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MTN Group

DB:LL6
Snowflake Description

Undervalued with reasonable growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LL6
DB
ZAR173B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

MTN Group Limited operates in the telecommunications industry. The last earnings update was 102 days ago. More info.


Add to Portfolio Compare Print
LL6 Share Price and Events
7 Day Returns
0.1%
DB:LL6
-3%
Europe Wireless Telecom
0%
DE Market
1 Year Returns
7.9%
DB:LL6
1.1%
Europe Wireless Telecom
9.9%
DE Market
LL6 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MTN Group (LL6) 0.1% 2.3% -5.9% 7.9% -24.9% -65.4%
Europe Wireless Telecom -3% -3.3% 2.2% 1.1% -14.3% -26.2%
DE Market 0% 4.6% 12.1% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • LL6 outperformed the Wireless Telecom industry which returned 1.1% over the past year.
  • LL6 underperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
LL6
Industry
5yr Volatility vs Market

Value

 Is MTN Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MTN Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MTN Group.

DB:LL6 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LL6
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.337 (1 + (1- 28%) (78.85%))
0.684
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:LL6 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MTN Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:LL6 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 5%)
2020 21,141.00 Analyst x2 20,135.05
2021 31,687.00 Analyst x1 28,743.23
2022 39,860.96 Est @ 25.8% 34,437.33
2023 47,085.97 Est @ 18.13% 38,743.65
2024 53,092.40 Est @ 12.76% 41,607.21
2025 57,869.54 Est @ 9% 43,193.02
2026 61,554.02 Est @ 6.37% 43,756.96
2027 64,339.46 Est @ 4.53% 43,560.75
2028 66,421.51 Est @ 3.24% 42,830.58
2029 67,971.54 Est @ 2.33% 41,744.53
Present value of next 10 years cash flows ZAR378,752.00
DB:LL6 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR67,971.54 × (1 + 0.23%) ÷ (5% – 0.23%)
ZAR1,428,827.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR1,428,827.97 ÷ (1 + 5%)10
ZAR877,510.66
DB:LL6 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR378,752.00 + ZAR877,510.66
ZAR1,256,262.66
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR1,256,262.66 / 1,798.00
ZAR698.7
DB:LL6 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LL6 represents 0.05963x of JSE:MTN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.05963x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 698.70 x 0.05963
€41.66
Value per share (EUR) From above. €41.66
Current discount Discount to share price of €5.74
= -1 x (€5.74 - €41.66) / €41.66
86.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MTN Group is available for.
Intrinsic value
>50%
Share price is €5.74 vs Future cash flow value of €41.66
Current Discount Checks
For MTN Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MTN Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MTN Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MTN Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MTN Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LL6 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR4.88
JSE:MTN Share Price ** JSE (2019-11-18) in ZAR ZAR96.26
Europe Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 22.75x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 20.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MTN Group.

DB:LL6 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:MTN Share Price ÷ EPS (both in ZAR)

= 96.26 ÷ 4.88

19.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTN Group is good value based on earnings compared to the Europe Wireless Telecom industry average.
  • MTN Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does MTN Group's expected growth come at a high price?
Raw Data
DB:LL6 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
21.6%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 2.38x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:LL6 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.73x ÷ 21.6%

0.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTN Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on MTN Group's assets?
Raw Data
DB:LL6 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR46.05
JSE:MTN Share Price * JSE (2019-11-18) in ZAR ZAR96.26
Europe Wireless Telecom Industry PB Ratio Median Figure of 9 Publicly-Listed Wireless Telecom Companies 1.82x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.84x
DB:LL6 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:MTN Share Price ÷ Book Value per Share (both in ZAR)

= 96.26 ÷ 46.05

2.09x

* Primary Listing of MTN Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MTN Group is overvalued based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess MTN Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. MTN Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is MTN Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MTN Group expected to grow at an attractive rate?
  • MTN Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • MTN Group's earnings growth is expected to exceed the Germany market average.
  • MTN Group's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LL6 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LL6 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 21.6%
DB:LL6 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 7%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LL6 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LL6 Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 171,910 42,506 16,397 6
2020-12-31 161,342 40,152 14,606 7
2019-12-31 150,064 34,601 11,210 6
2019-11-18
DB:LL6 Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 144,288 32,896 8,771
2019-03-31 139,424 32,643 8,745
2018-12-31 134,560 32,389 8,719
2018-09-30 132,696 29,886 6,028
2018-06-30 130,831 27,382 3,337
2018-03-31 131,850 30,385 3,877
2017-12-31 132,869 33,387 4,416
2017-09-30 133,245 39,157 6,376
2017-06-30 133,620 44,926 8,335
2017-03-31 140,770 42,717 2,861
2016-12-31 147,920 40,508 -2,614
2016-09-30 144,797 37,892 101

