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TZL1

Telkom SA SOCDB:TZL1 Stock Report

Market Cap

R1.5b

7D

10.9%

1Y

68.0%

Updated

03 Dec, 2021

Data

Company Financials +
TZL1 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends0/6

TZL1 Stock Overview

Telkom SA SOC Limited provides integrated communications and information technology (IT) services to residential, business, government, wholesale, and corporate customers in South Africa and internationally.

Telkom SA SOC Competitors

MTN Group

JSE:MTN

R299.3b

Vodacom Group

JSE:VOD

R224.5b

Price History & Performance

Summary of all time highs, changes and price drops for Telkom SA SOC
Historical stock prices
Current Share PriceR2.84
52 Week HighR3.28
52 Week LowR1.61
Beta0.65
1 Month Change2.16%
3 Month Change26.79%
1 Year Change68.05%
3 Year Change-23.86%
5 Year Change-43.20%
Change since IPO-8.39%

Recent News & Updates

Shareholder Returns

TZL1DE TelecomDE Market
7D10.9%-6.3%-3.4%
1Y68.0%3.0%15.5%

Return vs Industry: TZL1 exceeded the German Telecom industry which returned 5% over the past year.

Return vs Market: TZL1 exceeded the German Market which returned 17.1% over the past year.

Price Volatility

Is TZL1's price volatile compared to industry and market?
TZL1 volatility
TZL1 Average Weekly Movement7.5%
Telecom Industry Average Movement4.4%
Market Average Movement4.9%
10% most volatile stocks in DE Market9.1%
10% least volatile stocks in DE Market2.5%

Stable Share Price: TZL1 is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TZL1's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

FoundedEmployeesCEOWebsite
199112,039Sipho Masekohttps://www.telkom.co.za

Telkom SA SOC Limited provides integrated communications and information technology (IT) services to residential, business, government, wholesale, and corporate customers in South Africa and internationally. The company offers mobile and fixed-line telecommunication services, including broadband, optical and carrier, broadband data, voice, content, and gaming solutions; small and medium entity information, communication, and technology services. It also provides cloud computing, unified communications and collaboration, security, big data analytics, and mobility solutions; enterprise and applications solutions, and IT managed services and infrastructure; digital and social media advertising; and e-commerce services.

Telkom SA SOC Fundamentals Summary

How do Telkom SA SOC's earnings and revenue compare to its market cap?
TZL1 fundamental statistics
Market CapR26.78b
Earnings (TTM)R2.42b
Revenue (TTM)R43.56b

11.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TZL1 income statement (TTM)
RevenueR43.56b
Cost of RevenueR24.99b
Gross ProfitR18.57b
ExpensesR16.15b
EarningsR2.42b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.89
Gross Margin42.63%
Net Profit Margin5.56%
Debt/Equity Ratio36.3%

How did TZL1 perform over the long term?

See historical performance and comparison

Valuation

Is Telkom SA SOC undervalued compared to its fair value and its price relative to the market?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TZL1 (€2.84) is trading below our estimate of fair value (€5.2)

Significantly Below Fair Value: TZL1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TZL1 is good value based on its PE Ratio (10.8x) compared to the German Telecom industry average (20.4x).

PE vs Market: TZL1 is good value based on its PE Ratio (10.8x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: TZL1 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: TZL1 is good value based on its PB Ratio (0.8x) compared to the DE Telecom industry average (2.3x).


Future Growth

How is Telkom SA SOC forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TZL1's forecast earnings growth (12.2% per year) is above the savings rate (-0.01%).

Earnings vs Market: TZL1's earnings (12.2% per year) are forecast to grow faster than the German market (12.2% per year).

High Growth Earnings: TZL1's earnings are forecast to grow, but not significantly.

Revenue vs Market: TZL1's revenue (2.7% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: TZL1's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TZL1's Return on Equity is forecast to be low in 3 years time (9.1%).


Past Performance

How has Telkom SA SOC performed over the past 5 years?

-18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TZL1 has high quality earnings.

Growing Profit Margin: TZL1's current net profit margins (5.6%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: TZL1's earnings have declined by 18.3% per year over the past 5 years.

Accelerating Growth: TZL1's earnings growth over the past year (352.7%) exceeds its 5-year average (-18.3% per year).

Earnings vs Industry: TZL1 earnings growth over the past year (352.7%) exceeded the Telecom industry 16.2%.


Return on Equity

High ROE: TZL1's Return on Equity (7.7%) is considered low.


Financial Health

How is Telkom SA SOC's financial position?


Financial Position Analysis

Short Term Liabilities: TZL1's short term assets (ZAR15.9B) do not cover its short term liabilities (ZAR17.4B).

Long Term Liabilities: TZL1's short term assets (ZAR15.9B) exceed its long term liabilities (ZAR15.1B).


Debt to Equity History and Analysis

Debt Level: TZL1's net debt to equity ratio (20.1%) is considered satisfactory.

Reducing Debt: TZL1's debt to equity ratio has increased from 19.6% to 36.3% over the past 5 years.

Debt Coverage: TZL1's debt is well covered by operating cash flow (97.5%).

Interest Coverage: TZL1's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

What is Telkom SA SOC current dividend yield, its reliability and sustainability?

2.67%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TZL1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TZL1'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 TZL1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TZL1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TZL1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TZL1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Sipho Maseko (52 yo)

8.67yrs

Tenure

R35,443,757

Compensation

Mr. Sipho Nkosinathi Maseko, BA, LLB., has been Group Chief Executive Officer and Executive Director of Telkom SA SOC Limited since April 1, 2013. He serves as Director at Roedean School (SA). He served as...


CEO Compensation Analysis

Compensation vs Market: Sipho's total compensation ($USD2.24M) is above average for companies of similar size in the German market ($USD1.57M).

Compensation vs Earnings: Sipho's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TZL1's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: TZL1's board of directors are considered experienced (7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Telkom SA SOC Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Telkom SA SOC Limited
  • Ticker: TZL1
  • Exchange: DB
  • Founded: 1991
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: R26.784b
  • Listing Market Cap: R1.475b
  • Shares outstanding: 495.08m
  • Website: https://www.telkom.co.za

Number of Employees


Location

  • Telkom SA SOC Limited
  • 61 Oak Avenue
  • Centurion
  • Gauteng
  • 157
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 19:02
End of Day Share Price2021/12/02 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.