LSE:AAF

Stock Analysis Report

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Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

AAF

-6.5%

GB Wireless Telecom

-5.1%

GB Market


1 Year Return

-4.7%

AAF

-28.4%

GB Wireless Telecom

-20.0%

GB Market

Return vs Industry: AAF exceeded the UK Wireless Telecom industry which returned -28.4% over the past year.

Return vs Market: AAF exceeded the UK Market which returned -20% over the past year.


Shareholder returns

AAFIndustryMarket
7 Day-3.7%-6.5%-5.1%
30 Day5.7%-2.8%-4.3%
90 Day14.7%-9.3%-4.5%
1 Year2.5%-4.7%-24.9%-28.4%-17.0%-20.0%
3 Yearn/a-38.6%-47.0%-13.6%-24.3%
5 Yearn/a-25.9%-43.8%10.2%-14.6%

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

Valuation

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 (£0.62) is trading below our estimate of fair value (£3.27)

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 (11.3x) compared to the XE Wireless Telecom industry average (16.4x).

PE vs Market: AAF is good value based on its PE Ratio (11.3x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AAF is good value based on its PB Ratio (0.9x) compared to the XE Wireless Telecom industry average (1.4x).


Next Steps

Future Growth

How is Airtel Africa forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAF's forecast earnings growth (15.2% per year) is above the savings rate (1.2%).

Earnings vs Market: AAF's earnings (15.2% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: AAF's revenue (5.5% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: AAF's revenue (5.5% 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 (11.1%).


Next Steps

Past Performance

How has Airtel Africa performed over the past 5 years?

73.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAF has high quality earnings.

Growing Profit Margin: AAF's current net profit margins (7.4%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: AAF's earnings have grown significantly by 73.9% 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 (-28.5%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-5.2%).


Return on Equity

High ROE: AAF's Return on Equity (9.8%) 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 ($1.8B) do not cover its short term liabilities ($3.2B).

Long Term Liabilities: AAF's short term assets ($1.8B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: AAF's debt to equity ratio (100.1%) 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 (45.4%).

Interest Coverage: AAF's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.75%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AAF's dividend (3.75%) is higher than the bottom 25% of dividend payers in the UK market (1.85%).

High Dividend: AAF's dividend (3.75%) is low compared to the top 25% of dividend payers in the UK market (5.37%).


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 reasonable payout ratio (63.3%), AAF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAF's dividends in 3 years are forecast to be covered by earnings (82.5% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Raghu Mandava (53 yo)

3.75yrs

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

NamePositionTenureCompensationOwnership
Raghunath Mandava
MD, CEO & Director3.75yrsno datano data
Jaideep Paul
Chief Financial Officer6.42yrsno datano data
Razvan Ungureanu
Chief Technology Officer4.75yrsno datano data
Neelesh Singh
Chief Information Officerno datano datano data
Pier Falcione
Deputy CFOno datano datano data
Olivier Pognon
Chief Legal Office6.25yrsno datano data
Ashish Malhotra
Chief Marketing Officerno datano datano data
Rogany Ramiah
Chief Human Resources Officer1.42yrsno datano data
Daddy Mukadi
Chief Regulatory Officer5.75yrsno datano data
Stephen Nthenge
Head of Internal Audit & Risk Assurance1.42yrsno datano data
Olusegun Ogunsanya
MD & CEO of Nigeriano datano datano data
Ramakrishna Lella
Chief Supply Chain Officer4yrsno datano data

4.4yrs

Average Tenure

47yo

Average Age

Experienced Management: AAF's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raghunath Mandava
MD, CEO & Director3.75yrsno datano data
Sunil Mittal
Non-Executive Chairno datano datano data
Akhil Gupta
Non-Executive Director2yrsno datano data
Andrew Green
Senior Independent Non-Executive Directorno datano datano data
Ravi Rajagopal
Independent Non-Executive Director1.42yrsno data0.0023%
$ 53.3k
Boon Chye Koh
Alternate Directorno datano datano data
Liisa Poutiainen
Independent Non-Executive Director1.42yrsno data0.00080%
$ 18.6k
Tao Yih Lang
Non-Executive Director2yrsno datano data
Shravin Mittal
Non-Executive Director2yrsno data0.61%
$ 14.2m
John Danilovich
Independent Non-Executive Director1.42yrsno data0.012%
$ 283.8k
Douglas Baillie
Independent Non-Executive Director1.42yrsno data0.00053%
$ 12.3k
Awuneba Ajumogobia
Independent Non-Executive Director1.42yrsno datano data

1.4yrs

Average Tenure

63yo

Average Age

Experienced Board: AAF's board of directors are not considered experienced ( 1.4 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: 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£2.319b
  • Shares outstanding: 3.76b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAFLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2019
9AADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2019
AAFLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2019
AIRTELAFRINGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNJun 2019

Biography

Airtel Africa Plc provides telecommunication and mobile money services to customers in Nigeria, East Africa, and Francophone Africa. The company provides prepaid and postpaid wireless voice, international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 22:10
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.