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MTN Group's earnings are expected to grow significantly at over 20% yearly.
  • MTN Group's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LL6 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from MTN Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LL6 Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 9.28 10.06 8.41 5.00
2020-12-31 8.14 9.86 7.30 6.00
2019-12-31 6.11 6.45 5.84 4.00
2019-11-18
DB:LL6 Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 4.88
2019-03-31 4.86
2018-12-31 4.85
2018-09-30 3.35
2018-06-30 1.86
2018-03-31 2.16
2017-12-31 2.46
2017-09-30 3.54
2017-06-30 4.61
2017-03-31 1.58
2016-12-31 -1.44
2016-09-30 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MTN Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MTN Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MTN Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MTN Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MTN Group's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MTN Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • MTN Group's 1-year earnings growth exceeds its 5-year average (162.8% vs -42.6%)
  • MTN Group's earnings growth has exceeded the Europe Wireless Telecom industry average in the past year (162.8% vs 21%).
Earnings and Revenue History
MTN Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MTN Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LL6 Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 144,288.00 8,771.00 18,553.00
2019-03-31 139,424.00 8,745.00 18,080.50
2018-12-31 134,560.00 8,719.00 17,608.00
2018-09-30 132,695.50 6,028.00 17,548.00
2018-06-30 130,831.00 3,337.00 17,896.00
2018-03-31 131,850.00 3,876.50 17,963.00
2017-12-31 132,869.00 4,416.00 18,030.00
2017-09-30 133,244.50 6,375.50 18,475.50
2017-06-30 133,620.00 8,335.00 18,921.00
2017-03-31 140,770.00 2,860.50 19,550.50
2016-12-31 147,920.00 -2,614.00 20,180.00
2016-09-30 144,797.00 100.50 19,888.50
2016-06-30 141,674.00 2,815.00 19,597.00
2016-03-31 136,768.50 11,509.50 19,004.50
2015-12-31 131,863.00 20,204.00 18,412.00
2015-09-30 137,669.00 25,396.50 18,423.00
2015-06-30 143,475.00 30,589.00 18,434.00
2015-03-31 145,202.50 31,334.00 17,804.00
2014-12-31 146,930.00 32,079.00 17,174.00
2014-09-30 145,625.00 29,699.50 16,057.00
2014-06-30 144,320.00 27,320.00 14,940.00
2014-03-31 140,795.00 27,035.50 15,651.00
2013-12-31 137,270.00 26,751.00 16,362.00
2013-09-30 132,557.00 24,752.00 16,563.50
2013-06-30 128,158.00 22,931.00 16,765.00
2013-03-31 125,012.50 21,817.50 16,198.00
2012-12-31 121,867.00 20,704.00 15,631.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MTN Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MTN Group used its assets more efficiently than the Europe Wireless Telecom industry average last year based on Return on Assets.
  • MTN Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MTN Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MTN Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MTN Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MTN Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MTN Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • MTN Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of MTN Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MTN Group Company Filings, last reported 4 months ago.

