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Telstra Group Limited

TLS.AX
54
Telecommunications Services · Communication Services
Exchange
Australian Securities Exchange
Winston Score
54
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Exceptional
Stability
Good
Valuation
Mixed

Winston Score History

The full picture

Telstra is Australia's largest telecommunications company. It sells mobile phone plans, home internet, and fixed-line phone services to everyday Australians, as well as data and network services to businesses and government agencies. Telstra also owns and operates the largest mobile network in Australia, covering more geographic area than any other carrier in the country.

Telstra makes most of its money through monthly subscription fees from mobile and broadband customers, plus contracts with enterprise and government clients. It operates primarily in Australia, with some international business services sold across the Asia-Pacific region. Its main competitive advantage is its network coverage, which is difficult and expensive for rivals to replicate. The key risk Telstra faces is ongoing pricing pressure in the mobile market, where competition from Optus and TPG continues to squeeze margins and limit how much it can charge customers.

Score breakdown

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Quality

Profit per sale
Gross Margin
28.2%
Modest — 28.2% gross margin
Profit after running costs
Operating Margin
15.4%
Healthy — 15.4% operating margin
Return on the money invested
ROCE
12.6%
Good — 12.6% 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 growth
Sales YoY
-0.8%
Shrinking sales (-0.8% YoY)
Profit growth
EPS YoY
+5.3%
Modest earnings growth (+5.3% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
303%
Turns 303% of profit into real cash
Spare cash per sale
FCF Margin
18.3%
Converts sales into free cash efficiently (18.3%)

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

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Stability

What it owes vs what it owns
Debt / Equity
1.27
Elevated debt (1.27)
Covers its interest
Interest Cover
4.74x
Adequate interest coverage (4.7x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
23.8x
no trend
Growth-priced — P/E 23.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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