National Mobile Telecommunications Company K.S.C.P (KWSE:OOREDOO) - Share price, News & Analysis

OOREDOO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

OOREDOO Stock Overview

National Mobile Telecommunications Company K.S.C.P.

Rewards

Trading at 71% below our estimate of its fair value

Earnings grew by 907.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 2.2% per year for the next 3 years

Highly volatile share price over the past 3 months

Unstable dividend track record

National Mobile Telecommunications Company K.S.C.P Competitors

Palestine Telecommunications Company P.L.C

PLSE:PALTEL

د.أ789.8m

Cellcom Israel

TASE:CEL

₪2.8b

Price History & Performance

Summary of all time highs, changes and price drops for National Mobile Telecommunications Company K.S.C.P
Historical stock prices
Current Share Price	د.ك0.99
52 Week High	د.ك1.28
52 Week Low	د.ك0.61
Beta	0.12
1 Month Change	-6.52%
3 Month Change	32.57%
1 Year Change	52.15%
3 Year Change	48.05%
5 Year Change	-18.93%
Change since IPO	136.50%

Shareholder Returns

	OOREDOO	KW Wireless Telecom	KW Market
7D	-0.1%	1.5%	-0.3%
1Y	52.2%	-2.3%	22.8%

Return vs Industry: OOREDOO exceeded the KW Wireless Telecom industry which returned -1.4% over the past year.

Return vs Market: OOREDOO exceeded the KW Market which returned 24.2% over the past year.

Price Volatility

Is OOREDOO's price volatile compared to industry and market?
OOREDOO volatility
OOREDOO Average Weekly Movement	11.6%
Wireless Telecom Industry Average Movement	3.7%
Market Average Movement	4.8%
10% most volatile stocks in KW Market	8.9%
10% least volatile stocks in KW Market	2.7%

Stable Share Price: OOREDOO is more volatile than 90% of KW stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: OOREDOO's weekly volatility has increased from 6% to 12% over the past year.

About the Company

Founded	Employees	CEO	Website
1997	441	Abdulaziz Al-Babtain

National Mobile Telecommunications Company K.S.C.P. provides telecommunications services in Kuwait, Algeria, Tunisia, Maldives, and Palestine. It is involved in the purchase, supply, installation, management, and maintenance of wireless sets and equipment, mobile telephone services, pager systems, and other telecommunication services, as well as in the import and export of sets, equipment, and instruments. The company was incorporated in 1997 and is based in Kuwait City, Kuwait.

National Mobile Telecommunications Company K.S.C.P Fundamentals Summary

How do National Mobile Telecommunications Company K.S.C.P's earnings and revenue compare to its market cap?
OOREDOO fundamental statistics
Market Cap	د.ك495.65m
Earnings (TTM)	د.ك26.70m
Revenue (TTM)	د.ك608.56m

18.6x

P/E Ratio

0.8x

P/S Ratio

Is OOREDOO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OOREDOO income statement (TTM)
Revenue	د.ك608.56m
Cost of Revenue	د.ك317.17m
Gross Profit	د.ك291.40m
Other Expenses	د.ك264.70m
Earnings	د.ك26.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.053
Gross Margin	47.88%
Net Profit Margin	4.39%
Debt/Equity Ratio	3.6%

How did OOREDOO perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

66%

Payout Ratio

Valuation

Is National Mobile Telecommunications Company K.S.C.P undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OOREDOO (KWD0.99) is trading below our estimate of fair value (KWD3.41)

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

Price To Earnings Ratio

PE vs Industry: OOREDOO is good value based on its PE Ratio (18.6x) compared to the Asian Wireless Telecom industry average (21x).

PE vs Market: OOREDOO is poor value based on its PE Ratio (18.6x) compared to the KW market (17.4x).

Price to Earnings Growth Ratio

PEG Ratio: OOREDOO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: OOREDOO is good value based on its PB Ratio (0.9x) compared to the XA Wireless Telecom industry average (1.9x).

Future Growth

How is National Mobile Telecommunications Company K.S.C.P forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OOREDOO's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: OOREDOO's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: OOREDOO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OOREDOO's revenue (1.5% per year) is forecast to grow slower than the KW market (9.9% per year).

High Growth Revenue: OOREDOO's revenue (1.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OOREDOO's Return on Equity is forecast to be low in 3 years time (3.3%).

Past Performance

How has National Mobile Telecommunications Company K.S.C.P performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-28.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OOREDOO has high quality earnings.

Growing Profit Margin: OOREDOO's current net profit margins (4.4%) are higher than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: OOREDOO's earnings have declined by 28.5% per year over the past 5 years.

Accelerating Growth: OOREDOO's earnings growth over the past year (907.8%) exceeds its 5-year average (-28.5% per year).

Earnings vs Industry: OOREDOO earnings growth over the past year (907.8%) exceeded the Wireless Telecom industry 5.6%.

Return on Equity

High ROE: OOREDOO's Return on Equity (5.6%) is considered low.

Financial Health

How is National Mobile Telecommunications Company K.S.C.P's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OOREDOO's short term assets (KWD317.0M) do not cover its short term liabilities (KWD397.0M).

Long Term Liabilities: OOREDOO's short term assets (KWD317.0M) exceed its long term liabilities (KWD142.9M).

Debt to Equity History and Analysis

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

Reducing Debt: OOREDOO's debt to equity ratio has reduced from 28.2% to 3.6% over the past 5 years.

Debt Coverage: OOREDOO's debt is well covered by operating cash flow (753.6%).

Interest Coverage: OOREDOO's interest payments on its debt are well covered by EBIT (9.2x coverage).

Balance Sheet

Dividend

What is National Mobile Telecommunications Company K.S.C.P current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OOREDOO's dividend (3.54%) is higher than the bottom 25% of dividend payers in the KW market (2.32%).

High Dividend: OOREDOO's dividend (3.54%) is low compared to the top 25% of dividend payers in the KW market (5.82%).

Stability and Growth of Payments

Stable Dividend: OOREDOO's dividend payments have been volatile in the past 10 years.

Growing Dividend: OOREDOO's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (65.7%), OOREDOO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.5%), OOREDOO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure

CEO

Abdulaziz Al-Babtain

1.75yrs

Tenure

Mr. Abdulaziz Yacoub Al-Babtain serves as Chief Executive Officer of National Mobile Telecommunications Company K.S.C.P. (also known as Ooredoo Kuwait) since August 19, 2020. He served as Chief Business Of...

Leadership Team

Experienced Management: OOREDOO's management team is seasoned and experienced (5.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31