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Safaricom

NASE:SCOM
Snowflake Description

Excellent balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SCOM
NASE
KES1,056B
Market Cap
  1. Home
  2. KE
  3. Telecom
Company description

Safaricom PLC provides telecommunication services in Kenya. The last earnings update was 160 days ago. More info.


Add to Portfolio Compare Print
  • Safaricom has significant price volatility in the past 3 months.
SCOM Share Price and Events
7 Day Returns
-7.3%
NASE:SCOM
2.5%
Africa Wireless Telecom
-0.6%
KE Market
1 Year Returns
-5.4%
NASE:SCOM
-11.3%
Africa Wireless Telecom
-14%
KE Market
SCOM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Safaricom (SCOM) -7.3% -5.6% -20.1% -5.4% 33.7% 56.4%
Africa Wireless Telecom 2.5% -3.6% -14.2% -11.3% -19.6% -33.2%
KE Market -0.6% -10.3% -22.4% -14% -2.6% -22.6%
1 Year Return vs Industry and Market
  • SCOM outperformed the Wireless Telecom industry which returned -11.3% over the past year.
  • SCOM outperformed the Market in Kenya which returned -14% over the past year.
Price Volatility
SCOM
Industry
5yr Volatility vs Market
Related Companies

SCOM Value

 Is Safaricom 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 Safaricom 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 Safaricom.

NASE:SCOM 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 22.3%
Perpetual Growth Rate 10-Year KE Government Bond Rate 12.4%

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 NASE:SCOM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year KE Govt Bond Rate 12.4%
Equity Risk Premium S&P Global 12.4%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.248 (1 + (1- 30%) (0.29%))
0.497
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)
= 12.38% + (0.8 * 12.41%)
22.31%

Discounted Cash Flow Calculation for NASE:SCOM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Safaricom 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.

NASE:SCOM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (KES, Millions) Source Present Value
Discounted (@ 22.31%)
2020 82,364.33 Analyst x3 67,341.74
2021 93,956.33 Analyst x3 62,808.20
2022 102,816.00 Analyst x3 56,194.80
2023 106,120.00 Analyst x1 47,421.77
2024 117,910.00 Analyst x1 43,080.06
2025 128,186.06 Est @ 8.72% 38,292.31
2026 140,767.04 Est @ 9.81% 34,380.88
2027 155,666.16 Est @ 10.58% 31,085.32
2028 172,980.85 Est @ 11.12% 28,242.57
2029 192,873.78 Est @ 11.5% 25,746.88
Present value of next 10 years cash flows KES434,594.00
NASE:SCOM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= KES192,873.78 × (1 + 12.38%) ÷ (22.31% – 12.38%)
KES2,183,234.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= KES2,183,234.78 ÷ (1 + 22.31%)10
KES291,441.77
NASE:SCOM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= KES434,594.00 + KES291,441.77
KES726,035.77
Equity Value per Share
(KES)
= Total value / Shares Outstanding
= KES726,035.77 / 40,065.43
KES18.12
NASE:SCOM Discount to Share Price
Calculation Result
Value per share (KES) From above. KES18.12
Current discount Discount to share price of KES26.20
= -1 x (KES26.20 - KES18.12) / KES18.12
-44.6%

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

  • The current share price of Safaricom is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Safaricom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Safaricom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NASE:SCOM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in KES KES1.66
NASE:SCOM Share Price ** NASE (2020-04-08) in KES KES26.2
Africa Wireless Telecom Industry PE Ratio Median Figure of 9 Publicly-Listed Wireless Telecom Companies 15.6x
Kenya Market PE Ratio Median Figure of 39 Publicly-Listed Companies 7.15x

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

** Primary Listing of Safaricom.

NASE:SCOM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NASE:SCOM Share Price ÷ EPS (both in KES)

= 26.2 ÷ 1.66

15.79x

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

  • Safaricom is overvalued based on earnings compared to the Africa Wireless Telecom industry average.
  • Safaricom is overvalued based on earnings compared to the Kenya market.
Price based on expected Growth
Does Safaricom's expected growth come at a high price?
Raw Data
NASE:SCOM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
12%per year
Africa Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 1.34x
Kenya Market PEG Ratio Median Figure of 9 Publicly-Listed Companies 0.45x

*Line of best fit is calculated by linear regression .

