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ZAIN

Mobile Telecommunications Company K.S.C.PKWSE:ZAIN Stock Report

Last Price

د.ك0.60

Market Cap

د.ك2.6b

7D

-0.3%

1Y

-5.8%

Updated

23 Jan, 2022

Data

Company Financials +
ZAIN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends1/6

ZAIN Stock Overview

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

Mobile Telecommunications Company K.S.C.P Competitors

Kuwait Telecommunications Company K.S.C.P

KWSE:STC

د.ك431.0m

América Móvil. de

BMV:AMX L

Mex$1.3t

Telefónica

BME:TEF

€23.0b

Ooredoo Q.P.S.C

DSM:ORDS

ر.ق23.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mobile Telecommunications Company K.S.C.P
Historical stock prices
Current Share Priceد.ك0.60
52 Week Highد.ك0.64
52 Week Lowد.ك0.57
Beta0.26
1 Month Change0.34%
3 Month Change-0.17%
1 Year Change-5.85%
3 Year Change28.17%
5 Year Change16.86%
Change since IPO47.21%

Recent News & Updates

Shareholder Returns

ZAINKW Wireless TelecomKW Market
7D-0.3%-0.3%-0.3%
1Y-5.8%-2.5%28.1%

Return vs Industry: ZAIN underperformed the KW Wireless Telecom industry which returned -2.5% over the past year.

Return vs Market: ZAIN underperformed the KW Market which returned 29% over the past year.

Price Volatility

Is ZAIN's price volatile compared to industry and market?
ZAIN volatility
ZAIN Average Weekly Movement1.7%
Wireless Telecom Industry Average Movement3.9%
Market Average Movement4.6%
10% most volatile stocks in KW Market10.5%
10% least volatile stocks in KW Market2.2%

Stable Share Price: ZAIN is less volatile than 75% of KW stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ZAIN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1983n/aBader Bin Nasser Al Kharafihttps://www.zain.com

Mobile Telecommunications Company K.S.C.P., together with its subsidiaries, provides mobile telecommunication services. The company operates, purchases, delivers, installs, manages, and maintains mobile telephones systems. It also offers smart bundle and mobility, VoIP, and internet of things solutions, as well as hosted and managed, managed security, and cloud services.

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

How do Mobile Telecommunications Company K.S.C.P's earnings and revenue compare to its market cap?
ZAIN fundamental statistics
Market Capد.ك2.58b
Earnings (TTM)د.ك188.80m
Revenue (TTM)د.ك1.57b

13.7x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZAIN income statement (TTM)
Revenueد.ك1.57b
Cost of Revenueد.ك463.00m
Gross Profitد.ك1.11b
Expensesد.ك917.15m
Earningsد.ك188.80m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.044
Gross Margin70.49%
Net Profit Margin12.03%
Debt/Equity Ratio75.0%

How did ZAIN perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

99%

Payout Ratio

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 (KWD0.6) is trading below our estimate of fair value (KWD1.73)

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 (13.7x) compared to the Asian Wireless Telecom industry average (20.8x).

PE vs Market: ZAIN is good value based on its PE Ratio (13.7x) compared to the KW market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZAIN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: ZAIN is overvalued based on its PB Ratio (2.2x) compared to the XA Wireless Telecom industry average (2x).


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 5 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZAIN's forecast earnings growth (6.5% per year) is below the savings rate (9.1%).

Earnings vs Market: ZAIN's earnings (6.5% per year) are forecast to grow slower than the KW market (15.7% per year).

High Growth Earnings: ZAIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZAIN's revenue (3% per year) is forecast to grow slower than the KW market (8.5% per year).

High Growth Revenue: ZAIN's revenue (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 (11.2%).


Past Performance

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

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZAIN has high quality earnings.

Growing Profit Margin: ZAIN's current net profit margins (12%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: ZAIN's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: ZAIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZAIN had negative earnings growth (-3.4%) over the past year, making it difficult to compare to the Wireless Telecom industry average (5%).


Return on Equity

High ROE: ZAIN's Return on Equity (11.3%) is considered low.


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 (KWD1.1B) do not cover its short term liabilities (KWD1.4B).

Long Term Liabilities: ZAIN's short term assets (KWD1.1B) do not cover its long term liabilities (KWD1.6B).


Debt to Equity History and Analysis

Debt Level: ZAIN's net debt to equity ratio (57.6%) is considered high.

Reducing Debt: ZAIN's debt to equity ratio has increased from 58.6% to 75% over the past 5 years.

Debt Coverage: ZAIN's debt is well covered by operating cash flow (31.9%).

Interest Coverage: ZAIN's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Dividend

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

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZAIN's dividend (3.36%) is higher than the bottom 25% of dividend payers in the KW market (1.85%).

High Dividend: ZAIN's dividend (3.36%) is low compared to the top 25% of dividend payers in the KW market (5.14%).


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 high payout ratio (98.6%), ZAIN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZAIN's dividends in 3 years are not forecast to be well covered by earnings (93.4% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Bader Bin Nasser Al Kharafi (44 yo)

4.83yrs

Tenure

Mr. Bader Bin Nasser Mohammed Al Kharafi serves as the Managing Director of Al-Khatem Telecommunications Company. He has been the Chief Executive Officer of Zain Kuwait since June 10, 2010 and Chief Techno...


Leadership Team

Experienced Management: ZAIN's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: ZAIN's board of directors are considered experienced (3.7 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.


Top Shareholders

Company Information

Mobile Telecommunications Company K.S.C.P.'s 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
  • Implied Market Cap: د.ك2.579b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 15:55
End of Day Share Price2022/01/23 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.