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BTCL

Botswana TelecommunicationsBSM:BTCL Stock Report

Market Cap

P745.5m

7D

0%

1Y

1.4%

Updated

20 Oct, 2021

Data

Company Financials
BTCL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends3/6

BTCL Overview

Botswana Telecommunications Corporation Limited provides telecommunications services in Botswana.

Price History & Performance

Summary of all time highs, changes and price drops for Botswana Telecommunications
Historical stock prices
Current Share PriceP0.71
52 Week HighP0
52 Week LowP0
Beta0.17
1 Month Change1.43%
3 Month Change0%
1 Year Change1.43%
3 Year Change-37.72%
5 Year Change-16.47%
Change since IPO-47.02%

Recent News & Updates

Shareholder Returns

BTCLBW TelecomBW Market
7D0%0.8%0.1%
1Y1.4%10.8%1.1%

Return vs Industry: BTCL underperformed the BW Telecom industry which returned 10.8% over the past year.

Return vs Market: BTCL matched the BW Market which returned 1.1% over the past year.

Price Volatility

Is BTCL's price volatile compared to industry and market?
BTCL volatility
BTCL Beta0.17
Industry Beta0.45
Market Beta1

Stable Share Price: BTCL is not significantly more volatile than the rest of BW stocks over the past 3 months, typically moving +/- 2% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1980886Anthony Masungahttps://www.btc.bw

Botswana Telecommunications Corporation Limited provides telecommunications services in Botswana. The company offers fixed and mobile voice telephony, including prepaid and postpaid services; internet services; and landline, broadband, phonebook, toll free, and contact center services, as well as ethernet, smart office, call conferencing, telephone management, call recording, and value added services. It also provides digital services, including data center, colocation, cloud, and Microsoft solutions; very small aperture terminal, security as a service, mobile financial, and manage network services; BTC mobile products and services; internet devices; and virtual private networks and customer premises equipment.

Botswana Telecommunications Fundamentals Summary

How do Botswana Telecommunications's earnings and revenue compare to its market cap?
BTCL fundamental statistics
Market CapP745.50m
Earnings (TTM)P135.33m
Revenue (TTM)P1.43b

5.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BTCL income statement (TTM)
RevenueP1.43b
Cost of RevenueP621.25m
Gross ProfitP805.16m
ExpensesP669.82m
EarningsP135.33m

Dividends

15.0%

Current Dividend Yield

65%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BTCL (BWP0.71) is trading below our estimate of fair value (BWP17.59)

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


Price To Earnings Ratio

PE vs Industry: BTCL is good value based on its PE Ratio (5.5x) compared to the African Telecom industry average (8x).

PE vs Market: BTCL is good value based on its PE Ratio (5.5x) compared to the BW market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BTCL is good value based on its PB Ratio (0.3x) compared to the XF Telecom industry average (0.7x).


Future Growth

How is Botswana Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.8%

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 Botswana Telecommunications 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.


Past Performance

How has Botswana Telecommunications performed over the past 5 years?

32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTCL has high quality earnings.

Growing Profit Margin: BTCL's current net profit margins (9.5%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: BTCL has become profitable over the past 5 years, growing earnings by 32.4% per year.

Accelerating Growth: BTCL's earnings growth over the past year (15.9%) is below its 5-year average (32.4% per year).

Earnings vs Industry: BTCL earnings growth over the past year (15.9%) underperformed the Telecom industry 29.6%.


Return on Equity

High ROE: BTCL's Return on Equity (6%) is considered low.


Financial Health

How is Botswana Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: BTCL's short term assets (BWP627.8M) exceed its short term liabilities (BWP411.5M).

Long Term Liabilities: BTCL's short term assets (BWP627.8M) exceed its long term liabilities (BWP347.3M).


Debt to Equity History and Analysis

Debt Level: BTCL is debt free.

Reducing Debt: BTCL has not had any debt for past 5 years.

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

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


Balance Sheet


Dividend

What is Botswana Telecommunications's current dividend yield, its reliability and sustainability?

14.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BTCL's dividend (14.96%) is higher than the bottom 25% of dividend payers in the BW market (4.27%).

High Dividend: BTCL's dividend (14.96%) is in the top 25% of dividend payers in the BW market (7.98%)


Stability and Growth of Payments

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

Growing Dividend: BTCL's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.5%), BTCL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Anthony Masunga (49 yo)

4.75yrs

Tenure

P2,483,161

Compensation

Mr. Anthony Masunga has been Managing Director and Executive Director of Botswana Telecommunications Corporation Limited since January 1, 2017. Mr. Masunga served as Acting Managing Director of Botswana Te...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD222.74K) is about average for companies of similar size in the BW market ($USD222.49K).

Compensation vs Earnings: Anthony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BTCL's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: BTCL's board of directors are considered experienced (4.4 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

Botswana Telecommunications Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Botswana Telecommunications Corporation Limited
  • Ticker: BTCL
  • Exchange: BSM
  • Founded: 1980
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: P745.500m
  • Shares outstanding: 1.05b
  • Website: https://www.btc.bw

Number of Employees


Location

  • Botswana Telecommunications Corporation Limited
  • Megaleng House
  • Plot 50350, Khama Crescent
  • Gaborone
  • Botswana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 22:04
End of Day Share Price2021/10/20 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.