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Telstra

DB:TSTD
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TSTD
DB
A$36B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. The last earnings update was 44 days ago. More info.


Add to Portfolio Compare Print
  • Telstra has significant price volatility in the past 3 months.
TSTD Share Price and Events
7 Day Returns
-2.9%
DB:TSTD
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-19.9%
DB:TSTD
-22.7%
DE Telecom
-14.1%
DE Market
TSTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telstra (TSTD) -2.9% -22.2% -27% -19.9% -49.9% -62.3%
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
  • TSTD outperformed the Telecom industry which returned -22.7% over the past year.
  • TSTD underperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
TSTD
Industry
5yr Volatility vs Market

Value

 Is Telstra 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 Telstra 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 Telstra.

DB:TSTD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4%
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:TSTD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
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- 30%) (57.14%))
0.667
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 * 5.44%)
3.96%

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

The calculations below outline how an intrinsic value for Telstra 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:TSTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 3.96%)
2020 3,252.71 Analyst x7 3,128.75
2021 3,482.14 Analyst x7 3,221.79
2022 3,026.00 Analyst x4 2,693.05
2023 2,283.00 Analyst x2 1,954.37
2024 2,766.00 Analyst x1 2,277.61
2025 2,569.14 Est @ -7.12% 2,034.89
2026 2,438.15 Est @ -5.1% 1,857.54
2027 2,348.27 Est @ -3.69% 1,720.88
2028 2,284.93 Est @ -2.7% 1,610.65
2029 2,239.11 Est @ -2.01% 1,518.20
Present value of next 10 years cash flows A$22,017.00
DB:TSTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$2,239.11 × (1 + -0.39%) ÷ (3.96% – -0.39%)
A$51,249.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$51,249.59 ÷ (1 + 3.96%)10
A$34,749.15
DB:TSTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$22,017.00 + A$34,749.15
A$56,766.15
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$56,766.15 / 11,883.10
A$4.78
DB:TSTD Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TSTD represents 2.71385x of ASX:TLS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
2.71385x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 4.78 x 2.71385
€12.96
Value per share (EUR) From above. €12.96
Current discount Discount to share price of €8.25
= -1 x (€8.25 - €12.96) / €12.96
36.4%

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

Current Discount
Amount off the current price Telstra is available for.
Intrinsic value
36%
Share price is €8.25 vs Future cash flow value of €12.96
Current Discount Checks
For Telstra to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telstra's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telstra's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Telstra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telstra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TSTD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$0.17
ASX:TLS Share Price ** ASX (2020-03-27) in AUD A$3.04
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 Telstra.

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

= ASX:TLS Share Price ÷ EPS (both in AUD)

= 3.04 ÷ 0.17

17.54x

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

  • Telstra is overvalued based on earnings compared to the Europe Telecom industry average.
  • Telstra is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Telstra's expected growth come at a high price?
Raw Data
DB:TSTD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-1.9%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:TSTD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.54x ÷ -1.9%

-9x

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

  • Telstra earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Telstra's assets?
Raw Data
DB:TSTD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$1.24
ASX:TLS Share Price * ASX (2020-03-27) in AUD A$3.04
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:TSTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TLS Share Price ÷ Book Value per Share (both in AUD)

= 3.04 ÷ 1.24

2.45x

* Primary Listing of Telstra.

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

  • Telstra is overvalued based on assets compared to the DE Telecom industry average.
X
Value checks
We assess Telstra'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. Telstra has a total score of 1/6, 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 Telstra expected to perform in the next 1 to 3 years based on estimates from 12 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
-1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telstra expected to grow at an attractive rate?
  • Telstra's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Telstra's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Telstra's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TSTD Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TSTD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -1.9%
DB:TSTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -0.4%
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:TSTD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TSTD Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 26,328 6,369 2,285 2
2023-06-30 26,230 6,277 2,111 3
2022-06-30 25,478 6,524 2,022 10
2021-06-30 25,963 6,872 2,247 12
2020-06-30 26,415 6,420 2,297 12
2020-03-27
DB:TSTD Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 24,837 6,599 2,060
2019-09-30 25,048 6,641 2,107
2019-06-30 25,259 6,683 2,154
2019-03-31 25,442 2,633
2018-12-31 25,625 7,650 3,111
2018-09-30 25,737 8,128 3,351
2018-06-30 25,848 8,606 3,591
2018-03-31 25,965 8,496 3,693
2017-12-31 26,016 8,386 3,813
2017-09-30 26,015 8,081 3,852
2017-06-30 26,013 7,775 3,891

