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ATEL

Airtel Networks ZambiaLUSE:ATEL Stock Report

Market Cap

K2.5b

7D

-11.1%

1Y

-18.6%

Updated

26 Oct, 2021

Data

Company Financials
ATEL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

ATEL Overview

Airtel Networks Zambia Plc provides cellular radio telecommunication services to individual and business customers in Zambia.

Price History & Performance

Summary of all time highs, changes and price drops for Airtel Networks Zambia
Historical stock prices
Current Share PriceK24.00
52 Week HighK0
52 Week LowK0
Beta0.030
1 Month Change-11.11%
3 Month Change-18.59%
1 Year Change-18.62%
3 Year Change-31.43%
5 Year Change-26.15%
Change since IPO-43.53%

Recent News & Updates

Shareholder Returns

ATELZM Wireless TelecomZM Market
7D-11.1%-1.3%-2.2%
1Y-18.6%42.5%44.1%

Return vs Industry: ATEL underperformed the ZM Wireless Telecom industry which returned 42.3% over the past year.

Return vs Market: ATEL underperformed the ZM Market which returned 44.7% over the past year.

Price Volatility

Is ATEL's price volatile compared to industry and market?
ATEL volatility
ATEL Beta0.030
Industry Beta0.49
Market Beta1

Stable Share Price: Insufficient data to determine ATEL's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ATEL's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997196n/ahttps://www.airtel.co.zm

Airtel Networks Zambia Plc provides cellular radio telecommunication services to individual and business customers in Zambia. The company offers voice services that include caller identification, call waiting, roaming, international calling, fixed voice, prepaid and postpaid, hybrid, closed user group, toll free, and voice mail services; chat and SMS text services; and Internet services, including broadband and mobile internet. It also provides value added services, such as Airtel TV, an application for streaming and downloading audio and video content; Siliza, a service that allows to request/borrow airtime; Me2U, an airtime-sharing service; Airtel Blessing Connection, a religious portal, which offers Bible readings, gospels, sermons, church masses, and advises; Airtel Football; Mobile Radio, a service that allows customers to listen and download music; Airtel Games Club, a subscription based mobile portal that offers mobile games to download and play; Buddie Chat, a messaging platform; Learn French, an educational service that helps users to learn French language; and Airtel Hello Tunes, which enables to set specific caller tunes, as well as Airtel Marketplace, a service that helps to search for jobs and items or post Ads of items for sell.

Airtel Networks Zambia Fundamentals Summary

How do Airtel Networks Zambia's earnings and revenue compare to its market cap?
ATEL fundamental statistics
Market CapK2.50b
Earnings (TTM)-K340.56m
Revenue (TTM)K2.60b

1.0x

P/S Ratio

-7.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATEL income statement (TTM)
RevenueK2.60b
Cost of RevenueK967.86m
Gross ProfitK1.63b
ExpensesK1.97b
Earnings-K340.56m

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)-3.27
Gross Margin62.75%
Net Profit Margin-13.11%
Debt/Equity Ratio-258.6%

How did ATEL perform over the long term?

See historical performance and comparison

Valuation

Is Airtel Networks Zambia 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: ATEL (ZMW24) is trading below our estimate of fair value (ZMW118.93)

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


Price To Earnings Ratio

PE vs Industry: ATEL is unprofitable, so we can't compare its PE Ratio to the African Wireless Telecom industry average.

PE vs Market: ATEL is unprofitable, so we can't compare its PE Ratio to the ZM market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ATEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ATEL has negative assets, so we can't compare its PB Ratio to the XF Wireless Telecom industry average.


Future Growth

How is Airtel Networks Zambia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Airtel Networks Zambia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Airtel Networks Zambia performed over the past 5 years?

-55.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEL is currently unprofitable.

Growing Profit Margin: ATEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ATEL is unprofitable, and losses have increased over the past 5 years at a rate of 55.3% per year.

Accelerating Growth: Unable to compare ATEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ATEL is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-6.8%).


Return on Equity

High ROE: ATEL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Airtel Networks Zambia's financial position?


Financial Position Analysis

Short Term Liabilities: ATEL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ATEL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ATEL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: ATEL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: ATEL's debt is well covered by operating cash flow (145.1%).

Interest Coverage: ATEL's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is Airtel Networks Zambia current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: ATEL is not paying a notable dividend for the ZM market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATEL's dividend in 3 years as they are not forecast to pay a notable one for the ZM market.


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Airtel Networks Zambia has no CEO, or we have no data on them.


Board Members

Experienced Board: ATEL's board of directors are considered experienced (3.6 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

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


Top Shareholders

Company Information

Airtel Networks Zambia Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Airtel Networks Zambia Plc
  • Ticker: ATEL
  • Exchange: LUSE
  • Founded: 1997
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: K2.496b
  • Shares outstanding: 104.00m
  • Website: https://www.airtel.co.zm

Number of Employees


Location

  • Airtel Networks Zambia Plc
  • Airtel House
  • Cor of Addis Ababa Dr & Great E. Rd
  • Lusaka
  • Zambia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 17:45
End of Day Share Price2021/10/22 00:00
Earnings2020/12/31
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.