NASE:SCOM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.79x ÷ 12%

1.31x

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

  • Safaricom is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Safaricom's assets?
Raw Data
NASE:SCOM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in KES KES2.62
NASE:SCOM Share Price * NASE (2020-04-08) in KES KES26.2
Africa Wireless Telecom Industry PB Ratio Median Figure of 11 Publicly-Listed Wireless Telecom Companies 2.58x
Kenya Market PB Ratio Median Figure of 49 Publicly-Listed Companies 0.73x
NASE:SCOM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NASE:SCOM Share Price ÷ Book Value per Share (both in KES)

= 26.2 ÷ 2.62

10.02x

* Primary Listing of Safaricom.

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

  • Safaricom is overvalued based on assets compared to the Africa Wireless Telecom industry average.
X
Value checks
We assess Safaricom'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. Safaricom has a total score of 0/6, 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.

SCOM Future Performance

 How is Safaricom 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
12%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Safaricom expected to grow at an attractive rate?
  • Safaricom's earnings growth is positive but not above the low risk savings rate of 12.4%.
Growth vs Market Checks
  • Safaricom's earnings growth is positive but not above the Kenya market average.
  • Safaricom's revenue growth is positive but not above the Kenya market average.
Annual Growth Rates Comparison
Raw Data
NASE:SCOM Future Growth Rates Data Sources
Data Point Source Value (per year)
NASE:SCOM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 12%
NASE:SCOM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 8.6%
Africa Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
Africa Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
Kenya Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Kenya Market Revenue Growth Rate Market Cap Weighted Average 9.2%

*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
NASE:SCOM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in KES Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NASE:SCOM Future Estimates Data
Date (Data in KES Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 312,745 140,263 89,135 6
2021-03-31 286,764 129,142 79,096 6
2020-04-09
2020-03-31 263,090 117,297 70,627 7
NASE:SCOM Past Financials Data
Date (Data in KES Millions) Revenue Cash Flow Net Income *
2019-09-30 257,223 101,691 66,521
2019-06-30 253,673 100,751 64,506
2019-03-31 250,123 99,811 62,491
2018-12-31 246,296 61,375
2018-09-30 242,449 97,530 60,259
2018-06-30 238,329 94,745 57,774
2018-03-31 234,209 91,960 55,289
2017-12-31 230,904 53,003
2017-09-30 227,600 50,714
2017-06-30 221,440 49,579
2017-03-31 215,278 79,528 48,444
2016-12-31 208,016 46,198

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Safaricom's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
  • Safaricom's revenue is expected to grow by 8.6% 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
NASE:SCOM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Safaricom Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NASE:SCOM Future Estimates Data
Date (Data in KES Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 2.19 2.34 2.04 7.00
2021-03-31 1.95 2.07 1.82 7.00
2020-04-09
2020-03-31 1.76 1.84 1.72 9.00
NASE:SCOM Past Financials Data
Date (Data in KES Millions) EPS *
2019-09-30 1.66
2019-06-30 1.61
2019-03-31 1.56
2018-12-31 1.54
2018-09-30 1.51
2018-06-30 1.45
2018-03-31 1.38
2017-12-31 1.32
2017-09-30 1.26
2017-06-30 1.23
2017-03-31 1.21
2016-12-31 1.16

*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.
  • Safaricom is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Safaricom'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 Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Africa 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.
Safaricom has a total score of 1/6, 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.

