OTCPK:MTNO.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

MTN Group Limited, together with its subsidiaries, operates in the telecommunications industry. More Details


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.3%

MTNO.F

-1.0%

US Wireless Telecom

0.08%

US Market


1 Year Return

-45.6%

MTNO.F

27.9%

US Wireless Telecom

12.8%

US Market

Return vs Industry: MTNO.F underperformed the US Wireless Telecom industry which returned 27.9% over the past year.

Return vs Market: MTNO.F underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

MTNO.FIndustryMarket
7 Day6.3%-1.0%0.08%
30 Day6.3%-3.9%-1.8%
90 Day12.1%3.3%7.2%
1 Year-45.6%-45.6%28.4%27.9%15.3%12.8%
3 Year-60.4%-60.4%49.3%45.9%39.2%29.9%
5 Year-70.4%-70.4%110.9%101.2%88.3%67.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is MTN Group 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: MTNO.F ($3.7) is trading below our estimate of fair value ($12.4)

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


Price To Earnings Ratio

PE vs Industry: MTNO.F is good value based on its PE Ratio (6.3x) compared to the US Wireless Telecom industry average (24.6x).

PE vs Market: MTNO.F is good value based on its PE Ratio (6.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MTNO.F is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MTNO.F is good value based on its PB Ratio (1.1x) compared to the US Wireless Telecom industry average (2.5x).


Next Steps

Future Growth

How is MTN Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTNO.F's forecast earnings growth (6.2% per year) is above the savings rate (2.2%).

Earnings vs Market: MTNO.F's earnings (6.2% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: MTNO.F's revenue (3.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: MTNO.F's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTNO.F's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has MTN Group performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTNO.F has a large one-off gain of ZAR4.8B impacting its June 30 2020 financial results.

Growing Profit Margin: MTNO.F's current net profit margins (10.1%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: MTNO.F's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: MTNO.F's earnings growth over the past year (85.3%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: MTNO.F earnings growth over the past year (85.3%) exceeded the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: MTNO.F's Return on Equity (18.4%) is considered low.


Next Steps

Financial Health

How is MTN Group's financial position?


Financial Position Analysis

Short Term Liabilities: MTNO.F's short term assets (ZAR109.4B) exceed its short term liabilities (ZAR107.7B).

Long Term Liabilities: MTNO.F's short term assets (ZAR109.4B) do not cover its long term liabilities (ZAR149.3B).


Debt to Equity History and Analysis

Debt Level: MTNO.F's debt to equity ratio (111.6%) is considered high.

Reducing Debt: MTNO.F's debt to equity ratio has increased from 43.5% to 111.6% over the past 5 years.

Debt Coverage: MTNO.F's debt is well covered by operating cash flow (39.6%).

Interest Coverage: MTNO.F's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is MTN Group current dividend yield, its reliability and sustainability?

8.79%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTNO.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTNO.F's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTNO.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTNO.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MTNO.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTNO.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Ralph Mupita (48 yo)

no data

Tenure

R66,302,000

Compensation

Mr. Ralph Tendai Mupita, BSc (Hons)(Eng.); MBA; GMP (Harvard) serves as Non-Executive Director of MTN Nigeria Communications PLC since April 13, 2017. He serves as a Non-Executive Director at Scancom Plc s ...


CEO Compensation Analysis

Compensation vs Market: Ralph's total compensation ($USD4.08M) is below average for companies of similar size in the US market ($USD7.39M).

Compensation vs Earnings: Ralph's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ralph Mupita
Group Presidentno dataR66.30m0.0052%
ZAR 333.5k
Jens Schulte-Bockum
Group Chief Operating Officer3.67yrsR23.90m0.0028%
ZAR 176.9k
Kelebogile Modise
Group Chief Legal Counsel1.08yrsR11.89mno data
Paul Norman
Group Chief Human Resources Officer23.67yrsR14.14m0.00056%
ZAR 35.6k
Felleng Sekha
Group Chief Regulatory & Corporate Affairs Officerno dataR10.40mno data
Ferdinand Moolman
Chief Executive Officer of MTN Nigeria5.67yrsR21.09mno data
Godfrey Motsa
Chief Executive Officer of MTN South Africa3.5yrsR15.65m0.0014%
ZAR 87.8k
Ebenezer Asante
Regional Vice President of Southern & East Africa and Ghana (SEAGHA)no dataR23.02mno data
Sugentharan Perumal
Acting Group Chief Financial Officerno datano datano data
Charles Molapisi
Group Chief Technical Officer1.67yrsno datano data
Zolisa Masiza
Chief Corporate Service Officerno datano datano data
Serigne Dioum
Group Head of Mobile Financial Services7yrsno datano data

3.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: MTNO.F's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ralph Mupita
Group Presidentno dataR66.30m0.0052%
ZAR 333.5k
Phuthuma Nhleko
Member of International Advisory Boardno dataR5.34mno data
Kandimathie Christine Ramon
Independent Non-Executive Director6.25yrsR1.27m0.00073%
ZAR 46.5k
Stanley Miller
Independent Non-Executive Director4.08yrsR2.64mno data
Nkululeko Sowazi
Independent Non-Executive Director4.08yrsR1.22mno data
Azmi Mikati
Independent Non-Executive Director14.17yrsR2.66mno data
Paul Hanratty
Independent Non-Executive Director4.08yrsR2.57m0.0011%
ZAR 70.6k
Shaygan Kheradpir
Independent Non-Executive Director5.17yrsR2.65mno data
Charles Mbire
Chairman of MTN Ugandano datano datano data
Mcebisi Jonas
Independent Non-Executive Chairman0.75yrR1.28mno data
Khotso D. Mokhele
Lead Independent Non-Executive Director0.75yrR1.02mno data
Thabo Mbeki
Chair of International Advisory Boardno datano datano data

4.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MTNO.F's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MTN Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTN Group Limited
  • Ticker: MTNO.F
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: R103.316b
  • Listing Market Cap: R6.364b
  • Shares outstanding: 1.80b
  • Website: https://www.mtn.com

Number of Employees


Location

  • MTN Group Limited
  • Innovation Centre
  • 216 14th Avenue, Fairland
  • Johannesburg
  • Gauteng
  • 2195
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTNO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1995
MTNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARAug 1995
LL6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1995
MTNO.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 ORD ZAR0.0001(BNY)USUSDDec 2001
LL6ABST (Boerse-Stuttgart)ADR EACH REPR 1 ORD ZAR0.0001(BNY)DEEURDec 2001

Biography

MTN Group Limited, together with its subsidiaries, operates in the telecommunications industry. The company offers mobile voice, international calling, roaming, closed user group, enterprise bundle, corpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:12
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.