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TNM

Telekom Networks MalawiMAL:TNM Stock Report

Market Cap

MK233.3b

7D

-0.04%

1Y

15.1%

Updated

20 Oct, 2021

Data

Company Financials
TNM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends2/6

TNM Overview

Telekom Networks Malawi plc provides telecommunication services in Malawi.

Risk Analysis

Has a high level of debt


Telekom Networks Malawi Competitors

Airtel Malawi

MAL:AIRTEL

MK421.5b

Bharti Airtel

BSE:532454

₹3.9t

Airtel Africa

LSE:AAF

UK£3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Telekom Networks Malawi
Historical stock prices
Current Share PriceMK23.24
52 Week HighMK0
52 Week LowMK0
Beta-0.11
1 Month Change25.62%
3 Month Change45.25%
1 Year Change15.11%
3 Year Change-12.30%
5 Year Change232.00%
Change since IPO1,560.00%

Recent News & Updates

Shareholder Returns

TNMMW Wireless TelecomMW Market
7D-0.04%-0.4%-1.7%
1Y15.1%45.1%25.0%

Return vs Industry: TNM underperformed the MW Wireless Telecom industry which returned 45.4% over the past year.

Return vs Market: TNM underperformed the MW Market which returned 26.1% over the past year.

Price Volatility

Is TNM's price volatile compared to industry and market?
TNM volatility
TNM Beta-0.11
Industry Beta0.49
Market Beta1

Stable Share Price: TNM is not significantly more volatile than the rest of MW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TNM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995n/aArnold M’bwanahttps://www.tnm.co.mw

Telekom Networks Malawi plc provides telecommunication services in Malawi. It operates through two segments, Telecommunications and Mobile Money. The company provides mobile money services, including money transfers, cash withdrawals, cash deposits, and bill and merchant payments.

Telekom Networks Malawi Fundamentals Summary

How do Telekom Networks Malawi's earnings and revenue compare to its market cap?
TNM fundamental statistics
Market CapMK233.34b
Earnings (TTM)MK8.46b
Revenue (TTM)MK90.22b

27.6x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNM income statement (TTM)
RevenueMK90.22b
Cost of RevenueMK21.74b
Gross ProfitMK68.48b
ExpensesMK60.02b
EarningsMK8.46b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.84
Gross Margin75.90%
Net Profit Margin9.38%
Debt/Equity Ratio85.7%

How did TNM perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

27.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TNM (MWK23.24) is trading above our estimate of fair value (MWK4)

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


Price To Earnings Ratio

PE vs Industry: TNM is poor value based on its PE Ratio (27.6x) compared to the African Wireless Telecom industry average (19x).

PE vs Market: TNM is poor value based on its PE Ratio (27.6x) compared to the MW market (12.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TNM is overvalued based on its PB Ratio (4.8x) compared to the XF Wireless Telecom industry average (4.1x).


Future Growth

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

17.6%

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 Telekom Networks 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 Telekom Networks Malawi performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNM has high quality earnings.

Growing Profit Margin: TNM's current net profit margins (9.4%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: TNM's earnings have grown by 1.8% per year over the past 5 years.

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

Earnings vs Industry: TNM had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-6.8%).


Return on Equity

High ROE: TNM's Return on Equity (17.5%) is considered low.


Financial Health

How is Telekom Networks Malawi's financial position?


Financial Position Analysis

Short Term Liabilities: TNM's short term assets (MWK37.7B) do not cover its short term liabilities (MWK56.2B).

Long Term Liabilities: TNM's short term assets (MWK37.7B) exceed its long term liabilities (MWK28.7B).


Debt to Equity History and Analysis

Debt Level: TNM's debt to equity ratio (85.7%) is considered high.

Reducing Debt: TNM's debt to equity ratio has reduced from 94.7% to 85.7% over the past 5 years.

Debt Coverage: TNM's debt is well covered by operating cash flow (61.7%).

Interest Coverage: TNM's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

1.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TNM's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the MW market (1.43%).

High Dividend: TNM's dividend (1.2%) is low compared to the top 25% of dividend payers in the MW market (4.8%).


Stability and Growth of Payments

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

Growing Dividend: TNM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), TNM's dividend payments are 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?

0.8yrs

Average management tenure


CEO

Arnold M’bwana

0.92

Tenure

Mr. Arnold K. M’bwana serves as Chief Executive Officer at Telekom Networks Malawi plc since March 1, 2021. He served as Chief Finance Officer at Telekom Networks Malawi plc from July 2019 to 2021 and had...


Leadership Team

Experienced Management: TNM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TNM's board of directors are not considered experienced ( 2.8 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

Telekom Networks Malawi plc's employee growth, exchange listings and data sources


Key Information

  • Name: Telekom Networks Malawi plc
  • Ticker: TNM
  • Exchange: MAL
  • Founded: 1995
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: MK233.340b
  • Shares outstanding: 10.04b
  • Website: https://www.tnm.co.mw

Number of Employees


Location

  • Telekom Networks Malawi plc
  • Livingstone Towers
  • Fifth Floor
  • Blantyre
  • Malawi

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 22:04
End of Day Share Price2021/10/20 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.