| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
SCOM Overview
Safaricom PLC provides telecommunication services in Kenya.
Rewards
Risk Analysis
No risks detected for SCOM from our risk checks.
Safaricom Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | KSh42.50 |
| 52 Week High | KSh30.00 |
| 52 Week Low | KSh45.25 |
| Beta | 0.52 |
| 1 Month Change | 1.68% |
| 3 Month Change | -0.70% |
| 1 Year Change | 38.66% |
| 3 Year Change | 80.85% |
| 5 Year Change | 113.03% |
| Change since IPO | 478.23% |
Recent News & Updates
Shareholder Returns
| SCOM | KE Wireless Telecom | KE Market | |
|---|---|---|---|
| 7D | 0.1% | -1.5% | 0.1% |
| 1Y | 38.7% | 43.0% | 28.0% |
Return vs Industry: SCOM underperformed the KE Wireless Telecom industry which returned 45.1% over the past year.
Return vs Market: SCOM exceeded the KE Market which returned 28.2% over the past year.
Price Volatility
| SCOM volatility | |
|---|---|
| SCOM Beta | 0.52 |
| Industry Beta | 0.49 |
| Market Beta | 1 |
Stable Share Price: SCOM is less volatile than 75% of KE stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SCOM's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 4,436 | Peter Ndegwa | https://www.safaricom.co.ke |
Safaricom PLC provides telecommunication services in Kenya. It provides voice, mobile data, and M-PESA payment, as well as home fiber services; mobile, fixed line, and Website and email services; and corporate internet, calling, and cloud and hosting services. The company also offers DigiFarm, an integrated mobile platform that offers farmers with a suite of products, including financial and credit services, farm products, and customized information on farming best practices; and operates Masoko, an e-commerce portal.
Safaricom Fundamentals Summary
| SCOM fundamental statistics | |
|---|---|
| Market Cap | KSh1.70t |
| Earnings (TTM) | KSh68.68b |
| Revenue (TTM) | KSh263.99b |
24.8x
P/E Ratio6.5x
P/S RatioIs SCOM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SCOM income statement (TTM) | |
|---|---|
| Revenue | KSh263.99b |
| Cost of Revenue | KSh82.02b |
| Gross Profit | KSh181.97b |
| Expenses | KSh113.29b |
| Earnings | KSh68.68b |
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.71 |
| Gross Margin | 68.93% |
| Net Profit Margin | 26.01% |
| Debt/Equity Ratio | 10.7% |
How did SCOM perform over the long term?
See historical performance and comparisonDividends
4.3%
Current Dividend Yield80%
Payout RatioValuation
Is Safaricom undervalued compared to its fair value and its price relative to the market?
24.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCOM (KES42.5) is trading above our estimate of fair value (KES23.76)
Significantly Below Fair Value: SCOM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SCOM is poor value based on its PE Ratio (24.8x) compared to the African Wireless Telecom industry average (19.1x).
PE vs Market: SCOM is poor value based on its PE Ratio (24.8x) compared to the KE market (6.7x).
Price to Earnings Growth Ratio
PEG Ratio: SCOM is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: SCOM is overvalued based on its PB Ratio (12.4x) compared to the XF Wireless Telecom industry average (4.1x).
Future Growth
How is Safaricom forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCOM's forecast earnings growth (11.4% per year) is below the savings rate (12.6%).
Earnings vs Market: SCOM's earnings (11.4% per year) are forecast to grow slower than the KE market (13.8% per year).
High Growth Earnings: SCOM's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCOM's revenue (8.5% per year) is forecast to grow slower than the KE market (9.5% per year).
High Growth Revenue: SCOM's revenue (8.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCOM's Return on Equity is forecast to be very high in 3 years time (46.1%).
Past Performance
How has Safaricom performed over the past 5 years?
11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCOM has high quality earnings.
Growing Profit Margin: SCOM's current net profit margins (26%) are lower than last year (28.1%).
Past Earnings Growth Analysis
Earnings Trend: SCOM's earnings have grown by 11.9% per year over the past 5 years.
Accelerating Growth: SCOM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SCOM had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-6.8%).
Return on Equity
High ROE: SCOM's Return on Equity (49.9%) is considered outstanding.
Financial Health
How is Safaricom's financial position?
Financial Position Analysis
Short Term Liabilities: SCOM's short term assets (KES55.9B) do not cover its short term liabilities (KES75.5B).
Long Term Liabilities: SCOM's short term assets (KES55.9B) exceed its long term liabilities (KES17.5B).
Debt to Equity History and Analysis
Debt Level: SCOM's debt to equity ratio (10.7%) is considered satisfactory.
Reducing Debt: SCOM's debt to equity ratio has increased from 0.2% to 10.7% over the past 5 years.
Debt Coverage: SCOM's debt is well covered by operating cash flow (713.4%).
Interest Coverage: SCOM's interest payments on its debt are well covered by EBIT (46x coverage).
Balance Sheet
Dividend
What is Safaricom current dividend yield, its reliability and sustainability?
4.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCOM's dividend (4.33%) is higher than the bottom 25% of dividend payers in the KE market (4.16%).
High Dividend: SCOM's dividend (4.33%) is low compared to the top 25% of dividend payers in the KE market (7.89%).
Stability and Growth of Payments
Stable Dividend: SCOM's dividends per share have been stable in the past 10 years.
Growing Dividend: SCOM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79.9%), SCOM's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCOM's dividends in 3 years are forecast to be covered by earnings (81.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Peter Ndegwa (52 yo)
1.5yrs
Tenure
KSh201,540,000
Compensation
Mr. Peter Waititu Ndegwa has been Chief Executive Officer and Executive Director of Safaricom PLC since April 1, 2020. He serves as the Chief Executive Officer of Safaricom PLC at Vodacom Group Limited sin...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD1.81M) is about average for companies of similar size in the KE market ($USD2.42M).
Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.
Leadership Team
Experienced Management: SCOM's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: SCOM's board of directors are not considered experienced ( 1.6 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
Safaricom PLC's employee growth, exchange listings and data sources
Key Information
- Name: Safaricom PLC
- Ticker: SCOM
- Exchange: NASE
- Founded: 1993
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: KSh1.703t
- Shares outstanding: 40.07b
- Website: https://www.safaricom.co.ke
Number of Employees
Location
- Safaricom PLC
- Safaricom House
- Waiyaki Way
- Nairobi
- 800
- Kenya
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/21 18:06 |
| End of Day Share Price | 2021/10/21 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.