IHS Holding (IHS) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: N/A
• Average Volume (3M): 484.31K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.98
• Revenue Growth: -5.41%
• EPS Growth: N/A
• Country: US
• Employees: 2,864
• Sector: Real Estate
• Sector Strength: 53
• Industry: Telecommunications Services
• EPS (TTM): 0.10
• Shares Outstanding: 333,440,950
• 10 Day Avg. Volume: 431,220
• 30 Day Avg. Volume: 484,312
• PEG Ratio: 0.03
• Price to Book (P/B): -2.14
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 2.09
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: -6.17
• 1Y Price Target: $8.20
• Price Target Upside: 21.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $7.00 ▲(4.01% Upside)

IHS Holding's overall stock score reflects significant financial challenges, including high leverage and negative equity, which are partially offset by strong earnings call highlights and moderate valuation. Technical indicators suggest weak short-term momentum, but longer-term support is present.

Positive Factors

Revenue Growth

The 11% organic revenue growth indicates strong demand for IHS's services, driven by strategic initiatives like colocation and lease amendments, which enhance market position and long-term revenue potential.

Debt Management

Improved debt management through repayment of high-interest debt reduces financial risk and interest expenses, enhancing long-term financial stability and cash flow.

Cash Flow Improvement

The significant growth in free cash flow indicates enhanced liquidity and operational efficiency, providing IHS with greater flexibility for strategic investments and debt reduction.

Negative Factors

High Leverage

High leverage poses a substantial risk to IHS's financial health, potentially limiting its ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Revenue Decline

The decline in revenue suggests potential challenges in maintaining market share or pricing power, which could impact long-term growth and profitability.

Operational Inefficiencies

Operational inefficiencies, as indicated by negative EBIT and EBITDA margins, could hinder IHS's ability to convert revenue into profit, affecting long-term financial performance.

IHS Holding Business Overview & Revenue Model

Company Description

IHS Holding Limited, together with its subsidiaries, owns, operates, and develops shared telecommunications infrastructure in Africa, Latin America, Europe, and the Middle East. It offers colocation and lease agreement, build-to-suit, fiber connectivity, and rural telephony solutions. The company serves mobile network operators, internet service providers, broadcasters, security functions, and private corporations. IHS Holding Limited was founded in 2001 and is based in London, the United Kingdom.

How the Company Makes Money

IHS generates revenue primarily through long-term lease agreements with mobile network operators for the use of its telecommunications towers. The company charges monthly fees for site leasing, which form the bulk of its revenue. Additionally, IHS earns income from colocation services, where multiple operators share space on the same tower, thereby maximizing utilization. Another revenue stream comes from energy solutions, where IHS provides power management services, including solar and other renewable energy options, to reduce operational costs for its clients. The company has developed significant partnerships with major telecommunications firms, which not only enhance its market position but also contribute to stable and predictable cash flows. Furthermore, IHS benefits from the growing demand for mobile connectivity in emerging markets, driven by increasing smartphone penetration and data usage.

IHS Holding Financial Statement Overview

Summary

IHS Holding faces significant financial challenges. Despite strong gross profit margins and improving cash flow, the high leverage and negative equity position pose substantial risks. Revenue decline and operational inefficiencies further exacerbate the financial instability.

Income Statement

IHS Holding's income statement reveals mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 50.65%, indicating efficient cost management. However, the net profit margin is low at 6.41%, reflecting challenges in converting revenue into profit. Revenue has declined by 12% in the TTM period, signaling potential demand issues. The negative EBIT and EBITDA margins highlight operational inefficiencies and high non-operating expenses.

