Executive Summary
Mobile Telecommunications Company K.S.C.P., together with its subsidiaries, provides mobile telecommunication services.
Rewards
Risk Analysis
Snowflake Analysis
Good value with proven track record.
Similar Companies
Share Price & News
How has Mobile Telecommunications Company K.S.C.P's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ZAIN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.5%
ZAIN
-1.0%
KW Wireless Telecom
3.0%
KW Market
1 Year Return
7.3%
ZAIN
-6.1%
KW Wireless Telecom
-11.6%
KW Market
Return vs Industry: ZAIN exceeded the KW Wireless Telecom industry which returned -6.1% over the past year.
Return vs Market: ZAIN exceeded the KW Market which returned -11.6% over the past year.
Shareholder returns
| ZAIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | -1.0% | 3.0% |
| 30 Day | 9.5% | -2.6% | 5.4% |
| 90 Day | -5.4% | -9.6% | -18.2% |
| 1 Year | 14.6%7.3% | -2.8%-6.1% | -8.4%-11.6% |
| 3 Year | 41.2%24.1% | -2.8%-14.9% | 14.7%3.1% |
| 5 Year | 60.6%20.5% | -8.4%-24.6% | 18.4%-1.3% |
Price Volatility Vs. Market
How volatile is Mobile Telecommunications Company K.S.C.P's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Mobile Telecommunications Company K.S.C.P 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: ZAIN (KWD0.53) is trading below our estimate of fair value (KWD1.09)
Significantly Below Fair Value: ZAIN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ZAIN is good value based on its PE Ratio (10.6x) compared to the Wireless Telecom industry average (13.8x).
PE vs Market: ZAIN is good value based on its PE Ratio (10.6x) compared to the KW market (11.6x).
Price to Earnings Growth Ratio
PEG Ratio: ZAIN is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: ZAIN is overvalued based on its PB Ratio (1.8x) compared to the XA Wireless Telecom industry average (1.7x).
Next Steps
Future Growth
How is Mobile Telecommunications Company K.S.C.P forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
4.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZAIN's forecast earnings growth (4.5% per year) is below the savings rate (9.5%).
Earnings vs Market: ZAIN's earnings (4.5% per year) are forecast to grow slower than the KW market (8.6% per year).
High Growth Earnings: ZAIN's earnings are forecast to grow, but not significantly.
Revenue vs Market: ZAIN's revenue (4.3% per year) is forecast to grow slower than the KW market (8% per year).
High Growth Revenue: ZAIN's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ZAIN's Return on Equity is forecast to be low in 3 years time (12%).
Next Steps
Past Performance
How has Mobile Telecommunications Company K.S.C.P performed over the past 5 years?
5.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ZAIN has high quality earnings.
Growing Profit Margin: ZAIN's current net profit margins (13.1%) are lower than last year (14.9%).
Past Earnings Growth Analysis
Earnings Trend: ZAIN's earnings have grown by 5% per year over the past 5 years.
Accelerating Growth: ZAIN's earnings growth over the past year (10.4%) exceeds its 5-year average (5% per year).
Earnings vs Industry: ZAIN earnings growth over the past year (10.4%) exceeded the Wireless Telecom industry 1.6%.
Return on Equity
High ROE: ZAIN's Return on Equity (14.8%) is considered low.
Next Steps
Financial Health
How is Mobile Telecommunications Company K.S.C.P's financial position?
Financial Position Analysis
Short Term Liabilities: ZAIN's short term assets (KWD993.9M) do not cover its short term liabilities (KWD1.2B).
Long Term Liabilities: ZAIN's short term assets (KWD993.9M) do not cover its long term liabilities (KWD1.8B).
Debt to Equity History and Analysis
Debt Level: ZAIN's debt to equity ratio (83.3%) is considered high.
Reducing Debt: ZAIN's debt to equity ratio has increased from 44.1% to 83.3% over the past 5 years.
Debt Coverage: ZAIN's debt is well covered by operating cash flow (46.6%).
Interest Coverage: ZAIN's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Mobile Telecommunications Company K.S.C.P's current dividend yield, its reliability and sustainability?
6.23%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ZAIN's dividend (6.23%) is higher than the bottom 25% of dividend payers in the KW market (5.16%).
High Dividend: ZAIN's dividend (6.23%) is low compared to the top 25% of dividend payers in the KW market (9.59%).
Stability and Growth of Payments
Stable Dividend: ZAIN's dividend payments have been volatile in the past 10 years.
Growing Dividend: ZAIN's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.8%), ZAIN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ZAIN's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Bader Bin Nasser Al Kharafi (41yo)
3.17yrs
Tenure
Mr. Bader Bin Nasser Mohammed Al Kharafi serves as the Managing Director of Al-Khatem Telecommunications Company. Mr. Al Kharafi has been the Chief Executive Officer of Zain Kuwait since June 10, 2010 and ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Deputy Chairman & CEO | 3.17yrs | no data | no data | |
| Chief Financial Officer | 9.92yrs | no data | no data | |
| Chief Executive Officer of Operations | 3.17yrs | no data | no data | |
| Chief Technology Officer | 8.42yrs | no data | no data | |
| Chief Communications Officer and Head of IR | 4.83yrs | no data | no data | |
| Head of Legal | 5yrs | no data | no data | |
| Human Resources Executive Director | 9.58yrs | no data | no data | |
| Chief Regulatory Officer | 3.58yrs | no data | no data | |
| Chief Internal Auditor | 6.08yrs | no data | no data | |
| Managing Director of International | 6.33yrs | no data | no data |
5.5yrs
Average Tenure
47yo
Average Age
Experienced Management: ZAIN's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Deputy Chairman & CEO | 3.17yrs | no data | no data | |
| Non-Executive Director | 2.67yrs | no data | no data | |
| Chairman of Zain Bahrain | no data | no data | no data | |
| Chairman | no data | no data | no data | |
| Non-Executive Director | 2.5yrs | no data | no data | |
| Non-Executive Director | 2.5yrs | no data | no data | |
| Non-Executive Director | 2.5yrs | no data | no data | |
| Non-Executive Director | 2.5yrs | no data | no data | |
| Director | no data | no data | no data |
2.5yrs
Average Tenure
Experienced Board: ZAIN's board of directors are not considered experienced ( 2.5 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
Mobile Telecommunications Company K.S.C.P.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mobile Telecommunications Company K.S.C.P.
- Ticker: ZAIN
- Exchange: KWSE
- Founded: 1983
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: د.ك2.293b
- Shares outstanding: 4.33b
- Website: https://www.zain.com
Location
- Mobile Telecommunications Company K.S.C.P.
- Airport Road
- Shuwaikh
- Kuwait City
- 13083
- Kuwait
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ZAIN | KWSE (Kuwait Stock Exchange) | Yes | Ordinary Shares | KW | KWD | Mar 1996 |
Biography
Mobile Telecommunications Company K.S.C.P., together with its subsidiaries, provides mobile telecommunication services. It operates, purchases, delivers, installs, manages, and maintains mobile telephones and paging systems. The company also invests in investment securities. As of December 31, 2019, it provided mobile voice and data services to approximately 49.5 million individual and business customers. It operates in Jordan, Sudan, Iraq, Bahrain, the Kingdom of Saudi Arabia, Lebanon, and South Sudan. The company was founded in 1983 and is headquartered in Safat, Kuwait. Mobile Telecommunications Company K.S.C.P. is a subsidiary of Oman Telecommunications Company SAOG.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 19:29 |
| End of Day Share Price | 2020/05/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.