Airtel Africa
Market Cap
UK£2.9b
Last Updated
2021/06/14 21:05 UTC
Data Sources
Company Financials +
Executive Summary
Airtel Africa Plc provides telecommunication and mobile money services to customers in Nigeria, East and Central Africa, and Francophone Africa. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued second-rate 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 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.
Market Performance
7 Day Return
-1.1%
AAF
0.7%
GB Wireless Telecom
0.5%
GB Market
1 Year Return
34.7%
AAF
9.3%
GB Wireless Telecom
22.0%
GB Market
Return vs Industry: AAF exceeded the UK Wireless Telecom industry which returned 9.3% over the past year.
Return vs Market: AAF exceeded the UK Market which returned 22% over the past year.
Shareholder returns
| AAF | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.1% | 0.7% | 0.5% |
| 30 Day | -3.7% | -4.2% | 2.0% |
| 90 Day | -5.8% | -2.8% | 6.0% |
| 1 Year | 42.2%34.7% | 13.1%9.3% | 28.3%22.0% |
| 3 Year | n/a | -15.4%-25.0% | 14.0%-0.2% |
| 5 Year | n/a | -7.5%-28.6% | 52.6%23.0% |
Long-Term 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
2 days ago | Simply Wall St
Update: Airtel Africa (LON:AAF) Stock Gained 37% In The Last Year2 weeks ago | Simply Wall St
Airtel Africa's (LON:AAF) Returns On Capital Are Heading Higher1 month ago | Simply Wall St
Airtel Africa (LON:AAF) Takes On Some Risk With Its Use Of DebtValuation
Is Airtel Africa undervalued compared to its fair value and its price relative to the market?
47.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAF (£0.77) is trading below our estimate of fair value (£1.48)
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 (12.1x) compared to the European Wireless Telecom industry average (18.8x).
PE vs Market: AAF is good value based on its PE Ratio (12.1x) compared to the UK market (25.9x).
Price to Earnings Growth Ratio
PEG Ratio: AAF is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: AAF is good value based on its PB Ratio (1.2x) compared to the XE Wireless Telecom industry average (1.8x).
Future Growth
How is Airtel Africa forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
14.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAF's forecast earnings growth (14.3% per year) is above the savings rate (0.9%).
Earnings vs Market: AAF's earnings (14.3% per year) are forecast to grow slower than the UK market (16.9% per year).
High Growth Earnings: AAF's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAF's revenue (7.1% per year) is forecast to grow faster than the UK market (5% per year).
High Growth Revenue: AAF's revenue (7.1% 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 (12.5%).
Past Performance
How has Airtel Africa performed over the past 5 years?
59.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAF has high quality earnings.
Growing Profit Margin: AAF's current net profit margins (8.7%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: AAF's earnings have grown significantly by 59.8% per year over the past 5 years.
Accelerating Growth: AAF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AAF had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the Wireless Telecom industry average (14.5%).
Return on Equity
High ROE: AAF's Return on Equity (12.4%) is considered low.
Financial Health
How is Airtel Africa's financial position?
Financial Position Analysis
Short Term Liabilities: AAF's short term assets ($1.9B) do not cover its short term liabilities ($3.5B).
Long Term Liabilities: AAF's short term assets ($1.9B) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: AAF's debt to equity ratio (99.6%) 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 (49.9%).
Interest Coverage: AAF's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Dividend
What is Airtel Africa current dividend yield, its reliability and sustainability?
3.66%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AAF's dividend (3.66%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).
High Dividend: AAF's dividend (3.66%) is low compared to the top 25% of dividend payers in the UK market (4.01%).
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 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.3%), 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 (64.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.4yrs
Average management tenure
CEO
Raghu Mandava (53 yo)
4.42yrs
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...
Leadership Team
Experienced Management: AAF's management team is seasoned and experienced (5.4 years average tenure).
Board Members
Experienced Board: AAF's board of directors are not considered experienced ( 2.2 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted 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£2.905b
- 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
Biography
Airtel Africa Plc provides telecommunication and mobile money services to customers in Nigeria, East and Central Africa, and Francophone Africa. It offers prepaid and postpaid wireless voice, international...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/14 21:05 |
| End of Day Share Price | 2021/06/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.