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BLU

Blue Label Telecoms JSE:BLU Stock Report

Last Price

R6.22

Market Cap

R5.5b

7D

5.1%

1Y

31.8%

Updated

30 Jun, 2022

Data

Company Financials
BLU fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends0/6

BLU Stock Overview

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

Rewards

Trading at 19.3% below our estimate of its fair value

Earnings grew by 234% over the past year

Risk Analysis

No risks detected for BLU from our risk checks.

Blue Label Telecoms Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Blue Label Telecoms
Historical stock prices
Current Share PriceR6.22
52 Week HighR6.64
52 Week LowR4.20
Beta1.05
1 Month Change10.48%
3 Month Change0.32%
1 Year Change31.78%
3 Year Change36.70%
5 Year Change-58.78%
Change since IPO-27.67%

Recent News & Updates

Mar 14
Improved Earnings Required Before Blue Label Telecoms Limited (JSE:BLU) Stock's 26% Jump Looks Justified

Improved Earnings Required Before Blue Label Telecoms Limited (JSE:BLU) Stock's 26% Jump Looks Justified

Despite an already strong run, Blue Label Telecoms Limited ( JSE:BLU ) shares have been powering on, with a gain of 26...

Mar 02
Why Blue Label Telecoms' (JSE:BLU) Earnings Are Better Than They Seem

Why Blue Label Telecoms' (JSE:BLU) Earnings Are Better Than They Seem

Investors signalled that they were pleased with Blue Label Telecoms Limited's ( JSE:BLU ) most recent earnings report...

Shareholder Returns

BLUZA TelecomZA Market
7D5.1%4.0%0.2%
1Y31.8%-11.6%-0.6%

Return vs Industry: BLU exceeded the ZA Telecom industry which returned -13.1% over the past year.

Return vs Market: BLU exceeded the ZA Market which returned 1.7% over the past year.

Price Volatility

Is BLU's price volatile compared to industry and market?
BLU volatility
BLU Average Weekly Movement6.8%
Telecom Industry Average Movement3.7%
Market Average Movement5.5%
10% most volatile stocks in ZA Market11.2%
10% least volatile stocks in ZA Market3.4%

Stable Share Price: BLU is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BLU's weekly volatility (7%) 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 CapR5.45b
Earnings (TTM)R923.13m
Revenue (TTM)R17.99b

5.9x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLU income statement (TTM)
RevenueR17.99b
Cost of RevenueR16.38b
Gross ProfitR1.61b
Other ExpensesR685.35m
EarningsR923.13m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.05
Gross Margin8.94%
Net Profit Margin5.13%
Debt/Equity Ratio53.5%

How did BLU perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BLU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BLU?

Other financial metrics that can be useful for relative valuation.

BLU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA4.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does BLU's PE Ratio compare to its peers?

BLU PE Ratio vs Peers
The above table shows the PE ratio for BLU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.3x
TKG Telkom SA SOC
6.8x2.6%R17.8b
HUG Huge Group
1.2xn/aR605.7m
TLSG Telekom Slovenije d.d
9.4xn/a€376.9m
GO GO
31.7xn/a€314.1m
BLU Blue Label Telecoms
5.9xn/aR5.5b

Price-To-Earnings vs Peers: BLU is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (12.3x).


Price to Earnings Ratio vs Industry

How does BLU's PE Ratio compare vs other companies in the Global Telecom Industry?

Price-To-Earnings vs Industry: BLU is good value based on its Price-To-Earnings Ratio (5.9x) compared to the African Telecom industry average (6.9x)


Price to Earnings Ratio vs Fair Ratio

What is BLU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BLU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BLU's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of BLU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BLU (ZAR6.22) is trading below our estimate of fair value (ZAR7.71)

Significantly Below Fair Value: BLU is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

How is Blue Label Telecoms 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


4.6%

Forecasted Telecom 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.


Discover growth companies

  • Examine whether Blue Label Telecoms is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Blue Label Telecoms performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLU has high quality earnings.

Growing Profit Margin: BLU's current net profit margins (5.1%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: BLU has become profitable over the past 5 years, growing earnings by -15.8% per year.

Accelerating Growth: BLU's earnings growth over the past year (234%) exceeds its 5-year average (-15.8% per year).

Earnings vs Industry: BLU earnings growth over the past year (234%) exceeded the Telecom industry 25.2%.


Return on Equity

High ROE: BLU's Return on Equity (27.3%) is considered high.


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Financial Health

How is Blue Label Telecoms's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BLU's short term assets (ZAR9.5B) exceed its short term liabilities (ZAR8.5B).

Long Term Liabilities: BLU's short term assets (ZAR9.5B) exceed its long term liabilities (ZAR395.6M).


Debt to Equity History and Analysis

Debt Level: BLU has more cash than its total debt.

Reducing Debt: BLU's debt to equity ratio has increased from 0.4% to 53.5% over the past 5 years.

Debt Coverage: BLU's debt is well covered by operating cash flow (69%).

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BLU has not reported any payouts.


Discover strong dividend paying companies

Management

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

13.0yrs

Average management tenure


CEO

Mark Levy (50 yo)

15.42yrs

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 ($USD2.48M) is above average for companies of similar size in the ZA market ($USD801.90K).

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 (13 years average tenure).


Board Members

Experienced Board: BLU's board of directors are seasoned and experienced ( 13.6 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: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: R5.452b
  • Shares outstanding: 876.45m
  • 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 Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2021/11/30
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.