IHS Holding (IHS) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: N/A
• Average Volume (3M): 526.89K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.86
• Revenue Growth: -0.97%
• EPS Growth: N/A
• Country: US
• Employees: 2,864
• Sector: Real Estate
• Sector Strength: 53
• Industry: Telecommunications Services
• EPS (TTM): 0.44
• Shares Outstanding: 333,440,950
• 10 Day Avg. Volume: 881,731
• 30 Day Avg. Volume: 526,895
• 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: 2.71
• Enterprise Value/Revenue: 3.23
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: -9.58
• 1Y Price Target: $11.67
• Price Target Upside: 85.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.51
• Revenue Forecast (FY): $1.73B

• Rating: 57 Neutral
• Price Target: $7.00 ▲(11.11% Upside)

IHS Holding's overall stock score reflects a mixed financial performance with significant profitability and leverage challenges. The positive sentiment from the recent earnings call, highlighting strong revenue growth and successful deleveraging, improves the outlook. Technical indicators suggest a neutral to slightly positive trend, while valuation metrics indicate moderate pricing. The absence of corporate events and dividend yield limits additional appeal.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for IHS's services, enhancing its market position and supporting long-term financial stability.

Deleveraging Success

Successful deleveraging improves financial flexibility and reduces risk, allowing IHS to invest in growth opportunities and withstand economic fluctuations.

Brazil Market Expansion

Expansion in Brazil through a new partnership enhances growth potential in the LATAM market, supporting long-term revenue and market share increases.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could hinder IHS's ability to generate sustainable earnings, impacting its long-term financial health and investment capacity.

High Leverage

High leverage and negative equity pose financial risks, limiting IHS's ability to respond to market changes and potentially increasing borrowing costs.

Tenancy Churn Impact

Significant tenancy churn could lead to reduced revenue and operational inefficiencies, challenging IHS's ability to maintain stable cash flows and profitability.

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 profitability challenges despite some revenue growth. High leverage and negative equity raise concerns about financial stability, while cash flow improvements provide some optimism. Overall, the company needs to address its profitability and leverage issues to improve its financial health.

Income Statement

IHS Holding shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 2.01%, but profitability metrics such as the net profit margin and EBIT margin are concerning, with the latter being negative. The gross profit margin is relatively stable at 50.65%, but the negative EBITDA margin highlights operational challenges. Overall, while there is some revenue growth, profitability remains a significant issue.

Balance Sheet

The balance sheet reveals a high level of financial leverage, with a negative stockholders' equity leading to an undefined debt-to-equity ratio in the TTM period. The return on equity is also negative, indicating inefficiencies in generating returns from equity. The equity ratio is not calculable due to negative equity, suggesting potential financial instability.

Cash Flow

Cash flow analysis shows positive trends, with a notable increase in free cash flow growth at 9.95% in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that while cash flow is improving, profitability issues persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.71B	2.13B	1.96B	1.58B	1.40B
Gross Profit	874.33M	820.69M	1.04B	804.30M	672.34M	564.73M
EBITDA	-596.06M	-794.75M	-998.47M	252.65M	591.49M	468.08M
Net Income	466.01M	-1.63B	-1.98B	-459.01M	-25.83M	-321.99M
Balance Sheet
Total Assets	4.68B	4.28B	5.36B	6.32B	5.54B	4.45B
Cash, Cash Equivalents and Short-Term Investments	647.60M	577.96M	293.82M	514.08M	916.49M	585.42M
Total Debt	3.90B	3.90B	4.11B	3.95B	2.99B	2.52B
Total Liabilities	4.65B	4.57B	5.02B	4.96B	3.80B	3.22B
Stockholders Equity	-135.80M	-454.58M	109.85M	1.13B	1.52B	1.21B
Cash Flow
Free Cash Flow	779.88M	460.29M	254.68M	347.93M	347.71M	406.06M
Operating Cash Flow	1.03B	729.30M	853.45M	907.30M	750.19M	635.26M
Investing Cash Flow	-74.14M	63.18M	-722.25M	-1.52B	-877.95M	-758.51M
Financing Cash Flow	-693.09M	-431.00M	-162.30M	398.24M	524.26M	-128.14M

IHS Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.30
• 50DMA: Negative
• 100DMA: Negative
• 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 6.3 is below the 20-day moving average (MA) of 6.59, below the 50-day MA of 6.71, and above the 200-day MA of 5.80, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.80 is Neutral, neither overbought nor oversold. The STOCH value of 26.93 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	71 Outperform	$3.60B	5.53	48.17%	―	6.42%	―
IDT	68 Neutral	$1.23B	16.18	27.60%	0.48%	2.13%	18.44%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
IRDM	64 Neutral	$1.70B	14.13	22.59%	3.60%	7.30%	21.31%
TEO	61 Neutral	$5.63B	―	-2.95%	1.55%	15.38%	-292.52%
IHS	57 Neutral	$2.11B	4.54	―	―	-0.97%	―
CCOI	39 Underperform	$834.08M	―	-136.94%	18.29%	-6.48%	-588.01%

IHS Holding Corporate Events

IHS Holding Reports Strong Q3 2025 Results and Raises Full-Year Guidance

On November 12, 2025, IHS Holding Limited announced its financial results for the third quarter of 2025, reporting a revenue increase of 8.3% year-on-year to $455.1 million. The company also raised its full-year guidance for 2025, driven by strong year-to-date performance and favorable foreign exchange movements. Key strategic moves included the signing of a new site agreement with TIM S.A. in Brazil and the disposal of IHS Rwanda, which are expected to enhance shareholder value and support the company’s growth in digital infrastructure. The company’s consolidated net leverage ratio improved to 3.3x, reflecting its ongoing deleveraging efforts.

IHS Holding Releases Q3 2025 Financial Results

IHS Holding Limited released its condensed consolidated interim financial statements for the three and nine months ending September 30, 2025. The report highlights the company’s financial condition and operational results, providing insights into its strategic initiatives and market positioning. The announcement underscores the company’s ongoing efforts to enhance productivity, reduce costs, and manage its debt obligations, which are crucial for maintaining its competitive edge in the telecommunications infrastructure industry.