OTCPK:MTNO.Y

Stock Analysis Report

Executive Summary

MTN Group Limited operates in the telecommunications industry.

Snowflake

Fundamentals

Good value average dividend payer.


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


Market Performance


7 Day Return

-2.1%

MTNO.Y

-0.4%

US Wireless Telecom

-0.6%

US Market


1 Year Return

22.7%

MTNO.Y

5.2%

US Wireless Telecom

0.6%

US Market

MTNO.Y outperformed the Wireless Telecom industry which returned 6% over the past year.

MTNO.Y outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

MTNO.YIndustryMarket
7 Day-2.1%-0.4%-0.6%
30 Day-0.5%1.3%2.2%
90 Day-11.1%-1.0%1.1%
1 Year27.7%22.7%6.4%5.2%2.9%0.6%
3 Year-15.6%-25.2%32.9%27.8%44.6%35.2%
5 Year-60.2%-68.7%42.3%28.6%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MTN Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

MTN Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MTN Group is good value based on earnings compared to the US Wireless Telecom industry average.

MTN Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

MTN Group is good value based on expected growth next year.


Price Based on Value of Assets

MTN Group is overvalued based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

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

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MTN Group's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

MTN Group's earnings are expected to grow significantly at over 20% yearly.

MTN Group's revenue growth is positive but not above the United States of America market average.

MTN Group's earnings growth is expected to exceed the United States of America market average.

MTN Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

MTN Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has MTN Group performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MTN Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

MTN Group's 1-year earnings growth exceeds its 5-year average (162.8% vs -42.6%)

MTN Group's earnings growth has exceeded the US Wireless Telecom industry average in the past year (162.8% vs 7.7%).


Return on Equity

MTN Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MTN Group used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

MTN Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MTN Group's financial position?


Financial Position Analysis

MTN Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MTN Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MTN Group's level of debt (106.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39% vs 106.3% today).

Debt is well covered by operating cash flow (36.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

6.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MTN Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

MTN Group's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of MTN Group's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Rob Shuter (52yo)

2.5yrs

Tenure

SAR42,923

Compensation

Mr. Robert Andrew Shuter, also known as Rob, BCOMM, CA (SA), H DIP ACC, serves as Non-Executive Director of MTN Nigeria Communications PLC since July 2019. Mr. Shuter has been Chief Executive Officer, Grou ...


CEO Compensation Analysis

Rob's remuneration is lower than average for companies of similar size in United States of America.

Rob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

52yo

Average Age

The tenure for the MTN Group management team is about average.


Board Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

The tenure for the MTN Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rob Shuter (52yo)

    Group President

    • Tenure: 2.5yrs
    • Compensation: SAR42.92k
  • Paul Norman (54yo)

    Group Chief Human Resources Officer

    • Tenure: 22.7yrs
    • Compensation: SAR17.16k
  • Ralph Mupita (47yo)

    Group CFO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: SAR22.54k
  • Felleng Sekha (52yo)

    Group Chief Regulatory & Corporate Affairs Officer

    • Tenure: 0yrs
    • Compensation: SAR9.00k
  • Jens Schulte-Bockum (53yo)

    Group Chief Operating Officer

    • Tenure: 2.7yrs
    • Compensation: SAR23.25k
  • Zolisa Masiza

    Chief Corporate Service Officer

    • Tenure: 0yrs
  • Ebenezer Asante (51yo)

    Regional Vice President of Southern & East Africa and Ghana (SEAGHA)

    • Tenure: 0yrs
    • Compensation: SAR24.03k
  • Ferdi Moolman (56yo)

    Chief Executive Officer of MTN Nigeria

    • Tenure: 4.7yrs
    • Compensation: SAR21.26k
  • Godfrey Motsa (46yo)

    Chief Executive Officer of MTN South Africa

    • Tenure: 2.5yrs
    • Compensation: SAR23.49k
  • Babak Fouladi

    Chief Technology & Information Officer and Interim Chief Technology Officer of South Africa

    • Tenure: 0yrs

Board Members

  • Alan Harper (63yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: SAR3.06k
  • Phuthuma Nhleko (59yo)

    Non Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: SAR4.73k
  • Kandimathie Christine Ramon (52yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: SAR1.24k
  • Rob Shuter (52yo)

    Group President

    • Tenure: 2.5yrs
    • Compensation: SAR42.92k
  • Peter Mageza (65yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: SAR1.44k
  • Marion Lesego Marole (59yo)

    Independent Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: SAR1.39k
  • Ralph Mupita (47yo)

    Group CFO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: SAR22.54k
  • Koosum Kalyan (64yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: SAR1.26k
  • Jeff van Rooyen (70yo)

    Independent Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: SAR1.42k
  • Charles Mbire

    Chairman of MTN Uganda

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: MTN Group Limited
  • Ticker: MTNO.Y
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: SAR183.972b
  • Listing Market Cap: SAR12.313b
  • Shares outstanding: 1.80b
  • Website: https://www.mtn.com

Number of Employees


Location

  • MTN Group Limited
  • Innovation Centre
  • 216 14th Avenue
  • 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)SPONSORED ADRUSUSDDec 2001
LL6ABST (Boerse-Stuttgart)SPONSORED ADRDEEURDec 2001

Biography

MTN Group Limited operates in the telecommunications industry. It offers voice, data, digital, Internet of Things, mobility, security, managed network, and cloud solutions. The company also provides digita ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:51
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.