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Helios Towers Plc (GB:HTWS)
:HTWS

Helios Towers (HTWS) AI Stock Analysis

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Helios Towers

(OTC:HTWS)

Rating:65Neutral
Price Target:
135.00p
▲(11.94%Upside)
Helios Towers' stock score is driven by strong financial performance and technical trends. However, high leverage and overvaluation concerns moderate the overall score. Positive earnings call outcomes and supportive corporate events offer additional strength, but the balance sheet remains a critical area for monitoring.
Positive Factors
Financial Performance
Helios reported a strong Q4, notably a +13% FCF beat, and a $100mn FCF swing YoY into positive US$ territory.
Guidance and Growth
Guidance for 2025e is reassuring, with targeted volume growth of +8%, EBITDA uplift of +10%, and a ROIC target of 14%.
Leverage and Cash Flow
Falling leverage and the shift to generating positive clean free cash flow are the next drivers of the equity story.
Negative Factors
Market Dependence
Helios' net tenancy additions are heavily reliant on the 'Big Three' markets of DRC, Tanzania, and Oman.
Operational Challenges
Potential timing and power fluctuations could impact revenue growth despite a +11% YoY increase.

Helios Towers (HTWS) vs. iShares MSCI United Kingdom ETF (EWC)

Helios Towers Business Overview & Revenue Model

Company DescriptionHelios Towers plc, an independent tower company, acquires, builds, and operates telecommunications towers and passive infrastructure. It provides site space to mobile network operators and other telecommunications providers that in turn provide wireless voice and data services to consumers and businesses. The company also offers comprehensive tower-related operational services, including site selection, site preparation, maintenance, security, and power management. As of December 31, 2021, it operated a network of 9,560 sites and 18,776 tenancies in Tanzania, the Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal, and Madagascar. The company was founded in 2009 and is based in London, the United Kingdom.
How the Company Makes MoneyHelios Towers generates revenue primarily through long-term contracts with mobile network operators (MNOs) who lease space on its towers. The company operates a colocation model where multiple MNOs can install their equipment on a single tower, optimizing the use of infrastructure and resources. This model provides a steady and recurring revenue stream as operators pay rent for using the tower space. Additionally, Helios Towers may offer managed services such as power management and infrastructure maintenance, further contributing to its revenue. Strategic partnerships with MNOs and expansion into new geographical regions also bolster the company's earnings.

Helios Towers Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 6.91%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook, with significant achievements in EBITDA growth, free cash flow generation, and strategic progress in tenancy growth. These positive aspects were slightly offset by challenges related to power price impacts on revenue and the need for increased site additions. Overall, the company's performance and future prospects appear strong.
Q1-2025 Updates
Positive Updates
Consistent EBITDA Growth
The company has achieved 10 consecutive years of EBITDA growth with a 26% CAGR since 2015, despite various macroeconomic challenges.
Strong Free Cash Flow Generation
Free cash flow came in at $2 million for the quarter, marking a $29 million year-on-year improvement, and last 12 months' surplus free cash flow is $48 million.
Tenancy Growth and Strategic Progress
668 tenancies were added in Q1 2025, progressing towards the strategic goal of a 2.2 tenancy ratio by 2026.
Credit Rating Upgrades
The company's credit ratings were upgraded by Fitch and S&P to BB minus, with a positive outlook from Moody's, reflecting strong operational execution.
Revenue and Currency Stability
67% of revenue is in hard currency, with 70% of EBITDA in hard currency, providing stability against currency fluctuations.
Negative Updates
Revenue Growth Partially Offset
Revenue growth of 5% year-on-year was partially offset by power price de-escalations in Tanzania and DRC.
Increase in Site Additions Needed
While there was an increase of 251 sites year-on-year, there is an implied need for 450-500 site additions for the year to meet targets.
Company Guidance
In the Q1 2025 earnings call, Helios Towers provided comprehensive guidance across several key financial metrics. The company reported a strong start to the year, with EBITDA growing by 9% year-on-year, reaching $111 million for the quarter. They also added 668 tenancies, bringing the total to over 30,000, and increased their tenancy ratio to 2.09, on target for their 2026 goal of 2.2. Free cash flow improved significantly, swinging to a $2 million surplus for the quarter, with a last 12-month surplus of $48 million. The company reaffirmed its full-year guidance of 2,000 to 2,500 tenancy additions, 10% EBITDA growth, $40 million to $60 million surplus free cash flow, and a deleveraging target to around 3.5x net leverage. ROIC expanded by another percentage point to 13.8%, and they anticipate reaching their FY25 target of 14%. Their balance sheet remains strong, with net leverage below four times and improved credit ratings from major agencies. The company highlighted their ongoing strategy to increase shareholder returns starting in 2026, reflecting on their robust business model, which has delivered consistent EBITDA growth over the past decade.

