# TPG Telecom (TPG.AU)

Canonical: https://gigainvestors.com/s/TPG.AU

Analysis as of: 2026-10-16T07:37:29.461Z. Financial observations: FY2002–FY2025.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 3.76 per share; close as of 2026-10-15.

Estimated value: low AUD 2.22 per share, central AUD 2.52 per share, high AUD 2.93 per share. Buy at or below the central value AUD 2.52 per share. Valuation as of 2026-10-16T07:37:29.461Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 5

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.05×

- FY2018: 0.06×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.07×

- FY2024: 0.08×

- FY2025: 0.08×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.3%

- ROIC, second-lowest year: 2.1%

- Typical minus recent gross margin: -1.0 pp

- Typical gross margin (annual median): 14.8%

- Recent gross margin (lower of latest and 3-year median): 15.9%

- Years with nonpositive capital: 1

- Capital spending / revenue: 14.9%

- ROIC including acquisitions, ten-year median: 1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 11.6%

- FY2017: 3.4%

- FY2018: 9.0%

- FY2019: 2.9%

- FY2020: 2.0%

- FY2021: 2.1%

- FY2022: 3.2%

- FY2023: 3.3%

- FY2024: 4.1%

- FY2025: 4.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.82×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 1.9B

- Net income, five-year total: AUD 1.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 3.2 pp

- Working capital / revenue, final three-year average: -1.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 3.80×

- FY2022: 1.01×

- FY2023: 4.33×

- FY2024: -1.44×

- FY2025: 1.23×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.0% vs 4.1%

- Per-share earnings: -0.13 to 0.03 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: AUD -5.0B

- Cumulative retained earnings: AUD -602M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: AUD 0.16

- Per-share value, starting three-year median: AUD -0.13

- Per-share value, ending three-year median: AUD 0.03

- Buybacks concentrated in cheaper years (correlation): 0.82

- Average buyback yield: 0.1%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 19B

- Cumulative net income, 10 years: AUD 943M

- ROIC, first three-year median: 9.0%

- ROIC, last three-year median: 4.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: AUD -0.13

- FY2017: AUD -0.10

- FY2018: AUD -0.07

- FY2019: AUD -0.15

- FY2020: AUD 0.40

- FY2021: AUD 0.06

- FY2022: AUD 0.28

- FY2023: AUD 0.03

- FY2024: AUD -0.06

- FY2025: AUD 0.25

### accounting: pass

- Sloan accruals: -10.7%

- Receivables to sales index (DSRI): 0.59×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -16.0%

- FY2017: -15.0%

- FY2018: -15.3%

- FY2019: -13.6%

- FY2020: -1.1%

- FY2021: -7.1%

- FY2022: -6.8%

- FY2023: -7.5%

- FY2024: -10.6%

- FY2025: -10.7%

## Holders

## Price story

Down 44% since Oct 2021 · sales -8.7%

Story as of 2026-10-16T10:00:09.132Z; price observation 2026-10-15.

Price needs cash profits to grow 5.9% a year for ten years

### Sales · FY2024–2025

sales -8.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: AUD 3.3B 

- FY2017: AUD 3.4B 

- FY2018: AUD 3.6B 

- FY2019: AUD 3.5B 

- FY2020: AUD 4.3B 

- FY2021: AUD 5.3B 

- FY2022: AUD 5.4B 

- FY2023: AUD 5.5B 

- FY2024: AUD 5.5B 

- FY2025: AUD 5.0B 

### Gross margin · FY2025

gross margin 15.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 37.8% 

- FY2017: 37.2% 

- FY2018: 40.1% 

- FY2019: 13.2% 

- FY2020: 13.3% 

- FY2021: 12.0% 

- FY2022: 12.5% 

- FY2023: 13.8% 

- FY2024: 58.0% 

- FY2025: 15.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are AUD 5 billion.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2025-12-31 (filed 2026-10-16T07:37:29.461Z); FY2025: revenue 5041000000; grossProfit 799000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TPG.AU: TPG Telecom Limited provides telecommunications services to consumer, business, enterprise, and government and wholesale customers in Australia. It also sells mobile handsets, mobile accessory, and fixed modem devices. In addition, the company owns and operates the Vodafone mobile network products. It serves residential and small office/home office customers. It serves its services under the Vodafone, TPG, iiNet, Internode, Lebara, and felix brand names. The company was formerly known as Vodafone Hutchison Australia Limited and changed its name to TPG Telecom Limited in June 2020. TPG Telecom Limited was founded in 1986 and is based in Barangaroo, Australia.

