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MTNG

Scancom GHSE:MTNGH Stock Report

Last Price

GH₵0.88

Market Cap

GH₵10.8b

7D

10.0%

1Y

-30.2%

Updated

12 Aug, 2022

Data

Company Financials +
MTNGH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance6/6
Financial Health6/6
Dividends4/6

MTNGH Stock Overview

Scancom Plc provides telecommunications services in Ghana.

Scancom Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Scancom
Historical stock prices
Current Share PriceGH₵0.88
52 Week HighGH₵0
52 Week LowGH₵0
Beta-0.035
1 Month Change1.15%
3 Month Change-2.22%
1 Year Change-30.16%
3 Year Change23.94%
5 Year Changen/a
Change since IPO17.33%

Recent News & Updates

Shareholder Returns

MTNGHGH Wireless TelecomGH Market
7D10.0%4.3%4.2%
1Y-30.2%3.9%-13.9%

Return vs Industry: MTNGH underperformed the GH Wireless Telecom industry which returned 3.9% over the past year.

Return vs Market: MTNGH underperformed the GH Market which returned -13.9% over the past year.

Price Volatility

Is MTNGH's price volatile compared to industry and market?
MTNGH volatility
MTNGH Average Weekly Movement6.4%
Wireless Telecom Industry Average Movement5.1%
Market Average Movement3.3%
10% most volatile stocks in GH Market5.3%
10% least volatile stocks in GH Market0.4%

Stable Share Price: MTNGH is more volatile than 90% of GH stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MTNGH's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of GH stocks.

About the Company

FoundedEmployeesCEOWebsite
1994n/aSelorm Adadevohhttps://mtn.com.gh

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 consumer products include MTN Shortz, MTN Protect, MTN fibre broadband, internet solutions, MTN vehicle tracking, MTN Care 24/7, MTN radio, iStream TV, MTN Play, MTN Xtratime, Music Plus, MTN Video Plus, and MTN online school.

Scancom Fundamentals Summary

How do Scancom's earnings and revenue compare to its market cap?
MTNGH fundamental statistics
Market CapGH₵10.82b
Earnings (TTM)GH₵2.25b
Revenue (TTM)GH₵8.33b

4.8x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTNGH income statement (TTM)
RevenueGH₵8.33b
Cost of RevenueGH₵1.74b
Gross ProfitGH₵6.59b
Other ExpensesGH₵4.34b
EarningsGH₵2.25b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin79.13%
Net Profit Margin27.01%
Debt/Equity Ratio11.7%

How did MTNGH perform over the long term?

See historical performance and comparison

Dividends

13.1%

Current Dividend Yield

62%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MTNGH 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/Revenue1.4x
Enterprise Value/EBITDA2.6x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

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

MTNGH PE Ratio vs Peers
The above table shows the PE ratio for MTNGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.2x
ENTEL Empresa Nacional de Telecomunicaciones
2.3x-0.8%CL$842.9b
OBEL Orange Belgium
18.8x3.1%€1.2b
9436 Okinawa Cellular Telephone
13.2x2.4%JP¥140.3b
CEL Cellcom Israel
65.7x40.0%₪3.2b
MTNGH Scancom
4.8x21.7%GH₵10.8b

Price-To-Earnings vs Peers: MTNGH is good value based on its Price-To-Earnings Ratio (4.8x) compared to the peer average (25.2x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: MTNGH is good value based on its Price-To-Earnings Ratio (4.8x) compared to the African Wireless Telecom industry average (13.7x)


Price to Earnings Ratio vs Fair Ratio

What is MTNGH'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.

MTNGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MTNGH's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: MTNGH (GHS0.88) is trading below our estimate of fair value (GHS5.59)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTNGH's forecast earnings growth (21.7% per year) is above the savings rate (8.9%).

Earnings vs Market: MTNGH's earnings (21.7% per year) are forecast to grow faster than the GH market (6% per year).

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

Revenue vs Market: MTNGH's revenue (20.5% per year) is forecast to grow faster than the GH market (17% per year).

High Growth Revenue: MTNGH's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTNGH's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Scancom 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


29.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTNGH has high quality earnings.

Growing Profit Margin: MTNGH's current net profit margins (27%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: MTNGH's earnings have grown significantly by 29.1% per year over the past 5 years.

Accelerating Growth: MTNGH's earnings growth over the past year (49.4%) exceeds its 5-year average (29.1% per year).

Earnings vs Industry: MTNGH earnings growth over the past year (49.4%) exceeded the Wireless Telecom industry -1.2%.


Return on Equity

High ROE: MTNGH's Return on Equity (44.3%) is considered outstanding.


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Financial Health

How is Scancom's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MTNGH's short term assets (GHS11.9B) exceed its short term liabilities (GHS11.0B).

Long Term Liabilities: MTNGH's short term assets (GHS11.9B) exceed its long term liabilities (GHS2.0B).


Debt to Equity History and Analysis

Debt Level: MTNGH has more cash than its total debt.

Reducing Debt: MTNGH's debt to equity ratio has reduced from 12.1% to 11.7% over the past 5 years.

Debt Coverage: MTNGH's debt is well covered by operating cash flow (595%).

Interest Coverage: MTNGH's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


13.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MTNGH's dividend (13.07%) is higher than the bottom 25% of dividend payers in the GH market (4.04%).

High Dividend: MTNGH's dividend (13.07%) is in the top 25% of dividend payers in the GH market (12.17%)


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 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (62.5%), MTNGH's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (68%), MTNGH's dividend payments are covered by cash flows.


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Management

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

2.7yrs

Average board tenure


CEO

Selorm Adadevoh (47 yo)

4.17yrs

Tenure

Mr. Selorm Adadevoh has been an Executive Director at Scancom Plc since August 8, 2018. He is the 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 not considered experienced ( 2.7 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

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


Key Information

  • Name: Scancom Plc
  • Ticker: MTNGH
  • Exchange: GHSE
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: GH₵10.816b
  • Shares outstanding: 12.29b
  • Website: https://mtn.com.gh

Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.