We Like MTN Group's (JSE:MTN) Returns And Here's How They're Trending
May 29
South African (JSE) Telecom Sector Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies10
- 7D-4.0%
- 3M-4.6%
- 1Y-24.9%
- YTD-20.5%
Over the last 7 days, the Telecom industry has dropped 4.0%, driven by pullbacks in MTN Group and Vodacom Group of 4.7% and 3.5%, respectively. Meanwhile, African Media Entertainment actually outperformed within the industry, gaining 22% in the last week. However, the industry is down 25% over the past year. Earnings are forecast to grow by 29% annually.
Sector Valuation and Performance
Has the South African Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | R348.7b | R442.5b | R12.4b | 10.7x | 28.1x | 0.8x |
| Wed, 01 May 2024 | R360.2b | R430.2b | R13.5b | 9.7x | 26.6x | 0.8x |
| Fri, 29 Mar 2024 | R384.9b | R430.2b | R13.5b | 10.5x | 28.4x | 0.9x |
| Sun, 25 Feb 2024 | R354.8b | R434.1b | R29.6b | 9.7x | 12x | 0.8x |
| Tue, 23 Jan 2024 | R424.9b | R434.1b | R29.6b | 9.7x | 14.3x | 1x |
| Thu, 21 Dec 2023 | R424.1b | R434.1b | R29.6b | 9.8x | 14.3x | 1x |
| Sat, 18 Nov 2023 | R389.3b | R433.5b | R29.4b | 8.2x | 13.3x | 0.9x |
| Mon, 16 Oct 2023 | R443.4b | R473.6b | R25.2b | 9.5x | 17.6x | 0.9x |
| Wed, 13 Sep 2023 | R483.7b | R473.6b | R25.2b | 7.8x | 19.2x | 1x |
| Fri, 11 Aug 2023 | R516.3b | R457.2b | R24.1b | 5.7x | 21.4x | 1.1x |
| Sun, 09 Jul 2023 | R523.9b | R457.6b | R24.1b | 6.9x | 21.7x | 1.1x |
| Tue, 06 Jun 2023 | R510.2b | R454.7b | R39.2b | 6.6x | 13x | 1.1x |
| Thu, 04 May 2023 | R537.5b | R442.1b | R38.8b | 7.7x | 13.8x | 1.2x |
| Sat, 01 Apr 2023 | R546.3b | R442.1b | R38.8b | 7.9x | 14.1x | 1.2x |
| Mon, 27 Feb 2023 | R586.6b | R426.7b | R38.5b | 8.2x | 15.3x | 1.4x |
| Wed, 25 Jan 2023 | R564.9b | R426.3b | R39.1b | 7.3x | 14.5x | 1.3x |
| Fri, 23 Dec 2022 | R542.3b | R426.3b | R39.1b | 6.7x | 13.9x | 1.3x |
| Sun, 20 Nov 2022 | R522.4b | R424.6b | R41.8b | 6.5x | 12.5x | 1.2x |
| Tue, 18 Oct 2022 | R509.1b | R420.3b | R42.4b | 9x | 12x | 1.2x |
| Thu, 15 Sep 2022 | R545.3b | R420.3b | R42.4b | 8.9x | 12.8x | 1.3x |
| Sat, 13 Aug 2022 | R597.8b | R420.8b | R42.3b | 8.8x | 14.1x | 1.4x |
| Mon, 11 Jul 2022 | R572.5b | R409.9b | R37.0b | 8.6x | 15.5x | 1.4x |
| Wed, 08 Jun 2022 | R602.1b | R409.3b | R36.8b | 9.6x | 16.4x | 1.5x |
| Fri, 06 May 2022 | R653.7b | R406.8b | R35.6b | 9.6x | 18.4x | 1.6x |
| Sun, 03 Apr 2022 | R713.1b | R406.8b | R35.6b | 8.6x | 20x | 1.8x |
| Tue, 01 Mar 2022 | R676.3b | R388.8b | R28.7b | 15.6x | 23.5x | 1.7x |
| Thu, 27 Jan 2022 | R625.3b | R388.8b | R28.7b | 14.6x | 21.8x | 1.6x |
| Sat, 25 Dec 2021 | R612.8b | R389.0b | R28.4b | 14x | 21.5x | 1.6x |
| Mon, 22 Nov 2021 | R594.6b | R387.9b | R28.9b | 17.1x | 20.5x | 1.5x |
| Wed, 20 Oct 2021 | R560.9b | R385.9b | R29.4b | 14.9x | 19.1x | 1.5x |
| Fri, 17 Sep 2021 | R524.0b | R385.6b | R29.1b | 17.4x | 18x | 1.4x |
| Sun, 15 Aug 2021 | R519.3b | R385.6b | R29.1b | 16.3x | 17.9x | 1.3x |
| Thu, 10 Jun 2021 | R488.9b | R384.3b | R33.8b | 15.2x | 14.5x | 1.3x |
Price to Earnings Ratio
14.5x
Current Industry PE
- Investors are optimistic on the South African Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 28.1x which is higher than its 3-year average PE of 17.4x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.79x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 28% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.8% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South African Telecom sector?
| ZA Market | -3.99% | |
| Telecom | -4.03% | |
| Entertainment | 0% | |
| Interactive Media and Services | 0% | |
| Media | -1.64% | |
| Wireless Telecom | -4.04% | |
| Telecom Services and Carriers | -4.71% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry, which is trading close to its 3-year average PE ratio of 15.2x.
- Analysts are expecting annual earnings growth of 25.5%, which is higher than its past year's earnings decline of 40.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 120% over the next 5 years.
- This is better than its past earnings growth rate of 79% per year.
- In contrast, the Wireless Telecom industry is expected to see its earnings grow by 25% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AME African Media Entertainment | R44.00 | 22.2% +R56.2m | 37.5% | PE7.8x | |
| BLU Blue Label Telecoms | R4.30 | 0.7% +R26.9m | 12.6% | PE5.1x | |
| CGN Cognition Holdings | R1.06 | 5.0% +R11.5m | 41.3% | PE23.6x |