Helios Towers Financial Statement Overview

Summary
Helios Towers demonstrates strong revenue growth and improved profitability in 2024 with notable operational efficiency. However, significant financial risk persists due to high leverage and historical net losses. Positive cash flow generation is a promising aspect, yet the balance sheet's leverage remains a concern.
Income Statement
72
Positive
Helios Towers has shown a consistent increase in total revenue over the years, with a notable 9.85% growth from 2023 to 2024. The gross profit margin for 2024 is 48.36%, indicating strong profitability at the gross level. The net profit margin improved dramatically from -13.88% in 2023 to 4.23% in 2024, reflecting better cost management and operational efficiency. However, the company has a history of net losses, which is a concern. The EBIT margin for 2024 is 30.60%, and the EBITDA margin is 48.17%, both indicating strong operational efficiency in the current year.
Balance Sheet
35
Negative
The company's balance sheet shows high leverage, with a debt-to-equity ratio of 415.06 in 2024, indicating significant financial risk. Stockholders' equity has been volatile, impacting the equity ratio, which stands at only 0.20% in 2024. The return on equity (ROE) improved to 712.77% in 2024, driven by a small equity base and improved profitability, but this high ROE may not be sustainable due to the high debt level.
Cash Flow
68
Positive
Operating cash flow has been positive and grew to $198.3 million in 2024, demonstrating strong cash generation capabilities. The free cash flow turned positive in 2024 at $53.9 million, marking a significant improvement from the negative free cash flow in prior years. The operating cash flow to net income ratio is 5.92, suggesting robust cash generation relative to net income. However, the free cash flow to net income ratio is 1.61, indicating room for improvement.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
792.00M721.00M560.70M449.10M414.00M
Gross Profit
383.10M270.60M194.80M153.80M147.90M
EBIT
242.30M146.10M30.30M38.60M56.30M
EBITDA
381.50M282.00M208.80M198.40M224.90M
Net Income Common Stockholders
33.50M-100.10M-171.40M-156.20M-36.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
161.00M106.60M119.60M528.90M428.70M
Total Assets
2.33B2.20B2.14B1.93B1.43B
Total Debt
1.95B1.89B1.80B1.48B1.12B
Net Debt
1.78B1.78B1.68B948.50M692.40M
Total Liabilities
2.29B2.24B2.10B1.77B1.30B
Stockholders Equity
4.70M-68.30M8.30M168.00M130.30M
Cash FlowFree Cash Flow
53.90M-49.50M-196.70M-134.60M-64.20M
Operating Cash Flow
198.30M147.20M51.10M35.90M59.50M
Investing Cash Flow
-149.70M-195.80M-381.50M-407.60M-123.50M
Financing Cash Flow
4.50M43.20M-74.60M474.00M271.50M

Helios Towers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price120.60
Price Trends
50DMA
111.29
Positive
100DMA
103.93
Positive
200DMA
103.99
Positive
Market Momentum
MACD
3.57
Positive
RSI
59.99
Neutral
STOCH
43.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HTWS, the sentiment is Positive. The current price of 120.6 is above the 20-day moving average (MA) of 118.87, above the 50-day MA of 111.29, and above the 200-day MA of 103.99, indicating a bullish trend. The MACD of 3.57 indicates Positive momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 43.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HTWS.

Helios Towers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBVOD
70
Outperform
£18.01B8.78-7.22%5.21%-27.41%-76.23%
GBAAF
68
Neutral
£6.39B37.539.48%1.77%-11.11%-56.61%
66
Neutral
£17.25B16.325.85%2.72%-0.75%-58.92%
65
Neutral
£1.29B49.63
6.88%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HTWS
Helios Towers
120.60
-4.00
-3.21%
GB:BT.A
BT Group plc
185.45
58.25
45.79%
GB:VOD
Vodafone
73.40
8.19
12.56%
GB:AAF
Airtel Africa Plc
177.60
66.72
60.17%

Helios Towers Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Helios Towers Announces Director Role Change
Positive
May 16, 2025

Helios Towers has announced a change in director responsibilities, with Dana Tobak, CBE, appointed as a member of the Audit Committee effective 15 May 2025. This strategic move is part of the company’s ongoing efforts to strengthen its governance structure, potentially enhancing its operational efficiency and industry positioning.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Helios Towers’ AGM Sees Unanimous Approval of Resolutions
Positive
May 15, 2025

Helios Towers held its 2025 Annual General Meeting where all proposed resolutions were passed. Key resolutions included the approval of the annual financial statements, election and re-election of directors, and authorization of political donations and securities allotment. The successful passage of these resolutions reflects strong shareholder support and positions the company to continue its strategic operations and growth in the telecommunications infrastructure sector.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Business Operations and Strategy
Helios Towers Sees Change in Major Holdings
Neutral
May 9, 2025

Helios Towers PLC has announced a change in its major holdings, with the IFC African, Latin American and Caribbean Fund LP reducing its stake in the company. This move reflects a disposal of voting rights, decreasing from a previous 4.80% to 3.99%. The change in holdings may impact the company’s shareholder dynamics but does not indicate a shift in the investment strategy of the International Finance Corporation, which remains an affiliate entity.