DB:LL6 Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 84,950.00 90,284.00 13,338.00
2019-03-31 84,950.00 90,284.00 13,338.00
2018-12-31 88,226.00 85,001.00 19,942.00
2018-09-30 88,226.00 85,001.00 19,942.00
2018-06-30 89,543.00 92,395.00 13,431.00
2018-03-31 89,543.00 92,395.00 13,431.00
2017-12-31 95,720.00 79,720.00 21,766.00
2017-09-30 95,720.00 79,720.00 16,009.00
2017-06-30 102,894.00 84,845.00 23,351.00
2017-03-31 102,894.00 84,845.00 23,351.00
2016-12-31 105,231.00 86,954.00 35,237.00
2016-09-30 105,231.00 86,954.00 35,237.00
2016-06-30 119,796.00 81,947.00 26,955.00
2016-03-31 119,796.00 81,947.00 26,955.00
2015-12-31 151,838.00 75,171.00 43,151.00
2015-09-30 151,838.00 75,171.00 43,151.00
2015-06-30 127,420.00 56,059.00 31,014.00
2015-03-31 127,420.00 56,059.00 31,014.00
2014-12-31 133,442.00 53,281.00 48,932.00
2014-09-30 133,442.00 53,281.00 48,932.00
2014-06-30 120,445.00 47,776.00 37,583.00
2014-03-31 120,445.00 47,776.00 37,583.00
2013-12-31 121,812.00 46,028.00 44,164.00
2013-09-30 119,771.00 46,028.00 44,164.00
2013-06-30 103,664.00 42,148.00 25,416.00
2013-03-31 103,664.00 42,148.00 25,416.00
2012-12-31 92,887.00 32,086.00 29,484.00
  • MTN Group's level of debt (106.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39% vs 106.3% today).
  • Debt is well covered by operating cash flow (36.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess MTN Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MTN Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is MTN Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.19%
Current annual income from MTN Group dividends. Estimated to be 6.42% next year.
If you bought €2,000 of MTN Group shares you are expected to receive €104 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MTN Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.33%).
  • MTN Group's dividend is above the markets top 25% of dividend payers in Germany (3.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LL6 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LL6 Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 8.36 1.00
2021-12-31 6.79 9.00
2020-12-31 6.01 10.00
2019-12-31 5.50 9.00
2019-11-18
DB:LL6 Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-03-29 5.000 4.947
2019-03-07 5.000 5.452
2019-03-06 5.000 6.071
2018-03-08 7.000 7.292
2017-03-28 7.000 5.636
2017-03-02 7.000 5.638
2016-08-05 10.800 9.015
2016-03-03 13.100 9.569
2016-03-02 13.100 9.450
2015-03-05 12.450 7.133
2014-08-07 11.100 4.915
2014-03-18 10.350 4.678
2014-03-05 10.350 5.030
2013-08-26 8.730 4.404
2013-03-08 8.240 4.694
2012-08-08 7.970 4.800
2012-03-07 7.490 5.400
2012-03-06 7.490 5.462
2011-06-30 5.000 3.637
2011-01-17 5.000 3.742
2010-08-19 3.020 2.390
2010-07-15 3.020 2.585
2010-03-11 1.920 1.766
2009-03-12 1.810 1.549

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MTN Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess MTN Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MTN Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MTN Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MTN Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Shuter
COMPENSATION ZAR42,923
AGE 52
TENURE AS CEO 2.7 years
CEO Bio

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 July 2019. Mr. Shuter has been Chief Executive Officer, Group President and Executive Director of MTN Group Limited since March 13, 2017. Mr. Shuter has extensive experience in the telecoms sector in both Africa and Europe as well as in financial services. He served as Managing Director of Nedbank Retail of Nedbank Group Limited since September 2004. He served as Chief Executive Officer of Vodafone Libertel B.V. since March 2012. He served as Chief Executive Officer of Netherlands and Europe Cluster at Vodafone Group Plc from October 2015 to June 20, 2016. Mr. Shuter served as the Chief Financial Officer and Executive Director of Vodacom Group (Pty) Ltd. (now known as Vodacom Group Limited) from July 1, 2009 to March 31, 2012. He served as the Director of Group Strategy and Corporate Affairs of Nedbank Group Limited since November 2003. After completing his articles at Deloitte & Touche, Mr. Shuter joined BoE Merchant Bank. In 1994, he joined Corporate Finance Division of Standard Corporate and Merchant Bank (SCMB), and was promoted to Joint Head of Corporate Finance in January 1997. In April 1998, he was appointed Head of Investment Banking at SCMB. After a brief stint at Computer Configurations Holdings Limited, a client of SCMB, he joined the Nedcor Group as Head of Corporate Finance in early 2000. Mr. Shuter served as a Non Executive Director of Imperial Bank Limited and IBL Asset Finance and Services Limited.

