Air Link Communication (KASE:AIRLINK) - Share price, News & Analysis

AIRLINK fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	1/6

AIRLINK Stock Overview

Air Link Communication Limited imports, distributes, and retails cellular devices in Pakistan.

Rewards

PE ratio (11.3x) is below the Electronic industry average (17.9x)

Earnings have grown 22.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (PKR18B)

Air Link Communication Competitors

MM Group for Industry and International TradeE

CASE:MTIE

ج.م3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Air Link Communication
Historical stock prices
Current Share Price	PK₨44.88
52 Week High	PK₨74.42
52 Week Low	PK₨44.13
Beta	0
1 Month Change	-11.34%
3 Month Change	-24.58%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-37.23%

Shareholder Returns

	AIRLINK	PK Electronic	PK Market
7D	0%	3.3%	-0.8%
1Y	n/a	-15.2%	-4.8%

Return vs Industry: Insufficient data to determine how AIRLINK performed against the PK Electronic industry.

Return vs Market: Insufficient data to determine how AIRLINK performed against the PK Market.

Price Volatility

Is AIRLINK's price volatile compared to industry and market?
AIRLINK volatility
AIRLINK Average Weekly Movement	4.3%
Electronic Industry Average Movement	5.9%
Market Average Movement	5.4%
10% most volatile stocks in PK Market	8.3%
10% least volatile stocks in PK Market	3.4%

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

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

About the Company

Founded	Employees	CEO	Website
2014	530	Muzzaffar Piracha	https://www.airlinkcommunication.com

Air Link Communication Limited imports, distributes, and retails cellular devices in Pakistan. The company offers mobile/smartphones, tablets, laptops, accessories, and allied products. As of June 30, 2021, it operated fourteen retail outlets, including five outlets in Karachi, five outlets in Lahore, two outlets in Bahawalpur, and one outlet in Hyderabad and Multan.

Air Link Communication Fundamentals Summary

How do Air Link Communication's earnings and revenue compare to its market cap?
AIRLINK fundamental statistics
Market Cap	PK₨17.74b
Earnings (TTM)	PK₨1.57b
Revenue (TTM)	PK₨43.38b

11.3x

P/E Ratio

0.4x

P/S Ratio

Is AIRLINK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIRLINK income statement (TTM)
Revenue	PK₨43.38b
Cost of Revenue	PK₨40.16b
Gross Profit	PK₨3.22b
Other Expenses	PK₨1.65b
Earnings	PK₨1.57b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.97
Gross Margin	7.43%
Net Profit Margin	3.62%
Debt/Equity Ratio	46.0%

How did AIRLINK perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

25%

Payout Ratio

Valuation

Is Air Link Communication undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

11.29x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AIRLINK (PKR44.88) is trading above our estimate of fair value (PKR8.35)

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

Price To Earnings Ratio

PE vs Industry: AIRLINK is good value based on its PE Ratio (11.3x) compared to the Asian Electronic industry average (17.9x).

PE vs Market: AIRLINK is poor value based on its PE Ratio (11.3x) compared to the PK market (5.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: AIRLINK is good value based on its PB Ratio (1.6x) compared to the XA Electronic industry average (1.7x).

Future Growth

How is Air Link Communication forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.6%

Forecasted Tech 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 Air Link Communication 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 Air Link Communication performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AIRLINK has a high level of non-cash earnings.

Growing Profit Margin: AIRLINK's current net profit margins (3.6%) are higher than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: AIRLINK's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: AIRLINK's earnings growth over the past year (5.8%) is below its 5-year average (22.1% per year).

Earnings vs Industry: AIRLINK earnings growth over the past year (5.8%) underperformed the Electronic industry 25.5%.

Return on Equity

High ROE: AIRLINK's Return on Equity (14.1%) is considered low.

Financial Health

How is Air Link Communication's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AIRLINK's short term assets (PKR16.7B) exceed its short term liabilities (PKR5.9B).

Long Term Liabilities: AIRLINK's short term assets (PKR16.7B) exceed its long term liabilities (PKR1.6B).

Debt to Equity History and Analysis

Debt Level: AIRLINK's net debt to equity ratio (29.3%) is considered satisfactory.

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

Debt Coverage: AIRLINK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AIRLINK's interest payments on its debt are well covered by EBIT (4.7x coverage).

Balance Sheet

Dividend

What is Air Link Communication current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AIRLINK's dividend (2.59%) isn’t notable compared to the bottom 25% of dividend payers in the PK market (3.38%).

High Dividend: AIRLINK's dividend (2.59%) is low compared to the top 25% of dividend payers in the PK market (10.26%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.3%), AIRLINK's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: AIRLINK is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

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

CEO

Muzzaffar Piracha

no data

Tenure

Mr. Muzzaffar Hayat Piracha is Chief Executive Officer and Executive Director of Air Link Communication Limited.

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: AIRLINK only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/05 00:00
End of Day Share Price	2022/04/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30