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MTN

MTN Group JSE:MTN Stock Report

Last Price

R119.41

Market Cap

R215.6b

7D

-6.2%

1Y

-15.5%

Updated

29 Sep, 2022

Data

Company Financials +
MTN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance6/6
Financial Health5/6
Dividends2/6

MTN Stock Overview

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

MTN Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MTN Group
Historical stock prices
Current Share PriceR119.41
52 Week HighR211.49
52 Week LowR116.65
Beta0.79
1 Month Change-5.46%
3 Month Change-12.68%
1 Year Change-15.53%
3 Year Change29.37%
5 Year Change-1.80%
Change since IPO6,723.43%

Recent News & Updates

Aug 22
MTN Group (JSE:MTN) Has A Pretty Healthy Balance Sheet

MTN Group (JSE:MTN) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

MTNZA Wireless TelecomZA Market
7D-6.2%-4.2%-2.6%
1Y-15.5%-17.3%-7.0%

Return vs Industry: MTN matched the ZA Wireless Telecom industry which returned -15.9% over the past year.

Return vs Market: MTN underperformed the ZA Market which returned -5.6% over the past year.

Price Volatility

Is MTN's price volatile compared to industry and market?
MTN volatility
MTN Average Weekly Movement5.2%
Wireless Telecom Industry Average Movement5.2%
Market Average Movement5.5%
10% most volatile stocks in ZA Market10.0%
10% least volatile stocks in ZA Market3.1%

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

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

About the Company

FoundedEmployeesCEOWebsite
199421,975Ralph Mupitahttps://www.mtn.com

MTN Group Limited, together with its subsidiaries, operates in the mobile telecommunications industry. The company provides data, voice and SMS, digital and fintech, wholesale, and interconnect and roaming services, as well as sells mobile devices. It also offers network as a service, which include subsea cables providing international connectivity services; terrestrial and metro fiber networks; data centers and cable landing stations; and FTTx, towers, and radio access networks.

MTN Group Fundamentals Summary

How do MTN Group's earnings and revenue compare to its market cap?
MTN fundamental statistics
Market CapR215.62b
Earnings (TTM)R19.11b
Revenue (TTM)R192.73b

11.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTN income statement (TTM)
RevenueR192.73b
Cost of RevenueR63.07b
Gross ProfitR129.65b
Other ExpensesR110.54b
EarningsR19.11b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.59
Gross Margin67.27%
Net Profit Margin9.92%
Debt/Equity Ratio73.5%

How did MTN perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MTN 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/Revenue1.7x
Enterprise Value/EBITDA3.9x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

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

MTN PE Ratio vs Peers
The above table shows the PE ratio for MTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.9x
VOD Vodacom Group
12.1x10.6%R207.6b
600050 China United Network Communications
14.7x10.4%CN¥103.4b
ADVANC Advanced Info Service
22.4x9.3%฿581.5b
SCOM Safaricom
14.4x8.7%KSh999.6b
MTN MTN Group
11.3x20.1%R215.6b

Price-To-Earnings vs Peers: MTN is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (15.9x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: MTN is good value based on its Price-To-Earnings Ratio (11.3x) compared to the Global Wireless Telecom industry average (14.7x)


Price to Earnings Ratio vs Fair Ratio

What is MTN'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.

MTN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: MTN is good value based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


Share Price vs Fair Value

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

Below Fair Value: MTN (ZAR119.41) is trading below our estimate of fair value (ZAR362.02)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTN's forecast earnings growth (20.1% per year) is above the savings rate (9%).

Earnings vs Market: MTN's earnings (20.1% per year) are forecast to grow faster than the ZA market (-1.3% per year).

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

Revenue vs Market: MTN's revenue (10.2% per year) is forecast to grow faster than the ZA market (5.7% per year).

High Growth Revenue: MTN's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTN's Return on Equity is forecast to be high in 3 years time (20.7%)


Discover growth companies

Past Performance

How has MTN Group 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


22.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTN has high quality earnings.

Growing Profit Margin: MTN's current net profit margins (9.9%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: MTN's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: MTN's earnings growth over the past year (152.2%) exceeds its 5-year average (22.5% per year).

Earnings vs Industry: MTN earnings growth over the past year (152.2%) exceeded the Wireless Telecom industry 2.5%.


Return on Equity

High ROE: MTN's Return on Equity (20.1%) is considered high.


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Financial Health

How is MTN Group'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: MTN's short term assets (ZAR126.3B) do not cover its short term liabilities (ZAR136.7B).

Long Term Liabilities: MTN's short term assets (ZAR126.3B) exceed its long term liabilities (ZAR121.9B).


Debt to Equity History and Analysis

Debt Level: MTN's net debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: MTN's debt to equity ratio has reduced from 81.8% to 73.5% over the past 5 years.

Debt Coverage: MTN's debt is well covered by operating cash flow (77.6%).

