company background image
ETEL

Telecom EgyptCASE:ETEL Stock Report

Market Cap

ج.م23.5b

7D

0.4%

1Y

14.1%

Updated

21 Oct, 2021

Data

Company Financials +
ETEL fundamental analysis
Snowflake Score
Valuation6/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends3/6

ETEL Overview

Telecom Egypt Company, together with its subsidiaries, provides public communications, and related products and services under the WE brand name in Egypt.

Price History & Performance

Summary of all time highs, changes and price drops for Telecom Egypt
Historical stock prices
Current Share Priceج.م13.74
52 Week Highج.م10.12
52 Week Lowج.م15.35
Beta0.46
1 Month Change-1.86%
3 Month Change-1.22%
1 Year Change14.12%
3 Year Change32.63%
5 Year Change57.93%
Change since IPO-29.43%

Recent News & Updates

Shareholder Returns

ETELEG TelecomEG Market
7D0.4%0.1%-0.8%
1Y14.1%10.2%11.1%

Return vs Industry: ETEL exceeded the EG Telecom industry which returned 10.6% over the past year.

Return vs Market: ETEL exceeded the EG Market which returned 9.2% over the past year.

Price Volatility

Is ETEL's price volatile compared to industry and market?
ETEL volatility
ETEL Beta0.46
Industry Beta0.45
Market Beta1

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

Volatility Over Time: ETEL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1854n/aAdel Hamedhttps://www.te.eg

Telecom Egypt Company, together with its subsidiaries, provides public communications, and related products and services under the WE brand name in Egypt. It operates in Communications, Marine Cables and Infrastructure Services; Internet Services; and Outsourcing Services segments. The company offers mobile, balance, fixed voice, fixed broadband, international roaming, entertainment, mobile number portability, and other services for individuals; and devices, such as routers, fixed landline phones, USB modems, 4G routers, mobile phones, and accessories.

Telecom Egypt Fundamentals Summary

How do Telecom Egypt's earnings and revenue compare to its market cap?
ETEL fundamental statistics
Market Capج.م23.46b
Earnings (TTM)ج.م5.83b
Revenue (TTM)ج.م34.34b

4.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETEL income statement (TTM)
Revenueج.م34.34b
Cost of Revenueج.م20.71b
Gross Profitج.م13.63b
Expensesج.م7.80b
Earningsج.م5.83b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.42
Gross Margin39.70%
Net Profit Margin16.99%
Debt/Equity Ratio50.8%

How did ETEL perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Telecom Egypt 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: ETEL (EGP13.74) is trading below our estimate of fair value (EGP51.45)

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


Price To Earnings Ratio

PE vs Industry: ETEL is good value based on its PE Ratio (4x) compared to the African Telecom industry average (7.9x).

PE vs Market: ETEL is good value based on its PE Ratio (4x) compared to the EG market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: ETEL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ETEL is good value based on its PB Ratio (0.6x) compared to the XF Telecom industry average (0.7x).


Future Growth

How is Telecom Egypt forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETEL's forecast earnings growth (8.2% per year) is below the savings rate (9.1%).

Earnings vs Market: ETEL's earnings (8.2% per year) are forecast to grow slower than the EG market (14.5% per year).

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

Revenue vs Market: ETEL's revenue (6.5% per year) is forecast to grow slower than the EG market (9.9% per year).

High Growth Revenue: ETEL's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETEL's Return on Equity is forecast to be low in 3 years time (14.1%).


Past Performance

How has Telecom Egypt performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETEL has high quality earnings.

Growing Profit Margin: ETEL's current net profit margins (17%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: ETEL's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: ETEL's earnings growth over the past year (66%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: ETEL earnings growth over the past year (66%) exceeded the Telecom industry 29.6%.


Return on Equity

High ROE: ETEL's Return on Equity (16.7%) is considered low.


Financial Health

How is Telecom Egypt's financial position?


Financial Position Analysis

Short Term Liabilities: ETEL's short term assets (EGP19.7B) do not cover its short term liabilities (EGP35.1B).

Long Term Liabilities: ETEL's short term assets (EGP19.7B) exceed its long term liabilities (EGP11.4B).


Debt to Equity History and Analysis

Debt Level: ETEL's debt to equity ratio (50.8%) is considered high.

Reducing Debt: ETEL's debt to equity ratio has increased from 1.4% to 50.8% over the past 5 years.

Debt Coverage: ETEL's debt is well covered by operating cash flow (58.9%).

Interest Coverage: ETEL's interest payments on its debt are well covered by EBIT (16.3x coverage).


Balance Sheet


Dividend

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

5.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETEL's dividend (5.46%) is higher than the bottom 25% of dividend payers in the EG market (2.67%).

High Dividend: ETEL's dividend (5.46%) is low compared to the top 25% of dividend payers in the EG market (7.53%).


Stability and Growth of Payments

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

Growing Dividend: ETEL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22%), ETEL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETEL's dividends in 3 years are forecast to be well covered by earnings (22% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Adel Hamed

2.75yrs

Tenure

Eng. Adel Hamed is the Managing Director, Chief Executive Officer and Director of Telecom Egypt Company S.A.E. since 31 January 2019. He was appointed Chief International and Wholesale Officer in August 20...


Leadership Team

Experienced Management: ETEL's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: ETEL's board of directors are considered experienced (3.3 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.


Top Shareholders

Company Information

Telecom Egypt Company's employee growth, exchange listings and data sources


Key Information

  • Name: Telecom Egypt Company
  • Ticker: ETEL
  • Exchange: CASE
  • Founded: 1854
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ج.م23.455b
  • Shares outstanding: 1.71b
  • Website: https://www.te.eg

Location

  • Telecom Egypt Company
  • B7, Smart Village
  • km 28 Cairo-Alexandria Desert Road
  • Giza
  • Egypt

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 14:31
End of Day Share Price2021/10/20 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.