### Why customers stay

Margins ranged from 13.8% to 58% during 2023–25; it earns 3.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2023-12-31 (filed 2026-10-16T07:37:29.461Z); FY2023: grossProfit / revenue = 13.8%.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2024-12-31 (filed 2026-10-16T07:37:29.461Z); FY2024: grossProfit / revenue = 58%.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2025-12-31 (filed 2026-10-16T07:37:29.461Z); FY2025: grossProfit / revenue = 15.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.461Z); 10-year return on capital observations [[2016,0.1156352649722772],[2017,0.0336349318631395],[2018,0.08974953428606394],[2019,0.028773486791929558],[2020,0.020394145441973034],[2021,0.020569669376318097],[2022,0.031666450885976805],[2023,0.03264671589584143],[2024,0.04118273542600897],[2025,0.045039842937983604]]; median 0.033140823879490466. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.461Z); Gross margin observations: [[2021,0.1201587001700359],[2022,0.12483841181902124],[2023,0.13808060726549792]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back AUD 25 million of shares.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2019-12-31 (filed 2026-10-16T07:37:29.461Z); FY2019: growth capex 0; upkeep 717300000; owner earnings 21240000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2020-12-31 (filed 2026-10-16T07:37:29.461Z); FY2020: growth capex 0; upkeep 684000000; owner earnings 1245000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2021-12-31 (filed 2026-10-16T07:37:29.461Z); FY2021: growth capex 0; upkeep 831000000; owner earnings 418000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2022-12-31 (filed 2026-10-16T07:37:29.461Z); FY2022: growth capex 0; upkeep 992000000; owner earnings 517000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2023-12-31 (filed 2026-10-16T07:37:29.461Z); FY2023: growth capex 0; upkeep 862000000; owner earnings 212200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2024-12-31 (filed 2026-10-16T07:37:29.461Z); FY2024: growth capex 0; upkeep 783000000; owner earnings 154000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2025-12-31 (filed 2026-10-16T07:37:29.461Z); FY2025: growth capex 0; upkeep 595000000; owner earnings 567400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.461Z); Dividend observations: [[2016,108400000],[2017,133800000],[2018,23000000],[2019,37100000],[2020,479000000],[2021,288000000],[2022,325000000],[2023,335000000],[2024,334000000],[2025,501000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/TPG.AU.json#2025-12-31 (filed 2026-10-16T07:37:29.461Z); FY2025: cash repurchases 25000000 AUD.

### Are managers owners

Insiders own 61.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TPG.AU SharesStats.PercentInsiders = 61.870000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.9% yearly over ten years; actual growth was 64.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.461Z); Ten-year compound average after fade. Initial solved rate 0.07159512671425261. Price 3.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.0021335508153235093 → FY2025 0.3031466220804129. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 7.22 per share

