Sudatel Telecom Group (ADX:SUDATEL) - Share price, News & Analysis

Q: What is the Fair Price of SUDATEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SUDATEL (AED0.34) is trading below our estimate of [[fair value]] (AED24.56)

SUDATEL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

SUDATEL Stock Overview

Sudatel Telecom Group Limited, together with its subsidiaries, engages in the installation, maintenance, and operation of telecommunication services in the Republic of Sudan and other African countries.It offers voice and data services, including origination and termination of voice traffic; local and international long distance data, colocation, and internet services; and mobile, fixed line, and broadband services.

Rewards

Trading at 98.6% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 31.4% per year over past 5 years

Highly volatile share price over the past 3 months

Sudatel Telecom Group Competitors

Emirates Integrated Telecommunications Company PJSC

DFM:DU

د.إ27.9b

Giga PrizeLtd

NSE:3830

JP¥16.8b

ecotel communication ag

XTRA:E4C

€106.7m

Sýn hf

ICSE:SYN

Kr18.7b

Price History & Performance

Summary of all time highs, changes and price drops for Sudatel Telecom Group
Historical stock prices
Current Share Price	د.إ0.34
52 Week High	د.إ0.41
52 Week Low	د.إ0.30
Beta	0.35
1 Month Change	4.69%
3 Month Change	-3.18%
1 Year Change	-9.77%
3 Year Change	-12.03%
5 Year Change	-34.65%
Change since IPO	-90.79%

Recent News & Updates

Jun 21

Capital Allocation Trends At Sudatel Telecom Group (ADX:SUDATEL) Aren't Ideal

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Shareholder Returns

	SUDATEL	AE Telecom	AE Market
7D	-6.7%	0.04%	0.5%
1Y	-9.8%	4.5%	28.3%

Return vs Industry: SUDATEL underperformed the AE Telecom industry which returned 4.5% over the past year.

Return vs Market: SUDATEL underperformed the AE Market which returned 28.3% over the past year.

Price Volatility

Is SUDATEL's price volatile compared to industry and market?
SUDATEL volatility
SUDATEL Average Weekly Movement	9.4%
Telecom Industry Average Movement	4.5%
Market Average Movement	4.4%
10% most volatile stocks in AE Market	8.4%
10% least volatile stocks in AE Market	2.7%

Stable Share Price: SUDATEL is more volatile than 90% of AE stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SUDATEL's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of AE stocks.

About the Company

Founded	Employees	CEO	Website
1993	n/a	Magdi Mohammed Taha	https://www.sudatel.sd

Sudatel Telecom Group Limited, together with its subsidiaries, engages in the installation, maintenance, and operation of telecommunication services in the Republic of Sudan and other African countries It offers voice and data services, including origination and termination of voice traffic; local and international long distance data, colocation, and internet services; and mobile, fixed line, and broadband services. The company also supplies IT infrastructure, reliability, network monitoring, and data and power back up services through its data center.

Sudatel Telecom Group Fundamentals Summary

How do Sudatel Telecom Group's earnings and revenue compare to its market cap?
SUDATEL fundamental statistics
Market Cap	د.إ443.06m
Earnings (TTM)	د.إ226.05m
Revenue (TTM)	د.إ1.26b

2.0x

P/E Ratio

0.4x

P/S Ratio

Is SUDATEL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUDATEL income statement (TTM)
Revenue	US$342.56m
Cost of Revenue	US$209.39m
Gross Profit	US$133.17m
Other Expenses	US$71.63m
Earnings	US$61.54m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.047
Gross Margin	38.87%
Net Profit Margin	17.97%
Debt/Equity Ratio	39.2%

How did SUDATEL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SUDATEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUDATEL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SUDATEL. This is calculated by dividing SUDATEL's market cap by their current preferred multiple.
What is SUDATEL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$120.62m

SUDATEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	1.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SUDATEL's PE Ratio compare to its peers?

SUDATEL PE Ratio vs Peers

The above table shows the PE ratio for SUDATEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.5x
DU Emirates Integrated Telecommunications Company PJSC	22.9x	5.3%	د.إ27.9b
3830 Giga PrizeLtd	11.1x	9.7%	JP¥16.8b
E4C ecotel communication ag	20.6x	-3.9%	€106.7m
SYN Sýn hf	7.4x	n/a	Kr18.7b
SUDATEL Sudatel Telecom Group	2x	n/a	د.إ443.1m

Price-To-Earnings vs Peers: SUDATEL is good value based on its Price-To-Earnings Ratio (2x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does SUDATEL's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: SUDATEL is good value based on its Price-To-Earnings Ratio (2x) compared to the Asian Telecom industry average (18.8x)

Price to Earnings Ratio vs Fair Ratio

What is SUDATEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUDATEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SUDATEL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SUDATEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUDATEL (AED0.34) is trading below our estimate of fair value (AED24.56)

Significantly Below Fair Value: SUDATEL is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Sudatel Telecom Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.7%

Forecasted Telecom industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sudatel Telecom Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Sudatel Telecom Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Sudatel Telecom Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-31.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUDATEL has high quality earnings.

Growing Profit Margin: SUDATEL became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SUDATEL's earnings have declined by 31.4% per year over the past 5 years.

Accelerating Growth: SUDATEL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SUDATEL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (17.2%).

Return on Equity

High ROE: SUDATEL's Return on Equity (11.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Sudatel Telecom Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUDATEL's short term assets ($212.3M) do not cover its short term liabilities ($336.6M).

Long Term Liabilities: SUDATEL's short term assets ($212.3M) do not cover its long term liabilities ($220.5M).

Debt to Equity History and Analysis

Debt Level: SUDATEL's net debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: SUDATEL's debt to equity ratio has reduced from 58.9% to 39.2% over the past 5 years.

Debt Coverage: SUDATEL's debt is well covered by operating cash flow (104.9%).

Interest Coverage: SUDATEL's interest payments on its debt are well covered by EBIT (7x coverage).

Balance Sheet

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Dividend

What is Sudatel Telecom Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SUDATEL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SUDATEL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUDATEL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUDATEL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SUDATEL is not paying a notable dividend for the AE market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SUDATEL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure

CEO

Magdi Mohammed Taha

1.67yrs

Tenure

Mr. Magdi Mohammed Abdallah Taha serves as the Chief Executive Officer of Sudatel Telecom Group Limited since December 1, 2020 and serves as its President. He served as the General Manager of Sudatel Tele...

Leadership Team

Experienced Management: SUDATEL's management team is considered experienced (4.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31