MTN Group (MTNOY) AI Stock Analysis

• Market Cap: $14.44B
• Dividend Yield: 2.97%
• Average Volume (3M): 298.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -14.31%
• EPS Growth: -323.32%
• Country: US
• Employees: 21,975
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.07
• Shares Outstanding: 1,833,678,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 298
• PEG Ratio: -1.14
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.00
• Price Target Upside: -3.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $8.00 ▼(-3.03%Downside)

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 Business Overview & Revenue Model

Company Description

MTN Group Limited (MTNOY) is a leading telecommunications company operating in emerging markets, primarily in Africa and the Middle East. Founded in 1994, the company offers a variety of services, including mobile voice and data services, digital and fintech solutions, and enterprise services. MTN Group is committed to providing innovative and reliable communication solutions to enhance connectivity and bridge the digital divide in the regions it serves.

How the Company Makes Money

MTN Group makes money primarily through its telecommunications services, which include mobile voice and data services. The company generates revenue by providing prepaid and postpaid mobile plans to consumers, as well as offering data packages to meet the growing demand for internet connectivity. Additionally, MTN Group has expanded its revenue streams by developing digital and fintech services, such as mobile financial services, which include mobile money transfers, payments, and banking solutions. These services cater to the unbanked and underbanked populations in its operating regions. MTN also earns revenue through its enterprise services, providing businesses with connectivity, security, and cloud solutions. Strategic partnerships with technology and financial institutions further enhance its service offerings and market reach, contributing to its overall earnings.

MTN Group Financial Statement Overview

Summary

MTN Group faces revenue volatility and a net loss in 2024, impacting financial health. Rising leverage increases financial risk, but strong cash flow generation suggests resilience. Focus needed on stabilizing revenue and managing debt.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.00B	221.30B	207.00B	181.65B	179.36B
Gross Profit	131.32B	142.81B	150.81B	133.79B	129.07B
EBITDA	49.99B	72.99B	89.82B	76.59B	80.10B
Net Income	-9.59B	4.09B	19.04B	13.75B	17.02B
Balance Sheet
Total Assets	430.96B	434.71B	391.88B	365.80B	348.94B
Cash, Cash Equivalents and Short-Term Investments	99.32B	40.91B	83.01B	83.17B	68.19B
Total Debt	155.74B	148.45B	140.33B	128.82B	145.73B
Total Liabilities	292.51B	284.53B	269.54B	250.82B	242.72B
Stockholders Equity	123.44B	139.21B	116.60B	111.05B	102.87B
Cash Flow
Free Cash Flow	15.14B	17.26B	22.31B	32.06B	28.33B
Operating Cash Flow	46.82B	64.06B	68.12B	67.29B	58.51B
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: Positive
• Last Price: 8.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 8.25 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 7.32, and above the 200-day MA of 5.88, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 89.35 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
TLK	79 Outperform	$16.80B	11.47	16.28%	5.92%	-5.14%	-7.47%
VIV	77 Outperform	$18.01B	17.75	7.95%	4.47%	-5.69%	-0.05%
KT	71 Outperform	$10.10B	22.62	3.81%	2.93%	-4.85%	-43.88%
SKM	69 Neutral	$8.54B	9.50	11.08%	6.01%	-4.13%	4.96%
MTNOY	64 Neutral	$14.44B	―	-7.31%	2.97%	-14.31%	-323.32%
Sector *	62 Neutral	$41.14B	-1.94	-12.05%	4.72%	2.10%	-69.66%
VOD	57 Neutral	$26.76B	9.21	-7.17%	8.79%	0.89%	-494.16%