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AAF

Airtel Africa LSE:AAF Stock Report

Last Price

UK£1.38

Market Cap

UK£5.2b

7D

0.9%

1Y

76.4%

Updated

27 Jun, 2022

Data

Company Financials +
AAF fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance6/6
Financial Health4/6
Dividends3/6

AAF Stock Overview

Airtel Africa Plc provides telecommunication and mobile money services to customers in Nigeria, East Africa, and Francophone Africa.

Airtel Africa Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Airtel Africa
Historical stock prices
Current Share PriceUK£1.38
52 Week HighUK£1.63
52 Week LowUK£0.76
Beta1.32
1 Month Change-13.82%
3 Month Change-2.27%
1 Year Change76.44%
3 Year Change94.09%
5 Year Changen/a
Change since IPO103.25%

Recent News & Updates

Jun 17
Why We Like The Returns At Airtel Africa (LON:AAF)

Why We Like The Returns At Airtel Africa (LON:AAF)

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

AAFGB Wireless TelecomGB Market
7D0.9%0.4%2.3%
1Y76.4%-0.3%-8.6%

Return vs Industry: AAF exceeded the UK Wireless Telecom industry which returned -0.3% over the past year.

Return vs Market: AAF exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is AAF's price volatile compared to industry and market?
AAF volatility
AAF Average Weekly Movement4.9%
Wireless Telecom Industry Average Movement5.3%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: AAF is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AAF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20183,757Segun Ogunsanyahttps://airtel.africa

Airtel Africa Plc provides telecommunication and mobile money services to customers in Nigeria, East Africa, and Francophone Africa. It offers prepaid and postpaid wireless voice, international roaming, and fixed line telephone services; data communication services, including 2G, 3G, and 4G; and mobile money services, such as payments, microloans, savings, and international money transfers. The company also provides messaging, value added, enterprise, and site sharing services, as well as support services; and sells handsets.

Airtel Africa Fundamentals Summary

How do Airtel Africa's earnings and revenue compare to its market cap?
AAF fundamental statistics
Market CapUS$6.36b
Earnings (TTM)US$631.00m
Revenue (TTM)US$4.72b

10.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAF income statement (TTM)
RevenueUS$4.72b
Cost of RevenueUS$1.79b
Gross ProfitUS$2.94b
Other ExpensesUS$2.31b
EarningsUS$631.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.17
Gross Margin62.19%
Net Profit Margin13.36%
Debt/Equity Ratio62.3%

How did AAF perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AAF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAF?

Other financial metrics that can be useful for relative valuation.

AAF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA4.5x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does AAF's PE Ratio compare to its peers?

AAF PE Ratio vs Peers
The above table shows the PE ratio for AAF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x
VOD Vodafone Group
19.8x4.9%UK£35.5b
GAMA Gamma Communications
20.6x7.3%UK£1.1b
BT.A BT Group
14.3x6.9%UK£18.5b
TEL PLDT
12.6x-7.2%₱373.1b
AAF Airtel Africa
10.1x13.7%UK£5.2b

Price-To-Earnings vs Peers: AAF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

How does AAF's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

Price-To-Earnings vs Industry: AAF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the European Wireless Telecom industry average (14.5x)


Price to Earnings Ratio vs Fair Ratio

What is AAF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.1x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: AAF is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (20x).


Share Price vs Fair Value

What is the Fair Price of AAF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAF (£1.38) is trading below our estimate of fair value (£6.69)

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


Price to Earnings Growth Ratio

PEG Ratio: AAF is good value based on its PEG Ratio (0.7x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAF's forecast earnings growth (13.7% per year) is above the savings rate (0.9%).

Earnings vs Market: AAF's earnings (13.7% per year) are forecast to grow faster than the UK market (11% per year).

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

Revenue vs Market: AAF's revenue (10.2% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: AAF's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAF's Return on Equity is forecast to be low in 3 years time (19.3%).


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Past Performance

How has Airtel Africa performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


46.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAF has high quality earnings.

Growing Profit Margin: AAF's current net profit margins (13.4%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: AAF has become profitable over the past 5 years, growing earnings by 46.8% per year.

Accelerating Growth: AAF's earnings growth over the past year (86.1%) exceeds its 5-year average (46.8% per year).

Earnings vs Industry: AAF earnings growth over the past year (86.1%) exceeded the Wireless Telecom industry 46.1%.


Return on Equity

High ROE: AAF's Return on Equity (20.7%) is considered high.


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Financial Health

How is Airtel Africa's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAF's short term assets ($2.0B) do not cover its short term liabilities ($3.1B).

Long Term Liabilities: AAF's short term assets ($2.0B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: AAF's net debt to equity ratio (38.8%) is considered satisfactory.

Reducing Debt: AAF had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AAF's debt is well covered by operating cash flow (88.5%).

Interest Coverage: AAF's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


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Dividend

What is Airtel Africa current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AAF's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: AAF's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (5.18%).


Stability and Growth of Payments

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

Growing Dividend: AAF has only been paying a dividend for 3 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.7%), AAF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.2%), AAF's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure


CEO

Segun Ogunsanya

0.67

Tenure

US$1,862,000

Compensation

Mr. Olusegun Ogunsanya, also known as Segun, serves as the Chief Executive Officer, Managing Director & Director at Airtel Africa Plc since October 1, 2021. He serves as the Chief Executive Officer and Man...


CEO Compensation Analysis

Compensation vs Market: Segun's total compensation ($USD1.86M) is below average for companies of similar size in the UK market ($USD3.26M).

Compensation vs Earnings: Insufficient data to compare Segun's compensation with company performance.


Leadership Team

Experienced Management: AAF's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: AAF's board of directors are considered experienced (3.2 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

Airtel Africa Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Airtel Africa Plc
  • Ticker: AAF
  • Exchange: LSE
  • Founded: 2018
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: UK£5.168b
  • Shares outstanding: 3.75b
  • Website: https://airtel.africa

Number of Employees


Location

  • Airtel Africa Plc
  • 53/54 Grosvenor Street
  • First Floor
  • London
  • Greater London
  • W1K 3HU
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.