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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 09 Dec 2023 | R400.5b | R434.0b | R29.6b | 9.8x | 13.5x | 0.9x |
| Mon, 06 Nov 2023 | R429.6b | R473.6b | R25.2b | 8.5x | 17x | 0.9x |
| Wed, 04 Oct 2023 | R450.9b | R473.6b | R25.2b | 9.4x | 17.9x | 1x |
| Fri, 01 Sep 2023 | R481.5b | R473.0b | R25.3b | 6.1x | 19x | 1x |
| Sun, 30 Jul 2023 | R544.4b | R457.2b | R24.1b | 6.9x | 22.6x | 1.2x |
| Tue, 27 Jun 2023 | R533.1b | R457.6b | R24.1b | 6.3x | 22.1x | 1.2x |
| Thu, 25 May 2023 | R491.1b | R454.7b | R39.3b | 6.4x | 12.5x | 1.1x |
| Sat, 22 Apr 2023 | R542.5b | R442.1b | R38.8b | 7.6x | 14x | 1.2x |
| Mon, 20 Mar 2023 | R547.4b | R441.3b | R38.7b | 7.7x | 14.1x | 1.2x |
| Wed, 15 Feb 2023 | R582.0b | R426.3b | R39.1b | 6.7x | 14.9x | 1.4x |
| Fri, 13 Jan 2023 | R567.5b | R426.3b | R39.1b | 6.8x | 14.5x | 1.3x |
| Sun, 11 Dec 2022 | R531.2b | R426.3b | R39.1b | 7.2x | 13.6x | 1.2x |
| Tue, 08 Nov 2022 | R538.7b | R420.3b | R42.5b | 7.5x | 12.7x | 1.3x |
| Thu, 06 Oct 2022 | R510.0b | R420.3b | R42.4b | 9x | 12x | 1.2x |
| Sat, 03 Sep 2022 | R529.8b | R420.3b | R42.4b | 8.6x | 12.5x | 1.3x |
| Mon, 01 Aug 2022 | R568.6b | R409.9b | R37.0b | 8.7x | 15.4x | 1.4x |
| Wed, 29 Jun 2022 | R560.8b | R409.9b | R37.0b | 8.6x | 15.2x | 1.4x |
| Fri, 27 May 2022 | R614.3b | R409.3b | R36.7b | 9.7x | 16.8x | 1.5x |
| Sun, 24 Apr 2022 | R654.8b | R406.8b | R35.6b | 9.7x | 18.4x | 1.6x |
| Tue, 22 Mar 2022 | R703.5b | R388.9b | R34.7b | 12.8x | 20.3x | 1.8x |
| Thu, 17 Feb 2022 | R672.2b | R388.8b | R28.7b | 15.8x | 23.4x | 1.7x |
| Sat, 15 Jan 2022 | R608.8b | R388.8b | R28.7b | 14.3x | 21.2x | 1.6x |
| Mon, 13 Dec 2021 | R594.3b | R389.0b | R28.4b | 13.9x | 20.9x | 1.5x |
| Wed, 10 Nov 2021 | R619.2b | R385.9b | R29.4b | 14.3x | 21x | 1.6x |
| Fri, 08 Oct 2021 | R571.2b | R385.9b | R29.4b | 14.9x | 19.4x | 1.5x |
| Sun, 05 Sep 2021 | R544.5b | R385.6b | R29.1b | 16.8x | 18.7x | 1.4x |
| Tue, 03 Aug 2021 | R516.5b | R385.6b | R29.1b | 22.6x | 17.8x | 1.3x |
| Fri, 07 May 2021 | R456.5b | R384.3b | R33.8b | 14.8x | 13.5x | 1.2x |
| Mon, 08 Feb 2021 | R399.6b | R380.0b | R36.6b | 12.5x | 10.9x | 1.1x |
Price to Earnings Ratio
10.8x
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% | |
| Telecom | 1.27% | |
| Telecom Services and Carriers | 2.50% | |
| Wireless Telecom | 1.28% | |
| Entertainment | 0% | |
| Interactive Media and Services | 0% | |
| 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MTN MTN Group | R105.13 | 1.7% +R3.2b | -19.6% | PE9.2x | |
| VOD Vodacom Group | R99.00 | 1.1% +R2.1b | -23.4% | PE11x | |
| MCG MultiChoice Group | R69.37 | 1.7% +R491.8m | -41.0% | PS0.5x | |
| TKG Telkom SA SOC | R25.85 | 3.7% +R454.7m | -23.0% | PS0.3x | |
| BLU Blue Label Telecoms | R3.82 | 1.1% +R35.3m | -17.0% | PE12.5x |