GHSE:MTNGH

Stock Analysis Report

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Market Cap

GH₵14.7b

Last Updated

2021/07/24 17:08 UTC

Data Sources

Company Financials +

Executive Summary

Scancom Plc provides telecommunications services in Ghana. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Scancom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTNGH is more volatile than 90% of GH stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MTNGH's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of GH stocks.


Market Performance


7 Day Return

0%

MTNGH

0.9%

GH Wireless Telecom

0.1%

GH Market


1 Year Return

114.3%

MTNGH

34.1%

GH Wireless Telecom

67.1%

GH Market

Return vs Industry: MTNGH exceeded the GH Wireless Telecom industry which returned 34.1% over the past year.

Return vs Market: MTNGH exceeded the GH Market which returned 66.3% over the past year.


Shareholder returns

MTNGHIndustryMarket
7 Day0%0.9%0.1%
30 Day0%2.4%0.006%
90 Day25.0%9.0%18.4%
1 Year122.5%114.3%41.9%34.1%76.5%67.1%
3 Yearn/a32.1%10.5%-38.0%-42.9%
5 Yearn/a37.9%3.1%9.3%-9.0%

Long-Term Price Volatility Vs. Market

How volatile is Scancom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Scancom undervalued compared to its fair value and its price relative to the market?

9.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTNGH (GHS1.2) is trading above our estimate of fair value (GHS0.92)

Significantly Below Fair Value: MTNGH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTNGH is good value based on its PE Ratio (9.8x) compared to the African Wireless Telecom industry average (16.3x).

PE vs Market: MTNGH is poor value based on its PE Ratio (9.8x) compared to the GH market (3.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MTNGH is overvalued based on its PB Ratio (3.9x) compared to the XF Wireless Telecom industry average (3.2x).


Future Growth

How is Scancom forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTNGH's forecast earnings growth (20.9% per year) is above the savings rate (9.2%).

Earnings vs Market: MTNGH's earnings (20.9% per year) are forecast to grow faster than the GH market (19.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTNGH's revenue (18.2% per year) is forecast to grow faster than the GH market (16.7% per year).

High Growth Revenue: MTNGH's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTNGH's Return on Equity is forecast to be very high in 3 years time (49.6%).


Past Performance

How has Scancom performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTNGH has high quality earnings.

Growing Profit Margin: MTNGH's current net profit margins (23.7%) are higher than last year (21%).


Past Earnings Growth Analysis

Earnings Trend: MTNGH's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: MTNGH's earnings growth over the past year (31.9%) exceeds its 5-year average (23.3% per year).

Earnings vs Industry: MTNGH earnings growth over the past year (31.9%) exceeded the Wireless Telecom industry 21%.


Return on Equity

High ROE: MTNGH's Return on Equity (39.6%) is considered high.


Financial Health

How is Scancom's financial position?


Financial Position Analysis

Short Term Liabilities: MTNGH's short term assets (GHS9.1B) exceed its short term liabilities (GHS8.8B).

Long Term Liabilities: MTNGH's short term assets (GHS9.1B) exceed its long term liabilities (GHS2.1B).


Debt to Equity History and Analysis

Debt Level: MTNGH's debt to equity ratio (17.7%) is considered satisfactory.

Reducing Debt: MTNGH's debt to equity ratio has reduced from 19.7% to 17.7% over the past 5 years.

Debt Coverage: MTNGH's debt is well covered by operating cash flow (266.8%).

Interest Coverage: MTNGH's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

What is Scancom current dividend yield, its reliability and sustainability?

6.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTNGH's dividend (6.67%) is higher than the bottom 25% of dividend payers in the GH market (4.33%).

High Dividend: MTNGH's dividend (6.67%) is low compared to the top 25% of dividend payers in the GH market (8.11%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MTNGH has been paying a dividend for less than 10 years.

Growing Dividend: MTNGH's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), MTNGH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.3yrs

Average board tenure


CEO

Selorm Adadevoh (47 yo)

3.08yrs

Tenure

Mr. Selorm Adadevoh has been an Executive Director at Scancom Plc since August 8, 2018. He is a Chief Executive Officer of Scancom Plc since June 20, 2018. He was CEO of Digicel Group's Haitian operation, ...


Board Members

Experienced Board: MTNGH's board of directors are considered experienced (5.3 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

Scancom Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scancom Plc
  • Ticker: MTNGH
  • Exchange: GHSE
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: GH₵14.749b
  • Shares outstanding: 12.29b
  • Website: https://mtn.com.gh

Location

  • Scancom Plc
  • MTN House
  • Plot OER 6
  • Accra
  • Ghana

Listings


Biography

Scancom Plc provides telecommunications services in Ghana. It offers voice, data, mobile financial, and other digital services, as well as consultancy services in the mobile banking space. The company’s co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 17:08
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
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.