TPG Inc. - NASDAQ:TPG - Comprehensive analysis
Shares in no-moat TPG Telecom are currently undervalued. The benefits of a more rational mobile market are becoming evident. In a three-player mobile network landscape, each player is increasingly focused on achieving returns on their substantial capital investments, particularly in the rollout of 5G. We anticipate that rational competitive behavior will persist, likely supported by ongoing growth in fixed wireless services. The completion of the AUD 5.3 billion sale of the corporate telecom unit will enhance the advantages of being a mobile-centric entity, while the proceeds from the sale will alleviate any remaining market concerns regarding TPG’s balance sheet. The positive effects of cost-cutting and business simplification initiatives are already starting to materialize, coinciding with a moderation in the current capital expenditure pressures associated with 5G and IT modernization. The presence of major shareholders whose holdings have recently come out of escrow following the Vodafone merger may be causing some investor unease. However, these concerns are adequately reflected in the share price, particularly in light of the long-term growth prospects for the telecom industry as it transitions to 5G.
Free evaluation through quantitative algorithms TPG Inc. - NASDAQ:TPG
Growth-Scoring Model Detail
Total Revenue Growth Over Prior Year | 46.5 | Market 99 Sector 94 |
Gross Profit Growth Over Prior Year | 22.2 | Market 90 Sector 85 |
EBITDA Growth Over Prior Year | 27.6 | Market 86 Sector 70 |
EBITA Growth Over Prior Year | -85.89 | Market 1 Sector 1 |
EBIT Growth Over Prior Year | -85.89 | Market 1 Sector 1 |
Earnings from Cont. Ops. Growth Over Prior Year | 0 | Market 0 Sector 0 |
Net Income Growth Over Prior Year | -74.51 | Market 3 Sector 3 |
Normalized Net Income Growth Over Prior Year | -11.73 | Market 16 Sector 25 |
Diluted EPS before Extra Growth Over Prior Year | 0 | Market 0 Sector 0 |
A/R Growth Over Prior Year | 6.69 | Market 66 Sector 80 |
Inventory Growth Over Prior Year | 0 | Market 66 Sector 50 |
PPE Net Growth Over Prior Year | -3.66 | Market 19 Sector 12 |
Total Assets Growth Over Prior Year | 12.44 | Market 86 Sector 80 |
Tangible Book Value Growth Over Prior Year | 0 | Market 0 Sector 0 |
Common Equity Growth Over Prior Year | 35.4 | Market 93 Sector 94 |
Cash from Ops. Growth Over Prior Year | -26.14 | Market 12 Sector 6 |
CAPEX Growth Over Prior Year | 69 | Market 97 Sector 96 |
Dividend per Share Growth Over Prior Year | 29.9 | Market 97 Sector 98 |
Levered Free Cash Flow Growth Over Prior Year | -18.48 | Market 21 Sector 6 |
Unlevered Free Cash Flow Growth Over Prior Year | -15.58 | Market 22 Sector 6 |
Profitability-Scoring Model Detail
Gross Margin % | 20.8 | Market 17 Sector 59 |
SG&A Margin % | 16.68 | Market 57 Sector 24 |
EBITDA Margin % | 4.13 | Market 5 Sector 30 |
EBITA Margin % | 0.26 | Market 8 Sector 70 |
EBIT Margin % | 0.26 | Market 2 Sector 23 |
Earnings from Cont. Ops Margin % | -2.2 | Market 4 Sector 10 |
Net Income Margin % | 0.67 | Market 5 Sector 17 |
Net Income Avail. for Common Margin % | -0.01 | Market 5 Sector 12 |
Normalized Net Income Margin % | 2.95 | Market 11 Sector 19 |
Levered Free Cash Flow Margin % | 27.6 | Market 88 Sector 93 |
Unlevered Free Cash Flow Margin % | 29.1 | Market 87 Sector 92 |
Return on Assets % | 0.06 | Market 3 Sector 18 |
Return on Capital % | 0.12 | Market 8 Sector 71 |
Return on Equity % | -2.21 | Market 4 Sector 10 |
Return on Common Equity % | -0.04 | Market 5 Sector 13 |
Total Asset Turnover | 0.35 | Market 32 Sector 85 |
