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South African (JSE) Telecom Sector Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies11
  • 7D2.3%
  • 3M-0.7%
  • 1Y-10.2%
  • YTD-14.9%

In the last week, the Telecom industry is up 2.3%, with MTN Group up 3.2%. In the past year, the industry is down 10%. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

Has the South African Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022R534.5bR424.5bR41.1b8.6x13x1.3x
Wed, 26 Oct 2022R505.8bR420.3bR42.4b8.9x11.9x1.2x
Fri, 23 Sep 2022R528.0bR420.3bR42.4b9.1x12.4x1.3x
Sun, 21 Aug 2022R561.7bR420.8bR42.3b8.9x13.3x1.3x
Tue, 19 Jul 2022R575.8bR409.9bR37.0b8.5x15.6x1.4x
Thu, 16 Jun 2022R568.3bR410.4bR37.0b8.7x15.3x1.4x
Sat, 14 May 2022R645.8bR406.8bR35.6b9.7x18.2x1.6x
Mon, 11 Apr 2022R672.5bR406.8bR35.6b8.9x18.9x1.7x
Wed, 09 Mar 2022R665.5bR388.8bR28.7b15.6x23.2x1.7x
Fri, 04 Feb 2022R668.1bR388.8bR28.7b15.4x23.3x1.7x
Sun, 02 Jan 2022R620.9bR389.0bR28.4b14.2x21.8x1.6x
Tue, 30 Nov 2021R602.6bR389.1bR28.4b14.4x21.2x1.5x
Thu, 28 Oct 2021R560.4bR385.9bR29.4b14.9x19x1.5x
Sat, 25 Sep 2021R574.7bR385.9bR29.4b15.6x19.5x1.5x
Mon, 23 Aug 2021R547.5bR385.6bR29.1b16x18.8x1.4x
Sat, 10 Jul 2021R482.9bR385.6bR29.1b23.2x16.6x1.3x
Fri, 02 Apr 2021R451.9bR384.3bR33.8b13.6x13.4x1.2x
Mon, 04 Jan 2021R396.6bR380.0bR36.6b12.5x10.8x1x
Thu, 08 Oct 2020R368.8bR369.0bR34.5b14.1x10.7x1x
Wed, 01 Jul 2020R368.4bR359.4bR33.0b12.6x11.2x1x
Sat, 04 Apr 2020R337.5bR352.4bR28.2b13x12x1x
Tue, 07 Jan 2020R418.6bR345.1bR26.1b12.2x16x1.2x
Price to Earnings Ratio

16.5x


Total Market Cap: R453.7bTotal Earnings: R27.5bTotal Revenue: R340.0bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 15.1x202020212022
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 13.0x which is lower than its 3-year average PE of 15.1x.
  • The industry is trading close to its 3-year average PS ratio of 1.3x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 7.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the South African Telecom sector?

ZA Market0.94%
Telecom2.31%
Wireless Telecom2.78%
Media0.67%
Entertainment0%
Interactive Media and Services0%
Telecom Services and Carriers-2.86%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 41.1%, which is higher than its past year's earnings growth of 11.2% per year.
  • Investors are most pessimistic about the Telecom Services and Carriers industry, which is trading below its 3-year average of 10.9x.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 41% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings decline by 7.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MTN MTN GroupR135.783.2%
+R7.5b		-13.5%PE12.8x
VOD Vodacom GroupR124.882.3%
+R4.8b		-6.8%PE12.9x
MCG MultiChoice GroupR118.610.6%
+R319.1m		-1.2%PE37.2x
CAT Caxton and CTP Publishers and PrintersR9.590.9%
+R32.6m		9.5%PE6.3x
AME African Media EntertainmentR39.887.1%
+R20.1m		13.9%PE10.4x
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Latest News

HUG

R2.32

Huge Group

7D

-10.8%

1Y

-41.9%

TKG

R33.80

Telkom SA SOC

7D

-3.1%

1Y

-28.4%

VOD

R124.88

Vodacom Group

7D

2.3%

1Y

-6.8%

MCG

R118.61

MultiChoice Group

7D

0.6%

1Y

-1.2%

BLU

R5.34

Blue Label Telecoms

7D

-1.5%

1Y

9.9%

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Nov 18
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CGN

R0.94

Cognition Holdings

7D

-1.1%

1Y

22.1%

CAT

R9.59

Caxton and CTP Publishers and Printers

7D

0.9%

1Y

9.5%

AME

R39.88

African Media Entertainment

7D

7.1%

1Y

13.9%

MTN

R135.78

MTN Group

7D

3.2%

1Y

-13.5%

Why The 25% Return On Capital At MTN Group (JSE:MTN) Should Have Your Attention

Nov 07
Why The 25% Return On Capital At MTN Group (JSE:MTN) Should Have Your Attention

TLM

R1.15

TeleMasters Holdings

7D

15.0%

1Y

-8.0%