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BLU

Blue Label TelecomsJSE:BLU Stock Report

Market Cap

R4.9b

7D

-3.3%

1Y

41.3%

Updated

19 Oct, 2021

Data

Company Financials
BLU fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends0/6

BLU Overview

Blue Label Telecoms Limited provides prepaid products and distributes virtual electronic merchandise in South Africa and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Blue Label Telecoms
Historical stock prices
Current Share PriceR5.51
52 Week HighR3.51
52 Week LowR6.10
Beta1.05
1 Month Change9.76%
3 Month Change14.79%
1 Year Change41.28%
3 Year Change12.45%
5 Year Change-73.76%
Change since IPO-35.93%

Recent News & Updates

Shareholder Returns

BLUZA Commercial ServicesZA Market
7D-3.3%3.0%0.7%
1Y41.3%64.9%20.7%

Return vs Industry: BLU underperformed the ZA Commercial Services industry which returned 63.9% over the past year.

Return vs Market: BLU exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is BLU's price volatile compared to industry and market?
BLU volatility
BLU Beta1.05
Industry Beta0.91
Market Beta1

Stable Share Price: BLU is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BLU's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20011,635Mark Levyhttps://www.bluelabeltelecoms.co.za

Blue Label Telecoms Limited provides prepaid products and distributes virtual electronic merchandise in South Africa and internationally. The company’s proprietary platforms allow mobile networks, utilities, banks, retailers, petroleum companies, and POS devices to access the advantages of a digital economy. It offers voucher or PIN-based airtime, and PIN-less or direct top-up airtime; and UniPIN, a PIN-based voucher for prepaid electricity, as well as distributes starter packs.

Blue Label Telecoms Fundamentals Summary

How do Blue Label Telecoms's earnings and revenue compare to its market cap?
BLU fundamental statistics
Market CapR4.86b
Earnings (TTM)R805.29m
Revenue (TTM)R18.44b

6.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLU income statement (TTM)
RevenueR18.44b
Cost of RevenueR17.02b
Gross ProfitR1.42b
ExpensesR617.32m
EarningsR805.29m

Last Reported Earnings

May 31, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.92
Gross Margin7.72%
Net Profit Margin4.37%
Debt/Equity Ratio52.8%

How did BLU perform over the long term?

See historical performance and comparison

Valuation

Is Blue Label Telecoms 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: BLU (ZAR5.55) is trading below our estimate of fair value (ZAR25.9)

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


Price To Earnings Ratio

PE vs Industry: BLU is good value based on its PE Ratio (6x) compared to the African Commercial Services industry average (11.5x).

PE vs Market: BLU is good value based on its PE Ratio (6x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BLU is overvalued based on its PB Ratio (1.5x) compared to the XF Commercial Services industry average (1.2x).


Future Growth

How is Blue Label Telecoms forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.1%

Forecasted Commercial Services 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 Blue Label Telecoms 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 Blue Label Telecoms performed over the past 5 years?

-31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLU has high quality earnings.

Growing Profit Margin: BLU's current net profit margins (4.4%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: BLU has become profitable over the past 5 years, growing earnings by -31% per year.

Accelerating Growth: BLU's earnings growth over the past year (255.1%) exceeds its 5-year average (-31% per year).

Earnings vs Industry: BLU earnings growth over the past year (255.1%) exceeded the Commercial Services industry 14.4%.


Return on Equity

High ROE: BLU's Return on Equity (26.4%) is considered high.


Financial Health

How is Blue Label Telecoms's financial position?


Financial Position Analysis

Short Term Liabilities: BLU's short term assets (ZAR8.6B) exceed its short term liabilities (ZAR8.0B).

Long Term Liabilities: BLU's short term assets (ZAR8.6B) exceed its long term liabilities (ZAR237.6M).


Debt to Equity History and Analysis

Debt Level: BLU's debt to equity ratio (52.8%) is considered high.

Reducing Debt: BLU's debt to equity ratio has increased from 0.4% to 52.8% over the past 5 years.

Debt Coverage: BLU's debt is well covered by operating cash flow (86%).

Interest Coverage: BLU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Blue Label Telecoms's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BLU'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 BLU's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: BLU is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Mark Levy (50 yo)

no data

Tenure

R40,643,000

Compensation

Mr. Mark Steven Levy, BCompt (UNISA) is a Co-founder of Blue Label Telecoms Limited and serves as its Joint Chief Executive Officer. Mr. Levy served as a Non-Executive Director at Cell C (Pty) Limited unti...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.77M) is above average for companies of similar size in the ZA market ($USD731.45K).

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


Leadership Team

Experienced Management: BLU's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: BLU's board of directors are seasoned and experienced ( 11.8 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

Blue Label Telecoms Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Blue Label Telecoms Limited
  • Ticker: BLU
  • Exchange: JSE
  • Founded: 2001
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: R4.855b
  • Shares outstanding: 874.84m
  • Website: https://www.bluelabeltelecoms.co.za

Number of Employees


Location

  • Blue Label Telecoms Limited
  • 75 Grayston Drive
  • Corner Benmore Road
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 17:02
End of Day Share Price2021/10/19 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.