For those keen on investing in the telco sector, we at The Edge Singapore have filtered a list of stocks.
The only exception for investability is Saudi-listed Saudi Telecom.
We subsequently scored these 20 companies individually based on multiple financial metrics using the latest available financial data.
The scores are purely quantitative and have taken into consideration the company’s historical financials, yields, profitability, sentiment, financial safety and a separate valuation that compares the price growth to the weighted value growth over multiple periods.
This weighted value includes revenue, net income and cash flows. Investors ought to carry out a detailed qualitative analysis of the stocks of the highest-scoring telcos before adding them to their investment portfolio.
See also: Optus and NCS bring better 1HFY2025 for Singtel; raises ebit guidance and interim dividend
Table 1 shows the list of the 20 telco-themed companies along with their scores and valuation. The top-scoring companies are Telkom Indonesia and China Mobile. Separately, Saudi Telecom, Chunghwa Telecom and China Mobile are the top-three scoring companies in terms of financial safety.
The financial safety metric considers liquidity and solvency ratios such as cash ratio, current ratio, net gearing and interest cover; along with the quality of its shareholder equity, if any.
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Disclaimer: This article is for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy or sell stocks, including the stocks mentioned herein. This article does not take into account the investor’s financial situation, investment objectives, investment horizon, risk profile, risk tolerance and preferences. Any personal investments should be done at the investor’s own discretion and/or after consulting licensed investment professionals, at their own risk.
