NGSE:MTNN

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MTN Nigeria Communications

Executive Summary

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


Snowflake Analysis

High growth potential and good value.

Share Price & News

How has MTN Nigeria Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTNN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

MTNN

-0.4%

NG Wireless Telecom

-0.04%

NG Market


1 Year Return

-14.3%

MTNN

-13.1%

NG Wireless Telecom

-22.5%

NG Market

Return vs Industry: MTNN underperformed the NG Wireless Telecom industry which returned -12.7% over the past year.

Return vs Market: MTNN exceeded the NG Market which returned -22.6% over the past year.


Shareholder returns

MTNNIndustryMarket
7 Day1.7%-0.4%-0.04%
30 Day4.5%2.3%11.0%
90 Day1.7%-3.8%-4.1%
1 Year-7.9%-14.3%-6.3%-13.1%-13.8%-22.5%
3 Yearn/a-6.1%-21.9%-22.8%-35.9%
5 Yearn/a-2.8%-29.3%-22.3%-40.0%

Price Volatility Vs. Market

How volatile is MTN Nigeria Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MTN Nigeria Communications 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: MTNN (NGN117) is trading below our estimate of fair value (NGN357.67)

Significantly Below Fair Value: MTNN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTNN is good value based on its PE Ratio (11.6x) compared to the Wireless Telecom industry average (13.4x).

PE vs Market: MTNN is poor value based on its PE Ratio (11.6x) compared to the NG market (7.2x).


Price to Earnings Growth Ratio

PEG Ratio: MTNN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MTNN is overvalued based on its PB Ratio (12.2x) compared to the XF Wireless Telecom industry average (2.1x).


Next Steps

Future Growth

How is MTN Nigeria Communications forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTNN's forecast earnings growth (23.7% per year) is above the savings rate (14.3%).

Earnings vs Market: MTNN's earnings (23.7% per year) are forecast to grow faster than the NG market (13.9% per year).

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

Revenue vs Market: MTNN's revenue (10.2% per year) is forecast to grow faster than the NG market (7.4% per year).

High Growth Revenue: MTNN's revenue (10.2% 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 (105.6%).


Next Steps

Past Performance

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

40.2%

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 (15.1%).


Past Earnings Growth Analysis

Earnings Trend: MTNN's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: MTNN's earnings growth over the past year (26.4%) is below its 5-year average (40.2% per year).

Earnings vs Industry: MTNN earnings growth over the past year (26.4%) exceeded the Wireless Telecom industry 7.5%.


Return on Equity

High ROE: Whilst MTNN's Return on Equity (104.66%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is MTN Nigeria Communications's financial position?


Financial Position Analysis

Short Term Liabilities: MTNN's short term assets (NGN356.9B) do not cover its short term liabilities (NGN443.1B).

Long Term Liabilities: MTNN's short term assets (NGN356.9B) do not cover its long term liabilities (NGN992.9B).


Debt to Equity History and Analysis

Debt Level: MTNN's debt to equity ratio (209.6%) is considered high.

Reducing Debt: MTNN's debt to equity ratio has reduced from 302.6% to 209.6% over the past 5 years.

Debt Coverage: MTNN's debt is well covered by operating cash flow (102.5%).

Interest Coverage: MTNN's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

8.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTNN's dividend (8.5%) is higher than the bottom 25% of dividend payers in the NG market (4.3%).

High Dividend: MTNN's dividend (8.5%) is low compared to the top 25% of dividend payers in the NG market (10.62%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.7%), MTNN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTNN's dividends in 3 years are not forecast to be well covered by earnings (103.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average board tenure


CEO

Ferdi Moolman (56yo)

5.42yrs

Tenure

Mr. Ferdinand Moolman also known as Ferdi, has been Chief Executive Officer of MTN Nigeria at MTN Group Limited since December 1, 2015. Mr. Moolman serves as the Chief Executive Officer of MTN Nigeria Comm ...


Board Members

NamePositionTenureCompensationOwnership
Ferdinand Moolman
CEO & Director5.42yrsno datano data
Modupe Kadri
CFO & Executive Director0.25yrno datano data
Karl Toriola
Executive Directorno datano datano data
Rhidwaan Gasant
Independent Non-Executive Director5.17yrsno datano data
Robert Shuter
Non-Executive Director3.17yrsno datano data
Paul Norman
Director4.33yrsno datano data
Ralph Mupita
Non-Executive Director3.17yrsno datano data
Ernest Ndukwe
Chairman0.75yrno datano data
Ifueko M. Okauru
Non-Executive Director0.75yrno datano data
Muhammad Ahmad
Independent Non-Executive Director0.75yrno datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: MTNN'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

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


Key Information

  • Name: MTN Nigeria Communications PLC
  • Ticker: MTNN
  • Exchange: NGSE
  • Founded: 2001
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₦2.361t
  • Shares outstanding: 20.35b
  • Website: https://www.mtnonline.com

Number of Employees


Location

  • MTN Nigeria Communications PLC
  • 4, Aromire Road
  • Off Alfred Rewane Road
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTNNNGSE (Nigerian Stock Exchange)NGN0.02NGNGNMay 2019
MTNNNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNMay 2019

Biography

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, 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. It serves approximately 55 million subscribers. The company was founded in 2001 and is based in Lagos, Nigeria. MTN Nigeria Communications Limited is a subsidiary of MTN International (Mauritius) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 19:17
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
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.