CEO Compensation
  • Rob's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rob's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the MTN Group management team in years:

2.8
Average Tenure
52
Average Age
  • The tenure for the MTN Group management team is about average.
Management Team

Rob Shuter

TITLE
Group President
COMPENSATION
ZAR43K
AGE
52
TENURE
2.7 yrs

Ralph Mupita

TITLE
Group CFO & Executive Director
COMPENSATION
ZAR23K
AGE
47
TENURE
2.6 yrs

Jens Schulte-Bockum

TITLE
Group Chief Operating Officer
COMPENSATION
ZAR23K
AGE
53
TENURE
2.8 yrs

Paul Norman

TITLE
Group Chief Human Resources Officer
COMPENSATION
ZAR17K
AGE
54
TENURE
22.8 yrs

Felleng Sekha

TITLE
Group Chief Regulatory & Corporate Affairs Officer
COMPENSATION
ZAR9K
AGE
52

Ferdi Moolman

TITLE
Chief Executive Officer of MTN Nigeria
COMPENSATION
ZAR21K
AGE
56
TENURE
4.8 yrs

Godfrey Motsa

TITLE
Chief Executive Officer of MTN South Africa
COMPENSATION
ZAR23K
AGE
46
TENURE
2.7 yrs

Ebenezer Asante

TITLE
Regional Vice President of Southern & East Africa and Ghana (SEAGHA)
COMPENSATION
ZAR24K
AGE
51

Babak Fouladi

TITLE
Chief Technology & Information Officer and Interim Chief Technology Officer of South Africa

Zolisa Masiza

TITLE
Chief Corporate Service Officer
Board of Directors Tenure

Average tenure and age of the MTN Group board of directors in years:

5.4
Average Tenure
59
Average Age
  • The tenure for the MTN Group board of directors is about average.
Board of Directors

Phuthuma Nhleko

TITLE
Non Executive Chairman
COMPENSATION
ZAR5K
AGE
59
TENURE
2.7 yrs

Rob Shuter

TITLE
Group President
COMPENSATION
ZAR43K
AGE
52
TENURE
2.7 yrs

Ralph Mupita

TITLE
Group CFO & Executive Director
COMPENSATION
ZAR23K
AGE
47
TENURE
2.6 yrs

Charles Mbire

TITLE
Chairman of MTN Uganda

Koosum Kalyan

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1K
AGE
64
TENURE
13.4 yrs

Alan Harper

TITLE
Lead Independent Director
COMPENSATION
ZAR3K
AGE
63
TENURE
2.5 yrs

Nkateko Mageza

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1K
AGE
65
TENURE
9.8 yrs

Kandimathie Christine Ramon

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1K
AGE
52
TENURE
5.4 yrs

Marion Lesego Marole

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1K
AGE
59
TENURE
9.8 yrs

Jeff van Rooyen

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1K
AGE
70
TENURE
13.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Mar 19 Buy Sibongile Mtshali Individual 20. Mar 19 20. Mar 19 2,525 €5.73 €14,457
X
Management checks
We assess MTN Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MTN Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

MTN Group Limited operates in the telecommunications industry. It offers voice, data, digital, Internet of Things, mobility, security, managed network, and cloud solutions. The company also provides digital services, such as mobile money account; and entertainment services, including MTN Music and Play. As of December 31, 2018, the company had 230 million subscribers in 21 countries in Africa and the Middle East. MTN Group Limited was founded in 1994 and is based in Johannesburg, South Africa.

Details
Name: MTN Group Limited
LL6
Exchange: DB
Founded: 1994
ZAR10,538,786,710
1,798,004,650
Website: http://www.mtn.com
Address: MTN Group Limited
Innovation Centre,
216 14th Avenue,
Johannesburg,
Gauteng, 2195,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE MTN Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 15. Aug 1995
OTCPK MTNO.F Ordinary Shares Pink Sheets LLC US USD 15. Aug 1995
DB LL6 Ordinary Shares Deutsche Boerse AG DE EUR 15. Aug 1995
OTCPK MTNO.Y ADR EACH REPR 1 ORD ZAR0.0001(BNY) Pink Sheets LLC US USD 18. Dec 2001
BST LL6A ADR EACH REPR 1 ORD ZAR0.0001(BNY) Boerse-Stuttgart DE EUR 18. Dec 2001
Number of employees
Current staff
Staff numbers
0
MTN Group employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 20:46
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/08/08
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.