Balance Sheet

The balance sheet shows significant financial leverage, with a concerning debt-to-equity ratio of -14.16 in the TTM period due to negative stockholders' equity. This indicates high financial risk. The return on equity is negative, reflecting unprofitable operations. The equity ratio is also negative, suggesting that liabilities exceed assets, which is a critical financial stability concern.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio of 1.49, indicating good cash generation relative to net income. Free cash flow has grown by 44.60% in the TTM period, a positive sign of improving liquidity. However, the free cash flow to net income ratio of 0.68 suggests that not all net income is being converted into free cash flow, indicating potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.73B	1.71B	2.13B	1.96B	1.58B	1.40B
Gross Profit	876.77M	820.69M	1.04B	804.41M	672.34M	564.73M
EBITDA	-865.72M	-794.75M	-998.47M	252.65M	591.49M	468.08M
Net Income	110.87M	-1.63B	-1.98B	-470.40M	-26.12M	-322.68M
Balance Sheet
Total Assets	4.49B	4.28B	5.36B	6.32B	5.47B	4.45B
Cash, Cash Equivalents and Short-Term Investments	531.80M	577.96M	293.82M	514.08M	916.49M	585.42M
Total Debt	3.83B	3.90B	4.11B	3.95B	2.99B	2.52B
Total Liabilities	4.59B	4.57B	5.02B	4.96B	3.75B	3.22B
Stockholders Equity	-270.80M	-454.58M	109.85M	1.13B	1.58B	1.21B
Cash Flow
Free Cash Flow	652.45M	464.27M	254.68M	347.93M	347.71M	406.06M
Operating Cash Flow	956.77M	729.30M	853.45M	907.30M	750.19M	635.26M
Investing Cash Flow	-75.36M	63.18M	-722.25M	-1.52B	-877.95M	-758.51M
Financing Cash Flow	-778.79M	-431.00M	-162.30M	398.24M	524.26M	-128.14M

IHS Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHS, the sentiment is Negative. The current price of 6.73 is below the 20-day moving average (MA) of 6.97, below the 50-day MA of 6.91, and above the 200-day MA of 5.23, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IHS.

IHS Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEON	69 Neutral	$3.57B	3.63	89.94%	―	8.66%	―
IRDM	68 Neutral	$1.99B	18.74	17.96%	3.04%	7.56%	38.78%
IDT	67 Neutral	$1.26B	16.84	27.60%	0.46%	2.13%	18.44%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IHS	55 Neutral	$2.24B	20.28	493.63%	―	-5.41%	―
TEO	53 Neutral	$3.45B	22.47	-0.27%	2.72%	3.89%	-107.44%
CCOI	50 Neutral	$1.99B	102.75	-93.59%	9.66%	-6.64%	-569.94%

IHS Holding Corporate Events

IHS Holding Announces the Passing of Board Member Frank Dangeard

On August 18, 2025, IHS Holding Limited announced the passing of Mr. Frank Dangeard, a respected member of its Board of Directors since September 2020. Mr. Dangeard served as an Independent Non-Executive Director and was highly regarded for his contributions to the company. His death is a significant loss for IHS Towers, as noted by Chairman & CEO Sam Darwish, who expressed condolences to Mr. Dangeard’s family and highlighted his invaluable expertise and kindness.

IHS Holding Reports Strong Q2 2025 Results and Raises Outlook

On August 12, 2025, IHS Holding Limited announced its financial results for the second quarter ending June 30, 2025, reporting performance ahead of expectations across key metrics. Despite a slight year-on-year revenue decrease due to the disposal of its Kuwait operations, the company achieved strong organic growth and raised its full-year 2025 outlook. Strategic initiatives included the sale of IHS Rwanda, debt repayment in Nigeria and Brazil, and a new revolving credit facility, all aimed at enhancing shareholder value and financial stability. The company remains optimistic about future growth, supported by 5G rollout and stable macroeconomic conditions in its key markets.

IHS Holding Enhances Financial Position with New Credit Agreements

IHS Holding Limited, a prominent player in the telecommunications infrastructure industry, has released its financial statements for the first half of 2025, detailing significant financial agreements and strategic movements. The company entered into a Revolving Credit Facility Agreement on June 16, 2025, and a Term Credit Facility Agreement on June 19, 2025, both involving Standard Chartered Bank and its affiliates. Additionally, IHS Holding executed Supplemental Indentures on June 26, 2025, to manage its senior notes. These developments reflect IHS Holding’s strategic financial maneuvers to strengthen its financial position and operational capabilities, potentially impacting its market standing and stakeholder interests.

IHS Holding Elects New Directors at 2025 AGM

On July 10, 2025, IHS Holding Limited conducted its annual general meeting, where shareholders voted to elect directors for various classes. The meeting resulted in the election of Frank Dangeard and Phuthuma Nhleko as Class I Directors, John Ellis Bush, Mallam Bashir Ahmad El-Rufai, and Nicholas Land as Class II Directors, and Sam Darwish, Ursula Burns, Maria Carolina Lacerda, and Aniko Szigetvari as Class III Directors. This election is significant for IHS Holding as it reinforces its leadership structure, potentially impacting its strategic direction and stakeholder relations.