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MTNN

MTN Nigeria CommunicationsNGSE:MTNN Stock Report

Market Cap

₦3.6t

7D

0%

1Y

24.9%

Updated

17 Oct, 2021

Data

Company Financials +
MTNN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance5/6
Financial Health3/6
Dividends3/6

MTNN Overview

MTN Nigeria Communications PLC provides broadband fixed wireless access, telecommunication, and mobile financial services in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for MTN Nigeria Communications
Historical stock prices
Current Share Price₦174.90
52 Week High₦138.00
52 Week Low₦183.00
Beta0.53
1 Month Change-0.057%
3 Month Change6.00%
1 Year Change24.93%
3 Year Changen/a
5 Year Changen/a
Change since IPO46.05%

Recent News & Updates

Shareholder Returns

MTNNNG Wireless TelecomNG Market
7D0%0.3%1.6%
1Y24.9%47.6%40.0%

Return vs Industry: MTNN underperformed the NG Wireless Telecom industry which returned 47.6% over the past year.

Return vs Market: MTNN underperformed the NG Market which returned 40% over the past year.

Price Volatility

Is MTNN's price volatile compared to industry and market?
MTNN volatility
MTNN Beta0.53
Industry Beta0.49
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
20001,844Karl Toriolahttps://www.mtnonline.com

MTN Nigeria Communications PLC provides broadband fixed wireless access, telecommunication, and mobile financial services in Nigeria. It offers mobile telecommunications services, including airtime and subscription, data, voice, digital, value added, and short message services; and interconnect and roaming services, as well as sells mobile handsets and accessories. The company also provides mobile money and rich media services.

MTN Nigeria Communications Fundamentals Summary

How do MTN Nigeria Communications's earnings and revenue compare to its market cap?
MTNN fundamental statistics
Market Cap₦3.56t
Earnings (TTM)₦252.16b
Revenue (TTM)₦1.50t

14.1x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTNN income statement (TTM)
Revenue₦1.50t
Cost of Revenue₦320.22b
Gross Profit₦1.18t
Expenses₦927.20b
Earnings₦252.16b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)12.39
Gross Margin78.65%
Net Profit Margin16.81%
Debt/Equity Ratio289.0%

How did MTNN perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

84%

Payout Ratio

Valuation

Is MTN Nigeria Communications undervalued compared to its fair value and its price relative to the market?

14.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTNN (NGN174.9) is trading above our estimate of fair value (NGN160.66)

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


Price To Earnings Ratio

PE vs Industry: MTNN is good value based on its PE Ratio (14.1x) compared to the African Wireless Telecom industry average (19.9x).

PE vs Market: MTNN is poor value based on its PE Ratio (14.1x) compared to the NG market (7.5x).


Price to Earnings Growth Ratio

PEG Ratio: MTNN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MTNN is overvalued based on its PB Ratio (17.8x) compared to the XF Wireless Telecom industry average (4.1x).


Future Growth

How is MTN Nigeria Communications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTNN's forecast earnings growth (25.5% per year) is above the savings rate (13.2%).

Earnings vs Market: MTNN's earnings (25.5% per year) are forecast to grow faster than the NG market (15.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MTNN's revenue (12.8% per year) is forecast to grow faster than the NG market (10.4% per year).

High Growth Revenue: MTNN's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTNN's Return on Equity is forecast to be very high in 3 years time (115.2%).


Past Performance

How has MTN Nigeria Communications performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTNN has high quality earnings.

Growing Profit Margin: MTNN's current net profit margins (16.8%) are higher than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: MTNN's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: MTNN's earnings growth over the past year (27%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: MTNN earnings growth over the past year (27%) exceeded the Wireless Telecom industry -6.8%.


Return on Equity

High ROE: Whilst MTNN's Return on Equity (126%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is MTN Nigeria Communications's financial position?


Financial Position Analysis

Short Term Liabilities: MTNN's short term assets (NGN562.2B) do not cover its short term liabilities (NGN884.5B).

Long Term Liabilities: MTNN's short term assets (NGN562.2B) do not cover its long term liabilities (NGN1,085.7B).


Debt to Equity History and Analysis

Debt Level: MTNN's debt to equity ratio (289%) is considered high.

Reducing Debt: MTNN's debt to equity ratio has reduced from 878.2% to 289% over the past 5 years.

Debt Coverage: MTNN's debt is well covered by operating cash flow (132.5%).

Interest Coverage: MTNN's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

What is MTN Nigeria Communications's current dividend yield, its reliability and sustainability?

5.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTNN's dividend (5.97%) is higher than the bottom 25% of dividend payers in the NG market (3.3%).

High Dividend: MTNN's dividend (5.97%) is low compared to the top 25% of dividend payers in the NG market (7.31%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MTNN has been paying a dividend for less than 10 years.

Growing Dividend: MTNN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.4%), MTNN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTNN's dividends in 3 years are forecast to be covered by earnings (71.7% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Karl Toriola (49 yo)

0.58

Tenure

Mr. Karl Olutokun Toriola serves as Chief Executive Officer of MTN Nigeria at MTN Group Limited since March 01, 2021. He is a Non- Executive Director of UAC of Nigeria PLC since January 1, 2020. He has bee...


Leadership Team

Experienced Management: MTNN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: MTNN's board of directors are not considered experienced ( 2.1 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

MTN Nigeria Communications PLC's employee growth, exchange listings and data sources


Key Information

  • Name: MTN Nigeria Communications PLC
  • Ticker: MTNN
  • Exchange: NGSE
  • Founded: 2000
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₦3.560t
  • Shares outstanding: 20.35b
  • Website: https://www.mtnonline.com

Number of Employees


Location

  • MTN Nigeria Communications PLC
  • MTN Plaza
  • Awolowo Road
  • Lagos
  • 101233
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 15:21
End of Day Share Price2021/10/15 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.