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OTEL

Oman Telecommunications Company SAOGMSM:OTEL Stock Report

Market Cap

ر.ع552.0m

7D

0%

1Y

8.9%

Updated

30 Nov, 2021

Data

Company Financials +
OTEL fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends3/6

OTEL Stock Overview

Oman Telecommunications Company SAOG, together with its subsidiaries, engages in the establishment, development, operation, and maintenance of telecommunication services in the Sultanate of Oman and internationally.

Oman Telecommunications Company SAOG Competitors

Tencent Holdings

SEHK:700

HK$4.4t

KDDI

TSE:9433

JP¥7.5t

Saudi Telecom

SASE:7010

ر.س224.1b

China Telecom

SEHK:728

HK$441.8b

Price History & Performance

Summary of all time highs, changes and price drops for Oman Telecommunications Company SAOG
Historical stock prices
Current Share Priceر.ع0.74
52 Week Highر.ع0.84
52 Week Lowر.ع0.66
Beta0.14
1 Month Change-3.67%
3 Month Change-3.16%
1 Year Change8.88%
3 Year Change-13.21%
5 Year Change-50.93%
Change since IPO-67.72%

Recent News & Updates

Shareholder Returns

OTELOM TelecomOM Market
7D0%0.3%0.8%
1Y8.9%18.0%12.8%

Return vs Industry: OTEL underperformed the OM Telecom industry which returned 18% over the past year.

Return vs Market: OTEL underperformed the OM Market which returned 12.8% over the past year.

Price Volatility

Is OTEL's price volatile compared to industry and market?
OTEL volatility
OTEL Average Weekly Movement2.0%
Telecom Industry Average Movement5.5%
Market Average Movement3.1%
10% most volatile stocks in OM Market4.7%
10% least volatile stocks in OM Market1.5%

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

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

About the Company

FoundedEmployeesCEOWebsite
19802,450Talal bin Said Al Mamarihttps://www.omantel.om

Oman Telecommunications Company SAOG, together with its subsidiaries, engages in the establishment, development, operation, and maintenance of telecommunication services in the Sultanate of Oman and internationally. It offers mobile services, including postpaid, prepaid, and other value added services; fixed line, session initiation protocol trunk, ISDN, fixed-mobile CPN, and international and conference call services; Internet services, such as 5G and fixed business broadband; and business solutions comprising detection and mitigation, and bill analyzer, as well as Wi-Fi services. The company also provides connectivity solutions, such as multi-protocol label switching, Ethernet, national leased line, international private leased circuits, and Inmarsat services; data center services, such as cloud server, domain registration, web hosting, and SSL certificate; software as a service; and other managed services, as well as healthcare solutions.

Oman Telecommunications Company SAOG Fundamentals Summary

How do Oman Telecommunications Company SAOG's earnings and revenue compare to its market cap?
OTEL fundamental statistics
Market Capر.ع552.00m
Earnings (TTM)ر.ع70.18m
Revenue (TTM)ر.ع2.46b

7.9x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTEL income statement (TTM)
Revenueر.ع2.46b
Cost of Revenueر.ع744.20m
Gross Profitر.ع1.71b
Expensesر.ع1.64b
Earningsر.ع70.18m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.094
Gross Margin69.70%
Net Profit Margin2.86%
Debt/Equity Ratio92.2%

How did OTEL perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

59%

Payout Ratio

Valuation

Is Oman Telecommunications Company SAOG 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: OTEL (OMR0.74) is trading below our estimate of fair value (OMR2.67)

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


Price To Earnings Ratio

PE vs Industry: OTEL is good value based on its PE Ratio (7.9x) compared to the Asian Telecom industry average (20.1x).

PE vs Market: OTEL is good value based on its PE Ratio (7.9x) compared to the OM market (11x).


Price to Earnings Growth Ratio

PEG Ratio: OTEL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: OTEL is good value based on its PB Ratio (1x) compared to the XA Telecom industry average (2.3x).


Future Growth

How is Oman Telecommunications Company SAOG forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTEL's forecast earnings growth (11.3% per year) is above the savings rate (9.1%).

Earnings vs Market: OTEL's earnings (11.3% per year) are forecast to grow slower than the OM market (13.6% per year).

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

Revenue vs Market: OTEL's revenue (4.9% per year) is forecast to grow slower than the OM market (8.9% per year).

High Growth Revenue: OTEL's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OTEL's Return on Equity is forecast to be low in 3 years time (2.9%).


Past Performance

How has Oman Telecommunications Company SAOG performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OTEL has high quality earnings.

Growing Profit Margin: OTEL's current net profit margins (2.9%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: OTEL's earnings have declined by 11.6% per year over the past 5 years.

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

Earnings vs Industry: OTEL had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Telecom industry average (22.4%).


Return on Equity

High ROE: OTEL's Return on Equity (8.3%) is considered low.


Financial Health

How is Oman Telecommunications Company SAOG's financial position?


Financial Position Analysis

Short Term Liabilities: OTEL's short term assets (OMR1.7B) do not cover its short term liabilities (OMR2.1B).

Long Term Liabilities: OTEL's short term assets (OMR1.7B) do not cover its long term liabilities (OMR2.8B).


Debt to Equity History and Analysis

Debt Level: OTEL's net debt to equity ratio (72.8%) is considered high.

Reducing Debt: OTEL's debt to equity ratio has increased from 5.6% to 92.2% over the past 5 years.

Debt Coverage: OTEL's debt is well covered by operating cash flow (27.3%).

Interest Coverage: OTEL's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

What is Oman Telecommunications Company SAOG current dividend yield, its reliability and sustainability?

7.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OTEL's dividend (7.47%) is higher than the bottom 25% of dividend payers in the OM market (4.22%).

High Dividend: OTEL's dividend (7.47%) is low compared to the top 25% of dividend payers in the OM market (10.11%).


Stability and Growth of Payments

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

Growing Dividend: OTEL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.8%), OTEL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OTEL's dividends in 3 years are forecast to be covered by earnings (60.9% payout ratio).


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Talal bin Said Al Mamari

7.42yrs

Tenure

Mr Talal bin Said Al Mamari has been the Chief Executive Officer of Oman Telecommunications Company (S.A.O.G) since June 29, 2014 and served as its Chief Financial Officer from April 2012 to June 2014. He...


Leadership Team

Experienced Management: OTEL's management team is seasoned and experienced (7.4 years average tenure).


Board Members

Experienced Board: OTEL's board of directors are considered experienced (4.9 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

Oman Telecommunications Company SAOG's employee growth, exchange listings and data sources


Key Information

  • Name: Oman Telecommunications Company SAOG
  • Ticker: OTEL
  • Exchange: MSM
  • Founded: 1980
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ر.ع552.000m
  • Shares outstanding: 750.00m
  • Website: https://www.omantel.om

Number of Employees


Location

  • Oman Telecommunications Company SAOG
  • Madinat al Irfan
  • Muscat
  • Oman

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 12:09
End of Day Share Price2021/11/25 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.