MTN Group (MTNOY) AI Stock Analysis

• Market Cap: $18.76B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 1.00
• Revenue Growth: 6.96%
• EPS Growth: N/A
• Country: US
• Employees: 21,975
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• 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: 20.30
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $11.50 ▲(24.59% Upside)

MTN Group's overall stock score is primarily influenced by its strong cash flow generation despite financial challenges such as revenue volatility and a net loss in 2024. The technical analysis shows positive momentum, but the high P/E ratio suggests potential overvaluation. The absence of earnings call data and corporate events means these factors did not impact the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates MTN's ability to sustain operations and invest in growth, even during challenging financial periods.

Gross Profit Margin

A strong gross profit margin suggests efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Mobile Financial Services

Mobile financial services like MTN Mobile Money provide growth opportunities in emerging markets, diversifying revenue and enhancing customer engagement.

Negative Factors

Revenue Volatility

Revenue volatility can undermine financial stability and predictability, making it challenging to plan for long-term investments and growth.

Rising Leverage

Increased leverage can strain financial resources and limit the company's ability to respond to market changes or invest in new opportunities.

Net Loss

A net loss and negative profit margin indicate financial challenges, potentially affecting investor confidence and limiting growth potential.

MTN Group Business Overview & Revenue Model

Company Description

MTN Group Limited is a leading telecommunications company headquartered in Johannesburg, South Africa, operating in over 20 countries across Africa and the Middle East. The company provides a wide range of services including mobile voice, data services, digital solutions, and mobile financial services. MTN is recognized for its commitment to connecting people and businesses through innovative telecommunications solutions, and it plays a crucial role in driving digital transformation in emerging markets.

How the Company Makes Money

MTN Group generates revenue through multiple streams primarily focused on telecommunications services, including mobile voice and data, which account for a significant portion of its earnings. The company also profits from value-added services such as SMS, mobile money (MTN Mobile Money), and enterprise solutions tailored for businesses. Additionally, MTN earns revenue from partnerships with various content and app providers, as well as through selling devices and accessories. The company has formed strategic alliances with financial institutions and technology firms to enhance its mobile financial services, further diversifying its revenue base and expanding its reach in the digital economy.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	206.16B	188.00B	221.30B	207.00B	181.65B	179.36B
Gross Profit	149.99B	131.32B	142.81B	150.81B	133.79B	129.07B
EBITDA	66.28B	49.99B	72.99B	89.82B	76.59B	80.10B
Net Income	7.54B	-9.59B	4.09B	19.04B	13.75B	17.02B
Balance Sheet
Total Assets	475.97B	430.96B	434.71B	391.88B	365.80B	348.94B
Cash, Cash Equivalents and Short-Term Investments	106.30B	99.32B	90.33B	87.67B	83.17B	68.19B
Total Debt	149.09B	155.74B	148.45B	137.84B	128.82B	145.73B
Total Liabilities	308.32B	292.51B	284.53B	269.54B	250.82B	242.72B
Stockholders Equity	145.34B	123.44B	139.21B	116.60B	111.05B	102.87B
Cash Flow
Free Cash Flow	29.51B	15.14B	17.26B	22.31B	32.06B	28.33B
Operating Cash Flow	66.07B	46.82B	64.06B	68.12B	67.29B	58.51B
Investing Cash Flow	-37.40B	-33.34B	-52.26B	-43.44B	-30.95B	-33.51B
Financing Cash Flow	-15.94B	-16.20B	-9.48B	-17.42B	-26.18B	-13.71B

MTN Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 9.23 is below the 20-day moving average (MA) of 10.05, below the 50-day MA of 9.78, and above the 200-day MA of 8.24, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 70.82 is Negative, neither overbought nor oversold. The STOCH value of 93.28 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	77 Outperform	$19.98B	18.85	8.36%	5.03%	-3.16%	4.70%
TLK	75 Outperform	$20.26B	15.39	15.54%	6.14%	-5.21%	-7.45%
MTNOY	62 Neutral	$18.76B	47.70	5.64%	1.26%	6.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.56B	20.02	4.72%	5.02%	-8.16%	-52.52%
VOD	58 Neutral	$31.99B	―	-7.08%	3.77%	19.67%	-278.51%
TEF	45 Neutral	$22.50B	―	-0.70%	7.47%	-5.49%	-75.51%