Vodacom Group (JSE:VOD) Has A Pretty Healthy Balance Sheet
Dec 01
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South African (JSE) Telecom Sector Analysis
UpdatedDec 05, 2025
DataAggregated Company Financials
Companies10
- 7D-2.4%
- 3M3.3%
- 1Y46.3%
- YTD44.5%
Over the last 7 days, the Telecom industry has dropped 2.4%, driven by Vodacom Group declining 0.1%. Meanwhile, Telkom SA SOC actually outperformed within the industry, gaining 6.0% in the last week. This takes the industry's 12 month performance to a gain of 46%. As for the next few years, earnings are expected to grow by 33% per annum.
Sector Valuation and Performance
Has the South African Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 06 Dec 2025 | R637.9b | R486.7b | R34.4b | 7.9x | 18.5x | 1.3x |
| Mon, 03 Nov 2025 | R681.7b | R478.0b | R31.4b | 8.7x | 21.7x | 1.4x |
| Wed, 01 Oct 2025 | R619.2b | R478.0b | R31.4b | 9.2x | 19.7x | 1.3x |
| Fri, 29 Aug 2025 | R650.1b | R477.9b | R31.5b | 8.8x | 20.6x | 1.4x |
| Sun, 27 Jul 2025 | R618.8b | R459.8b | R12.5b | 13.1x | 49.3x | 1.3x |
| Tue, 24 Jun 2025 | R574.0b | R459.8b | R12.5b | 11.8x | 45.8x | 1.2x |
| Thu, 22 May 2025 | R519.7b | R408.1b | R10.2b | 10.7x | 50.8x | 1.3x |
| Sat, 19 Apr 2025 | R478.3b | R407.2b | R8.4b | 9.5x | 57.1x | 1.2x |
| Mon, 17 Mar 2025 | R459.4b | R417.8b | R10.5b | 9.4x | 43.6x | 1.1x |
| Wed, 12 Feb 2025 | R474.6b | R418.2b | R10.5b | 8.5x | 45.3x | 1.1x |
| Fri, 10 Jan 2025 | R387.6b | R418.2b | R10.5b | 8.2x | 37x | 0.9x |
| Sun, 08 Dec 2024 | R389.4b | R418.2b | R10.5b | 8.2x | 37.2x | 0.9x |
| Tue, 05 Nov 2024 | R398.5b | R416.7b | R11.9b | 8.5x | 33.4x | 1x |
| Thu, 03 Oct 2024 | R392.5b | R416.7b | R11.9b | 8.2x | 32.9x | 0.9x |
| Sat, 31 Aug 2024 | R398.2b | R417.3b | R11.9b | 8.3x | 33.5x | 1x |
| Mon, 29 Jul 2024 | R351.8b | R441.3b | R23.5b | 8x | 15x | 0.8x |
| Wed, 26 Jun 2024 | R359.0b | R441.3b | R23.5b | 8.2x | 15.3x | 0.8x |
| Fri, 24 May 2024 | R361.1b | R442.6b | R12.4b | 11.3x | 29.1x | 0.8x |
| Sun, 21 Apr 2024 | R340.5b | R430.2b | R13.5b | 9.5x | 25.2x | 0.8x |
| Tue, 19 Mar 2024 | R355.1b | R431.7b | R30.0b | 7.5x | 11.8x | 0.8x |
| Thu, 15 Feb 2024 | R370.9b | R434.1b | R29.6b | 10x | 12.5x | 0.9x |
| Sat, 13 Jan 2024 | R435.5b | R434.1b | R29.6b | 10x | 14.7x | 1x |
| Mon, 11 Dec 2023 | R403.7b | R434.1b | R29.6b | 9.8x | 13.6x | 0.9x |
| Wed, 08 Nov 2023 | R425.1b | R473.6b | R25.2b | 8.4x | 16.8x | 0.9x |
| Fri, 06 Oct 2023 | R452.1b | R473.6b | R25.2b | 9.9x | 17.9x | 1x |
| Sun, 03 Sep 2023 | R485.7b | R473.0b | R25.3b | 5.9x | 19.2x | 1x |
| Tue, 01 Aug 2023 | R542.4b | R457.2b | R24.1b | 6.9x | 22.5x | 1.2x |
| Thu, 29 Jun 2023 | R533.1b | R457.6b | R24.1b | 6.3x | 22.1x | 1.2x |
| Sat, 27 May 2023 | R479.8b | R454.7b | R39.3b | 6.5x | 12.2x | 1.1x |
| Mon, 24 Apr 2023 | R542.5b | R442.1b | R38.8b | 7.6x | 14x | 1.2x |
| Wed, 22 Mar 2023 | R536.2b | R441.3b | R38.7b | 7.7x | 13.9x | 1.2x |
| Fri, 17 Feb 2023 | R596.9b | R426.3b | R39.1b | 6.6x | 15.3x | 1.4x |
| Sun, 15 Jan 2023 | R572.1b | R426.3b | R39.1b | 7x | 14.6x | 1.3x |
| Tue, 13 Dec 2022 | R530.0b | R426.3b | R39.1b | 7.2x | 13.6x | 1.2x |
Price to Earnings Ratio
13.6x
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 18.5x which is lower than its 3-year average PE of 26.6x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.3x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 4.1% 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 | 0.54% | |
| Telecom | -2.36% | |
| Telecom Services and Carriers | 2.74% | |
| Media | -0.27% | |
| Wireless Telecom | -2.89% | |
Industry PE
- Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 20.3x.
- Analysts are expecting annual earnings growth of 37.5%, which is higher than its past year's earnings decline of 3.8% per year.
- Investors are most pessimistic about the Telecom Services and Carriers industry, which is trading close to its 3-year average of 5.4x.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 38% over the next 5 years.
- This is better than its past earnings decline of 3.8% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| TKG Telkom SA SOC | R53.16 | 6.0% +R1.5b | 49.9% | PE7.5x | |
| BLU Blu Label Unlimited Group | R10.37 | 5.1% +R449.6m | 83.9% | PE3.8x | |
| MTN MTN Group | R158.01 | 0.08% +R238.0m | 85.0% | PE38.3x |
