Airtel Africa
Market Cap
UK£1.4b
Last Updated
2020/03/31 01:21 UTC
Data Sources
Company Financials +
Executive Summary
Airtel Africa Plc provides mobile telecommunication services to customers in Nigeria, East Africa, and rest of Africa.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued average dividend payer.
Similar Companies
Share Price & News
How has Airtel Africa's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AAF's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-18.6%
AAF
3.4%
GB Wireless Telecom
10.0%
GB Market
1 Year Return
n/a
AAF
-16.6%
GB Wireless Telecom
-23.0%
GB Market
Return vs Industry: Insufficient data to determine how AAF performed against the UK Wireless Telecom industry.
Return vs Market: Insufficient data to determine how AAF performed against the UK Market.
Shareholder returns
| AAF | Industry | Market | |
|---|---|---|---|
| 7 Day | -18.6% | 3.4% | 10.0% |
| 30 Day | -40.8% | -12.7% | -17.6% |
| 90 Day | -51.9% | -19.5% | -27.3% |
| 1 Year | n/a | -12.5%-16.6% | -18.9%-23.0% |
| 3 Year | n/a | -22.1%-34.6% | -12.9%-24.2% |
| 5 Year | n/a | -20.7%-40.9% | 1.6%-21.8% |
Price Volatility Vs. Market
How volatile is Airtel Africa's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 hours ago | Simply Wall St
A Sliding Share Price Has Us Looking At Airtel Africa Plc's (LON:AAF) P/E Ratio4 days ago | Simply Wall St
Did Airtel Africa Plc (LON:AAF) Insiders Buy Up More Shares?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Airtel Africa Plc's (LON:AAF) P/E RatioValuation
Is Airtel Africa 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: AAF (£0.38) is trading below our estimate of fair value (£1.57)
Significantly Below Fair Value: AAF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AAF is good value based on its PE Ratio (4.4x) compared to the Wireless Telecom industry average (27.9x).
PE vs Market: AAF is good value based on its PE Ratio (4.4x) compared to the UK market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: AAF is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: AAF is good value based on its PB Ratio (0.7x) compared to the XE Wireless Telecom industry average (2.1x).
Next Steps
Future Growth
How is Airtel Africa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
10.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAF's forecast earnings growth (10.5% per year) is above the savings rate (0.5%).
Earnings vs Market: AAF's earnings (10.5% per year) are forecast to grow slower than the UK market (15.5% per year).
High Growth Earnings: AAF's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAF's revenue (6.1% per year) is forecast to grow faster than the UK market (2.3% per year).
High Growth Revenue: AAF's revenue (6.1% 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 (13%).
Next Steps
Past Performance
How has Airtel Africa performed over the past 5 years?
37.9%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: AAF has high quality earnings.
Growing Profit Margin: AAF's current net profit margins (11.5%) are higher than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if AAF's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare AAF's past year earnings growth to its 5-year average.
Earnings vs Industry: AAF earnings growth over the past year (37.9%) exceeded the Wireless Telecom industry 4.8%.
Return on Equity
High ROE: AAF's Return on Equity (12.5%) is considered low.
Next Steps
Financial Health
How is Airtel Africa's financial position?
Financial Position Analysis
Short Term Liabilities: AAF's short term assets ($2.0B) do not cover its short term liabilities ($2.7B).
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 debt to equity ratio (97.7%) is considered high.
Reducing Debt: Insufficient data to determine if AAF's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: AAF's debt is well covered by operating cash flow (39.8%).
Interest Coverage: AAF's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Inventory Level: AAF has a high level of physical assets or inventory.
Debt Coverage by Assets: AAF's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is Airtel Africa's current dividend yield, its reliability and sustainability?
12.59%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAF's dividend (12.59%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).
High Dividend: AAF's dividend (12.59%) is in the top 25% of dividend payers in the UK market (7.48%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether AAF's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if AAF's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.7%), AAF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AAF's dividends in 3 years are forecast to be covered by earnings (88% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average board tenure
CEO
Raghu Mandava (52yo)
3.17s
Tenure
Mr. Raghunath Venkateswarlu Mandava, also known as Raghu, M. Tech, PGDBM, has served as an Executive Director at Airtel Networks Zambia Plc since November 1, 2017. He has been Chief Executive Officer and M ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 3.17yrs | no data | no data | |
| Director | 1.42yrs | no data | no data | |
| Director | 1.42yrs | no data | no data | |
| Independent Non-Executive Director | 0.83yr | no data | 0.00029% $4.2k | |
| Director | 1.42yrs | no data | no data | |
| Director | 1.42yrs | no data | 0.61% $8.8m | |
| Director | 0.83yr | no data | no data | |
| Director | 0.83yr | no data | no data | |
| Director | 0.83yr | no data | no data | |
| Director | 0.83yr | no data | no data |
1.1yrs
Average Tenure
57yo
Average Age
Experienced Board: AAF's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
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: AAF only recently listed within the past 12 months, with total shares outstanding growing by 97% in the past year..
Top Shareholders
Company Information
Airtel Africa Plc's company bio, 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
- Market Cap: UK£1.444b
- Shares outstanding: 3.76b
- Website: https://airtel.africa
Number of Employees
Location
- Airtel Africa Plc
- 53/54 Grosvenor Street
- 2nd Floor
- London
- Greater London
- W1K 3HU
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AAF | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jun 2019 |
| 9AA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2019 |
| AAFL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jun 2019 |
| AIRTELAFRI | NGSE (Nigerian Stock Exchange) | Yes | Ordinary Shares | NG | NGN | Jun 2019 |
Biography
Airtel Africa Plc provides mobile telecommunication services to customers in Nigeria, East Africa, and rest of Africa. It offers services to approximately 99 million small, medium, and high-usage customers; mobile data services to 30 million customers; and mobile banking services. The company was incorporated in 2018 and is based in London, the United Kingdom. Airtel Africa Plc is a subsidiary of Airtel Africa Mauritius Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:21 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.