| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
MTN Overview
MTN Group Limited, together with its subsidiaries, operates in the telecommunications industry.
MTN Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | R136.45 |
| 52 Week High | R52.65 |
| 52 Week Low | R137.43 |
| Beta | 0.75 |
| 1 Month Change | 4.66% |
| 3 Month Change | 35.07% |
| 1 Year Change | 154.33% |
| 3 Year Change | 55.80% |
| 5 Year Change | 16.17% |
| Change since IPO | 7,697.14% |
Recent News & Updates
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...
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...
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...
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
| MTN | ZA Wireless Telecom | ZA Market | |
|---|---|---|---|
| 7D | 6.1% | 1.5% | 2.4% |
| 1Y | 154.3% | 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
| MTN volatility | |
|---|---|
| MTN Beta | 0.75 |
| Industry Beta | 0.50 |
| Market Beta | 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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 21,975 | Ralph Mupita | https://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
| MTN fundamental statistics | |
|---|---|
| Market Cap | R245.99b |
| Earnings (TTM) | R7.58b |
| Revenue (TTM) | R182.04b |
32.5x
P/E Ratio1.4x
P/S RatioIs MTN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MTN income statement (TTM) | |
|---|---|
| Revenue | R182.04b |
| Cost of Revenue | R62.58b |
| Gross Profit | R119.46b |
| Expenses | R111.89b |
| Earnings | R7.58b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.20 |
| Gross Margin | 65.62% |
| Net Profit Margin | 4.16% |
| Debt/Equity Ratio | 83.1% |
How did MTN perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/26 17:03 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.