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South African (JSE) Telecom Sector Analysis

UpdatedApr 14, 2025
DataAggregated Company Financials
Companies9
  • 7D2.2%
  • 3M19.7%
  • 1Y25.3%
  • YTD15.5%

The Telecom industry is up 2.2% in the last week, with Vodacom Group up 4.7%. This means that the industry has gained 25% over the past year. As for the next few years, earnings are expected to grow by 39% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 14 Apr 2025R454.0bR407.2bR8.4b9x54.2x1.1x
Wed, 12 Mar 2025R457.8bR417.8bR10.5b9.3x43.5x1.1x
Fri, 07 Feb 2025R472.1bR418.2bR10.5b8.5x45.1x1.1x
Sun, 05 Jan 2025R397.3bR418.2bR10.5b8.4x38x1x
Tue, 03 Dec 2024R373.5bR418.2bR10.5b8x35.7x0.9x
Thu, 31 Oct 2024R396.9bR416.7bR11.9b8.5x33.3x1x
Sat, 28 Sep 2024R415.9bR416.7bR11.9b8.2x34.9x1x
Mon, 26 Aug 2024R417.1bR419.1bR12.0b7.7x34.8x1x
Wed, 24 Jul 2024R340.1bR441.3bR23.5b7.8x14.5x0.8x
Fri, 21 Jun 2024R366.1bR442.1bR23.5b8.4x15.6x0.8x
Sun, 19 May 2024R361.9bR442.6bR12.4b11.3x29.1x0.8x
Tue, 16 Apr 2024R357.1bR430.2bR13.5b9.5x26.4x0.8x
Thu, 14 Mar 2024R356.0bR431.7bR30.0b7.4x11.9x0.8x
Sat, 10 Feb 2024R368.3bR434.1bR29.6b10x12.4x0.8x
Mon, 08 Jan 2024R432.2bR434.1bR29.6b9.9x14.6x1x
Wed, 06 Dec 2023R399.1bR434.0bR29.6b10.2x13.5x0.9x
Fri, 03 Nov 2023R421.7bR473.6bR25.2b8.2x16.7x0.9x
Sun, 01 Oct 2023R460.4bR473.6bR25.2b7.9x18.2x1x
Tue, 29 Aug 2023R498.6bR473.0bR25.3b5.8x19.7x1.1x
Thu, 27 Jul 2023R534.3bR457.6bR24.1b6.9x22.2x1.2x
Sat, 24 Jun 2023R532.6bR457.6bR24.1b6.3x22.1x1.2x
Mon, 22 May 2023R485.1bR442.1bR38.8b6.3x12.5x1.1x
Wed, 19 Apr 2023R542.3bR442.1bR38.8b7.6x14x1.2x
Fri, 17 Mar 2023R547.2bR441.7bR38.7b7.7x14.1x1.2x
Sun, 12 Feb 2023R577.4bR426.3bR39.1b7.2x14.8x1.4x
Tue, 10 Jan 2023R553.0bR426.3bR39.1b7x14.2x1.3x
Thu, 08 Dec 2022R545.3bR426.3bR39.1b7.3x14x1.3x
Sat, 05 Nov 2022R539.1bR420.3bR42.5b7.6x12.7x1.3x
Mon, 03 Oct 2022R506.2bR420.3bR42.4b9.1x11.9x1.2x
Wed, 31 Aug 2022R529.3bR420.3bR42.4b8.5x12.5x1.3x
Fri, 29 Jul 2022R588.7bR409.9bR37.0b8.4x15.9x1.4x
Sun, 26 Jun 2022R562.7bR410.5bR37.0b8.7x15.2x1.4x
Tue, 24 May 2022R639.3bR409.3bR36.7b9.7x17.4x1.6x
Thu, 21 Apr 2022R650.8bR406.8bR35.6b9.6x18.3x1.6x
Price to Earnings Ratio

18.3x


Total Market Cap: R650.8bTotal Earnings: R35.6bTotal Revenue: R406.8bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 21.5x202320242025
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 54.2x which is higher than its 3-year average PE of 21.5x.
  • The industry is trading close to its 3-year average PS ratio of 1.1x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 38% per year over the last three years.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, 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 Market4.52%
Telecom2.15%
Telecom Services and Carriers2.95%
Wireless Telecom2.14%
Media0.14%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 21.9x.
    • Analysts are expecting annual earnings growth of 39.4%, 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 22.3x.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 39% 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 24% 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
VOD Vodacom GroupR121.534.7%
+R10.6b		32.3%PE15.9x
TKG Telkom SA SOCR35.084.2%
+R691.8m		40.3%PE11.4x
CAT Caxton and CTP Publishers and PrintersR11.650.9%
+R35.8m		16.5%PE5.7x
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