- 2016-11: AUD 6.82 per share

- 2016-12: AUD 6.51 per share

- 2017-01: AUD 6.18 per share

- 2017-02: AUD 5.96 per share

- 2017-03: AUD 6.66 per share

- 2017-04: AUD 5.73 per share

- 2017-05: AUD 5.73 per share

- 2017-06: AUD 5.54 per share

- 2017-07: AUD 5.45 per share

- 2017-08: AUD 5.34 per share

- 2017-09: AUD 4.73 per share

- 2017-10: AUD 5.25 per share

- 2017-11: AUD 5.78 per share

- 2017-12: AUD 6.39 per share

- 2018-01: AUD 6.19 per share

- 2018-02: AUD 5.94 per share

- 2018-03: AUD 5.34 per share

- 2018-04: AUD 5.42 per share

- 2018-05: AUD 5.41 per share

- 2018-06: AUD 5.03 per share

- 2018-07: AUD 5.60 per share

- 2018-08: AUD 8.40 per share

- 2018-09: AUD 8.30 per share

- 2018-10: AUD 6.97 per share

- 2018-11: AUD 6.99 per share

- 2018-12: AUD 6.26 per share

- 2019-01: AUD 6.79 per share

- 2019-02: AUD 6.47 per share

- 2019-03: AUD 6.76 per share

- 2019-04: AUD 6.55 per share

- 2019-05: AUD 6.11 per share

- 2019-06: AUD 6.26 per share

- 2019-07: AUD 6.78 per share

- 2019-08: AUD 6.47 per share

- 2019-09: AUD 6.75 per share

- 2019-10: AUD 6.36 per share

- 2019-11: AUD 6.79 per share

- 2019-12: AUD 6.52 per share

- 2020-01: AUD 7.27 per share

- 2020-02: AUD 7.32 per share

- 2020-03: AUD 6.70 per share

- 2020-04: AUD 7.15 per share

- 2020-05: AUD 8.26 per share

- 2020-06: AUD 8.90 per share

- 2020-07: AUD 8.04 per share

- 2020-08: AUD 8.23 per share

- 2020-09: AUD 7.30 per share

- 2020-10: AUD 7.18 per share

- 2020-11: AUD 7.67 per share

- 2020-12: AUD 7.22 per share

- 2021-01: AUD 7.40 per share

- 2021-02: AUD 6.80 per share

- 2021-03: AUD 6.33 per share

- 2021-04: AUD 5.51 per share

- 2021-05: AUD 5.21 per share

- 2021-06: AUD 6.26 per share

- 2021-07: AUD 6.18 per share

- 2021-08: AUD 6.16 per share

- 2021-09: AUD 7.06 per share

- 2021-10: AUD 6.75 per share

- 2021-11: AUD 6.75 per share

- 2021-12: AUD 5.89 per share

- 2022-01: AUD 5.90 per share

- 2022-02: AUD 5.59 per share

- 2022-03: AUD 6.05 per share

- 2022-04: AUD 5.88 per share

- 2022-05: AUD 5.75 per share

- 2022-06: AUD 5.97 per share

- 2022-07: AUD 6.34 per share

- 2022-08: AUD 5.35 per share

- 2022-09: AUD 4.85 per share

- 2022-10: AUD 4.90 per share

- 2022-11: AUD 4.89 per share

- 2022-12: AUD 4.89 per share

- 2023-01: AUD 4.82 per share

- 2023-02: AUD 5.07 per share

- 2023-03: AUD 4.88 per share

- 2023-04: AUD 5.37 per share

- 2023-05: AUD 5.47 per share

- 2023-06: AUD 4.87 per share

- 2023-07: AUD 5.02 per share

- 2023-08: AUD 5.63 per share

- 2023-09: AUD 5.46 per share

- 2023-10: AUD 5.18 per share

- 2023-11: AUD 4.72 per share

- 2023-12: AUD 5.18 per share

- 2024-01: AUD 5.29 per share

- 2024-02: AUD 4.69 per share

- 2024-03: AUD 4.51 per share

- 2024-04: AUD 4.51 per share

- 2024-05: AUD 4.65 per share

- 2024-06: AUD 4.58 per share

- 2024-07: AUD 4.75 per share

- 2024-08: AUD 4.96 per share

- 2024-09: AUD 4.92 per share

- 2024-10: AUD 4.52 per share

- 2024-11: AUD 4.50 per share

- 2024-12: AUD 4.49 per share

- 2025-01: AUD 4.40 per share

- 2025-02: AUD 4.63 per share

- 2025-03: AUD 4.80 per share

- 2025-04: AUD 5.06 per share

- 2025-05: AUD 5.15 per share

- 2025-06: AUD 5.33 per share

- 2025-07: AUD 5.54 per share

- 2025-08: AUD 5.29 per share

- 2025-09: AUD 5.02 per share

- 2025-10: AUD 5.53 per share

- 2025-11: AUD 3.75 per share

- 2025-12: AUD 3.79 per share

- 2026-01: AUD 3.87 per share

- 2026-02: AUD 3.94 per share

- 2026-03: AUD 4.02 per share

- 2026-04: AUD 4.19 per share

- 2026-05: AUD 3.90 per share

- 2026-06: AUD 3.60 per share

- 2026-07: AUD 3.58 per share

- 2026-08: AUD 3.77 per share

- 2026-09: AUD 3.84 per share

- 2026-10: AUD 3.70 per share

## Annual estimated value (AUD per share)

- FY2016: low AUD 0.13 per share, central AUD 0.13 per share, high AUD 0.14 per share

- FY2021: low AUD 0.24 per share, central AUD 0.27 per share, high AUD 0.30 per share

- FY2022: low AUD 2.52 per share, central AUD 2.87 per share, high AUD 3.33 per share

- FY2023: low AUD 2.58 per share, central AUD 2.93 per share, high AUD 3.40 per share

- FY2024: low AUD 2.56 per share, central AUD 2.92 per share, high AUD 3.39 per share

- FY2025: low AUD 2.32 per share, central AUD 2.65 per share, high AUD 3.07 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:43:13.469Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.