00
2013-09-30 356.00 480.00 7.00
2013-06-30 356.00 480.00 7.00
2013-03-31 442.00 400.00 7.00
  • TalkTalk Telecom Group's level of debt (318.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (200.8% vs 318.3% today).
  • Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess TalkTalk Telecom Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TalkTalk Telecom Group has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is TalkTalk Telecom Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.96%
Current annual income from TalkTalk Telecom Group dividends. Estimated to be 3.26% next year.
If you bought €2,000 of TalkTalk Telecom Group shares you are expected to receive €59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TalkTalk Telecom Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • TalkTalk Telecom Group's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TK6 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 319 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TK6 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 0.04 3.00
2023-03-31 0.04 5.00
2022-03-31 0.03 11.00
2021-03-31 0.03 14.00
2020-03-31 0.03 14.00
2020-03-27
DB:TK6 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-07-16 0.025 2.352
2019-05-23 0.025 2.226
2018-11-21 0.020 1.769
2018-06-14 0.030 2.516
2018-05-24 0.030 2.629
2017-11-15 0.075 5.978
2017-06-14 0.103 5.244
2017-05-10 0.103 5.930
2016-06-20 0.159 8.423
2016-05-12 0.159 6.678
2015-06-12 0.138 5.310
2015-05-14 0.138 3.492
2014-11-11 0.126 3.876
2014-07-23 0.120 4.051
2013-05-16 0.104 3.774
2012-05-31 0.090 4.281
2012-05-17 0.090 5.813
2011-11-15 0.065 4.825
2011-05-19 0.078 5.808
2011-05-18 0.078 5.749
2010-11-16 0.034 2.295

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TalkTalk Telecom Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • TalkTalk Telecom Group has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of TalkTalk Telecom Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess TalkTalk Telecom Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TalkTalk Telecom Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TalkTalk Telecom Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of TalkTalk Telecom Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tristia Harrison
COMPENSATION £542,000
TENURE AS CEO 2.9 years
CEO Bio

Ms. Tristia Harrison has been the Chief Executive Officer at TalkTalk Telecom Group PLC since May 2017. Ms. Harrison has been an Executive Director of TalkTalk Telecom Group PLC since June 3, 2014. She has been an Independent Non-Executive Director of NEXT plc since September 25, 2018. Ms. Harrison served as the Managing Director of Talktalk Consumer Business until May 2017 and served as its Executive Commercial Director. She joined The Carphone Warehouse Group plc in 2000 and has held a number of senior management and executive positions in Carphone Warehouse Group plc and TalkTalk Group. She is also a Trustee at Comic Relief and national charity Ambitious about Autism.

CEO Compensation
  • Tristia's compensation has increased in line with TalkTalk Telecom Group recently becoming profitable.
  • Tristia's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the TalkTalk Telecom Group management team in years:

2.2
Average Tenure
  • The tenure for the TalkTalk Telecom Group management team is about average.
Management Team

Charles Dunstone

TITLE
Executive Chairman
COMPENSATION
£388K
AGE
55
TENURE
2.8 yrs

Tristia Harrison

TITLE
CEO & Executive Director
COMPENSATION
£542K
TENURE
2.9 yrs

Kate Ferry

TITLE
CFO & Director
COMPENSATION
£435K
TENURE
2.4 yrs

Gary Steen

TITLE
Managing Director of Technology
TENURE
5.7 yrs

Tim Warrington

TITLE
Head of Investor Relations
TENURE
2.2 yrs

Tim Morris

TITLE
Group General Counsel & Company Secretary

Daniel Kasmir

TITLE
Interim Chief People Officer
TENURE
1 yrs

Jonathan Kini

TITLE
Managing Director of TalkTalk Business
TENURE
0.5 yrs

John Scouler

TITLE
Managing Director of Consumer Division
TENURE
1.8 yrs

Nick Gunga

TITLE
Chief Operating Officer of Consumer
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the TalkTalk Telecom Group board of directors in years:

5.8
Average Tenure
55
Average Age
  • The tenure for the TalkTalk Telecom Group board of directors is about average.
Board of Directors

Tristia Harrison

TITLE
CEO & Executive Director
COMPENSATION
£542K
TENURE
5.8 yrs

John Gildersleeve

TITLE
Independent Deputy Chairman
COMPENSATION
£80K
AGE
74
TENURE
6.8 yrs

Charles Dunstone

TITLE
Executive Chairman
COMPENSATION
£388K
AGE
55
TENURE
9.9 yrs

Kate Ferry

TITLE
CFO & Director
COMPENSATION
£435K
TENURE
2.4 yrs

Nigel Langstaff

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
TENURE
2.3 yrs

Ian West

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£80K
AGE
54
TENURE
6.8 yrs

Roger Taylor

TITLE
Non-Executive Director
COMPENSATION
£52K
AGE
54
TENURE
4.3 yrs

Howard Stringer

TITLE
Independent Non-Executive Director
COMPENSATION
£50K
AGE
77
TENURE
7.7 yrs

Phil Jordan

TITLE
Non-Executive Director
COMPENSATION
£25K
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by TalkTalk Telecom Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Mar 20 Buy Charles Dunstone Individual 06. Mar 20 09. Mar 20 955,149 €1.22 €1,135,053
03. Mar 20 Buy Charles Dunstone Individual 28. Feb 20 02. Mar 20 377,140 €1.25 €470,036
24. Feb 20 Buy TalkTalk Telecom Group PLC Employee Share Ownership Trust ('EBT') Company 19. Feb 20 19. Feb 20 212,825 €1.40 €297,571
03. Feb 20 Buy Tristia Harrison Individual 31. Jan 20 31. Jan 20 171,970 €1.38 €237,977
21. Nov 19 Buy TalkTalk Telecom Group PLC Employee Share Ownership Trust ('EBT') Company 21. Nov 19 21. Nov 19 499,999 €1.22 €611,170
18. Nov 19 Buy Charles Dunstone Individual 15. Nov 19 15. Nov 19 1,000,000 €1.23 €1,230,829
11. Sep 19 Buy Charles Dunstone Individual 10. Sep 19 10. Sep 19 3,870,639 €1.16 €4,484,619
09. Sep 19 Buy Charles Dunstone Individual 06. Sep 19 09. Sep 19 6,000,000 €1.17 €6,993,338
X
Management checks
We assess TalkTalk Telecom Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TalkTalk Telecom Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services for residential, retail, and business customers in the United Kingdom. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

Details
Name: TalkTalk Telecom Group PLC
TK6
Exchange: DB
Founded: 2002
£1,081,544,766
1,143,326,909
Website: http://www.talktalkgroup.com
Address: TalkTalk Telecom Group PLC
11 Evesham Street,
London,
Greater London, W11 4AR,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE TALK Ordinary Shares London Stock Exchange GB GBP 24. Mar 2010
OTCPK TLKT.F Ordinary Shares Pink Sheets LLC US USD 24. Mar 2010
DB TK6 Ordinary Shares Deutsche Boerse AG DE EUR 24. Mar 2010
BATS-CHIXE TALKL Ordinary Shares BATS 'Chi-X Europe' GB GBP 24. Mar 2010
OTCPK TKTC.Y UNSPONSORD ADR Pink Sheets LLC US USD 29. Sep 2010
Number of employees
Current staff
Staff numbers
2,229
TalkTalk Telecom Group employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 22:35
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2019/11/15
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.