KWSE:ZAIN

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Mobile Telecommunications Company K.S.C.P

Executive Summary

Mobile Telecommunications Company K.S.C.P., together with its subsidiaries, provides mobile telecommunication services.


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

ZAINIndustryMarket
7 Day1.5%-1.0%3.0%
30 Day9.5%-2.6%5.4%
90 Day-5.4%-9.6%-18.2%
1 Year14.6%7.3%-2.8%-6.1%-8.4%-11.6%
3 Year41.2%24.1%-2.8%-14.9%14.7%3.1%
5 Year60.6%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

NamePositionTenureCompensationOwnership
Bader Bin Nasser Al Kharafi
Deputy Chairman & CEO3.17yrsno datano data
Ossama Matta
Chief Financial Officer9.92yrsno datano data
Scott Gegenheimer
Chief Executive Officer of Operations3.17yrsno datano data
Hisham Allam
Chief Technology Officer8.42yrsno datano data
Mohammad Abdal
Chief Communications Officer and Head of IR4.83yrsno datano data
Adlai Shalabi
Head of Legal5yrsno datano data
Nawal Bou-Risli
Human Resources Executive Director9.58yrsno datano data
Andrew Arowojolu
Chief Regulatory Officer3.58yrsno datano data
Venkatesh Jandhyala
Chief Internal Auditor6.08yrsno datano data
Henri Kassab
Managing Director of International6.33yrsno datano 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

NamePositionTenureCompensationOwnership
Bader Bin Nasser Al Kharafi
Deputy Chairman & CEO3.17yrsno datano data
Talal Bin Saeed Al Meamari
Non-Executive Director2.67yrsno datano data
Al Shaikh Bin Ali Abdulla Al-Khalifa
Chairman of Zain Bahrainno datano datano data
Ahmed Al Tahous
Chairmanno datano datano data
Martial Antoni Carti
Non-Executive Director2.5yrsno datano data
Saoud Bin Ahmad Bin Abdul Al Nahari
Non-Executive Director2.5yrsno datano data
Mahdi Bin Muhammad Jawwad Bin Al Abdouwani
Non-Executive Director2.5yrsno datano data
Nigel Jovet
Non-Executive Director2.5yrsno datano data
Abdul Rahman Al Ossfour
Directorno datano datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZAINKWSE (Kuwait Stock Exchange)YesOrdinary SharesKWKWDMar 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 19:29
End of Day Share Price2020/05/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.