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MTN

MTN GroupJSE:MTN Stock Report

Market Cap

R246.0b

7D

6.1%

1Y

154.3%

Updated

26 Sep, 2021

Data

Company Financials +
MTN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends0/6

MTN Overview

MTN Group Limited, together with its subsidiaries, operates in the 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 PriceR136.45
52 Week HighR52.65
52 Week LowR137.43
Beta0.75
1 Month Change4.66%
3 Month Change35.07%
1 Year Change154.33%
3 Year Change55.80%
5 Year Change16.17%
Change since IPO7,697.14%

Recent News & Updates

Sep 14
These 4 Measures Indicate That MTN Group (JSE:MTN) Is Using Debt Reasonably Well

These 4 Measures Indicate That MTN Group (JSE:MTN) Is Using Debt Reasonably Well

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

Aug 15
MTN Group Limited Just Missed EPS By 67%: Here's What Analysts Think Will Happen Next

MTN Group Limited Just Missed EPS By 67%: Here's What Analysts Think Will Happen Next

Investors in MTN Group Limited ( JSE:MTN ) had a good week, as its shares rose 5.2% to close at R120 following the...

Jul 13
Returns On Capital At MTN Group (JSE:MTN) Have Stalled

Returns On Capital At MTN Group (JSE:MTN) Have Stalled

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Jun 15
Is MTN Group (JSE:MTN) Using Too Much Debt?

Is MTN Group (JSE:MTN) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

MTNZA Wireless TelecomZA Market
7D6.1%1.5%2.4%
1Y154.3%51.6%23.5%

Return vs Industry: MTN exceeded the ZA Wireless Telecom industry which returned 51.6% over the past year.

Return vs Market: MTN exceeded the ZA Market which returned 23.8% over the past year.

Price Volatility

Is MTN's price volatile compared to industry and market?
MTN volatility
MTN Beta0.75
Industry Beta0.50
Market Beta1

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 telecommunications industry. The company offers mobile voice, international calling, roaming, closed user group, enterprise bundle, corporate APN, reverse bill URL, and enterprise mobility services. It also provides domestic and international MPLS, dedicated internet, business broadband, fiber to the business, carrier Ethernet, MS express route, AWS direct connect, managed LAN, and SD WAN services.

MTN Group Fundamentals Summary

How do MTN Group's earnings and revenue compare to its market cap?
MTN fundamental statistics
Market CapR245.99b
Earnings (TTM)R7.58b
Revenue (TTM)R182.04b

32.5x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTN income statement (TTM)
RevenueR182.04b
Cost of RevenueR62.58b
Gross ProfitR119.46b
ExpensesR111.89b
EarningsR7.58b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.20
Gross Margin65.62%
Net Profit Margin4.16%
Debt/Equity Ratio83.1%

How did MTN perform over the long term?

See historical performance and comparison

Valuation

Is MTN 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: MTN (ZAR136.45) is trading below our estimate of fair value (ZAR274.95)

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


Price To Earnings Ratio

PE vs Industry: MTN is poor value based on its PE Ratio (32.5x) compared to the African Wireless Telecom industry average (20x).

PE vs Market: MTN is poor value based on its PE Ratio (32.5x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: MTN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MTN is good value based on its PB Ratio (2.3x) compared to the XF Wireless Telecom industry average (3.8x).


Future Growth

How is MTN Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTN's forecast earnings growth (24.5% per year) is above the savings rate (9.2%).

Earnings vs Market: MTN's earnings (24.5% per year) are forecast to grow faster than the ZA market (13.9% per year).

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

Revenue vs Market: MTN's revenue (6.7% per year) is forecast to grow faster than the ZA market (6.6% per year).

High Growth Revenue: MTN's revenue (6.7% 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 low in 3 years time (17.3%).


Past Performance

How has MTN Group performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTN has high quality earnings.

Growing Profit Margin: MTN's current net profit margins (4.2%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: MTN's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: MTN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MTN had negative earnings growth (-54.5%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-6.8%).


Return on Equity

High ROE: MTN's Return on Equity (9.6%) is considered low.


Financial Health

How is MTN Group's financial position?


Financial Position Analysis

Short Term Liabilities: MTN's short term assets (ZAR115.8B) exceed its short term liabilities (ZAR108.6B).

Long Term Liabilities: MTN's short term assets (ZAR115.8B) do not cover its long term liabilities (ZAR129.8B).


Debt to Equity History and Analysis

Debt Level: MTN's debt to equity ratio (83.1%) is considered high.

Reducing Debt: MTN's debt to equity ratio has increased from 68% to 83.1% over the past 5 years.

Debt Coverage: MTN's debt is well covered by operating cash flow (74%).

Interest Coverage: MTN's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Dividend

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

3.57%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTN'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?

3.3yrs

Average management tenure


CEO

Ralph Mupita (49 yo)

1

Tenure

R30,827,000

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

Compensation vs Market: Ralph's total compensation ($USD2.06M) is about average for companies of similar size in the ZA market ($USD2.51M).

Compensation vs Earnings: Ralph's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MTN's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: MTN's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: R245.993b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 17:03
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.