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South African (JSE) Telecom Sector Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies9
- 7D7.7%
- 3M4.2%
- 1Y-1.8%
- YTD6.0%
In the last week, the Telecom industry is up 7.7%, with MTN Group up 18%. The industry has been flat over the past 12 months despite the gain this week. As for the next few years, earnings are expected to grow by 47% 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 |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | R416.4b | R418.2b | R10.5b | 8.2x | 39.8x | 1x |
| Wed, 18 Dec 2024 | R378.0b | R418.2b | R10.5b | 8.5x | 36.1x | 0.9x |
| Fri, 15 Nov 2024 | R371.2b | R417.5b | R10.4b | 8x | 35.7x | 0.9x |
| Sun, 13 Oct 2024 | R390.8b | R416.7b | R11.9b | 8.5x | 32.8x | 0.9x |
| Tue, 10 Sep 2024 | R404.4b | R417.0b | R11.9b | 8.1x | 33.9x | 1x |
| Thu, 08 Aug 2024 | R348.9b | R441.3b | R23.5b | 7.9x | 14.8x | 0.8x |
| Sat, 06 Jul 2024 | R365.6b | R441.3b | R23.5b | 7.8x | 15.5x | 0.8x |
| Mon, 03 Jun 2024 | R348.7b | R442.5b | R12.4b | 10.7x | 28.1x | 0.8x |
| Wed, 01 May 2024 | R360.2b | R430.2b | R13.5b | 9.7x | 26.6x | 0.8x |
| Fri, 29 Mar 2024 | R384.9b | R430.2b | R13.5b | 10.5x | 28.4x | 0.9x |
| Sun, 25 Feb 2024 | R354.8b | R434.1b | R29.6b | 9.7x | 12x | 0.8x |
| Tue, 23 Jan 2024 | R424.9b | R434.1b | R29.6b | 9.7x | 14.3x | 1x |
| Thu, 21 Dec 2023 | R424.1b | R434.1b | R29.6b | 9.8x | 14.3x | 1x |
| Sat, 18 Nov 2023 | R389.3b | R433.5b | R29.4b | 8.2x | 13.3x | 0.9x |
| Mon, 16 Oct 2023 | R443.4b | R473.6b | R25.2b | 9.5x | 17.6x | 0.9x |
| Wed, 13 Sep 2023 | R483.7b | R473.6b | R25.2b | 7.8x | 19.2x | 1x |
| Fri, 11 Aug 2023 | R516.3b | R457.2b | R24.1b | 5.7x | 21.4x | 1.1x |
| Sun, 09 Jul 2023 | R523.9b | R457.6b | R24.1b | 6.9x | 21.7x | 1.1x |
| Tue, 06 Jun 2023 | R510.2b | R454.7b | R39.2b | 6.6x | 13x | 1.1x |
| Thu, 04 May 2023 | R537.5b | R442.1b | R38.8b | 7.7x | 13.8x | 1.2x |
| Sat, 01 Apr 2023 | R546.3b | R442.1b | R38.8b | 7.9x | 14.1x | 1.2x |
| Mon, 27 Feb 2023 | R586.6b | R426.7b | R38.5b | 8.2x | 15.3x | 1.4x |
| Wed, 25 Jan 2023 | R564.9b | R426.3b | R39.1b | 7.3x | 14.5x | 1.3x |
| Fri, 23 Dec 2022 | R542.3b | R426.3b | R39.1b | 6.7x | 13.9x | 1.3x |
| Sun, 20 Nov 2022 | R522.4b | R424.6b | R41.8b | 6.5x | 12.5x | 1.2x |
| Tue, 18 Oct 2022 | R509.1b | R420.3b | R42.4b | 9x | 12x | 1.2x |
| Thu, 15 Sep 2022 | R545.3b | R420.3b | R42.4b | 8.9x | 12.8x | 1.3x |
| Sat, 13 Aug 2022 | R597.8b | R420.8b | R42.3b | 8.8x | 14.1x | 1.4x |
| Mon, 11 Jul 2022 | R572.5b | R409.9b | R37.0b | 8.6x | 15.5x | 1.4x |
| Wed, 08 Jun 2022 | R602.1b | R409.3b | R36.8b | 9.6x | 16.4x | 1.5x |
| Fri, 06 May 2022 | R653.7b | R406.8b | R35.6b | 9.6x | 18.4x | 1.6x |
| Sun, 03 Apr 2022 | R713.1b | R406.8b | R35.6b | 8.6x | 20x | 1.8x |
| Tue, 01 Mar 2022 | R676.3b | R388.8b | R28.7b | 15.6x | 23.5x | 1.7x |
| Thu, 27 Jan 2022 | R625.3b | R388.8b | R28.7b | 14.6x | 21.8x | 1.6x |
Price to Earnings Ratio
21.8x
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 39.8x which is higher than its 3-year average PE of 19.6x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 1.00x.
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 | 2.28% | |
| Telecom | 7.74% | |
| Wireless Telecom | 8.43% | |
| Entertainment | 0% | 0 |
| Interactive Media and Services | 0% | 0 |
| Telecom Services and Carriers | -1.08% | |
| Media | -1.26% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 18.6x.
- Analysts are expecting annual earnings growth of 48.6%, 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 24.4x.
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 | R104.06 | 18.3% +R29.1b | -1.8% | PS0.9x | |
| VOD Vodacom Group | R104.78 | 4.9% +R9.6b | -3.1% | PE13.7x | |
| MCG MultiChoice Group | R111.26 | 1.9% +R905.8m | 27.1% | PS0.9x | |
| TKG Telkom SA SOC | R32.59 | 1.9% +R306.4m | 7.6% | PE10.6x | |
| BLU Blue Label Telecoms | R5.57 | 4.1% +R197.2m | 53.9% | PE7.7x |
