DSE:GP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

৳493.8b

Last Updated

2021/07/24 10:44 UTC

Data Sources

Company Financials +

Executive Summary

Grameenphone Ltd. provides mobile telecommunication and related services in Bangladesh. More Details


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Grameenphone's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GP is less volatile than 75% of BD stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GP's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

2.6%

GP

0.2%

BD Wireless Telecom

2.1%

BD Market


1 Year Return

45.8%

GP

1.8%

BD Wireless Telecom

51.9%

BD Market

Return vs Industry: GP exceeded the BD Wireless Telecom industry which returned 1.9% over the past year.

Return vs Market: GP underperformed the BD Market which returned 51.9% over the past year.


Shareholder returns

GPIndustryMarket
7 Day2.6%0.2%2.1%
30 Day5.6%-1.2%5.0%
90 Day7.8%-7.0%14.3%
1 Year59.6%45.8%5.8%1.8%58.4%51.9%
3 Year16.3%-5.4%10.1%-3.0%33.0%19.6%
5 Year78.1%30.1%7.9%-13.3%70.4%43.2%

Long-Term Price Volatility Vs. Market

How volatile is Grameenphone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grameenphone undervalued compared to its fair value and its price relative to the market?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GP (BDT365.7) is trading below our estimate of fair value (BDT566.77)

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


Price To Earnings Ratio

PE vs Industry: GP is good value based on its PE Ratio (13.5x) compared to the Asian Wireless Telecom industry average (18.9x).

PE vs Market: GP is good value based on its PE Ratio (13.5x) compared to the BD market (24.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GP is overvalued based on its PB Ratio (9.9x) compared to the XA Wireless Telecom industry average (2.1x).


Future Growth

How is Grameenphone forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GP's forecast earnings growth is above the savings rate (3.6%).

Earnings vs Market: Insufficient data to determine if GP's earnings are forecast to grow faster than the BD market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GP's revenue (4.3% per year) is forecast to grow slower than the BD market (10% per year).

High Growth Revenue: GP's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GP's Return on Equity is forecast to be very high in 3 years time (77.6%).


Past Performance

How has Grameenphone performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GP has high quality earnings.

Growing Profit Margin: GP's current net profit margins (26%) are higher than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: GP's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: GP's earnings growth over the past year (6.5%) is below its 5-year average (11.1% per year).

Earnings vs Industry: GP earnings growth over the past year (6.5%) exceeded the Wireless Telecom industry 0.4%.


Return on Equity

High ROE: GP's Return on Equity (73.4%) is considered outstanding.


Financial Health

How is Grameenphone's financial position?


Financial Position Analysis

Short Term Liabilities: GP's short term assets (BDT14.3B) do not cover its short term liabilities (BDT91.1B).

Long Term Liabilities: GP's short term assets (BDT14.3B) do not cover its long term liabilities (BDT23.7B).


Debt to Equity History and Analysis

Debt Level: GP's debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: GP's debt to equity ratio has reduced from 103.5% to 24.7% over the past 5 years.

Debt Coverage: GP's debt is well covered by operating cash flow (444.7%).

Interest Coverage: GP's interest payments on its debt are well covered by EBIT (52.8x coverage).


Balance Sheet


Dividend

What is Grameenphone current dividend yield, its reliability and sustainability?

7.25%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 25 2021Ex Dividend DateAug 10 2021Dividend Pay DateAug 16 20216 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GP's dividend (7.25%) is higher than the bottom 25% of dividend payers in the BD market (0.95%).

High Dividend: GP's dividend (7.25%) is in the top 25% of dividend payers in the BD market (2.76%)


Stability and Growth of Payments

Stable Dividend: GP's dividend payments have been volatile in the past 10 years.

Growing Dividend: GP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.5%), GP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GP's dividends in 3 years are not forecast to be well covered by earnings (103.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Yasir Azman (46 yo)

1.42yrs

Tenure

Mr. Yasir Azman serves as Chief Executive Officer of Grameenphone Ltd, a subsidiary of Telenor ASA since February 01, 2020. He had been the Chief Marketing Officer of GrameenPhone Ltd. since June 15, 2015 ...


Leadership Team

Experienced Management: GP's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: GP's board of directors are considered experienced (3.9 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.


Top Shareholders

Company Information

Grameenphone Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grameenphone Ltd.
  • Ticker: GP
  • Exchange: DSE
  • Founded: 1996
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ৳493.805b
  • Shares outstanding: 1.35b
  • Website: https://www.grameenphone.com

Number of Employees


Location

  • Grameenphone Ltd.
  • GP House
  • Bashundhara
  • Dhaka
  • 1229
  • Bangladesh

Listings


Biography

Grameenphone Ltd. provides mobile telecommunication and related services in Bangladesh. The company offers prepaid and postpaid services; and Internet, roaming, GP Accelerator program, digital services and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 10:44
End of Day Share Price2021/07/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.