Telkom SA SOC Limited provides integrated communications and information technology (IT) services to residential, business, government, wholesale, and corporate customers in South Africa and internationally.
No risks detected for TKG from our risk checks.
Telkom SA SOC Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||R47.50|
|52 Week High||R24.85|
|52 Week Low||R50.22|
|1 Month Change||25.10%|
|3 Month Change||8.87%|
|1 Year Change||73.93%|
|3 Year Change||-6.99%|
|5 Year Change||-17.65%|
|Change since IPO||68.44%|
Recent News & Updates
Telkom SA SOC (JSE:TKG) Has A Somewhat Strained Balance Sheet
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Here's What To Make Of Telkom SA SOC's (JSE:TKG) Decelerating Rates Of Return
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
|TKG||ZA Telecom||ZA Market|
Return vs Industry: TKG exceeded the ZA Telecom industry which returned 10.1% over the past year.
Return vs Market: TKG exceeded the ZA Market which returned 21.3% over the past year.
Stable Share Price: TKG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: TKG's weekly volatility (6%) has been stable over the past year.
About the Company
Telkom SA SOC Limited provides integrated communications and information technology (IT) services to residential, business, government, wholesale, and corporate customers in South Africa and internationally. The company offers mobile and fixed-line telecommunication services, including broadband, optical and carrier, broadband data, voice, content, and gaming solutions; small and medium entity information, communication, and technology services. It also provides cloud computing, unified communications and collaboration, security, big data analytics, and mobility solutions; enterprise and applications solutions, and IT managed services and infrastructure; digital and social media advertising; and e-commerce services.
Telkom SA SOC Fundamentals Summary
|TKG fundamental statistics|
Is TKG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TKG income statement (TTM)|
|Cost of Revenue||R24.99b|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
|Earnings per share (EPS)||4.89|
|Net Profit Margin||5.56%|
How did TKG perform over the long term?See historical performance and comparison
Is Telkom SA SOC undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TKG (ZAR47.5) is trading below our estimate of fair value (ZAR86.35)
Significantly Below Fair Value: TKG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TKG is poor value based on its PE Ratio (9.7x) compared to the African Telecom industry average (8x).
PE vs Market: TKG is good value based on its PE Ratio (9.7x) compared to the ZA market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: TKG is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: TKG's PB Ratio (0.7x) is in line with the XF Telecom industry average.
How is Telkom SA SOC forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TKG's forecast earnings growth (11.8% per year) is above the savings rate (8.8%).
Earnings vs Market: TKG's earnings (11.8% per year) are forecast to grow slower than the ZA market (12.2% per year).
High Growth Earnings: TKG's earnings are forecast to grow, but not significantly.
Revenue vs Market: TKG's revenue (3.2% per year) is forecast to grow slower than the ZA market (6.1% per year).
High Growth Revenue: TKG's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TKG's Return on Equity is forecast to be low in 3 years time (8.9%).
How has Telkom SA SOC performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TKG has high quality earnings.
Growing Profit Margin: TKG's current net profit margins (5.6%) are higher than last year (1.2%).
Past Earnings Growth Analysis
Earnings Trend: TKG's earnings have declined by 18.3% per year over the past 5 years.
Accelerating Growth: TKG's earnings growth over the past year (352.7%) exceeds its 5-year average (-18.3% per year).
Earnings vs Industry: TKG earnings growth over the past year (352.7%) exceeded the Telecom industry 29.6%.
Return on Equity
High ROE: TKG's Return on Equity (7.7%) is considered low.
How is Telkom SA SOC's financial position?
Financial Position Analysis
Short Term Liabilities: TKG's short term assets (ZAR15.9B) do not cover its short term liabilities (ZAR17.4B).
Long Term Liabilities: TKG's short term assets (ZAR15.9B) exceed its long term liabilities (ZAR15.1B).
Debt to Equity History and Analysis
Debt Level: TKG's debt to equity ratio (36.3%) is considered satisfactory.
Reducing Debt: TKG's debt to equity ratio has increased from 19.6% to 36.3% over the past 5 years.
Debt Coverage: TKG's debt is well covered by operating cash flow (97.5%).
Interest Coverage: TKG's interest payments on its debt are well covered by EBIT (6.4x coverage).
What is Telkom SA SOC current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TKG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TKG'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 TKG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TKG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: TKG is not paying a notable dividend for the ZA market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TKG's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sipho Maseko (52 yo)
Mr. Sipho Nkosinathi Maseko, BA, LLB., has been Group Chief Executive Officer and Executive Director of Telkom SA SOC Limited since April 1, 2013. He serves as Director at Roedean School (SA). He served as...
CEO Compensation Analysis
Compensation vs Market: Sipho's total compensation ($USD2.42M) is above average for companies of similar size in the ZA market ($USD922.82K).
Compensation vs Earnings: Sipho's compensation has increased by more than 20% in the past year.
Experienced Management: TKG's management team is considered experienced (3.3 years average tenure).
Experienced Board: TKG's board of directors are considered experienced (6.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Telkom SA SOC Limited's employee growth, exchange listings and data sources
- Name: Telkom SA SOC Limited
- Ticker: TKG
- Exchange: JSE
- Founded: 1991
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: R23.516b
- Shares outstanding: 495.08m
- Website: https://www.telkom.co.za
Number of Employees
- Telkom SA SOC Limited
- 61 Oak Avenue
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/17 17:06|
|End of Day Share Price||2021/10/15 00:00|
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.