MTN Group
Market Cap
R104.6b
Last Updated
2020/06/06 19:55 UTC
Data Sources
Company Financials +
Executive Summary
MTN Group Limited, together with its subsidiaries, operates in the telecommunications industry.
Snowflake Analysis
Fair value second-rate dividend payer.
Similar Companies
Share Price & News
How has MTN Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MTN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
8.0%
MTN
1.6%
ZA Wireless Telecom
6.1%
ZA Market
1 Year Return
-46.4%
MTN
-12.7%
ZA Wireless Telecom
-20.8%
ZA Market
Return vs Industry: MTN underperformed the ZA Wireless Telecom industry which returned -12.7% over the past year.
Return vs Market: MTN underperformed the ZA Market which returned -20.8% over the past year.
Shareholder returns
| MTN | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.0% | 1.6% | 6.1% |
| 30 Day | 17.3% | 1.9% | 6.9% |
| 90 Day | -23.9% | -3.0% | -3.0% |
| 1 Year | -41.0%-46.4% | -5.8%-12.7% | -9.3%-20.8% |
| 3 Year | -36.8%-48.6% | -3.2%-19.4% | 8.2%-12.5% |
| 5 Year | -62.6%-73.7% | -3.7%-30.0% | 15.2%-13.9% |
Price Volatility Vs. Market
How volatile is MTN Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is MTN Group undervalued compared to its fair value and its price relative to the market?
11.67x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MTN (ZAR58.2) is trading above our estimate of fair value (ZAR51.9)
Significantly Below Fair Value: MTN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MTN is good value based on its PE Ratio (11.7x) compared to the Wireless Telecom industry average (13.6x).
PE vs Market: MTN is poor value based on its PE Ratio (11.7x) compared to the ZA market (8.4x).
Price to Earnings Growth Ratio
PEG Ratio: MTN is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: MTN is good value based on its PB Ratio (1.2x) compared to the XF Wireless Telecom industry average (2.2x).
Next Steps
Future Growth
How is MTN Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
18.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MTN's forecast earnings growth (18.3% per year) is above the savings rate (9.5%).
Earnings vs Market: MTN's earnings (18.3% per year) are forecast to grow slower than the ZA market (19.6% per year).
High Growth Earnings: MTN's earnings are forecast to grow, but not significantly.
Revenue vs Market: MTN's revenue (5.6% per year) is forecast to grow slower than the ZA market (8.3% per year).
High Growth Revenue: MTN's revenue (5.6% 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 (17.8%).
Next Steps
Past Performance
How has MTN Group performed over the past 5 years?
-36.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MTN has high quality earnings.
Growing Profit Margin: MTN's current net profit margins (5.9%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: MTN's earnings have declined by -36.5% per year over the past 5 years.
Accelerating Growth: MTN's earnings growth over the past year (2.8%) exceeds its 5-year average (-36.5% per year).
Earnings vs Industry: MTN earnings growth over the past year (2.8%) underperformed the Wireless Telecom industry 7.5%.
Return on Equity
High ROE: MTN's Return on Equity (12.4%) is considered low.
Next Steps
Financial Health
How is MTN Group's financial position?
Financial Position Analysis
Short Term Liabilities: MTN's short term assets (ZAR76.3B) do not cover its short term liabilities (ZAR83.8B).
Long Term Liabilities: MTN's short term assets (ZAR76.3B) do not cover its long term liabilities (ZAR132.4B).
Debt to Equity History and Analysis
Debt Level: MTN's debt to equity ratio (109.5%) is considered high.
Reducing Debt: MTN's debt to equity ratio has increased from 39.9% to 109.5% over the past 5 years.
Debt Coverage: MTN's debt is well covered by operating cash flow (38.5%).
Interest Coverage: MTN's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Next Steps
Dividend
What is MTN Group's current dividend yield, its reliability and sustainability?
9.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MTN's dividend (9.45%) is higher than the bottom 25% of dividend payers in the ZA market (4.19%).
