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MTN Group Ltd (MTNOY)
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MTN Group (MTNOY) AI Stock Analysis

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MTNOY

MTN Group

(OTC:MTNOY)

Rating:64Neutral
Price Target:
$8.00
▲(0.76% Upside)
MTN Group shows strong technical momentum, which is a positive driver. However, financial performance is challenged by revenue volatility and a net loss. Valuation concerns due to a negative P/E ratio are mitigated by a stable dividend yield. Overall, the stock score reflects a balance between bullish technical indicators and financial risks.

MTN Group (MTNOY) vs. SPDR S&P 500 ETF (SPY)

MTN Group Business Overview & Revenue Model

Company DescriptionMTN 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 MoneyMTN 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 revenue volatility and reported a net loss in 2024, impacting financial health. Rising leverage increases financial risk, but strong cash flow generation shows resilience. Focus is needed on stabilizing revenue and margins while managing debt.
Income Statement
55
Neutral
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
60
Neutral
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue188.00B221.30B207.00B181.65B179.36B
Gross Profit131.32B142.81B150.81B133.79B129.07B
EBITDA49.99B72.99B89.82B76.59B80.10B
Net Income-9.59B4.09B19.04B13.75B17.02B
Balance Sheet
Total Assets430.96B434.71B391.88B365.80B348.94B
Cash, Cash Equivalents and Short-Term Investments99.32B40.91B83.01B83.17B68.19B
Total Debt155.74B148.45B140.33B128.82B145.73B
Total Liabilities292.51B284.53B269.54B250.82B242.72B
Stockholders Equity123.44B139.21B116.60B111.05B102.87B
Cash Flow
Free Cash Flow15.14B17.26B22.31B32.06B28.33B
Operating Cash Flow46.82B64.06B68.12B67.29B58.51B
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
Neutral
Last Price7.94
Price Trends
50DMA
8.44
Negative
100DMA
7.59
Positive
200DMA
6.53
Positive
Market Momentum
MACD
-0.16
Positive
RSI
36.99
Neutral
STOCH
4.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTNOY, the sentiment is Neutral. The current price of 7.94 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 8.44, and above the 200-day MA of 6.53, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTNOY.

MTN Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$18.99B13.2817.71%6.63%-5.13%-5.90%
72
Outperform
$19.83B19.508.20%4.27%-6.51%-0.21%
67
Neutral
$8.37B11.608.49%4.58%-4.74%-16.57%
64
Neutral
$13.70B35.195.64%1.60%6.96%
60
Neutral
$46.29B4.07-13.12%4.12%1.85%-42.71%
60
Neutral
$28.49B9.21-7.17%4.21%0.89%-494.16%
60
Neutral
$29.90B-3.55%6.68%-4.73%-251.31%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTNOY
MTN Group
7.94
2.95
59.12%
TLK
PT Telekomunikasi Indonesia Tbk
19.42
0.76
4.07%
SKM
Sk Telecom
21.83
-1.65
-7.03%
VIV
Telefonica Brasil
12.47
3.22
34.81%
TEF
Telefonica
5.34
0.92
20.81%
VOD
Vodafone
11.81
2.28
23.92%
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.Date of analysis: Jul 18, 2025