Telstra Group Limited (TLS.AX) stock analysis

In our weekly check, Telstra Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2.

About Telstra Group Limited

Telstra Group Limited is a Communication Services company (Telecommunications Services) based in Australia, listed on ASX as TLS.AX.

What our checks show for TLS.AX

Red flags

• The dividend takes 143% of profit: little cushion if profit falls.
• The stock has fallen as much as 61% from a peak. Would you have held through that?

Warning signs

• Net debt is 1.8x a year of EBITDA (debt/equity 1.48). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 2% a year of growth in revenue.
• Revenue grew only 0.3% a year over the last 3 years.
• The net margin is only 9.8%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 1.8 points over 5 years, to 9.8%.
• Operating cash flow is 3.03x net profit: the profit arrives as real cash.
• Free cash flow is 18.3% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $38.62 billion.
• The price moves calmly: 15.6% annual volatility.
• Beta 0.12: the stock usually moves less than the market.

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Questions

What grade does Telstra Group Limited (TLS.AX) have?

In our weekly check, Telstra Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 5, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TLS.AX stock?

This week's biggest flags for Telstra Group Limited: Dividend stretched, Deep past fall, High debt. In total 7 of 25 checks show a warning or a red flag.

What does Telstra Group Limited do?

Telstra Group Limited is a Communication Services company (Telecommunications Services) based in Australia, listed on ASX as TLS.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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