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A Look At Telecom Plus PLC’s (LON:TEP) Exceptional Fundamentals

Attractive stocks have exceptional fundamentals. In the case of Telecom Plus PLC (LON:TEP), there’s is a financially-healthy company with a a strong history of dividend payments and a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Telecom Plus here.

Excellent balance sheet with reasonable growth potential and pays a dividend

TEP’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 67.57% in the upcoming year. This underlies the notable 26.87% return on equity over the next few years leading up to 2021. TEP’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that TEP has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. TEP seems to have put its debt to good use, generating operating cash levels of 0.95x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

LSE:TEP Future Profit June 26th 18
LSE:TEP Future Profit June 26th 18

TEP pays a decent dividend yield to its shareholders, exceeding the low-risk savings rate, which is able to compensate investors for taking on the risk of holding a risky stock over a riskless asset.

LSE:TEP Historical Dividend Yield June 26th 18
LSE:TEP Historical Dividend Yield June 26th 18

Next Steps:

For Telecom Plus, I’ve compiled three key factors you should further research:

  1. Historical Performance: What has TEP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is TEP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TEP is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.