Interest Coverage: MTN's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.51%

Current Dividend Yield

Dividend Yield vs Market

MTN Group Dividend Yield vs Market
How does MTN Group dividend yield compare to the market?
SegmentDividend Yield
Company (MTN Group)2.5%
Market Bottom 25% (ZA)3.5%
Market Top 25% (ZA)8.9%
Industry Average (Wireless Telecom)5.7%
Analyst forecast in 3 Years (MTN Group)3.4%

Notable Dividend: MTN's dividend (2.51%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.49%).

High Dividend: MTN's dividend (2.51%) is low compared to the top 25% of dividend payers in the ZA market (8.97%).


Stability and Growth of Payments

Stable Dividend: MTN's dividend payments have been volatile in the past 10 years.

Growing Dividend: MTN's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.3%), MTN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.6%), MTN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Ralph Mupita (50 yo)

5.42yrs

Tenure

R51,310,000

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 served as a Non-Executive Director at Scancom Plc...


CEO Compensation Analysis

Ralph Mupita's Compensation vs MTN Group Earnings
How has Ralph Mupita's remuneration changed compared to MTN Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

R19b

Mar 31 2022n/an/a

R16b

Dec 31 2021R51mR15m

R14b

Sep 30 2021n/an/a

R11b

Jun 30 2021n/an/a

R8b

Mar 31 2021n/an/a

R12b

Dec 31 2020R31mR12m

R17b

Sep 30 2020n/an/a

R17b

Jun 30 2020n/an/a

R17b

Mar 31 2020n/an/a

R13b

Dec 31 2019R66mR9m

R9b

Sep 30 2019n/an/a

R9b

Jun 30 2019n/an/a

R9b

Mar 31 2019n/an/a

R9b

Dec 31 2018R23mR8m

R9b

Sep 30 2018n/an/a

R6b

Jun 30 2018n/an/a

R3b

Mar 31 2018n/an/a

R4b

Dec 31 2017R20mR6m

R4b

Compensation vs Market: Ralph's total compensation ($USD2.85M) is about average for companies of similar size in the ZA market ($USD2.69M).

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


Leadership Team

Experienced Management: MTN's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: MTN's board of directors are considered experienced (4.8 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

What is the ownership structure of MTN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders920,0000.05%
Private Companies121,330,0006.7%
General Public658,507,41036.5%
Institutions1,024,927,75356.8%

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


Top Shareholders

Top 25 shareholders own 57.5% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
22.97%
Public Investment Corporation Limited
414,798,034ZAR49.5b0%6.73%
6.72%
M1 Limited
121,330,000ZAR14.5b0%no data
5.31%
Coronation Fund Managers Limited
95,909,331ZAR11.5b426.25%5.48%
5.24%
M&G Investment Management Limited
94,626,926ZAR11.3b0%1.58%
4.02%
The Vanguard Group, Inc.
72,547,441ZAR8.7b1.42%0.01%
2.51%
BlackRock, Inc.
45,339,862ZAR5.4b-0.16%0.01%
1.88%
Capital Research and Management Company
33,968,524ZAR4.1b0.16%0.02%
1.36%
Dimensional Fund Advisors LP
24,586,854ZAR2.9b-0.19%0.04%
1.17%
Norges Bank Investment Management
21,110,587ZAR2.5b0%0.02%
1.12%
Sanlam Investment Management (Pty) Ltd.
20,293,360ZAR2.4b0%2.18%
0.93%
Ninety One UK Limited
16,833,736ZAR2.0b0%0.2%
0.69%
Old Mutual Investment Group (Pty) Limited
12,410,045ZAR1.5b0%1.53%
0.54%
Geode Capital Management, LLC
9,828,629ZAR1.2b2.2%0.01%
0.35%
Charles Schwab Investment Management, Inc.
6,263,713ZAR747.9m1.32%0.01%
0.33%
UBS Asset Management
5,991,011ZAR715.4m3.01%0.01%
0.33%
STANLIB Collective Investments Limited
5,904,916ZAR705.1m0%6.04%
0.32%
Fidelity International Ltd
5,859,933ZAR699.7m0%0.02%
0.29%
Allspring Global Investments, LLC
5,256,077ZAR627.6m15.74%0.06%
0.23%
abrdn plc
4,228,905ZAR505.0m-4.44%0.03%
0.21%
Amundi Asset Management
3,854,973ZAR460.3m-3.38%0.01%
0.2%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,600,213ZAR429.9m0.21%0.01%
0.2%
Old Mutual Customised Solutions (Pty) Limited
3,526,653ZAR421.1m0%5.36%
0.19%
Credit Suisse Asset Management (Switzerland)
3,465,211ZAR413.8m-0.9%0.02%
0.18%
Taquanta Asset Managers (Pty) Ltd
3,326,008ZAR397.2m0%4.08%
0.18%
Strategic Advisers LLC
3,319,865ZAR396.4m-16.34%0.02%

Company Information

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


Key Information

  • Name: MTN Group Limited
  • Ticker: MTN
  • Exchange: JSE
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: R215.617b
  • Shares outstanding: 1.81b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.