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IHS Holding (IHS)
NYSE:IHS
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IHS Holding
(NYSE:IHS)
Rating:60Neutral
Price Target:
$7.00
▼(-3.18% Downside)
Positive Factors
Connectivity and Technology Trends
IHS continues to benefit from secular trends in connectivity, technology adoption, and infrastructure outsourcing across emerging and high-potential telecom markets.
Revenue and Cash Flow Growth
IHS continues to benefit from ongoing portfolio and business optimization and is experiencing a re-acceleration of revenue and cash flow growth.
Strategic Capital Allocation
IHS will continue to drive value creation through strategic capital allocation to fund capital investment to increase capacity by developing and constructing new communication towers and strategic acquisitions.
Negative Factors
Emerging Market Risks
The portfolio retains risks to performance from possible further industry rationalization in its emerging markets.
Macro and Currency Risks
The portfolio retains risks to performance from macro, possible further industry rationalization in its emerging markets, and currency risk, especially within Nigeria.
IHS Holding (IHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.44B
Dividend YieldN/A
Average Volume (3M)679.20K
Price to Earnings (P/E)22.1
Beta (1Y)1.03
Revenue Growth-5.41%
EPS GrowthN/A
CountryUS
Employees2,864
SectorReal Estate
Sector Strength52
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding333,440,950
10 Day Avg. Volume742,197
30 Day Avg. Volume679,204
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit6.09
Enterprise Value/Ebitda-6.17
Forecast
1Y Price Target
$8.10Price Target Upside12.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
IHS Holding Business Overview & Revenue Model
Company DescriptionIHS 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 MoneyIHS Holding generates revenue through long-term lease agreements with mobile network operators (MNOs), who rent space on the company's telecommunications towers. This leasing model allows IHS to provide essential infrastructure to MNOs without them having to invest in building and maintaining their own towers. Additionally, IHS may offer ancillary services such as maintenance and power management to enhance the operational efficiency of the infrastructure it provides. The company's earnings are significantly influenced by its strategic partnerships with major telecom companies and its ability to expand its tower network in high-demand regions, thereby increasing its leasing capacity and revenue potential. Factors like the growing demand for mobile connectivity and data services in emerging markets further contribute to its financial growth.
IHS Holding Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call presented more highlights than lowlights, with strong revenue growth, improved debt management, and a positive outlook for the remainder of 2025. However, foreign exchange impacts and decreased ALFCF were notable challenges.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue came in at $433 million, with 11% organic growth driven by colocation, lease amendments, new sites, and CPI escalators.
Improved Debt Management
The company repaid $154 million of high-interest debt, lowering the weighted average cost of debt by 100 basis points to 8.3%.
Increased EBITDA Margin
Adjusted EBITDA came at $248.5 million with a margin over 57%, stable year-on-year.
Positive Outlook and Guidance Revision
Raised full year 2025 outlook across all key metrics, including a $25 million uplift in adjusted EBITDA guidance.
Nigeria Market Performance
Nigeria segment revenue was $260 million with over 10% organic growth despite the Naira's depreciation.
Negative Updates
Impact of Foreign Exchange Rates
Organic growth was partially offset by a 9% impact from the movement of foreign exchange rates, including the Nigerian Naira versus the U.S. dollar.
Decreased ALFCF
Adjusted Levered Free Cash Flow (ALFCF) decreased by approximately 19% year-over-year due to higher interest payments following bond refinancing.
Challenges in Sub-Saharan Africa
Revenue in the Sub-Saharan African segment increased by 18% but segment adjusted EBITDA decreased by 4% year-on-year due to higher power generation and tower maintenance costs.
Company Guidance
During the IHS Holding Limited Second Quarter 2025 Earnings Results Call, the company provided guidance indicating robust financial performance and strategic progress. Revenue for the quarter was reported at $433 million, marking an 11% organic growth, driven by factors such as colocation, lease amendments, and CPI escalators. Adjusted EBITDA reached $248.5 million with a stable margin over 57%, while Adjusted Levered Free Cash Flow (ALFCF) was $54 million. The company also highlighted a 14% year-on-year reduction in total CapEx, amounting to $46 million, reflecting disciplined capital allocation. IHS Holding repaid $154 million of high-interest debt, reducing its weighted average cost of debt by 100 basis points and ending the quarter with a net leverage ratio of 3.4x, down from 3.9x the previous year. Looking ahead, IHS raised its full-year 2025 outlook across all key metrics, with expected revenue ranging between $1.7 billion and $1.73 billion, adjusted EBITDA between $985 million and $1.005 billion, and ALFCF between $390 million and $410 million. The company aims to continue reducing leverage, potentially introducing dividends or share buybacks, and exploring further value-creative disposal opportunities.IHS Holding Financial Statement Overview
Summary
IHS Holding's financial performance is challenged by negative net income and EBITDA margins, high leverage, and negative equity. Despite these issues, cash flow remains a relative strength, providing some relief.Income Statement
IHS Holding's income statement reveals mixed performance. Gross profit margin has improved, with TTM figures at 50.78%. However, the net profit margin remains negative due to persistent losses, albeit with a minor improvement in TTM. Revenue growth is inconsistent, showing a decline in the latest TTM period. The negative EBITDA margin is a significant concern, suggesting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet displays significant weaknesses. The debt-to-equity ratio is concerningly high due to negative equity, indicating financial instability. Equity ratio has deteriorated, reflecting increased liabilities. Overall, the company exhibits high leverage, which poses risks during economic downturns.30
Negative
Cash Flow
Cash flow analysis shows some positive aspects. Operating cash flow to net income ratio is strong, indicating good cash conversion. However, free cash flow growth is inconsistent, with a minor decline in the TTM period. The ratio of free cash flow to net income indicates a better cash position relative to reported losses.55
Neutral
| 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
Positive
7.23
Price Trends
6.33
Positive
5.84
Positive
4.71
Positive
Market Momentum
0.27
Negative
61.41
Neutral
77.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IHS, the sentiment is Positive. The current price of 7.23 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.33, and above the 200-day MA of 4.71, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IHS.
IHS Holding Risk Analysis
IHS Holding disclosed 81 risk factors in its most recent earnings report. IHS Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IHS Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.58B | 16.67 | 38.36% | 0.35% | 1.91% | 169.96% | |
63 Neutral | $7.00B | 13.45 | -0.52% | 6.98% | 3.61% | -22.78% | |
60 Neutral | $2.44B | 22.09 | 493.63% | ― | -5.41% | ― | |
58 Neutral | $1.65B | ― | -103.84% | ― | -2.15% | -1269.05% | |
58 Neutral | $1.65B | ― | -103.84% | ― | -2.15% | -1269.05% | |
55 Neutral | $885.21M | 59.21 | -30.85% | 7.24% | -5.43% | -363.95% | |
42 Neutral | $1.12B | ― | 21.93% | ― | -3.82% | -363.28% |
* Real Estate Sector Average
Performance Comparison
IHS
IHS Holding
7.23
3.91
117.77%
IDT
IDT
63.44
25.02
65.12%
LILA
Liberty Global LiLAC
8.04
-1.36
-14.47%
CABO
Cable ONE
162.94
-192.78
-54.19%
LILAK
Liberty LiLAC Group
8.22
-1.21
-12.83%
ATUS
Altice Usa
2.42
0.56
30.11%
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.