Vodacom Group (JSE:VOD) Has A Pretty Healthy Balance Sheet
Dec 05
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South African (JSE) Telecom Sector Analysis
UpdatedDec 20, 2024
DataAggregated Company Financials
Companies9
- 7D-4.7%
- 3M-9.4%
- 1Y-12.9%
- YTD-15.1%
Over the last 7 days, the Telecom industry has dropped 4.7%, driven by Vodacom Group declining 5.2%. The industry has fallen 13% in the last year. Looking forward, earnings are forecast to grow by 49% 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, 21 Dec 2024 | R372.2b | R418.2b | R10.5b | 8.4x | 35.6x | 0.9x |
| Mon, 18 Nov 2024 | R370.8b | R417.5b | R10.4b | 8x | 35.7x | 0.9x |
| Wed, 16 Oct 2024 | R389.9b | R416.7b | R11.9b | 8.4x | 32.7x | 0.9x |
| Fri, 13 Sep 2024 | R405.9b | R417.0b | R11.9b | 8.3x | 34x | 1x |
| Sun, 11 Aug 2024 | R364.8b | R441.3b | R23.5b | 8.2x | 15.5x | 0.8x |
| Tue, 09 Jul 2024 | R359.7b | R441.3b | R23.5b | 8x | 15.3x | 0.8x |
| Thu, 06 Jun 2024 | R350.5b | R442.7b | R12.4b | 10.7x | 28.2x | 0.8x |
| Sat, 04 May 2024 | R371.2b | R430.2b | R13.5b | 9.7x | 27.4x | 0.9x |
| Mon, 01 Apr 2024 | R384.9b | R430.2b | R13.5b | 10.5x | 28.4x | 0.9x |
| Wed, 28 Feb 2024 | R365.1b | R431.9b | R30.1b | 7.9x | 12.1x | 0.8x |
| Fri, 26 Jan 2024 | R400.0b | R434.1b | R29.6b | 9.7x | 13.5x | 0.9x |
| Sun, 24 Dec 2023 | R431.6b | R434.1b | R29.6b | 10x | 14.6x | 1x |
| Tue, 21 Nov 2023 | R396.5b | R433.5b | R29.4b | 8.4x | 13.5x | 0.9x |
| Thu, 19 Oct 2023 | R446.1b | R473.6b | R25.2b | 9.5x | 17.7x | 0.9x |
| Sat, 16 Sep 2023 | R482.1b | R473.6b | R25.2b | 7.7x | 19.1x | 1x |
| Mon, 14 Aug 2023 | R512.6b | R457.2b | R24.1b | 5.7x | 21.3x | 1.1x |
| Wed, 12 Jul 2023 | R523.8b | R457.6b | R24.1b | 6.4x | 21.7x | 1.1x |
| Fri, 09 Jun 2023 | R531.6b | R454.7b | R39.2b | 6.9x | 13.6x | 1.2x |
| Sun, 07 May 2023 | R519.9b | R442.1b | R38.8b | 7.3x | 13.4x | 1.2x |
| Tue, 04 Apr 2023 | R551.5b | R442.1b | R38.8b | 8x | 14.2x | 1.2x |
| Thu, 02 Mar 2023 | R596.5b | R427.0b | R38.5b | 8.2x | 15.5x | 1.4x |
| Sat, 28 Jan 2023 | R573.7b | R426.3b | R39.1b | 7.3x | 14.7x | 1.3x |
| Mon, 26 Dec 2022 | R550.4b | R426.3b | R39.1b | 6.8x | 14.1x | 1.3x |
| Wed, 23 Nov 2022 | R531.3b | R424.6b | R41.8b | 6.6x | 12.7x | 1.3x |
| Fri, 21 Oct 2022 | R508.5b | R420.3b | R42.4b | 9x | 12x | 1.2x |
| Sun, 18 Sep 2022 | R533.4b | R420.3b | R42.4b | 8.9x | 12.6x | 1.3x |
| Tue, 16 Aug 2022 | R590.5b | R420.8b | R42.3b | 8.8x | 13.9x | 1.4x |
| Thu, 14 Jul 2022 | R552.6b | R409.9b | R37.0b | 8.6x | 14.9x | 1.3x |
| Sat, 11 Jun 2022 | R581.4b | R410.4b | R37.0b | 9.5x | 15.7x | 1.4x |
| Mon, 09 May 2022 | R639.4b | R406.8b | R35.6b | 9.7x | 18x | 1.6x |
| Wed, 06 Apr 2022 | R669.7b | R406.8b | R35.6b | 8.6x | 18.8x | 1.6x |
| Fri, 04 Mar 2022 | R715.4b | R388.8b | R28.7b | 16.3x | 24.9x | 1.8x |
| Sun, 30 Jan 2022 | R638.1b | R388.8b | R28.7b | 15x | 22.2x | 1.6x |
| Tue, 28 Dec 2021 | R612.8b | R389.0b | R28.4b | 14x | 21.5x | 1.6x |
Price to Earnings Ratio
21.5x
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 35.6x which is higher than its 3-year average PE of 19.1x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.89x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 28% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.4% 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 | -2.90% | |
| Telecom | -4.65% | |
| Entertainment | 0% | |
| Interactive Media and Services | 0% | |
| Media | -1.38% | |
| Telecom Services and Carriers | -3.14% | |
| Wireless Telecom | -4.80% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 17.8x.
- Analysts are expecting annual earnings growth of 50.0%, 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 25.1x.
Forecasted Growth
- Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 50% 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 18% 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 | |
|---|---|---|---|---|---|
| CAT Caxton and CTP Publishers and Printers | R12.69 | 0.6% +R28.6m | 20.7% | PE6.9x | |
| EMH eMedia Holdings | R3.55 | 1.4% +R22.1m | 13.1% | PE6.6x | |
| AME African Media Entertainment | R42.99 | 5.0% +R14.1m | 30.3% | PE5.1x |