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telstra's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Telstra's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:TSTD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Telstra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TSTD Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.19 0.20 0.18 2.00
2023-06-30 0.18 0.18 0.17 3.00
2022-06-30 0.18 0.24 0.15 10.00
2021-06-30 0.19 0.27 0.16 12.00
2020-06-30 0.19 0.25 0.17 12.00
2020-03-27
DB:TSTD Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 0.17
2019-09-30 0.18
2019-06-30 0.18
2019-03-31 0.22
2018-12-31 0.26
2018-09-30 0.28
2018-06-30 0.30
2018-03-31 0.31
2017-12-31 0.32
2017-09-30 0.32
2017-06-30 0.33

*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.
  • Telstra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telstra'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.
Telstra has a total score of 0/6, 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 Telstra 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 Telstra'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.
  • Telstra's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Telstra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Telstra's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
Telstra'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 Telstra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TSTD Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 24,837.00 2,060.00 1,659.00
2019-09-30 25,048.00 2,107.00 1,659.00
2019-06-30 25,259.00 2,154.00 1,659.00
2019-03-31 25,442.00 2,632.50 1,537.00
2018-12-31 25,625.00 3,111.00 1,415.00
2018-09-30 25,736.50 3,351.00 1,415.00
2018-06-30 25,848.00 3,591.00 1,415.00
2018-03-31 25,964.50 3,693.00 1,234.50
2017-12-31 26,016.00 3,813.00 1,054.00
2017-09-30 26,014.50 3,852.00 1,054.00
2017-06-30 26,013.00 3,891.00 1,054.00
2016-12-31 25,428.00 3,573.00 961.00
2016-09-30 25,669.50 3,668.00 961.00
2016-06-30 25,911.00 3,763.00 961.00
2015-12-31 25,803.00 3,955.00 894.00
2015-09-30 25,665.50 3,997.50 894.00
2015-06-30 25,528.00 4,040.00 894.00
2014-12-31 25,774.00 4,620.00 978.00
2014-09-30 25,580.00 4,549.50 978.00
2014-06-30 25,386.00 4,479.00 978.00
2013-12-31 24,916.00 3,900.00 862.00
2013-09-30 24,698.50 3,744.00 862.00
2013-06-30 24,481.00 3,588.00 862.00
2013-03-31 25,204.00 3,689.50 918.50

*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.
  • Telstra has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telstra used its assets more efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Telstra's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telstra'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.
Telstra has a total score of 1/6, 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 Telstra'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 Telstra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telstra's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Telstra's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telstra'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.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x 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 Telstra Company Filings, last reported 2 months ago.

DB:TSTD Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 15,393.00 17,048.00 754.00
2019-09-30 15,393.00 17,048.00 754.00
2019-06-30 14,530.00 17,302.00 647.00
2019-03-31 14,530.00 17,302.00 647.00
2018-12-31 14,505.00 18,589.00 541.00
2018-09-30 14,505.00 18,589.00 541.00
2018-06-30 14,619.00 16,975.00 632.00
2018-03-31 15,014.00 16,975.00 632.00
2017-12-31 14,347.00 18,112.00 587.00
2017-09-30 14,347.00 18,112.00 587.00
2017-06-30 14,560.00 17,521.00 942.00
2016-12-31 14,569.00 17,728.00 1,188.00
2016-09-30 14,569.00 17,728.00 1,188.00
2016-06-30 15,907.00 17,552.00 3,599.00
2015-12-31 14,820.00 17,388.00 2,171.00
2015-09-30 14,820.00 17,388.00 2,171.00
2015-06-30 14,510.00 15,912.00 1,398.00
2014-12-31 13,653.00 16,338.00 1,669.00
2014-09-30 13,653.00 16,338.00 1,669.00
2014-06-30 13,960.00 16,097.00 5,529.00
2013-12-31 13,117.00 16,695.00 2,455.00
2013-09-30 13,117.00 16,695.00 2,455.00
2013-06-30 12,875.00 15,371.00 2,501.00
2013-03-31 12,875.00 15,371.00 2,501.00
  • Telstra's level of debt (110.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (117.2% vs 110.8% today).
  • Debt is well covered by operating cash flow (38.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Telstra'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. Telstra has a total score of 3/6, 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 Telstra'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
5.26%
Current annual income from Telstra dividends. Estimated to be 5.21% next year.
If you bought €2,000 of Telstra shares you are expected to receive €105 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?
  • Telstra's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • Telstra's dividend is above 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:TSTD 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 12 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:TSTD Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.17 2.00
2023-06-30 0.16 3.00
2022-06-30 0.16 12.00
2021-06-30 0.16 14.00
2020-06-30 0.16 14.00
2020-03-27
DB:TSTD Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2020-02-12 0.160 4.651
2019-08-14 0.160 4.377
2019-02-13 0.130 3.693
2018-08-15 0.150 4.915
2018-02-15 0.150 5.023
2017-08-16 0.310 8.629
2017-02-15 0.310 7.033
2016-08-11 0.310 6.097
2016-02-18 0.310 5.687
2016-02-17 0.310 5.757
2015-10-12 0.310 5.713
2015-02-11 0.300 4.895
2014-08-14 0.300 5.229
2014-02-12 0.290 5.551
2013-08-07 0.280 5.546
2013-02-06 0.280 5.915
2012-08-09 0.280 6.805
2012-05-02 0.280 7.534
2011-08-11 0.280 8.713
2011-02-10 0.280 9.670
2010-11-19 0.280 10.016
2010-02-11 0.280 9.460
2009-08-13 0.280 8.415

