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South African (JSE) Telecom Sector Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies9
- 7D-2.8%
- 3M23.1%
- 1Y26.7%
- YTD16.1%
Over the last 7 days, the Telecom industry has dropped 2.8%, driven by Vodacom Group declining 4.2%. In the past year, the industry has gained 27%. As for the next few years, earnings are expected to grow by 48% 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 |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | R456.4b | R418.2b | R10.5b | 8.5x | 43.6x | 1.1x |
| Sun, 19 Jan 2025 | R416.4b | R418.2b | R10.5b | 8.2x | 39.8x | 1x |
| Tue, 17 Dec 2024 | R394.0b | R418.2b | R10.5b | 8.5x | 37.6x | 0.9x |
| Thu, 14 Nov 2024 | R377.0b | R417.5b | R10.4b | 8x | 36.3x | 0.9x |
| Sat, 12 Oct 2024 | R390.8b | R416.7b | R11.9b | 8.5x | 32.8x | 0.9x |
| Mon, 09 Sep 2024 | R403.2b | R417.0b | R11.9b | 8.3x | 33.8x | 1x |
| Wed, 07 Aug 2024 | R340.8b | R441.3b | R23.5b | 8x | 14.5x | 0.8x |
| Fri, 05 Jul 2024 | R363.0b | R441.3b | R23.5b | 7.9x | 15.4x | 0.8x |
| Sun, 02 Jun 2024 | R348.7b | R442.5b | R12.4b | 10.7x | 28.1x | 0.8x |
| Tue, 30 Apr 2024 | R362.7b | R430.2b | R13.5b | 9.7x | 26.8x | 0.8x |
| Thu, 28 Mar 2024 | R385.2b | R430.2b | R13.5b | 10.9x | 28.5x | 0.9x |
| Sat, 24 Feb 2024 | R354.8b | R434.1b | R29.6b | 9.7x | 12x | 0.8x |
| Mon, 22 Jan 2024 | R424.1b | R434.1b | R29.6b | 10x | 14.3x | 1x |
| Wed, 20 Dec 2023 | R423.0b | R434.1b | R29.6b | 9.8x | 14.3x | 1x |
| Fri, 17 Nov 2023 | R424.4b | R492.7b | R25.9b | 8.3x | 16.4x | 0.9x |
| Sun, 15 Oct 2023 | R443.4b | R473.6b | R25.2b | 9.5x | 17.6x | 0.9x |
| Tue, 12 Sep 2023 | R483.5b | R473.6b | R25.2b | 7.7x | 19.2x | 1x |
| Thu, 10 Aug 2023 | R507.6b | R457.2b | R24.1b | 6.7x | 21.1x | 1.1x |
| Sat, 08 Jul 2023 | R523.9b | R457.6b | R24.1b | 6.9x | 21.7x | 1.1x |
| Mon, 05 Jun 2023 | R506.7b | R454.7b | R39.2b | 6.6x | 12.9x | 1.1x |
| Wed, 03 May 2023 | R537.5b | R442.1b | R38.8b | 7.7x | 13.8x | 1.2x |
| Fri, 31 Mar 2023 | R548.8b | R442.1b | R38.8b | 7.8x | 14.1x | 1.2x |
| Sun, 26 Feb 2023 | R586.6b | R426.7b | R38.5b | 8.2x | 15.3x | 1.4x |
| Tue, 24 Jan 2023 | R561.0b | R426.3b | R39.1b | 7.1x | 14.4x | 1.3x |
| Thu, 22 Dec 2022 | R542.6b | R426.3b | R39.1b | 6.7x | 13.9x | 1.3x |
| Sat, 19 Nov 2022 | R522.4b | R424.7b | R41.8b | 6.5x | 12.5x | 1.2x |
| Mon, 17 Oct 2022 | R509.1b | R420.3b | R42.4b | 9x | 12x | 1.2x |
| Wed, 14 Sep 2022 | R553.0b | R420.3b | R42.4b | 9.1x | 13x | 1.3x |
| Fri, 12 Aug 2022 | R609.9b | R409.9b | R37.0b | 8.8x | 16.5x | 1.5x |
| Sun, 10 Jul 2022 | R572.5b | R409.9b | R37.0b | 8.6x | 15.5x | 1.4x |
| Tue, 07 Jun 2022 | R618.0b | R409.5b | R36.8b | 9.5x | 16.8x | 1.5x |
| Thu, 05 May 2022 | R647.6b | R406.8b | R35.6b | 10.2x | 18.2x | 1.6x |
| Sat, 02 Apr 2022 | R707.7b | R388.9b | R34.7b | 12.8x | 20.4x | 1.8x |
| Mon, 28 Feb 2022 | R669.9b | R388.8b | R28.7b | 15.3x | 23.3x | 1.7x |
Price to Earnings Ratio
23.3x
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 43.6x which is higher than its 3-year average PE of 20.2x.
- 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 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 Market | 0.93% | |
| Telecom | -2.80% | |
| Entertainment | 0% | 0 |
| Interactive Media and Services | 0% | 0 |
| Media | -0.64% | |
| Telecom Services and Carriers | -1.30% | |
| Wireless Telecom | -2.92% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 19.5x.
- Analysts are expecting annual earnings growth of 48.9%, 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 23.6x.
Forecasted Growth
- Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 49% 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 15% 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 | |
|---|---|---|---|---|---|
| MTN MTN Group | R114.39 | 2.4% +R4.9b | 34.0% | PS1x | |
| BLU Blue Label Telecoms | R7.22 | 6.2% +R376.5m | 116.8% | PE10.2x | |
| TKG Telkom SA SOC | R36.38 | 1.5% +R266.8m | 27.5% | PE11.9x | |
| TLM TeleMasters Holdings | R1.35 | 22.7% +R14.2m | 60.7% | PE217.3x | |
| AME African Media Entertainment | R39.98 | 5.2% +R13.7m | 17.6% | PE4.8x |