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AIRT

Airtel MalawiMAL:AIRTEL Stock Report

Market Cap

MK421.5b

7D

-4.8%

1Y

31.1%

Updated

19 Oct, 2021

Data

Company Financials
AIRTEL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends2/6

AIRTEL Overview

Airtel Malawi plc provides mobile telecommunication services in Malawi.

Airtel Malawi Competitors

Telekom Networks Malawi

MAL:TNM

MK233.4b

Price History & Performance

Summary of all time highs, changes and price drops for Airtel Malawi
Historical stock prices
Current Share PriceMK38.01
52 Week HighMK0
52 Week LowMK0
Beta0
1 Month Change-4.95%
3 Month Change6.32%
1 Year Change31.07%
3 Year Changen/a
5 Year Changen/a
Change since IPO114.63%

Recent News & Updates

Shareholder Returns

AIRTELMW Wireless TelecomMW Market
7D-4.8%-1.7%-1.4%
1Y31.1%45.4%26.1%

Return vs Industry: AIRTEL underperformed the MW Wireless Telecom industry which returned 47.3% over the past year.

Return vs Market: AIRTEL exceeded the MW Market which returned 28.1% over the past year.

Price Volatility

Is AIRTEL's price volatile compared to industry and market?
AIRTEL volatility
AIRTEL Beta0
Industry Beta0.49
Market Beta1

Stable Share Price: AIRTEL is not significantly more volatile than the rest of MW stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AIRTEL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998n/aCharles Kamotohttps://www.airtel.mw

Airtel Malawi plc provides mobile telecommunication services in Malawi. The company provides GSM mobile cellular telephone, voice telephony, messaging, data, international and national long-distance telecommunications, and value-added services, as well as high-speed fixed broadband internet, roaming, and mobile money services. The company was incorporated in 1998 and is based in Lilongwe, Malawi.

Airtel Malawi Fundamentals Summary

How do Airtel Malawi's earnings and revenue compare to its market cap?
AIRTEL fundamental statistics
Market CapMK421.52b
Earnings (TTM)MK22.02b
Revenue (TTM)MK118.55b

19.0x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIRTEL income statement (TTM)
RevenueMK118.55b
Cost of RevenueMK47.95b
Gross ProfitMK70.60b
ExpensesMK48.58b
EarningsMK22.02b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.00
Gross Margin59.55%
Net Profit Margin18.58%
Debt/Equity Ratio91.2%

How did AIRTEL perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

105%

Payout Ratio

Valuation

Is Airtel Malawi undervalued compared to its fair value and its price relative to the market?

18.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIRTEL (MWK38.01) is trading above our estimate of fair value (MWK29.97)

Significantly Below Fair Value: AIRTEL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIRTEL is good value based on its PE Ratio (19x) compared to the African Wireless Telecom industry average (19.1x).

PE vs Market: AIRTEL is poor value based on its PE Ratio (19x) compared to the MW market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIRTEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIRTEL is overvalued based on its PB Ratio (11.8x) compared to the XF Wireless Telecom industry average (4.1x).


Future Growth

How is Airtel Malawi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Airtel Malawi has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Airtel Malawi performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIRTEL has high quality earnings.

Growing Profit Margin: AIRTEL's current net profit margins (18.6%) are lower than last year (24.7%).


Past Earnings Growth Analysis

Earnings Trend: AIRTEL's earnings have grown significantly by 31.1% per year over the past 5 years.

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

Earnings vs Industry: AIRTEL had negative earnings growth (-13%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-6.8%).


Return on Equity

High ROE: AIRTEL's Return on Equity (62.1%) is considered outstanding.


Financial Health

How is Airtel Malawi's financial position?


Financial Position Analysis

Short Term Liabilities: AIRTEL's short term assets (MWK57.3B) do not cover its short term liabilities (MWK89.2B).

Long Term Liabilities: AIRTEL's short term assets (MWK57.3B) exceed its long term liabilities (MWK22.2B).


Debt to Equity History and Analysis

Debt Level: AIRTEL's debt to equity ratio (91.2%) is considered high.

Reducing Debt: Insufficient data to determine if AIRTEL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AIRTEL's debt is well covered by operating cash flow (137.7%).

Interest Coverage: AIRTEL's interest payments on its debt are well covered by EBIT (32.7x coverage).


Balance Sheet


Dividend

What is Airtel Malawi current dividend yield, its reliability and sustainability?

5.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIRTEL's dividend (5.52%) is higher than the bottom 25% of dividend payers in the MW market (1.43%).

High Dividend: AIRTEL's dividend (5.52%) is in the top 25% of dividend payers in the MW market (4.8%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AIRTEL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AIRTEL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105.1%), AIRTEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Charles Kamoto (46 yo)

5.58yrs

Tenure

Mr. Charles Mustafa Kamoto serves as the Managing Director since 1st March 2016 and Director at Airtel Malawi plc since July 27, 2015. He is Executive Director at Airtel Malawi plc. Mr. Kamoto’s growth sto...


Leadership Team

Experienced Management: AIRTEL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: AIRTEL's board of directors are not considered experienced ( 2 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

Airtel Malawi Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Airtel Malawi Plc
  • Ticker: AIRTEL
  • Exchange: MAL
  • Founded: 1998
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: MK421.520b
  • Shares outstanding: 11.00b
  • Website: https://www.airtel.mw

Location

  • Airtel Malawi Plc
  • Airtel Complex City Centre
  • Off Convention Drive
  • Lilongwe
  • Malawi

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:49
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
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.