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Multichoice Group

OTCPK:MCHO.Y
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCHO.Y
OTCPK
ZAR52B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Multichoice Group Limited, an entertainment company, through its subsidiaries, provides pay-TV broadcast services in Africa, Europe, and internationally. The last earnings update was 33 days ago. More info.


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MCHO.Y Share Price and Events
7 Day Returns
1.4%
OTCPK:MCHO.Y
-0.6%
US Media
1.3%
US Market
1 Year Returns
-
OTCPK:MCHO.Y
19%
US Media
19.4%
US Market
MCHO.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Multichoice Group (MCHO.Y) 1.4% -3% 1.2% - - -
US Media -0.6% -1.8% -0.9% 19% 14.3% 23.9%
US Market 1.3% 2.6% 5% 19.4% 37.3% 48%
1 Year Return vs Industry and Market
  • No trading data on MCHO.Y.
  • No trading data on MCHO.Y.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Multichoice 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 Multichoice 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 Multichoice Group.

OTCPK:MCHO.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 OTCPK:MCHO.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 8.2%
Media Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.765 (1 + (1- 28%) (32.22%))
0.961
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.961 * 8.23%)
9.65%

Discounted Cash Flow Calculation for OTCPK:MCHO.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Multichoice 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.

OTCPK:MCHO.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 9.65%)
2020 5,810.00 Analyst x1 5,298.68
2021 7,390.00 Analyst x1 6,146.51
2022 9,323.00 Analyst x1 7,071.82
2023 10,761.32 Est @ 15.43% 7,444.46
2024 11,979.65 Est @ 11.32% 7,557.95
2025 12,991.57 Est @ 8.45% 7,475.03
2026 13,827.56 Est @ 6.43% 7,255.86
2027 14,522.59 Est @ 5.03% 6,949.92
2028 15,109.38 Est @ 4.04% 6,594.38
2029 15,615.59 Est @ 3.35% 6,215.52
Present value of next 10 years cash flows ZAR68,010.00
OTCPK:MCHO.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR15,615.59 × (1 + 1.74%) ÷ (9.65% – 1.74%)
ZAR200,854.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR200,854.46 ÷ (1 + 9.65%)10
ZAR79,946.73
OTCPK:MCHO.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR68,010.00 + ZAR79,946.73
ZAR147,956.73
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR147,956.73 / 436.68
ZAR338.83
OTCPK:MCHO.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:MCHO.Y represents 0.06907x of JSE:MCG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.06907x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 338.83 x 0.06907
$23.40
Value per share (USD) From above. $23.40
Current discount Discount to share price of $8.15
= -1 x ($8.15 - $23.40) / $23.40
65.2%

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

Current Discount
Amount off the current price Multichoice Group is available for.
Intrinsic value
>50%
Share price is $8.15 vs Future cash flow value of $23.4
Current Discount Checks
For Multichoice Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Multichoice Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Multichoice 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 Multichoice Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Multichoice Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:MCHO.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in ZAR ZAR-1.20
JSE:MCG Share Price ** JSE (2019-12-13) in ZAR ZAR118
United States of America Media Industry PE Ratio Median Figure of 39 Publicly-Listed Media Companies 13.76x
United States of America Market PE Ratio Median Figure of 2,927 Publicly-Listed Companies 18.68x

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

** Primary Listing of Multichoice Group.

OTCPK:MCHO.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 118 ÷ -1.20

-98.52x

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

  • Multichoice Group is loss making, we can't compare its value to the US Media industry average.
  • Multichoice Group is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Multichoice Group's expected growth come at a high price?
Raw Data
OTCPK:MCHO.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -98.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
53.8%per year
United States of America Media Industry PEG Ratio Median Figure of 30 Publicly-Listed Media Companies 1.09x
United States of America Market PEG Ratio Median Figure of 2,040 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Multichoice Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Multichoice Group's assets?
Raw Data
OTCPK:MCHO.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in ZAR ZAR31.14
JSE:MCG Share Price * JSE (2019-12-13) in ZAR ZAR118
United States of America Media Industry PB Ratio Median Figure of 75 Publicly-Listed Media Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,096 Publicly-Listed Companies 1.79x
OTCPK:MCHO.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 118 ÷ 31.14

3.79x

* Primary Listing of Multichoice Group.