SCOM Past Performance

  How has Safaricom 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 Safaricom'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.
  • Safaricom's year on year earnings growth rate has been positive over the past 5 years.
  • Safaricom's 1-year earnings growth is less than its 5-year average (10.4% vs 16.9%)
  • Safaricom's earnings growth has exceeded the Africa Wireless Telecom industry average in the past year (10.4% vs 7.4%).
Earnings and Revenue History
Safaricom'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 Safaricom Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NASE:SCOM Past Revenue, Cash Flow and Net Income Data
Date (Data in KES Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 257,223.00 66,521.00 3,769.00
2019-06-30 253,673.00 64,506.00 3,769.00
2019-03-31 250,123.00 62,491.00 3,769.00
2018-12-31 246,296.00 61,375.00 5,728.50
2018-09-30 242,449.00 60,259.00 5,308.00
2018-06-30 238,329.00 57,774.00 4,463.00
2018-03-31 234,209.00 55,289.00 3,618.00
2017-12-31 230,904.39 53,003.15 24,003.00
2017-09-30 227,599.62 50,714.42 6,578.36
2017-06-30 221,439.62 49,579.42 4,858.36
2017-03-31 215,278.00 48,444.00 3,138.00
2016-12-31 208,015.77 46,198.34 -6,988.18
2016-09-30 200,759.43 43,954.33 2,385.64
2016-06-30 198,324.52 41,029.31 2,385.64
2016-03-31 195,889.60 38,104.29 2,385.64
2015-12-31 188,815.03 36,671.95 -6,649.64
2015-09-30 181,740.45 35,239.62 -15,604.92
2015-06-30 172,798.31 33,555.46 -6,884.92
2015-03-31 163,856.18 31,871.30 1,835.09
2014-12-31 159,374.11 29,169.18 -4,592.89
2014-09-30 154,894.61 26,467.54 3,438.12
2014-06-30 149,824.61 24,742.54 2,498.12
2014-03-31 144,754.61 23,017.54 1,558.12
2013-12-31 139,577.79 22,021.49 6,814.54
2013-09-30 134,370.99 21,025.20 16,744.07
2013-06-30 129,329.43 19,282.51 14,932.46

*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.
  • Safaricom made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Safaricom used its assets more efficiently than the Africa Wireless Telecom industry average last year based on Return on Assets.
  • Safaricom has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Safaricom'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.
Safaricom has a total score of 5/6, 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.

SCOM Health

 How is Safaricom'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 Safaricom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Safaricom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Safaricom's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Safaricom'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.
  • Safaricom has no debt, it does not need to be covered by short term assets.
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 Safaricom Company Filings, last reported 6 months ago.

NASE:SCOM Past Debt and Equity Data
Date (Data in KES Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 104,620.00 0.00 42,500.00
2019-06-30 104,620.00 0.00 42,500.00
2019-03-31 144,347.00 5,163.00 28,073.00
2018-12-31 144,347.00 5,163.00 28,073.00
2018-09-30 113,030.00 4,040.00 36,670.00
2018-06-30 113,030.00 4,040.00 36,670.00
2018-03-31 123,914.00 4,040.00 9,497.00
2017-12-31 123,914.00 4,040.00 9,497.00
2017-09-30 94,820.00 6,530.00 28,070.00
2017-06-30 94,820.00 6,530.00 28,070.00
2017-03-31 107,488.00 16,544.00 5,956.00
2016-12-31 107,488.00 16,544.00 5,956.00
2016-09-30 82,939.47 16,567.20 43,028.95
2016-06-30 82,939.47 16,567.20 43,028.95
2016-03-31 116,739.04 0.00 6,220.01
2015-12-31 116,739.04 0.00 6,220.01
2015-09-30 96,712.97 8,079.82 21,235.82
2015-06-30 96,712.97 8,079.82 21,235.82
2015-03-31 104,276.53 10,639.98 11,916.37
2014-12-31 104,276.53 10,639.98 11,916.37
2014-09-30 87,120.00 12,470.00 30,490.00
2014-06-30 87,120.00 12,470.00 30,490.00
2014-03-31 91,235.98 12,615.38 17,618.88
2013-12-31 91,235.98 12,615.38 17,618.88
2013-09-30 79,254.33 12,000.00 19,808.64
2013-06-30 79,254.33 12,000.00 19,808.64
  • Safaricom has no debt.
  • Safaricom has no debt compared to 5 years ago when it was 14.3%.
  • Safaricom has no debt, it does not need to be covered by operating cash flow.
  • Safaricom has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Safaricom'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. Safaricom has a total score of 5/6, 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.

