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Telstra Group Limited

TLGPY
52
Telecommunications Services · Communication Services
Price
$17.29
-0.10 (-0.58%)
Market Cap
$38.52B
Exchange
Other OTC
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 28, 2026 · filings through Dec 31, 2025

Share count falling — buybacks

2.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 2.38B (2021) → 2.31B (2025)

Telstra Group Limited stands as a prominent provider of comprehensive telecommunications and digital information services, serving a diverse clientele that includes individual consumers, businesses, and government bodies, both within Australia and on a global scale. The company's operations are strategically organized into four distinct segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. Primarily serving the Australian market, Telstra delivers a broad spectrum of connectivity, media, and technology solutions. These are supported by robust mobile and fixed network infrastructures and distributed through a multi-channel approach encompassing call centers, retail outlets, a dealership network, digital platforms, and dedicated distribution systems, further enhanced by the Telstra Plus customer loyalty program. For its government and large enterprise clients, the company extends specialized services such as network capacity and management, unified communications, cloud computing solutions, cybersecurity, tailored industry solutions, and comprehensive integrated and monitoring services. Furthermore, Telstra acts as a wholesale provider, supplying voice and data services, as well as various telecommunication products, to other carriers, carriage service providers, and internet service providers. It also undertakes the development and management of digital platforms. Telstra also possesses and manages a significant fixed passive network infrastructure, which includes crucial assets like data centers, exchanges, poles, ducts, pits, pipes, and its extensive fiber optic network. Through this infrastructure, it grants wholesale customers access and offers long-term access to various components under specific infrastructure services agreements. The company is also actively involved in the design and construction of new fiber networks, exchanges, and other critical infrastructure. Moreover, Telstra oversees the physical and passive mobile tower assets that are either owned or managed by Amplitel Pty Ltd. Established in 1901 and headquartered in Melbourne, Australia, the company previously operated as Telstra Corporation Limited before officially rebranding to Telstra Group Limited in November 2022.

Winston Score History

Score breakdown

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Quality

Gross Margin
27.9%
Modest — 27.9% gross margin
Operating Margin
15.9%
Healthy — 15.9% operating margin
ROCE
5.7%
Weak — 5.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
-0.7%
Shrinking sales (-0.7% YoY)
EPS YoY
+36.1%
Earnings growing fast (36.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
309%
Turns 309% of profit into real cash
FCF Margin
19.9%
Converts sales into free cash efficiently (19.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
1.41
Elevated debt (1.41)
Interest Cover
5.73x
Adequate interest coverage (5.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
17.6x
Fair value — P/E 17.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+3.0
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
3.99%
Moderate income — 3.99% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+15.3%
Dividend growing fast (15.3% YoY)

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