Telephone companies have historically been stable equity income investments.  Internet and wireless technology has changed the landscape and “telephone” became “telecom”.  These days there are telecom investment opportunities around the globe with securities traded in US markets.

Our database has 276 companies classified as “Communications Services” (telecom).  We filtered for possible telecom investment prospects using these minimal criteria:

• Market-Cap > $1 billion
• EV/EBITDA < 10
• Yield > 0%
• Payout Ratio < 100%
• Operating Margin 5 Yr Av > 0%
• Sales Growth 3 Yr > 0%
• EPS Growth 3 Yr > 0%
• Dividend Growth 3 Yr > 0%
• PEG 5 Yr Trailing < 2

From that filter, 9 telecoms emerged as worthy of further research and consideration (including validation of the information in our database).

Those companies are (ranked by descending market-cap):

• China Mobil (CHL)
• Telefonica (TEF)
• Verizon (VZ)
• Rogers Communications (RCI)
• Turkcell (TKC)
• TELUS (TU)
• Portugal Telecom (PT)
• Telekom Austria (TKAGY)
• Magyar Telecom (MTA)

It is obvious merely by the names of the companies that they represent vastly different circumstances.  Frankly, we’d never even heard of Magyar (a Hungarian telecom).  Some are probably mature.  Some are in small markets, and some in huge markets.

In any event those are the ones that satisfy the minimal filter criteria.  If you are seeking telecom investments, one or more of these may make sense (and one or more may be dogs).

If you would like to receive an Excel spreadsheet containing these 86 data fields for each of those 9 telecoms, email us your request.  Good hunting.

Data Fields in Spreadsheet:

Company Name
Symbol
Optionable
Sector
Industry
Price
S/Share Q4
S/Share Q3
S/Share Q2
S/Share Q1
Continuing E/Share Q4
Continuing E/Share Q3
Continuing E/Share Q2
Continuing E/Share Q1
Div/Share Q4
Div/Share Q3
Div/Share Q2
Div/Share Q1
FCF/Share Q4
FCF/Share Q3
FCF/Share Q2
FCF/Share Q1
Yield
Yield-Average 3 years
Payout Ratio 12m
Dividend-Growth 12m
Dividend-Growth 3yr
Dividend-Growth 5yr
Dividend-Growth 7yr
EV/EBITDA
P/S
P/S – 3yr Av
P/CF
P/CF – 3yr Av
P/E
PE – 3yr Av
P/FCF
P/CF – 3yr Av
P/B
P/B – 3yr Av
P/Tangible Book
PE to 5yr EPS Growth ttm
PE to 5yr EPS Growth estimated
LTD/Total Capital Q1
LTD/Equity Q1
Current Ratio Q1
Quick Ratio Q1
ROE 12m
ROE – 5yr Av
Times Interest Earned 12m
Gross Margin 12m
Gross Margin – 5yr Av
Operating Margin 12m
Operating Margin – 5yr Av
Sales-Growth 5yr
EPS-Growth 5yr
EPS Cont-Growth 5yr
Sales Y2
Sales Y1
Sales 12m
Gross Operating Income Y2
Gross Operating Income Y1
Gross Operating Income 12m
Research and Development Y2
Research and Development Y1
Research and Development 12m
Interest Expense Y2
Interest Expense Y1
Interest Expense 12m
Net Income Y2
Net Income Y1
Net Income 12m
Dividend Y7
Dividend Y6
Dividend Y5
Dividend Y4
Dividend Y3
Dividend Y2
Dividend Y1
Dividend, Indicated
Market-Cap
Number of Employees
Web Address
Phone
State
Country

Note: The references to Q1 .. .Q4, or Y1 … Y7, denote the number of periods in the past.  Q1 is the last quarter and Q3 is three quarters ago, for example.  The price dependent data is current as of Friday August 28, 2009 with respect to the price.  All other data is as of the last reporting period for the company.

Disclosure: We do not currently have positions in any of the named securities.

Legal Notice: This post on our site, or on any other site that republishes all or part of this post, is subject to the terms and conditions presented in the Legal Notice on our site.

Richard Shaw
QVM Group LLC

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