SCOM Dividends

 What is Safaricom'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
4.77%
Current annual income from Safaricom dividends. Estimated to be 6.38% next year.
If you bought KES2,000 of Safaricom shares you are expected to receive KES95 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?
  • Safaricom's pays a higher dividend yield than the bottom 25% of dividend payers in Kenya (3.61%).
  • Safaricom's dividend is below the markets top 25% of dividend payers in Kenya (8.19%).
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
NASE:SCOM 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
Africa Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 7.1%
Kenya Market Average Dividend Yield Market Cap Weighted Average of 34 Stocks 6%
Kenya Minimum Threshold Dividend Yield 10th Percentile 2.9%
Kenya Bottom 25% Dividend Yield 25th Percentile 3.6%
Kenya Top 25% Dividend Yield 75th Percentile 8.2%

Industry and Market average data is calculated daily.

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

NASE:SCOM Future Dividends Estimate Data
Date (Data in KES) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 1.77 8.00
2021-03-31 1.57 8.00
2020-04-09
2020-03-31 1.45 8.00
NASE:SCOM Past Annualized Dividends Data
Date (Data in KES) Dividend per share (annual) Avg. Yield (%)
2019-08-08 1.250 4.337
2018-08-10 1.100 4.256
2017-08-24 0.970 3.494
2017-05-10 0.970 4.261
2016-08-01 0.760 3.975
2016-05-11 0.760 4.297
2015-07-31 0.640 4.081
2015-05-06 0.640 3.993
2014-05-12 0.470 3.433
2014-04-15 0.470 3.608
2013-08-21 0.310 3.038
2012-05-09 0.220 4.496
2011-05-19 0.200 6.181
2010-05-26 0.200 4.287
2009-05-21 0.100 2.348

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Safaricom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Safaricom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.9%) - 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 Safaricom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Safaricom has a total score of 5/6, see the detailed checks below.


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

SCOM Management

 What is the CEO of Safaricom'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
Peter Ndegwa
AGE 50
TENURE AS CEO 0 years
CEO Bio

Mr. Peter Waititu Ndegwa serves as Chief Executive Officer of Safaricom PLC since April 1, 2020. He served as the Chief Executive Officer and Managing Director of Guinness Nigeria Plc from September 4, 2015 until June 30, 2018 . Mr. Ndegwa served as Managing Director of Guinness Ghana Breweries Ltd. until July 20, 2015. Mr. Ndegwa served as Group Finance Director of East African Breweries Ltd., since August 28, 2008 and served as its Managing Director of Serengeti Breweries Limited. Mr. Ndegwa has experience in sales, strategy, business advisory and finance in a variety of sectors including retail, manufacturing, banking and insurance and general services. He joined EABL as Head of Group Strategy in January 2004 and Change Director Sales since March 2006, Head a radical change programme within the sales and commercial area. He served as EABL Sales Director of Kenya. He trained and worked with PricewaterhouseCoopers, for 11 years, in a variety of senior roles both in Eastern Africa and in the UK and served as n Associate Director in the Corporate Finance and Strategy practice. Mr. Ndegwa served as a Director of Guinness Nigeria Plc from September 4, 2015 until June 30, 2018. Mr. Ndegwa served as a Director of East African Breweries Ltd., since August 28, 2008 until February 16, 2012. He served as a Board Member at Guinness Ghana Breweries Ltd. until November 2015. He holds an MBA in Strategy and Finance from the London Business School and an Economics degree from the University of Nairobi. He is also a Certified Public Accountant.

