Returns At eMedia Holdings (JSE:EMH) Are On The Way Up
Oct 26
South African (JSE) Telecom Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies11
- 7D-1.6%
- 3M-20.4%
- 1Y-22.4%
- YTD-22.1%
Over the last 7 days, the Telecom industry has dropped 1.6%, driven by a pullback from MTN Group of 9.9%. The industry has fallen 22% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.
Sector Valuation and Performance
Has the South African Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | R432.0b | R473.6b | R25.2b | 8.9x | 17.1x | 0.9x |
| Wed, 27 Sep 2023 | R463.4b | R473.6b | R25.2b | 7.9x | 18.4x | 1x |
| Fri, 25 Aug 2023 | R497.3b | R473.0b | R25.3b | 5.8x | 19.6x | 1.1x |
| Sun, 23 Jul 2023 | R520.1b | R457.6b | R24.1b | 6.9x | 21.6x | 1.1x |
| Tue, 20 Jun 2023 | R555.3b | R458.0b | R24.1b | 6.3x | 23x | 1.2x |
| Thu, 18 May 2023 | R486.7b | R442.1b | R38.8b | 6.6x | 12.5x | 1.1x |
| Sat, 15 Apr 2023 | R554.7b | R442.1b | R38.8b | 7.6x | 14.3x | 1.3x |
| Mon, 13 Mar 2023 | R589.1b | R427.0b | R38.5b | 8x | 15.3x | 1.4x |
| Wed, 08 Feb 2023 | R580.0b | R426.3b | R39.1b | 7.2x | 14.8x | 1.4x |
| Fri, 06 Jan 2023 | R547.8b | R426.3b | R39.1b | 7.1x | 14x | 1.3x |
| Sun, 04 Dec 2022 | R525.9b | R426.3b | R39.1b | 7.3x | 13.5x | 1.2x |
| Tue, 01 Nov 2022 | R526.2b | R420.3b | R42.4b | 9.1x | 12.4x | 1.3x |
| Thu, 29 Sep 2022 | R519.2b | R420.3b | R42.4b | 9x | 12.2x | 1.2x |
| Sat, 27 Aug 2022 | R545.9b | R420.8b | R42.3b | 8.4x | 12.9x | 1.3x |
| Mon, 25 Jul 2022 | R580.8b | R409.9b | R37.0b | 8.4x | 15.7x | 1.4x |
| Wed, 22 Jun 2022 | R567.1b | R410.4b | R37.0b | 9.1x | 15.3x | 1.4x |
| Fri, 20 May 2022 | R628.5b | R409.3b | R36.7b | 9.2x | 17.1x | 1.5x |
| Sun, 17 Apr 2022 | R654.0b | R406.8b | R35.6b | 9x | 18.4x | 1.6x |
| Tue, 15 Mar 2022 | R706.9b | R389.2b | R28.5b | 12.7x | 24.8x | 1.8x |
| Thu, 10 Feb 2022 | R662.9b | R388.8b | R28.7b | 15.3x | 23.1x | 1.7x |
| Sat, 08 Jan 2022 | R608.3b | R388.9b | R28.7b | 13.9x | 21.2x | 1.6x |
| Mon, 06 Dec 2021 | R613.5b | R389.0b | R28.4b | 14.1x | 21.6x | 1.6x |
| Wed, 03 Nov 2021 | R560.9b | R385.9b | R29.4b | 14.9x | 19.1x | 1.5x |
| Fri, 01 Oct 2021 | R575.0b | R385.9b | R29.4b | 15x | 19.5x | 1.5x |
| Sun, 29 Aug 2021 | R544.0b | R385.6b | R29.1b | 17.1x | 18.7x | 1.4x |
| Mon, 05 Jul 2021 | R482.9b | R385.6b | R29.1b | 23.2x | 16.6x | 1.3x |
| Thu, 08 Apr 2021 | R451.9b | R384.3b | R33.8b | 13.6x | 13.4x | 1.2x |
| Sun, 10 Jan 2021 | R396.6b | R380.0b | R36.6b | 12.5x | 10.8x | 1x |
Price to Earnings Ratio
11.2x
Current Industry PE
- Investors are relatively neutral on the South African Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 16.1x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.91x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 9.9% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South African Telecom sector?
| ZA Market | -1.18% | |
| Telecom | -1.60% | |
| Entertainment | 0% | |
| Interactive Media and Services | 0% | |
| Media | -1.02% | |
| Wireless Telecom | -1.65% | |
| Telecom Services and Carriers | -1.70% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry even though it's trading below its 3-year average PE ratio of 14.9x.
- Analysts are expecting annual earnings growth of 12.5%, which is higher than its past year's earnings growth of 2.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 112% over the next 5 years.
- This is better than its past earnings decline of 79% per year.
- In contrast, the Wireless Telecom industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| VOD Vodacom Group | R102.52 | 1.2% +R2.4b | -18.2% | PE11.8x | |
| EMH eMedia Holdings | R3.55 | 6.0% +R88.6m | 0.3% | PE6.1x | |
| HUG Huge Group | R1.75 | 14.4% +R38.0m | -37.5% | PE3.8x | |
| BLU Blue Label Telecoms | R3.35 | 0.6% +R17.7m | -35.1% | PE11x | |
| AME African Media Entertainment | R30.50 | 5.2% +R10.5m | -12.9% | PE5.9x |