Is Airtel Africa Plc (LON:AAF) Trading At A 40% Discount?
Sep 26
U.K. (FTSE) Telecom Sector Analysis
UpdatedSep 26, 2023
DataAggregated Company Financials
Companies82
- 7D0.2%
- 3M1.6%
- 1Y-6.7%
- YTD-1.0%
The Telecom is pretty flat in the last 7 days, but Rightmove has stood out, gaining 4.7%. As for the longer term, the industry has declined 6.7% in the last year. As for the next few years, earnings are forecast to decline by 4.9% per annum.
Sector Valuation and Performance
Has the U.K. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Sep 2023 | UK£84.7b | UK£98.0b | UK£14.2b | 18.1x | 6x | 0.9x |
| Thu, 24 Aug 2023 | UK£81.0b | UK£97.1b | UK£14.0b | 17.6x | 5.8x | 0.8x |
| Sat, 22 Jul 2023 | UK£85.4b | UK£96.2b | UK£14.0b | 18.4x | 6.1x | 0.9x |
| Mon, 19 Jun 2023 | UK£87.4b | UK£95.7b | UK£13.8b | 21.4x | 6.3x | 0.9x |
| Wed, 17 May 2023 | UK£91.1b | UK£96.7b | UK£13.9b | 21.4x | 6.6x | 0.9x |
| Fri, 14 Apr 2023 | UK£94.3b | UK£97.3b | UK£5.3b | 20.3x | 17.7x | 1x |
| Sun, 12 Mar 2023 | UK£96.7b | UK£97.7b | UK£5.5b | 18.4x | 17.7x | 1x |
| Tue, 07 Feb 2023 | UK£95.2b | UK£93.0b | UK£5.6b | 18x | 17x | 1x |
| Thu, 05 Jan 2023 | UK£88.4b | UK£96.4b | UK£5.6b | 18.3x | 15.9x | 0.9x |
| Sat, 03 Dec 2022 | UK£97.2b | UK£99.1b | UK£5.6b | 18.1x | 17.3x | 1x |
| Mon, 31 Oct 2022 | UK£95.4b | UK£99.0b | UK£5.1b | 17.5x | 18.6x | 1x |
| Wed, 28 Sep 2022 | UK£97.2b | UK£100.9b | UK£5.2b | 18.3x | 18.6x | 1x |
| Fri, 26 Aug 2022 | UK£106.8b | UK£97.4b | UK£5.0b | 22.1x | 21.3x | 1.1x |
| Sun, 24 Jul 2022 | UK£117.3b | UK£96.2b | UK£4.0b | 22.3x | 29.2x | 1.2x |
| Tue, 21 Jun 2022 | UK£113.7b | UK£96.6b | UK£4.0b | 20.3x | 28.7x | 1.2x |
| Thu, 19 May 2022 | UK£114.3b | UK£95.2b | UK£4.1b | 24x | 28.1x | 1.2x |
| Sat, 16 Apr 2022 | UK£125.4b | UK£92.6b | UK£2.6b | 25.6x | 48.3x | 1.4x |
| Mon, 14 Mar 2022 | UK£119.2b | UK£92.8b | UK£2.4b | 29.2x | 49.2x | 1.3x |
| Wed, 09 Feb 2022 | UK£134.1b | UK£92.8b | UK£2.0b | 30.7x | 65.4x | 1.4x |
| Fri, 07 Jan 2022 | UK£129.2b | UK£92.1b | UK£1.9b | 34.7x | 67x | 1.4x |
| Sun, 05 Dec 2021 | UK£126.6b | UK£93.0b | UK£1.8b | 34.7x | 69x | 1.4x |
| Tue, 02 Nov 2021 | UK£125.8b | UK£92.0b | UK£1.9b | 38.5x | 64.9x | 1.4x |
| Thu, 30 Sep 2021 | UK£130.9b | UK£92.4b | UK£1.9b | 38.3x | 69.6x | 1.4x |
| Sat, 28 Aug 2021 | UK£135.6b | UK£91.6b | UK£1.9b | 35.5x | 72.5x | 1.5x |
| Sun, 04 Jul 2021 | UK£133.3b | UK£91.5b | UK£1.9b | 34.6x | 71.3x | 1.5x |
| Wed, 07 Apr 2021 | UK£125.6b | UK£90.8b | UK£124.2m | 33.9x | 1011.1x | 1.4x |
| Sat, 09 Jan 2021 | UK£113.8b | UK£92.7b | -UK£1,169,796,755.89 | 35.6x | -97.3x | 1.2x |
| Fri, 02 Oct 2020 | UK£93.7b | UK£94.9b | UK£728.6m | 27.9x | 128.6x | 1x |
Price to Earnings Ratio
128.6x
Current Industry PE
- Investors are pessimistic on the British Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 6.0x which is lower than its 3-year average PE of 117x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.86x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 169% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the U.K. Telecom sector?
| GB Market | -0.24% | |
| Telecom | 0.21% | |
| Interactive Media and Services | 2.95% | |
| Wireless Telecom | 0.95% | |
| Media | -0.50% | |
| Telecom Services and Carriers | -2.06% | |
| Entertainment | -4.08% | |
Industry PE
- Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 42.2x.
- Analysts are expecting annual earnings growth of 22.4%, which is higher than its past year's earnings growth of 19.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 22% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Wireless Telecom industry is expected to see its earnings decline by 43% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| RMV Rightmove | UK£5.70 | 4.7% +UK£207.6m | 3.9% | PE23.5x | |
| AUTO Auto Trader Group | UK£6.20 | 3.3% +UK£179.6m | 7.6% | PE24.3x | |
| VOD Vodafone Group | UK£0.80 | 0.7% +UK£154.3m | -25.0% | PE2.1x | |
| AAF Airtel Africa | UK£1.27 | 2.0% +UK£93.8m | -8.1% | PE17.7x | |
| TRST Trustpilot Group | UK£0.99 | 19.6% +UK£69.7m | 34.4% | PS3.2x |
