SSE plc (SSE) is a leading utilities-diversified business based in the UK. It opened the day at 1522p after a previous close of 1520.5p. During the day the price has varied from a low of 1502.5p to a high of 1526.5p. The latest price was 1508.5p (25 minute delay). TalkTalk is listed on the London Stock Exchange (LSE) and employs 11,676 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, TalkTalk's share price has had significant negative movement.
Its last market close was 1344p, which is 20.28% down on its pre-crash value of 1686p and 26.38% up on the lowest point reached during the March crash when the shares fell as low as 1063.5p.
If you had bought £1,000 worth of TalkTalk shares at the start of February 2020, those shares would have been worth £696.48 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £872.79.
|52-week range||1000.2897p - 1610.8685p|
|50-day moving average||1493.4706p|
|200-day moving average||1350.1737p|
|Wall St. target price||1324p|
|Dividend yield||0.8p (5.3%)|
|Earnings per share (TTM)||89.2p|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 month (2020-12-22)||1.55%|
|3 months (2020-10-22)||14.45%|
|6 months (2020-07-22)||5.67%|
Valuing TalkTalk stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of TalkTalk's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
TalkTalk's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 17x. In other words, TalkTalk shares trade at around 17x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, TalkTalk's P/E ratio is best considered in relation to those of others within the utilities-diversified industry or those of similar companies.
TalkTalk's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.8144. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into TalkTalk's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider TalkTalk's PEG ratio in relation to those of similar companies.
TalkTalk's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £1.7 billion.
The EBITDA is a measure of a TalkTalk's overall financial performance and is widely used to measure a its profitability.
To put TalkTalk's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£6.6 billion|
|Operating margin TTM||23.06%|
|Gross profit TTM||£2 billion|
|Return on assets TTM||4.58%|
|Return on equity TTM||22.1%|
|Market capitalisation||£15.7 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like TalkTalk.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 34.8
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and TalkTalk's overall score of 34.8 (as at 01/01/2019) is pretty weak – landing it in it in the 72nd percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like TalkTalk is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare TalkTalk's total ESG risk score against those of similar companies.
Environmental score: 20.8/100
TalkTalk's environmental score of 20.8 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that TalkTalk is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 11.84/100
TalkTalk's social score of 11.84 puts it squarely in the 6th percentile of companies rated in the same sector. This could suggest that TalkTalk is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 9.16/100
TalkTalk's governance score puts it squarely in the 6th percentile of companies rated in the same sector. That could suggest that TalkTalk is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, TalkTalk scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that TalkTalk has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||34.8|
|Total ESG percentile||71.62|
|Environmental score percentile||6|
|Social score percentile||6|
|Governance score percentile||6|
|Level of controversy||2|
Dividend payout ratio: 7882.35% of net profits
Recently TalkTalk has paid out, on average, around 7882.35% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.3% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), TalkTalk shareholders could enjoy a 5.3% return on their shares, in the form of dividend payments. In TalkTalk's case, that would currently equate to about 0.8p per share.
TalkTalk's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 14 January 2021 (the "ex-dividend date").
TalkTalk's dividend payout ratio is perhaps best considered in relation to those of similar companies.
TalkTalk's shares were split on a 1000:1019 basis on 22 January 2014. So if you had owned 1019 shares the day before before the split, the next day you'd have owned 1000 shares. This wouldn't directly have changed the overall worth of your TalkTalk shares – just the quantity. However, indirectly, the new 1.9% higher share price could have impacted the market appetite for TalkTalk shares which in turn could have impacted TalkTalk's share price.
Over the last 12 months, TalkTalk's shares have ranged in value from as little as 1000.2897p up to 1610.8685p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while TalkTalk's is 0.4806. This would suggest that TalkTalk's shares are less volatile than average (for this exchange).
To put TalkTalk's beta into context you can compare it against those of similar companies.
SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company operates through three segments: Wholesale, Networks, and Retail. It generates electricity from water, water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and also central southern England; and owns and operates 132 kilovolts (KV), 275kV, and 400kV electricity transmission network using high voltage overhead lines, and underground and subsea cables. It also produces, stores, distributes, and supplies gas. In addition, it engages in electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provision of corporate and maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.
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