CEO Compensation
  • Insufficient data for Peter to compare compensation growth.
  • Insufficient data for Peter to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Safaricom management team in years:

2.3
Average Tenure
52.5
Average Age
  • The tenure for the Safaricom management team is about average.
Management Team

Sateesh Kamath

TITLE
Chief Financial Officer
COMPENSATION
KES102M
AGE
46
TENURE
3.7 yrs

Michael Joseph

TITLE
Executive Director
COMPENSATION
KES5M
AGE
72

Peter Ndegwa

TITLE
Chief Executive Officer
AGE
50

Patrick Kinoti

TITLE
Head of the Ethics and Compliance Department

Paul Kasimu

TITLE
Chief Human Resources Officer
AGE
55
TENURE
2.7 yrs

Joe Ogutu

TITLE
Chief Special Projects Officer
TENURE
2.3 yrs

Sylvia Mulinge

TITLE
Chief Customer Officer
TENURE
2.3 yrs

Nicholas Mulila

TITLE
Chief Corporate Security Officer
TENURE
2.3 yrs

Rita Okuthe

TITLE
Chief Enterprise Business Officer
TENURE
2.3 yrs

Steve Chege

TITLE
Chief Corporate Affairs Officer
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Safaricom board of directors in years:

2.9
Average Tenure
58
Average Age
  • The average tenure for the Safaricom board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nicholas Nganga

TITLE
Chairman of the Board
COMPENSATION
KES9M
AGE
77
TENURE
13.3 yrs

Michael Joseph

TITLE
Executive Director
COMPENSATION
KES5M
AGE
72
TENURE
11.6 yrs

Rose Ogega

TITLE
Independent Non-Executive Director
COMPENSATION
KES70K
AGE
58
TENURE
1.2 yrs

Bitange Ndemo

TITLE
Non-Executive & Independent Director
COMPENSATION
KES3M
AGE
60
TENURE
3.1 yrs

Henry Rotich

TITLE
Non-Executive Director
COMPENSATION
KES2M
AGE
50
TENURE
6.4 yrs

Mohamed Shameel Joosub

TITLE
Non-Executive Director
COMPENSATION
KES3M
AGE
48
TENURE
2.7 yrs

Linda Muriuki

TITLE
Non-Executive Director
COMPENSATION
KES4M
AGE
55
TENURE
2.7 yrs

Till Streichert

TITLE
Non–Executive Director
COMPENSATION
KES3M
AGE
45
TENURE
1.9 yrs

Esther Koimett

TITLE
Alternate Director
COMPENSATION
KES1M
AGE
63
TENURE
6.4 yrs

Francesco Bianco

TITLE
Alternate Director
TENURE
0.9 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 (KES) Value (KES)
X
Management checks
We assess Safaricom'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. Safaricom 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.

SCOM News

Simply Wall St News

SCOM Company Info

Description

Safaricom PLC provides telecommunication services in Kenya. It provides voice, mobile data, SMS, Internet, and M-PESA services. The company also offers prepaid and postpaid voice plans; voice and SMS services for national and international roaming; Okoa Jahazi, an emergency top up service; voicemail services; FLEX plans to browse, call, and SMS; Bonga Points, a customer loyalty program; and information services, entertainment, promotions, and smart tools. In addition, it provides M-PESA, a mobile money transaction service that allows customers to deposit, transfer, and withdraw money or pay for goods and services; Website and email services, calling services, and cloud and hosting services; and data bundles for prepaid and postpaid customers, as well as operates Masoko, an e-commerce portal. It serves individual, corporate, and SME customers, as well as government organizations. The company sells products and services through dealers and retail outlets. Safaricom PLC was founded in 1993 and is based in Nairobi, Kenya.

Details
Name: Safaricom PLC
SCOM
Exchange: NASE
Founded: 1993
KES1,055,724,027,800
40,065,428,000
Website: http://www.safaricom.co.ke
Address: Safaricom PLC
Safaricom House,
Waiyaki Way,
Nairobi,
00800,
Kenya
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NASE SCOM Ordinary Shares Nairobi Stock Exchange KE KES 09. Jun 2008
Number of employees
Current staff
Staff numbers
4,503
Safaricom employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 19:19
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


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.