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

  • Multichoice Group is overvalued based on assets compared to the US Media industry average.
X
Value checks
We assess Multichoice 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 Media 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 Media industry average (and greater than 0)? (1 check)
  5. Multichoice Group has a total score of 2/6, 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 Multichoice Group expected to perform in the next 1 to 3 years based on estimates from 5 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
53.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Multichoice Group expected to grow at an attractive rate?
  • Multichoice Group's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Multichoice Group's earnings growth is expected to exceed the United States of America market average.
  • Multichoice Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:MCHO.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:MCHO.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 53.8%
OTCPK:MCHO.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.9%
United States of America Media Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Media Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
OTCPK:MCHO.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:MCHO.Y Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 58,006 10,346 4,793 5
2021-03-31 55,252 8,237 3,812 5
2020-03-31 52,788 7,685 2,508 5
2019-12-14
OTCPK:MCHO.Y Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-09-30 50,968 5,997 -524
2019-06-30 50,532 5,724 -1,084
2019-03-31 50,095 5,450 -1,644
2018-12-31 49,396 5,187 -611
2018-09-30 48,696 4,923 423
2018-06-30 48,074 4,175 940
2018-03-31 47,452 3,427 1,456
2017-03-31 47,708 5,077 -2,432

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Multichoice Group's earnings are expected to grow significantly at over 20% yearly.
  • Multichoice Group's revenue is expected to grow by 4.9% 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
OTCPK:MCHO.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Multichoice Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MCHO.Y Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 11.01 12.57 9.32 3.00
2021-03-31 8.76 9.71 7.47 3.00
2020-03-31 5.74 5.99 5.31 3.00
2019-12-14
OTCPK:MCHO.Y Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-09-30 -1.20
2019-06-30 -2.47
2019-03-31 -3.74
2018-12-31 -1.39
2018-09-30 0.96
2018-06-30 2.14
2018-03-31 3.32
2017-03-31 -5.54

*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.
  • Multichoice Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Multichoice 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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Multichoice 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 Multichoice 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 Multichoice Group's growth in the last year to its industry (Media).
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.
  • Multichoice Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Multichoice Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Multichoice Group's 1-year growth to the US Media industry average as it is not currently profitable.
Earnings and Revenue History
Multichoice 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 Multichoice Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MCHO.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 50,968.00 -524.00 13,841.00
2019-06-30 50,531.50 -1,084.00 13,668.50
2019-03-31 50,095.00 -1,644.00 13,496.00
2018-12-31 49,395.50 -610.50 13,532.50
2018-09-30 48,696.00 423.00 13,569.00
2018-06-30 48,074.00 939.50 13,313.50
2018-03-31 47,452.00 1,456.00 13,058.00
2017-03-31 47,708.00 -2,432.00 14,119.00
2016-03-31 46,797.00 2,756.00 12,274.00

*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.
  • Multichoice Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if Multichoice Group has efficiently used its assets last year compared to the US Media industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Multichoice Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Multichoice 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 Media 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.
Multichoice Group has a total score of 0/6, 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 Multichoice 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 Multichoice Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Multichoice Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Multichoice Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Multichoice 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 covered by short term assets, assets are 344.4x 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 Multichoice Group Company Filings, last reported 2 months ago.

OTCPK:MCHO.Y Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 9,919.00 59.00 6,917.00
2019-06-30 9,919.00 59.00 6,917.00
2019-03-31 9,795.00 193.00 6,723.00
2018-12-31 9,795.00 193.00 6,723.00
2018-09-30 6,024.00 208.00 4,157.00
2018-06-30 6,024.00 208.00 4,157.00
2018-03-31 -5,993.00 15,505.00 4,044.00
2017-03-31 -13,915.00 24,436.00 6,545.00
2016-03-31 -13,436.00 26,121.00 6,898.00
  • Multichoice Group's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Multichoice Group's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Multichoice Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Multichoice Group has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -18.1% per year.
X
Financial health checks
We assess Multichoice 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. Multichoice Group 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.

Dividends

 What is Multichoice 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
4.82%
Current annual income from Multichoice Group dividends. Estimated to be 5.8% next year.
If you bought $2,000 of Multichoice Group shares you are expected to receive $96 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?
  • Multichoice Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Multichoice Group's dividend is above the markets top 25% of dividend payers in United States of America (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
OTCPK:MCHO.Y 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 5 Analyst Estimates (S&P Global) See Below
United States of America Media Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1961 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America 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.

OTCPK:MCHO.Y Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 8.03 6.00
2021-03-31 6.79 6.00
2020-03-31 5.70 6.00
2019-12-14
OTCPK:MCHO.Y Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-07-01 5.690 4.511
2019-06-18 5.690 4.271

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

  • It is too early to tell whether Multichoice Group has stable dividend payments.
  • Multichoice Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Multichoice Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Multichoice Group has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Multichoice Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Multichoice Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Multichoice Group has a total score of 3/6, 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 Multichoice 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
Calvo Mawela
COMPENSATION ZAR10,623,000
AGE 43
CEO Bio

Mr. Calvo Phedi Mawela serves as Chief Executive Officer of Multichoice Group Limited and its Director since December 06, 2018. He was CEO of MultiChoice South Africa at Naspers Limited until 2019. He served as Group Executive for Regulatory and Policy Affairs at Naspers Limited. Mr. Mawela serves as General Manager of Regulatory Affairs at M-Web Holdings (Proprietary) Limited. Mr. Mawela joined Sentech in 2000 as an RF Engineer. In 2004, he joined ICASA as Manager: Broadcasting Spectrum. Here, he also served as an Advisor to Council on technical matters. He led a team on planning of the digital broadcasting plan for South Africa in the Regional Radio Communication Conference 2006 (RR-06). He also served as an International Telecommunications Union (ITU) Planning Expert during the 2006 conference. Since 2007, he served as Regulatory Affairs Manager at Orbicom. He continued to be involved in the technical aspects of regulation and all spectrum related issues with Orbicom. In 2007, he joined MWEB as General Manager of Regulatory Affairs. Mr. Mawela is registered as a Professional Engineer with the Engineering Council of South Africa and also a Member of the South African Institute of Electrical Engineers. He holds a BSc in Electrical Engineering from University of KwaZulu Natal (Former Name: University of Dbn Westville) in 1999.