High Dividend: MTN's dividend (9.45%) is low compared to the top 25% of dividend payers in the ZA market (11.59%).
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (110.3%), MTN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MTN's dividends in 3 years are forecast to be covered by earnings (80.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Rob Shuter (52yo)
3.25yrs
Tenure
R47,829,000
Compensation
Mr. Robert Andrew Shuter, also known as Rob, BCOMM, CA (SA), H DIP ACC, serves as Non-Executive Director of MTN Nigeria Communications PLC since April 13, 2017. Mr. Shuter has been Chief Executive Officer, ...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD2.84M) is about average for companies of similar size in the ZA market ($USD2.23M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group President | 3.25yrs | R47.83m | 0.014% ZAR15.1m | |
| Group CFO & Executive Director | 3.17yrs | R66.30m | 0.0052% ZAR5.5m | |
| Group Chief Operating Officer | 3.42yrs | R23.90m | 0.0028% ZAR2.9m | |
| Group Chief Legal Counsel | 0.83yr | R11.89m | no data | |
| Group Chief Human Resources Officer | 23.42yrs | R14.14m | 0.00056% ZAR586.0k | |
| Group Chief Regulatory & Corporate Affairs Officer | no data | R10.40m | no data | |
| Chief Executive Officer of MTN Nigeria | 5.42yrs | R21.09m | no data | |
| Chief Executive Officer of MTN South Africa | 3.25yrs | R15.65m | 0.0014% ZAR1.5m | |
| Regional Vice President of Southern & East Africa and Ghana (SEAGHA) | no data | R23.02m | no data | |
| Group Chief Technology & Information Officer | 1.42yrs | no data | no data |
3.3yrs
Average Tenure
52yo
Average Age
Experienced Management: MTN's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group President | 3.25yrs | R47.83m | 0.014% ZAR15.1m | |
| Group CFO & Executive Director | 3.17yrs | R66.30m | 0.0052% ZAR5.5m | |
| Member of International Advisory Board | no data | R5.34m | no data | |
| Independent Non-Executive Director | 6yrs | R1.27m | 0.00073% ZAR763.9k | |
| Independent Non-Executive Director | 13.92yrs | R2.66m | no data | |
| Independent Non-Executive Director | 4.92yrs | R2.65m | no data | |
| Chairman of MTN Uganda | no data | no data | no data | |
| Independent Non-Executive Chairman | 0.50yr | R1.28m | no data | |
| Lead Independent Non-Executive Director | 0.50yr | R1.02m | no data | |
| Chair of International Advisory Board | no data | no data | no data |
3.3yrs
Average Tenure
55.5yo
Average Age
Experienced Board: MTN's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MTN 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 company bio, 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: R104.644b
- Shares outstanding: 1.80b
- Website: https://www.mtn.com
Number of Employees
Location
- MTN Group Limited
- Innovation Centre
- 216 14th Avenue, Fairland
- Johannesburg
- Gauteng
- 2195
- South Africa
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MTNO.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 1995 |
| MTN | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Aug 1995 |
| LL6 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 1995 |
| MTNO.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Dec 2001 | |
| LL6A | BST (Boerse-Stuttgart) | SPONSORED ADR | DE | EUR | Dec 2001 |
Biography
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. Further, the company offers SIP tracking, multimedia conferencing, mobile PBX, cloud IVR, call recording, hosted call and contact center, and UCaaS services. Additionally, it provides cyber SOC, managed firewall, vulnerability assessment, device security, end point protection, penetration testing, and email security services. The company also offers cloud market place, O365, SaaS, backup, data center hosting, DBaaS, directory, domain management, DRaaS server virtualization, and web hosting services, as well as IoT connectivity, device management, IoT vertical application, and data analytics services. The company serves 251 million subscribers. MTN Group Limited was founded in 1994 and is based in Johannesburg, South Africa.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 19:55 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.