Yahoo Finance Telstra Corporation Limited (ASX:TLS): Commentary On Fundamentals
Telstra Corporation Limited (ASX:TLS) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of TLS, it is a company with a an impressive track record of performance, trading at a discount. Below is a brief commentary 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 Telstra here.
Solid track record and good value
Over the past year, TLS has grown its earnings by 6.44%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 26.28%, which paints a buoyant picture for the company. TLS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if TLS’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the telecom industry, TLS is also trading below its peers, relative to earnings generated. This bolsters the proposition that TLS’s price is currently discounted.
Next Steps:
For Telstra, I’ve put together three relevant factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for TLS’s future growth? Take a look at our free research report of analyst consensus for TLS’s outlook.
Financial Health: Is TLS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TLS? 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.
