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Emirates Integrated Telecommunications Company PJSC

Executive Summary

Emirates Integrated Telecommunications Company PJSC provides fixed, mobile, wholesale, broadcasting, and associated telecommunication services in the United Arab Emirates.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Emirates Integrated Telecommunications Company PJSC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

DU

-0.4%

AE Telecom

0.1%

AE Market


1 Year Return

-1.0%

DU

-16.1%

AE Telecom

-9.8%

AE Market

Return vs Industry: DU exceeded the AE Telecom industry which returned -16.6% over the past year.

Return vs Market: DU exceeded the AE Market which returned -10.2% over the past year.


Shareholder returns

DUIndustryMarket
7 Day1.6%-0.4%0.1%
30 Day-0.4%-1.4%1.7%
90 Day-2.9%2.3%17.2%
1 Year2.9%-1.0%-12.4%-16.1%-5.0%-9.8%
3 Year15.7%-2.9%-5.7%-16.6%-4.2%-16.8%
5 Year31.6%-3.0%7.1%-11.2%-12.1%-30.3%

Price Volatility Vs. Market

How volatile is Emirates Integrated Telecommunications Company PJSC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Emirates Integrated Telecommunications Company PJSC undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DU (AED5.1) is trading below our estimate of fair value (AED8.46)

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


Price To Earnings Ratio

PE vs Industry: DU is good value based on its PE Ratio (14.1x) compared to the Telecom industry average (18.6x).

PE vs Market: DU is poor value based on its PE Ratio (14.1x) compared to the AE market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: DU is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: DU is overvalued based on its PB Ratio (2.6x) compared to the XA Telecom industry average (1.7x).


Next Steps

Future Growth

How is Emirates Integrated Telecommunications Company PJSC forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DU's forecast earnings growth (3.3% per year) is below the savings rate (9.5%).

Earnings vs Market: DU's earnings (3.3% per year) are forecast to grow slower than the AE market (7.9% per year).

High Growth Earnings: DU's earnings are forecast to grow, but not significantly.

Revenue vs Market: DU's revenue (1.1% per year) is forecast to grow slower than the AE market (3.2% per year).

High Growth Revenue: DU's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DU's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

How has Emirates Integrated Telecommunications Company PJSC performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DU has high quality earnings.

Growing Profit Margin: DU's current net profit margins (13.2%) are higher than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: DU's earnings have declined by -3.9% per year over the past 5 years.

Accelerating Growth: DU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DU had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Telecom industry average (0.6%).


Return on Equity

High ROE: DU's Return on Equity (18.2%) is considered low.


Next Steps

Financial Health

How is Emirates Integrated Telecommunications Company PJSC's financial position?


Financial Position Analysis

Short Term Liabilities: DU's short term assets (AED5.9B) exceed its short term liabilities (AED5.8B).

Long Term Liabilities: DU's short term assets (AED5.9B) exceed its long term liabilities (AED2.0B).


Debt to Equity History and Analysis

Debt Level: DU is debt free.

Reducing Debt: DU has no debt compared to 5 years ago when its debt to equity ratio was 61.6%.

Debt Coverage: DU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Emirates Integrated Telecommunications Company PJSC current dividend yield, its reliability and sustainability?

6.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DU's dividend (6.67%) is higher than the bottom 25% of dividend payers in the AE market (4.55%).

High Dividend: DU's dividend (6.67%) is low compared to the top 25% of dividend payers in the AE market (8.7%).


Stability and Growth of Payments

Stable Dividend: DU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DU's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.2%), DU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DU's dividends in 3 years are forecast to be covered by earnings (89.1% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Johan Dennelind (51yo)

0.83

Tenure

Mr. Johan Eric Dennelind has been the Chief Executive Officer of Emirates Integrated Telecommunications Company PJSC d/b/a du since September 2019. Mr. Dennelind serves as Advisory of Telia Company AB (pub ...


Leadership Team

NamePositionTenureCompensationOwnership
Johan Dennelind
Chief Executive Officer0.83yrno datano data
Kais Hamida
Chief Financial Officer1yrno datano data
Saleem Alblooshi
Chief Technology Officer1.5yrsno datano data
Peter Larnholt
Chief Information Officer1.25yrsno datano data
Anneliese Reinhold
Senior Vice President of Legal & Regulatory Affairs14.75yrsno datano data
Anthony Hatton
Head of Risk & Complianceno datano datano data
Abdulwahed Juma
Executive Vice President of Brand & Communicationsno datano datano data
Ehab Anis Hassan
Chief Human Resources Officer2.17yrsno datano data
Rashid El Sheikh
Head of Internal Control Departmentno datano datano data
Farid Faraidooni
Deputy Chief Executive Officer of Enterprise Solutions2.67yrsno datano data

1.5yrs

Average Tenure

Experienced Management: DU's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eissa Mohamed Saif Al Suwaidi
Independent Non-Executive Director7.92yrsno datano data
Ziad Abdulla Galadari
Non-Executive Director13.33yrsno datano data
Malek Al Malek
Independent Non-Executive Director2.33yrsno datano data
Khaled Abdulla AlQubaisi
Independent Non-Executive Director2.25yrsno datano data
Mohamed Hadi Abdulla Al Hussaini
Independent Non-Executive Chairman2.42yrsno datano data
Ahmad Julfar
Independent Non-Executive Director2.33yrsno data0.010% AED2.4m
Khaled Balama
Independent Non-Executive Vice Chairman5.33yrsno datano data
Mohammed Al Shehi
Independent Non-Executive Director2.33yrsno datano data
Sara Awad Musallam
Independent Non-Executive Director0.25yrno datano data
Wesam Lootah
Independent Non-Executive Director0.25yrno datano data

2.3yrs

Average Tenure

Experienced Board: DU's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Emirates Integrated Telecommunications Company PJSC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emirates Integrated Telecommunications Company PJSC
  • Ticker: DU
  • Exchange: DFM
  • Founded: 2005
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: د.إ23.118b
  • Shares outstanding: 4.53b
  • Website: https://www.du.ae/personal

Number of Employees


Location

  • Emirates Integrated Telecommunications Company PJSC
  • Al Salam Tower
  • Dubai Media City
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DUDFM (Dubai Financial Market)YesCommon StockAEAEDApr 2006

Biography

Emirates Integrated Telecommunications Company PJSC provides fixed, mobile, wholesale, broadcasting, and associated telecommunication services in the United Arab Emirates. The company operates through four segments: Mobile, Fixed, Wholesale, and Others. The Mobile segment offers mobility services, including mobile voice and data, mobile content, and mobile broadband WIFI services to the enterprise and consumer markets, as well as sells mobile handsets. The Fixed segment provides wire line services, such as broadband, IPTV, and IP/VPN business Internet and telephony services to the enterprise and consumer markets. The Wholesale segment provides voice and SMS services, including termination of inbound international voice traffic and international hubbing to national and international carriers and operators. The Others segment include broadcasting, international roaming, site sharing services, etc. It also offers software development, IT infrastructure, public networking, and computer systems housing, as well as value added services for telecommunications; and operates as a telecommunications resellers and third party telecommunications providers. The company provides its services under the du and Virgin Mobile brands. It serves approximately 8 million active subscribers and 100,000 businesses through du brand. Emirates Integrated Telecommunications Company PJSC was founded in 2005 and is based in Dubai, the United Arab Emirates. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 16:33
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.