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Telstra's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Telstra'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 Telstra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telstra has a total score of 4/6, 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 Telstra'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
Andy Penn
COMPENSATION A$5,119,000
AGE 56
TENURE AS CEO 4.8 years
CEO Bio

Mr. Andrew Richard Penn, also known as Andy, MBA (Kingston), AMP (Harvard), BEc, FCCA, HFAIPM has been the Chief Executive Officer, Managing Director and Director of Telstra Corporation Limited since May 1, 2015. Mr. Penn is an experienced executive with a career spanning almost 40 years. He served as Head of Asian Business at Telstra Corporation Limited since May 2014. He joined Telstra in 2012. Mr. Penn served as the Chief Financial Officer and Group Managing Director of Finance & Strategy at Telstra Corporation Limited since 2012 and also served as its Group Executive of International. Mr. Penn served as a the Group Chief Executive Officer of AMP AAPH Limited (formerly AXA Asia Pacific Holdings Ltd.) at AXA Group from October 1, 2006 to March 29, 2011. He served as the Chief Executive Officer for Australia and New Zealand of Axa Asia Pacific Holdings Ltd. from August 01, 2006 to October 1, 2006 and Chief Executive for Asia. Mr. Penn served as Managing Director of Group Strategic Development for Axa Asia Pacific Holdings Ltd., since September 16, 2005 and its Chief Financial Officer until May 2004 and also served as its Group Chief Financial Officer, General Manager of Operations and Chief Executive of International. He joined AXA APH in 1990 in the UK and has held a variety of senior positions with AXA APH. He serves as Director of AllianceBernstein Australia Limited, AllianceBernstein New Zealand Limited, AXA-Minmetals, Bharti AXA Life and various AXA APH subsidiaries. He served as a Director of Autohome Inc. from March 2012 to June 20, 2016. Mr. Penn served as a Director of FOXTEL Cable Television Pty Limited until April 30, 2015. He served in the Board of Telstra Ventures Pty Limited and served as an Executive Director at AXA Asia Pacific Holdings Ltd., from October 1, 2006 to March 29, 2011. He has also contributed widely to not-forprofit and community organisations. He is Life Governor of Very Special Kids from 2003 and is its Foundation Board member. He is also a member of the Juvenile Diabetes Research Foundation Advisory Council and The Big Issue Advisory Group and an Amy Gillet Foundation Ambassador. Mr. Penn is a fellow of the Chartered Association of Certified Accountants. He served as Director at Foxtel Management Pty Ltd until April 30, 2015. He holds an MBA from Kingston University, London and is a Graduate of Harvard Business School’s Advanced Management Program.