Business Operations and StrategyFinancial Disclosures
Helios Towers Reports Strong Q1 2025 Performance and Credit Rating Upgrades
Positive
May 8, 2025

Helios Towers reported strong financial and operational performance for Q1 2025, with a 9% year-on-year increase in Adjusted EBITDA and a 5% rise in revenue, driven by tenancy growth. The company also saw credit rating upgrades from S&P, Fitch, and Moody’s, reflecting its robust business model and consistent performance. Despite macroeconomic uncertainties, Helios Towers remains confident in its outlook, reaffirming its full-year guidance and focusing on capital-efficient growth, deleveraging, and free cash flow generation.

Financial Disclosures
Helios Towers to Announce Q1 2025 Financial Results
Neutral
Apr 9, 2025

Helios Towers announced it will release its Q1 2025 financial results on 8 May 2025, with a conference call scheduled for analysts and institutional investors. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Business Operations and Strategy
Helios Towers Sees Shift in Major Holdings
Neutral
Apr 8, 2025

Helios Towers PLC has announced a change in its major holdings, with Helikon Investments Limited increasing its financial instruments stake to 11.068% as of April 4, 2025. This adjustment in holdings, primarily through cash-settled equity swaps, reflects a strategic move in the company’s financial positioning, potentially impacting its market influence and stakeholder interests.

Regulatory Filings and Compliance
Helios Towers PLC Announces Change in Voting Rights Structure
Neutral
Apr 8, 2025

Helios Towers PLC has announced a change in the breakdown of its voting rights, as disclosed by Helikon Investments Limited. The change was driven by an adjustment in the company’s total voting rights, effective March 31, 2025, which led to Helikon’s voting rights falling below the 11% threshold. This adjustment reflects a passive crossing of the reportable threshold, impacting the company’s shareholder structure and potentially influencing its governance dynamics.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Helios Towers Releases 2024 Annual Report and Sustainability Addendum
Positive
Apr 7, 2025

Helios Towers has released its 2024 Annual Report and Financial Statements, along with the 2025 Notice of Annual General Meeting, which are now available on the company’s website. The company has integrated its Sustainable Business Report within the annual report and published an additional Sustainable Business Addendum. This release underscores Helios Towers’ commitment to transparency and sustainability, potentially strengthening its position in the telecommunications infrastructure industry and providing stakeholders with comprehensive insights into its operations and ESG efforts.

Regulatory Filings and Compliance
Helios Towers Announces Total Voting Rights Update
Neutral
Mar 31, 2025

Helios Towers has announced that its total issued ordinary share capital consists of 1,055,500,000 ordinary shares, all with voting rights, and holds no shares in treasury. This information is crucial for shareholders to determine their interest in the company’s share capital under the FCA’s Disclosure and Transparency Rules.

Business Operations and StrategyRegulatory Filings and Compliance
Helios Towers Sees Change in Major Holdings
Neutral
Mar 28, 2025

Helios Towers PLC has announced a change in its major holdings, with Helikon Investments Limited increasing its financial instruments stake to 11.000959%. This adjustment in holdings could impact Helios Towers’ market positioning and influence its strategic decisions, as the company continues to play a significant role in the telecommunications infrastructure sector.

Executive/Board ChangesBusiness Operations and Strategy
Helios Towers Aligns Executive Bonuses with Shareholder Interests
Positive
Mar 17, 2025

Helios Towers plc announced transactions involving its Chief Executive Officer and Chief Financial Officer related to the deferral of their annual bonuses into company shares. This move aligns with the company’s remuneration policy and reflects a commitment to align management incentives with shareholder interests, potentially impacting the company’s market perception positively.

Business Operations and StrategyRegulatory Filings and Compliance
Helios Towers Sees Significant Increase in Voting Rights by Helikon Investments
Neutral
Mar 14, 2025

Helios Towers PLC, a UK-based company, has announced a significant change in its financial instrument holdings. Helikon Investments Limited, through its Helikon Long Short Equity Fund Master ICAV, has increased its voting rights in Helios Towers to 10.31% from a previous 5.13%. This acquisition of financial instruments, primarily through cash-settled equity swaps, reflects a strategic move that could impact Helios Towers’ market position and influence shareholder dynamics.

Business Operations and StrategyFinancial Disclosures
Helios Towers Surpasses FY 2024 Expectations with Strong Financial and Operational Performance
Positive
Mar 13, 2025

Helios Towers reported strong financial results for FY 2024, surpassing expectations with a 14% growth in Adjusted EBITDA and a positive free cash flow of $19 million. The company’s operational improvements and strategic colocation efforts have expanded its coverage to 151 million people, enhancing its market position in Africa and the Middle East. The financial performance was driven by tenancy growth and a robust business model, with plans to continue growth and return capital to shareholders by 2026. The company also achieved significant ESG milestones, including a reduction in carbon emissions and high power uptime, earning recognition from external rating agencies.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.