Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

South African (JSE) Telecom Sector Analysis

UpdatedNov 20, 2024
DataAggregated Company Financials
Companies9
  • 7D-0.1%
  • 3M-4.0%
  • 1Y-5.7%
  • YTD-13.5%

The Telecom is pretty flat in the last 7 days, but Telkom SA SOC has stood out, gaining 20%. Unfortunately though, the industry is down 5.7% over the past 12 months. Earnings are forecast to grow by 39% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 Nov 2024R379.4bR418.1bR10.5b7.9x36.3x0.9x
Sat, 19 Oct 2024R402.3bR416.7bR11.9b8.5x33.7x1x
Mon, 16 Sep 2024R410.4bR416.7bR11.9b8.4x34.4x1x
Wed, 14 Aug 2024R362.8bR441.3bR23.5b7.9x15.4x0.8x
Fri, 12 Jul 2024R357.0bR441.3bR23.5b8.3x15.2x0.8x
Sun, 09 Jun 2024R343.1bR442.7bR12.4b10.7x27.6x0.8x
Tue, 07 May 2024R368.9bR430.2bR13.5b10.2x27.2x0.9x
Thu, 04 Apr 2024R377.9bR430.2bR13.5b10.5x27.9x0.9x
Sat, 02 Mar 2024R357.1bR431.9bR30.1b7.4x11.9x0.8x
Mon, 29 Jan 2024R406.2bR434.1bR29.6b9.7x13.7x0.9x
Wed, 27 Dec 2023R431.6bR434.1bR29.6b10x14.6x1x
Fri, 24 Nov 2023R409.3bR434.1bR29.7b8.8x13.8x0.9x
Sun, 22 Oct 2023R439.1bR473.6bR25.2b9.2x17.4x0.9x
Tue, 19 Sep 2023R471.1bR473.6bR25.2b7.8x18.7x1x
Thu, 17 Aug 2023R516.0bR473.0bR25.3b5.6x20.4x1.1x
Sat, 15 Jul 2023R524.2bR457.6bR24.1b6.4x21.7x1.1x
Mon, 12 Jun 2023R538.0bR454.7bR39.2b7x13.7x1.2x
Wed, 10 May 2023R518.0bR442.1bR38.8b7.3x13.3x1.2x
Fri, 07 Apr 2023R554.8bR442.1bR38.8b8x14.3x1.3x
Sun, 05 Mar 2023R597.7bR427.0bR38.5b8x15.5x1.4x
Tue, 31 Jan 2023R575.3bR426.3bR39.1b7.2x14.7x1.3x
Thu, 29 Dec 2022R549.1bR426.3bR39.1b6.9x14.1x1.3x
Sat, 26 Nov 2022R534.5bR424.5bR41.1b8.6x13x1.3x
Mon, 24 Oct 2022R501.6bR420.3bR42.4b8.9x11.8x1.2x
Wed, 21 Sep 2022R529.5bR420.3bR42.4b8.8x12.5x1.3x
Fri, 19 Aug 2022R573.8bR420.8bR42.3b9x13.6x1.4x
Sun, 17 Jul 2022R575.8bR409.9bR37.0b8.5x15.6x1.4x
Tue, 14 Jun 2022R568.1bR410.4bR37.0b9x15.3x1.4x
Thu, 12 May 2022R646.2bR406.8bR35.6b9.5x18.2x1.6x
Sat, 09 Apr 2022R672.5bR406.8bR35.6b8.9x18.9x1.7x
Mon, 07 Mar 2022R687.3bR388.8bR28.7b15.9x23.9x1.8x
Wed, 02 Feb 2022R674.8bR388.8bR28.7b15.3x23.5x1.7x
Fri, 31 Dec 2021R630.5bR389.0bR28.4b14.3x22.2x1.6x
Sun, 28 Nov 2021R590.8bR388.2bR29.5b14.1x20x1.5x
Price to Earnings Ratio

20x


Total Market Cap: R590.8bTotal Earnings: R29.5bTotal Revenue: R388.2bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 18.7x202220232024
Current Industry PE
  • Investors are optimistic on the South African Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 36.3x which is higher than its 3-year average PE of 18.7x.
  • The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.91x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 29% per year over the last three years.
  • Meanwhile revenues for these companies have grown 2.5% 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 Market0.33%
Telecom-0.11%
Telecom Services and Carriers11.33%
Media1.28%
Entertainment0%
Interactive Media and Services0%
Wireless Telecom-0.73%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 17.1x.
    • Analysts are expecting annual earnings growth of 40.0%, which is higher than its past year's earnings decline of 15.3% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 25.7x.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 40% over the next 5 years.
  • This is better than its past earnings decline of 15% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 17% 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
TKG Telkom SA SOCR31.8819.7%
+R2.6b		19.9%PE10.4x
VOD Vodacom GroupR104.130.7%
+R1.4b		-0.7%PE13.7x
AME African Media EntertainmentR40.423.6%
+R9.8m		18.9%PE5.1x
EMH eMedia HoldingsR3.440.6%
+R8.9m		-12.9%PE6.8x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

AME

R40.42

African Media Entertainment

7D

3.6%

1Y

18.9%

TKG

R31.88

Telkom SA SOC

7D

19.7%

1Y

19.9%

VOD

R104.13

Vodacom Group

7D

0.7%

1Y

-0.7%

MCG

R108.00

MultiChoice Group

7D

-1.0%

1Y

59.6%

MTN

R82.38

MTN Group

7D

-2.2%

1Y

-14.5%

MTN Group's (JSE:MTN) Returns On Capital Are Heading Higher

Nov 15
MTN Group's (JSE:MTN) Returns On Capital Are Heading Higher

CAT

R12.60

Caxton and CTP Publishers and Printers

7D

-1.1%

1Y

13.0%

Caxton and CTP Publishers and Printers' (JSE:CAT) Anemic Earnings Might Be Worse Than You Think

Nov 08
Caxton and CTP Publishers and Printers' (JSE:CAT) Anemic Earnings Might Be Worse Than You Think

BLU

R5.17

Blue Label Telecoms

7D

-3.4%

1Y

56.7%

Here's Why Blue Label Telecoms (JSE:BLU) Is Weighed Down By Its Debt Load

Oct 11
Here's Why Blue Label Telecoms (JSE:BLU) Is Weighed Down By Its Debt Load

EMH

R3.44

eMedia Holdings

7D

0.6%

1Y

-12.9%

Many Still Looking Away From eMedia Holdings Limited (JSE:EMH)

Oct 07
Many Still Looking Away From eMedia Holdings Limited (JSE:EMH)