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MCG

MultiChoice GroupJSE:MCG Stock Report

Market Cap

R51.6b

7D

4.6%

1Y

-0.9%

Updated

17 Oct, 2021

Data

Company Financials +
MCG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance6/6
Financial Health6/6
Dividends2/6

MCG Overview

MultiChoice Group Limited, through its subsidiaries, operates video-entertainment subscriber platforms in Africa, Europe, and internationally.

MultiChoice Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MultiChoice Group
Historical stock prices
Current Share PriceR120.78
52 Week HighR101.59
52 Week LowR145.59
Beta0.52
1 Month Change7.68%
3 Month Change4.64%
1 Year Change-0.94%
3 Year Changen/a
5 Year Changen/a
Change since IPO13.93%

Recent News & Updates

Oct 10
Return Trends At MultiChoice Group (JSE:MCG) Aren't Appealing

Return Trends At MultiChoice Group (JSE:MCG) Aren't Appealing

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Aug 26
MultiChoice Group (JSE:MCG) Will Pay A Dividend Of R5.65

MultiChoice Group (JSE:MCG) Will Pay A Dividend Of R5.65

MultiChoice Group Limited ( JSE:MCG ) will pay a dividend of R5.65 on the 13th of September. The dividend yield will be...

Jul 07
MultiChoice Group (JSE:MCG) Seems To Use Debt Quite Sensibly

MultiChoice Group (JSE:MCG) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 17
The Strong Earnings Posted By MultiChoice Group (JSE:MCG) Are A Good Indication Of The Strength Of The Business

The Strong Earnings Posted By MultiChoice Group (JSE:MCG) Are A Good Indication Of The Strength Of The Business

Even though MultiChoice Group Limited's ( JSE:MCG ) recent earnings release was robust, the market didn't seem to...

Shareholder Returns

MCGZA MediaZA Market
7D4.6%4.2%1.6%
1Y-0.9%2.3%21.3%

Return vs Industry: MCG underperformed the ZA Media industry which returned 2.3% over the past year.

Return vs Market: MCG underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is MCG's price volatile compared to industry and market?
MCG volatility
MCG Beta0.52
Industry Beta1.05
Market Beta1

Stable Share Price: MCG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MCG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19957,028Calvo Mawelahttps://www.multichoice.com

MultiChoice Group Limited, through its subsidiaries, operates video-entertainment subscriber platforms in Africa, Europe, and internationally. It operates through South Africa, Rest of Africa, and Technology segments. The company offers digital satellite television, digital terrestrial television, online services, over-the-top, and related video-entertainment services.

MultiChoice Group Fundamentals Summary

How do MultiChoice Group's earnings and revenue compare to its market cap?
MCG fundamental statistics
Market CapR51.56b
Earnings (TTM)R2.16b
Revenue (TTM)R53.34b

23.9x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCG income statement (TTM)
RevenueR53.34b
Cost of RevenueR27.81b
Gross ProfitR25.53b
ExpensesR23.37b
EarningsR2.16b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 11, 2021

Earnings per share (EPS)5.06
Gross Margin47.86%
Net Profit Margin4.05%
Debt/Equity Ratio19.9%

How did MCG perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

112%

Payout Ratio

Valuation

Is MultiChoice 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: MCG (ZAR120.78) is trading below our estimate of fair value (ZAR293.86)

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


Price To Earnings Ratio

PE vs Industry: MCG is poor value based on its PE Ratio (23.9x) compared to the African Media industry average (14.7x).

PE vs Market: MCG is poor value based on its PE Ratio (23.9x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: MCG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MCG is overvalued based on its PB Ratio (4.1x) compared to the XF Media industry average (0.6x).


Future Growth

How is MultiChoice Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCG's forecast earnings growth (26.5% per year) is above the savings rate (8.8%).

Earnings vs Market: MCG's earnings (26.5% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCG's revenue (4.3% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: MCG's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCG's Return on Equity is forecast to be high in 3 years time (32.1%)


Past Performance

How has MultiChoice Group performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCG has high quality earnings.

Growing Profit Margin: MCG's current net profit margins (4.1%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: MCG's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: MCG's earnings growth over the past year (326.2%) exceeds its 5-year average (13.7% per year).

Earnings vs Industry: MCG earnings growth over the past year (326.2%) exceeded the Media industry -17.3%.


Return on Equity

High ROE: MCG's Return on Equity (42.9%) is considered outstanding.


Financial Health

How is MultiChoice Group's financial position?


Financial Position Analysis

Short Term Liabilities: MCG's short term assets (ZAR18.9B) exceed its short term liabilities (ZAR18.6B).

Long Term Liabilities: MCG's short term assets (ZAR18.9B) exceed its long term liabilities (ZAR14.3B).


Debt to Equity History and Analysis

Debt Level: MCG's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: MCG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: MCG's debt is well covered by operating cash flow (471.1%).

Interest Coverage: MCG's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet


Dividend

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

4.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCG's dividend (4.68%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: MCG's dividend (4.68%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MCG has been paying a dividend for less than 10 years.

Growing Dividend: MCG has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.6%), MCG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCG's dividends in 3 years are forecast to be covered by earnings (75.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Calvo Mawela (45 yo)

no data

Tenure

R34,870,000

Compensation

Mr. Calvo Phedi Mawela serves as Chief Executive Officer of Multichoice Group Limited and its Director since December 06, 2018. He was CEO of MultiChoice South Africa at Naspers Limited until 2019. He serv...


CEO Compensation Analysis

Compensation vs Market: Calvo's total compensation ($USD2.38M) is above average for companies of similar size in the ZA market ($USD1.28M).

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


Leadership Team

Experienced Management: MCG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MCG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

MultiChoice Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: MultiChoice Group Limited
  • Ticker: MCG
  • Exchange: JSE
  • Founded: 1995
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: R51.556b
  • Shares outstanding: 426.86m
  • Website: https://www.multichoice.com

Number of Employees


Location

  • MultiChoice Group Limited
  • 144 Bram Fischer Drive
  • Ferndale
  • Randburg
  • Gauteng
  • 2125
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.