MTN Group (MTNOY) AI Stock Analysis

• Market Cap: $9.86B
• Dividend Yield: 2.22%
• Average Volume (3M): 65.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -14.31%
• EPS Growth: -323.32%
• Country: US
• Employees: 21,975
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): -0.29
• Shares Outstanding: 1,884,269,700
• 10 Day Avg. Volume: 86,867
• 30 Day Avg. Volume: 65,383
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.13
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

MTN Group's stock score reflects financial challenges, including revenue volatility and a net loss, which weigh heavily against the strong cash flow generation. The technical analysis shows positive momentum, but valuation concerns due to a negative P/E ratio and high stochastic values suggest caution. The company's ability to stabilize revenue and improve margins while managing debt will be crucial for future performance.

MTN Group Business Overview & Revenue Model

Company Description

MTN Group Limited is a leading telecommunications company headquartered in South Africa. The company is primarily involved in the provision of a comprehensive suite of telecommunications services, including mobile voice, data, and digital services. With operations spanning over 20 countries in Africa and the Middle East, MTN Group serves millions of customers, providing them with connectivity solutions and innovative digital offerings. The company is committed to driving economic growth and development in the regions it serves by enhancing communication infrastructure and digital inclusion.

How the Company Makes Money

MTN Group makes money through a diversified revenue model primarily centered around its telecommunications services. Key revenue streams include mobile voice services, which generate income from call charges and subscription fees, and data services, which are driven by the increasing demand for internet connectivity. Additionally, MTN generates revenue through digital services such as mobile financial services, including mobile money, which facilitate financial transactions and remittances. The company also benefits from partnerships with global technology companies, allowing it to expand its digital offerings and enhance customer experience. Other revenue sources include the sale of devices and telecommunications equipment. MTN's strategic focus on expanding its network infrastructure and leveraging digital transformation initiatives contributes significantly to its earnings.

MTN Group Financial Statement Overview

Summary

MTN Group exhibits strong revenue growth but faces challenges in maintaining profitability margins. The balance sheet is stable with potential leverage risk, and cash flow trends indicate potential liquidity challenges. Continued focus on improving net profitability and managing leverage will be crucial for sustained financial health.

Income Statement

MTN Group has shown a positive trajectory in revenue growth with a consistent increase over the years. The Gross Profit Margin is strong, indicating effective cost management. However, the Net Profit Margin has faced volatility, recently declining, which raises concerns about profitability sustainability. EBIT and EBITDA margins reflect decent operational efficiency but have seen fluctuations, suggesting potential operational challenges.

Balance Sheet

The Debt-to-Equity Ratio is moderately high, indicating leverage risk, but the company has maintained a healthy Equity Ratio, reflecting a solid capital structure. The Return on Equity is declining, which may imply diminishing returns on shareholder investments. Overall, the balance sheet shows stability but with potential leverage concerns.

Cash Flow

MTN Group's Free Cash Flow has seen a declining trend, impacting its ability to reinvest or distribute dividends. The Operating Cash Flow to Net Income Ratio is solid, showing effective conversion of income into cash. However, a declining Free Cash Flow to Net Income Ratio suggests potential cash flow challenges, which could impact financial flexibility.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
199.16B	221.30B	207.00B	181.65B	179.36B	151.46B
	Gross Profit
122.96B	142.81B	150.81B	133.79B	129.07B	107.51B
	EBIT
96.24B	114.18B	57.77B	46.36B	44.59B	31.29B
	EBITDA
70.18B	72.99B	89.82B	76.59B	80.10B	64.67B
	Net Income Common Stockholders
-12.53B	4.09B	19.04B	13.75B	17.02B	9.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.33B	40.91B	83.01B	83.17B	68.19B	41.33B
	Total Assets
302.31B	434.71B	391.88B	365.80B	348.94B	302.31B
	Total Debt
140.61B	148.45B	140.33B	128.82B	145.73B	140.61B
	Net Debt
118.98B	110.90B	95.98B	89.33B	115.03B	118.98B
	Total Liabilities
216.21B	284.53B	269.54B	250.82B	242.72B	216.21B
	Stockholders Equity
83.90B	139.21B	116.60B	111.05B	102.87B	83.90B
Cash Flow		Free Cash Flow
7.38B	17.26B	22.31B	32.06B	28.33B	9.25B
	Operating Cash Flow
46.55B	64.06B	68.12B	67.29B	58.51B	36.29B
	Investing Cash Flow
-41.74B	-52.26B	-43.44B	-30.95B	-33.51B	-24.54B
	Financing Cash Flow
-15.94B	-9.48B	-17.42B	-26.18B	-13.71B	-4.34B

MTN Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTNOY, the sentiment is Negative. The current price of 5.46 is below the 20-day moving average (MA) of 6.10, below the 50-day MA of 6.10, and above the 200-day MA of 5.09, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$13.93B	13.70	7.95%	2.82%	-0.47%	1.69%
TLK	73 Outperform	$13.74B	9.80	16.61%	5.85%	-2.99%	-7.36%
VOD	71 Outperform	$21.60B	8.51	4.31%	7.97%	-24.84%	-74.77%
KT	70 Outperform	$8.19B	24.73	3.02%	6.03%	-3.60%	-51.54%
SKM	69 Neutral	$8.43B	9.42	11.19%	5.13%	-2.34%	12.31%
MTNOY	60 Neutral	$9.86B	―	-7.31%	2.22%	-14.31%	-323.32%
Sector *	58 Neutral	$26.25B	2.79	-10.85%	4.33%	2.15%	-44.22%