CEO Compensation
  • Insufficient data for Calvo to compare compensation growth.
  • Calvo's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

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

0.9
Average Tenure
50
Average Age
  • The average tenure for the Multichoice Group management team is less than 2 years, this suggests a new team.
Management Team

Imtiaz Patel

TITLE
Executive Chairperson
COMPENSATION
ZAR1M
AGE
55
TENURE
1 yrs

Calvo Mawela

TITLE
CEO & Director
COMPENSATION
ZAR11M
AGE
43

Tim Jacobs

TITLE
CFO & Director
COMPENSATION
ZAR8M
AGE
49

Brand De Villiers

TITLE
Chief Executive Officer - MAH
COMPENSATION
ZAR1M
AGE
50
TENURE
0.9 yrs

Gerdus Van Eeden

TITLE
Group Chief Technology Officer
AGE
51

Brad Eliot

TITLE
Group Chief Information Officer

Brandon Foot

TITLE
Group General Counsel
AGE
57

Fhulufhelo Badugela

TITLE
Chief People Officer
TENURE
0.2 yrs

Hennie Visser

TITLE
Chief Operating Officer - MAH
TENURE
0.9 yrs

Max Krudop

TITLE
Chief Strategy Officer
AGE
38
Board of Directors Tenure

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

1
Average Tenure
57.5
Average Age
  • The average tenure for the Multichoice Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Imtiaz Patel

TITLE
Executive Chairperson
COMPENSATION
ZAR1M
AGE
55
TENURE
1 yrs

Calvo Mawela

TITLE
CEO & Director
COMPENSATION
ZAR11M
AGE
43
TENURE
1 yrs

Tim Jacobs

TITLE
CFO & Director
COMPENSATION
ZAR8M
AGE
49
TENURE
1 yrs

Steve Pacak

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR521K
AGE
64
TENURE
1 yrs

Kgomotso Moroka

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR159K
AGE
65
TENURE
1 yrs

Don Eriksson

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR835K
AGE
73
TENURE
1 yrs

Jim Volkwyn

TITLE
Non-Executive Director
COMPENSATION
ZAR264K
AGE
60
TENURE
1 yrs

Nolo Letele

TITLE
Non-Executive Director
COMPENSATION
ZAR1M
AGE
69
TENURE
1 yrs

Elias Masilela

TITLE
Non-Executive Director
COMPENSATION
ZAR103K
AGE
53
TENURE
1 yrs

Louisa Stephens

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR70K
AGE
42
TENURE
1 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 ($) Value ($)
X
Management checks
We assess Multichoice 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. Multichoice 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

Multichoice Group Limited, an entertainment company, through its subsidiaries, provides pay-TV broadcast services in Africa, Europe, and internationally. It operates through South Africa, Rest of Africa, and Technology segments. The company offers digital satellite television, online services, and subscription video-on-demand services, as well as digital terrestrial television services. It also provides digital content management and protection systems to customers to protect, manage, and monetize digital media on various platforms. In addition, the company broadcasts advertisements on its video entertainment platforms and shows online on its Websites; and sells set-top boxes. It offers its services under the MultiChoice, M-Net, SuperSport, DStv, GOtv, Showmax, and Irdeto names. The company serves approximately 14 million people in 50 countries across various platforms. The company was founded in 1995 and is based in Randburg, South Africa.

Details
Name: Multichoice Group Limited
MCHO.Y
Exchange: OTCPK
Founded: 1995
ZAR3,544,197,844
436,675,210
Website: http://www.multichoice.com
Address: Multichoice Group Limited
Multichoice City,
144 Bram Fischer Drive,
Randburg,
Gauteng, 2194,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE MCG Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 27. Feb 2019
OTCPK MCOI.F Ordinary Shares Pink Sheets LLC US USD 27. Feb 2019
DB 30R Ordinary Shares Deutsche Boerse AG DE EUR 27. Feb 2019
OTCPK MCHO.Y SPON ADS EACH REP 1 ORD SHS Pink Sheets LLC US USD 04. Mar 2019
BST 30R0 SPON ADS EACH REP 1 ORD SHS Boerse-Stuttgart DE EUR 04. Mar 2019
Number of employees
Current staff
Staff numbers
7,053
Multichoice Group employees.
Industry
Cable and Satellite
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/14 01:24
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2019/11/19
Last earnings filing: 2019/11/11
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.