Telstra Group Ltd (ASX: TLS) shares are in the green today.
Shares in the S&P/ASX 200 Index (ASX: XJO) telco closed yesterday trading for $4.06. In late afternoon trade on Tuesday, shares are swapping hands for $4.08 apiece, up 0.4%.
For some context, the ASX 200 is up 0.1% at this same time.
Telstra stock has also outperformed the benchmark index over the past 12 months, gaining 6.7% compared to the 2.4% gains posted by the ASX 200.
And if we throw in the 18.5 cents per share in fully franked dividends Telstra has paid out over the year, then the cumulative value of the telco stock is up more than 11% since this time last year. With potential tax benefits from those franking credits.
But that's all come and gone.
The question now is, are Telstra shares still a good buy today?
Image source: Getty Images
Should I buy Telstra shares today?
"The telecommunications giant posted a positive first half result in fiscal year 2025," Peak Asset Management's Niv Dagan said when running his slide rule over Telstra shares (courtesy of The Bull).
Dagan added:
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $4.2 billion was up 6% and net profit after tax of $1.1 billion grew 7.1%. The fully franked interim dividend of 9.5 cents a share was up 5.6%.
The company announced an on-market, share buy-back of up to $750 million, which was earlier than we expected.
According to Dagan, that indicates management's optimism on Telstra's operational outlook for the year ahead.
"In our view, this signals Telstra's intention to return capital to shareholders and its positive view about its capacity to generate strong cash flow growth," Dagan said.
Though Dagan isn't ready to pull the trigger just yet, with a hold recommendation on Telstra shares.
What's ahead for the ASX 200 telco?
Telstra reported the half-year results Dagan referred to above on 20 February.
Atop the boost in profits and resulting increase in the Telstra dividend, the company reiterated its full-year FY 2025 guidance of underlying EBITDA between $8.5 billion to $8.7 billion. That indicates expectations of another strong half-year.
Management also forecast free cash flow (after lease payments) of $3 billion to $3.4 billion. With free cash flow coming in at $1.1 billion in the first half, this could see the company achieve free cash flow of up to $2.3 billion in H2 FY 2025.
Telstra shares closed up 5.6% on the day the company released its results.