CEO Compensation
  • Andy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andy's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Telstra management team in years:

3.1
Average Tenure
  • The tenure for the Telstra management team is about average.
Management Team

Andy Penn

TITLE
CEO, MD & Director
COMPENSATION
A$5M
AGE
56
TENURE
4.8 yrs

Vicki Brady

TITLE
CFO and Group Executive of Strategy & Finance
COMPENSATION
A$348K
TENURE
0.7 yrs

Alex Badenoch

TITLE
Group Executive of Transformation
COMPENSATION
A$2M
TENURE
3.6 yrs

Christian von Reventlow

TITLE
Group Executive of Product & Technology
COMPENSATION
A$2M
TENURE
1.3 yrs

Brendon Riley

TITLE
Group Executive & CEO of Telstra InfraCo
COMPENSATION
A$3M
TENURE
1.4 yrs

Håkan Eriksson

TITLE
Chief Technology Officer
AGE
53
TENURE
3.1 yrs

Ross Moffat

TITLE
Head of Investor Relations

Damien Coleman

TITLE
Group General Counsel and Acting Group Executive of Legal & Corporate Affairs

Nicole McKechnie

TITLE
Head of Communications

R. Howard

TITLE
Managing Director of Voice & Convergence
TENURE
15 yrs
Board of Directors Tenure

Average tenure and age of the Telstra board of directors in years:

3.9
Average Tenure
59
Average Age
  • The tenure for the Telstra board of directors is about average.
Board of Directors

John Mullen

TITLE
Chairman of the Board
COMPENSATION
A$779K
AGE
63
TENURE
3.9 yrs

Andy Penn

TITLE
CEO, MD & Director
COMPENSATION
A$5M
AGE
56
TENURE
4.8 yrs

Peter Hearl

TITLE
Non Executive Director
COMPENSATION
A$294K
AGE
68
TENURE
5.6 yrs

Craig Dunn

TITLE
Non-Executive Director
COMPENSATION
A$284K
AGE
56
TENURE
3.9 yrs

NL Scheinkestel

TITLE
Non-Executive Director
COMPENSATION
A$304K
AGE
59
TENURE
9.6 yrs

Margie Seale

TITLE
Non-Executive Director
COMPENSATION
A$270K
AGE
58
TENURE
7.8 yrs

Roy Chestnutt

TITLE
Non-Executive Director
COMPENSATION
A$260K
AGE
59
TENURE
1.8 yrs

Nicolaas John van Damme

TITLE
Non-Executive Director
COMPENSATION
A$186K
AGE
58
TENURE
1.4 yrs

Eelco Blok

TITLE
Non-Executive Director
COMPENSATION
A$88K
AGE
62
TENURE
1.1 yrs

Elana Rubin

TITLE
Non-Executive Director
AGE
60
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Telstra'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. Telstra 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

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, telephony and Pay TV/IPTV, and digital content; and online self-service capabilities, as well as operates inbound and outbound call centers, owned and licensed Telstra shops, and the Telstra dealership network. It also provides sales and contract management; and product management services for data and Internet protocol networks, mobility services, and network applications and services products, such as managed network, unified communications, cloud, industry solutions, and integrated services and monitoring. In addition, the company engages in the development of industry vertical solutions; planning, design, engineering architecture, and construction of Telstra networks, technology, and information technology solutions; and delivering network technologies. Further, it provides telecommunication products and services through its networks and related support systems to other carriers, carriage service providers, and Internet service providers; access to fixed network infrastructure assets; disconnection services; and network services under the Infrastructure Services Agreement and commercial contracts, as well as holds fixed network infrastructure, including data centers, non-mobiles related domestic fiber, copper, HFC cable, international subsea cables, exchanges, poles, ducts, and pipes. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.

Details
Name: Telstra Corporation Limited
TSTD
Exchange: DB
Founded: 1901
A$19,983,311,716
11,883,097,460
Website: http://www.telstra.com.au
Address: Telstra Corporation Limited
242 Exhibition Street,
Level 41,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TLS Ordinary Shares Australian Securities Exchange AU AUD 17. Nov 1997
OTCPK TTRA.F Ordinary Shares Pink Sheets LLC US USD 17. Nov 1997
DB TSTA Ordinary Shares Deutsche Boerse AG DE EUR 17. Nov 1997
NZSE TLS Ordinary Shares New Zealand Stock Exchange NZ NZD 17. Nov 1997
CHIA TLS Ordinary Shares Chi-X Australia AU AUD 17. Nov 1997
OTCPK TLSY.Y FINAL ADS EACH REPR 5 ORD SHS NPV Pink Sheets LLC US USD 19. Oct 1998
DB TSTD FINAL ADS EACH REPR 5 ORD SHS NPV Deutsche Boerse AG DE EUR 19. Oct 1998
Number of employees
Current staff
Staff numbers
28,270
Telstra employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 22:40
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


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.