Ratings Telkom SA SOC Ltd

Equities

TKG

ZAE000044897

End-of-day quote Johannesburg S.E. Other stock markets 23:00:00 29/04/2024 BST			5-day change	1st Jan Change
23.94 ^ZAR	-1.64%		-5.34%	-19.50%

03-27	Telkom SA SOC Ltd Announces Constitution of A New Committee and Changes to Board Committees, Effective April 1, 2024	CI
03-26	Telkom Appoints Sello Mmakau as Chief Digital Officer, Effective 1 April, 2024	CI

Summary

The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

Its low valuation, with P/E ratio at 6.87 and 6.95 for the ongoing fiscal year and 2025 respectively, makes the stock pretty attractive with regard to earnings multiples.
With regards to fundamentals, the enterprise value to sales ratio is at 0.69 for the current period. Therefore, the company is undervalued.
The company's share price in relation to its net book value makes it look relatively cheap.
The company has a low valuation given the cash flows generated by its activity.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Over the past twelve months, analysts' opinions have been strongly revised upwards.

Weaknesses

With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
The company's earnings growth outlook lacks momentum and is a weakness.
Low profitability weakens the company.
The company is not the most generous with respect to shareholders' compensation.
The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
The group usually releases earnings worse than estimated.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Integrated Telecommunications Services

	1st Jan change	Capi.	ESG Refinitiv
TELKOM SA SOC LTD	-19.50%	629M	B-
CHINA MOBILE LIMITED	+7.56%	196B	B+
VERIZON COMMUNICATIONS	+3.26%	165B	C
DEUTSCHE TELEKOM AG	-0.09%	114B	A-
NIPPON TELEGRAPH AND TELEPHONE CORPORATION	-1.10%	90.97B	B-
CHINA TELECOM CORPORATION LIMITED	+13.90%	72B	B-
AMÉRICA MÓVIL, S.A.B. DE C.V.	+5.15%	59.29B	B
SAUDI TELECOM COMPANY	-6.81%	49.58B	B
EMIRATES TELECOMMUNICATIONS GROUP COMPANY	-16.80%	39.35B	B
CHARTER COMMUNICATIONS, INC.	-32.59%	37.4B	C

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

Finances

Valuation

P/E ratio

EV / Sales

Price to Book

Price to Free Cash Flow

Yield

Momentum

1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

1 year EPS revision

4 months EPS revision

Consensus

Analyst Opinion

Potential Price Target

4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

Innovation

Use of resources

Governance

CSR Strategy

Management

Shareholders

Controversy

Technical analysis

ST Timing

MT Timing

LT Timing

RSI

Bollinger Spread

Unusual volumes