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South African (JSE) Telecom Sector Analysis

UpdatedDec 08, 2023
DataAggregated Company Financials
Companies10
  • 7D1.3%
  • 3M-11.8%
  • 1Y-22.2%
  • YTD-20.3%

In the last week, the Telecom industry is up 1.3%, with MTN Group up 1.7%. Meanwhile, Caxton and CTP Publishers and Printers actually underperformed within the industry, shrinking 6.1% in the last week. However, the industry is down 22% over the past year. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

Has the South African Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 09 Dec 2023R400.5bR434.0bR29.6b9.8x13.5x0.9x
Mon, 06 Nov 2023R429.6bR473.6bR25.2b8.5x17x0.9x
Wed, 04 Oct 2023R450.9bR473.6bR25.2b9.4x17.9x1x
Fri, 01 Sep 2023R481.5bR473.0bR25.3b6.1x19x1x
Sun, 30 Jul 2023R544.4bR457.2bR24.1b6.9x22.6x1.2x
Tue, 27 Jun 2023R533.1bR457.6bR24.1b6.3x22.1x1.2x
Thu, 25 May 2023R491.1bR454.7bR39.3b6.4x12.5x1.1x
Sat, 22 Apr 2023R542.5bR442.1bR38.8b7.6x14x1.2x
Mon, 20 Mar 2023R547.4bR441.3bR38.7b7.7x14.1x1.2x
Wed, 15 Feb 2023R582.0bR426.3bR39.1b6.7x14.9x1.4x
Fri, 13 Jan 2023R567.5bR426.3bR39.1b6.8x14.5x1.3x
Sun, 11 Dec 2022R531.2bR426.3bR39.1b7.2x13.6x1.2x
Tue, 08 Nov 2022R538.7bR420.3bR42.5b7.5x12.7x1.3x
Thu, 06 Oct 2022R510.0bR420.3bR42.4b9x12x1.2x
Sat, 03 Sep 2022R529.8bR420.3bR42.4b8.6x12.5x1.3x
Mon, 01 Aug 2022R568.6bR409.9bR37.0b8.7x15.4x1.4x
Wed, 29 Jun 2022R560.8bR409.9bR37.0b8.6x15.2x1.4x
Fri, 27 May 2022R614.3bR409.3bR36.7b9.7x16.8x1.5x
Sun, 24 Apr 2022R654.8bR406.8bR35.6b9.7x18.4x1.6x
Tue, 22 Mar 2022R703.5bR388.9bR34.7b12.8x20.3x1.8x
Thu, 17 Feb 2022R672.2bR388.8bR28.7b15.8x23.4x1.7x
Sat, 15 Jan 2022R608.8bR388.8bR28.7b14.3x21.2x1.6x
Mon, 13 Dec 2021R594.3bR389.0bR28.4b13.9x20.9x1.5x
Wed, 10 Nov 2021R619.2bR385.9bR29.4b14.3x21x1.6x
Fri, 08 Oct 2021R571.2bR385.9bR29.4b14.9x19.4x1.5x
Sun, 05 Sep 2021R544.5bR385.6bR29.1b16.8x18.7x1.4x
Tue, 03 Aug 2021R516.5bR385.6bR29.1b22.6x17.8x1.3x
Fri, 07 May 2021R456.5bR384.3bR33.8b14.8x13.5x1.2x
Mon, 08 Feb 2021R399.6bR380.0bR36.6b12.5x10.9x1.1x
Price to Earnings Ratio

10.8x


Total Market Cap: R396.6bTotal Earnings: R36.6bTotal Revenue: R380.0bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 16.4x20222023
Current Industry PE
  • Investors are pessimistic on the South African 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 13.5x which is lower than its 3-year average PE of 16.4x.
  • The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.92x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 6.9% per year over the last three years.
  • Meanwhile revenues for these companies have grown 4.5% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the South African Telecom sector?

ZA Market-1.15%
Telecom1.27%
Telecom Services and Carriers2.50%
Wireless Telecom1.28%
Entertainment0%
Interactive Media and Services0%
Media-2.97%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry even though it's trading below its 3-year average PE ratio of 15.1x.
    • Analysts are expecting annual earnings growth of 12.9%, which is higher than its past year's earnings growth of 6.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 117% over the next 5 years.
  • This is better than its past earnings decline of 71% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MTN MTN GroupR105.131.7%
+R3.2b
-19.6%PE9.2x
VOD Vodacom GroupR99.001.1%
+R2.1b
-23.4%PE11x
MCG MultiChoice GroupR69.371.7%
+R491.8m
-41.0%PS0.5x
TKG Telkom SA SOCR25.853.7%
+R454.7m
-23.0%PS0.3x
BLU Blue Label TelecomsR3.821.1%
+R35.3m
-17.0%PE12.5x
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MTN

R105.13

MTN Group

7D

1.7%

1Y

-19.6%

TKG

R25.85

Telkom SA SOC

7D

3.7%

1Y

-23.0%

HUG

R2.00

Huge Group

7D

-7.0%

1Y

-21.6%

CAT

R10.46

Caxton and CTP Publishers and Printers

7D

-6.1%

1Y

16.4%

VOD

R99.00

Vodacom Group

7D

1.1%

1Y

-23.4%

BLU

R3.82

Blue Label Telecoms

7D

1.1%

1Y

-17.0%

MCG

R69.37

MultiChoice Group

7D

1.7%

1Y

-41.0%

CGN

R0.99

Cognition Holdings

7D

-2.9%

1Y

10.0%