MTN Group (MTNOY) AI Stock Analysis

• Market Cap: $16.74B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 42.4
• Beta (1Y): 1.02
• Revenue Growth: 6.96%
• EPS Growth: N/A
• Country: US
• Employees: 21,975
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.36
• Shares Outstanding: 1,833,678,800
• 10 Day Avg. Volume: 332
• 30 Day Avg. Volume: 1,950
• PEG Ratio: 0.05
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 10.93
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: 0.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $8.00 ▼(-14.07% Downside)

MTN Group's overall stock score is primarily impacted by financial performance challenges, including revenue volatility and a net loss in 2024. The technical analysis indicates weak momentum, and the high P/E ratio suggests potential overvaluation. Strong cash flow generation provides some resilience, but the company needs to address revenue stability and leverage to improve its financial outlook.

MTN Group Business Overview & Revenue Model

Company Description

MTN Group Limited, together with its subsidiaries, operates in the mobile telecommunications industry. The company provides data, voice and SMS, digital and fintech, wholesale, and interconnect and roaming services, as well as sells mobile devices. It also offers network as a service, which include subsea cables providing international connectivity services; terrestrial and metro fiber networks; data centers and cable landing stations; and FTTx, towers, and radio access networks. The company also provides digital financial services, such as access payments, e-commerce, insurance, and lending and remittance services; enterprise services, including cloud, unified communications, Internet of Things (IoT), and software defined networks; and API products and services for telecommunications, health, government, financial services, entertainment, and other sectors. As of March 9, 2022, it had a total of 272.4 million subscribers in 21 markets internationally. The company operates in South Africa, Nigeria, South and East Africa, West and Central Africa, and the Middle East and North Africa. MTN Group Limited was incorporated in 1994 and is based in Johannesburg, South Africa.

How the Company Makes Money

MTN Group generates revenue primarily through its telecommunications services, which include prepaid and postpaid voice and data plans. The company earns income from mobile subscriptions, data usage, and SMS services. A significant revenue stream comes from MTN Mobile Money, a mobile financial service that allows users to transfer money and make payments via their mobile devices. Additionally, MTN engages in strategic partnerships with various technology providers and financial institutions to enhance its service offerings and expand its customer base. Factors such as increasing smartphone penetration, expanding internet access, and growing demand for mobile financial services contribute to MTN's earnings.

MTN Group Financial Statement Overview

Summary

MTN Group faces challenges with revenue volatility and a net loss in 2024, impacting its financial health. The balance sheet shows rising leverage, which may increase financial risk. However, the company maintains strong cash flow generation, suggesting resilience. Efforts should focus on stabilizing revenue and margins while managing debt levels to improve financial stability.

Income Statement

MTN Group's revenue has shown volatility with a significant drop in 2024 compared to previous years. The gross profit margin remains strong at around 69.8% in 2024. However, the company posted a net loss in 2024, resulting in a negative net profit margin, which is a concern. Historical EBIT and EBITDA margins were strong, but the lack of EBIT in 2024 is notable.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating rising leverage which may pose risks. The equity ratio is relatively stable, showing consistent shareholder equity relative to total assets. However, declining stockholders' equity from 2023 to 2024 hints at potential stability issues.

Cash Flow

MTN Group's operating cash flow is robust, maintaining strong performance over the years. Despite a decrease in free cash flow in 2024, the company continues to generate positive free cash flow. The operating cash flow to net income ratio is exceptionally high in 2024, reflecting strong cash generation capabilities even during a loss-making year.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.00B	221.30B	207.00B	181.65B	179.36B
Gross Profit	131.32B	142.81B	150.81B	133.79B	129.07B
EBITDA	49.99B	72.99B	89.82B	76.59B	80.10B
Net Income	-9.59B	4.09B	19.04B	13.75B	17.02B
Balance Sheet
Total Assets	430.96B	434.71B	391.88B	365.80B	348.94B
Cash, Cash Equivalents and Short-Term Investments	99.32B	90.33B	87.67B	83.17B	68.19B
Total Debt	155.74B	148.45B	137.84B	128.82B	145.73B
Total Liabilities	292.51B	284.53B	269.54B	250.82B	242.72B
Stockholders Equity	123.44B	139.21B	116.60B	111.05B	102.87B
Cash Flow
Free Cash Flow	15.14B	17.26B	22.31B	32.06B	28.33B
Operating Cash Flow	46.82B	64.06B	68.12B	67.29B	58.51B
Investing Cash Flow	-33.34B	-52.26B	-43.44B	-30.95B	-33.51B
Financing Cash Flow	-16.20B	-9.48B	-17.42B	-26.18B	-13.71B

MTN Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTNOY, the sentiment is Positive. The current price of 9.31 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 8.58, and above the 200-day MA of 7.16, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 86.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTNOY.

MTN Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	76 Outperform	$19.67B	19.44	8.20%	4.70%	-6.51%	-0.21%
TLK	74 Outperform	$17.57B	12.52	17.71%	6.59%	-5.13%	-5.90%
SKM	62 Neutral	$8.16B	11.61	8.49%	4.71%	-4.74%	-16.57%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEF	56 Neutral	$30.02B	―	-3.55%	6.29%	-4.73%	-251.31%
VOD	54 Neutral	$27.83B	―	-7.17%	4.30%	0.89%	-494.16%
MTNOY	52 Neutral	$16.74B	42.42	5.64%	1.34%	6.96%	―