Blue Label Telecoms Limited (JSE:BLU) Stock Rockets 28% But Many Are Still Ignoring The Company
Mar 24
South African (JSE) Telecom Services and Carriers Industry Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies5
- 7D3.7%
- 3M-4.6%
- 1Y-16.0%
- YTD-9.4%
In the last week, the Telecom Services and Carriers industry is up 3.7%, with Telkom SA SOC up 4.2%. During this same period, the TeleMasters Holdings underperformed, falling 7.2%. In the past year, the industry is down 16%. As for the next few years, earnings are expected to grow by 120% per annum.
Industry Valuation and Performance
Has the South African Telecom Services and Carriers Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | R16.8b | R60.4b | -R8,873,611,326.00 | 16.8x | -1.9x | 0.3x |
| Fri, 05 Apr 2024 | R19.3b | R60.4b | -R8,873,611,326.00 | 16.6x | -2.2x | 0.3x |
| Sun, 03 Mar 2024 | R17.7b | R60.4b | -R8,874,561,582.00 | 17x | -2x | 0.3x |
| Tue, 30 Jan 2024 | R17.9b | R62.6b | -R9,357,802,582.00 | 16.6x | -1.9x | 0.3x |
| Thu, 28 Dec 2023 | R18.5b | R62.6b | -R9,357,802,582.00 | 17.2x | -2x | 0.3x |
| Sat, 25 Nov 2023 | R17.4b | R62.6b | -R9,312,978,582.00 | 17.2x | -1.9x | 0.3x |
| Mon, 23 Oct 2023 | R14.5b | R62.1b | -R9,612,978,582.00 | 15.9x | -1.5x | 0.2x |
| Wed, 20 Sep 2023 | R15.1b | R62.1b | -R9,616,486,975.00 | 9.9x | -1.6x | 0.2x |
| Fri, 18 Aug 2023 | R16.8b | R61.7b | -R9,504,797,687.00 | 6.2x | -1.8x | 0.3x |
| Sun, 16 Jul 2023 | R18.0b | R62.1b | -R9,504,797,687.00 | 6.2x | -1.9x | 0.3x |
| Tue, 13 Jun 2023 | R19.0b | R61.3b | R2.4b | 7.9x | 8x | 0.3x |
| Thu, 11 May 2023 | R20.0b | R61.2b | R2.4b | 8.2x | 8.3x | 0.3x |
| Sat, 08 Apr 2023 | R21.8b | R61.2b | R2.4b | 8.9x | 9.1x | 0.4x |
| Mon, 06 Mar 2023 | R23.0b | R61.2b | R2.4b | 8.9x | 9.6x | 0.4x |
| Wed, 01 Feb 2023 | R22.3b | R60.5b | R3.0b | 4.5x | 7.5x | 0.4x |
| Fri, 30 Dec 2022 | R19.8b | R60.5b | R3.0b | 4.3x | 6.6x | 0.3x |
| Sun, 27 Nov 2022 | R21.9b | R60.5b | R3.4b | 4.6x | 6.4x | 0.4x |
| Tue, 25 Oct 2022 | R22.8b | R60.6b | R4.1b | 4.2x | 5.5x | 0.4x |
| Thu, 22 Sep 2022 | R29.8b | R60.6b | R4.1b | 5.3x | 7.2x | 0.5x |
| Sat, 20 Aug 2022 | R29.4b | R61.1b | R4.0b | 6.7x | 7.3x | 0.5x |
| Mon, 18 Jul 2022 | R27.5b | R61.1b | R4.0b | 6.5x | 6.9x | 0.4x |
| Wed, 15 Jun 2022 | R23.4b | R61.7b | R4.1b | 5.3x | 5.7x | 0.4x |
| Fri, 13 May 2022 | R28.2b | R61.9b | R4.1b | 4.5x | 6.9x | 0.5x |
| Sun, 10 Apr 2022 | R27.7b | R61.9b | R4.1b | 5.8x | 6.8x | 0.4x |
| Tue, 08 Mar 2022 | R20.6b | R44.0b | R3.2b | 7.4x | 6.4x | 0.5x |
| Thu, 03 Feb 2022 | R25.1b | R44.0b | R3.2b | 9x | 7.8x | 0.6x |
| Sat, 01 Jan 2022 | R27.6b | R44.1b | R2.9b | 11.1x | 9.4x | 0.6x |
| Mon, 29 Nov 2021 | R24.3b | R44.2b | R2.9b | 9.7x | 8.3x | 0.5x |
| Wed, 27 Oct 2021 | R24.6b | R44.3b | R2.5b | 14.8x | 10x | 0.6x |
| Fri, 24 Sep 2021 | R22.6b | R44.3b | R2.5b | 15.6x | 9.2x | 0.5x |
| Sun, 22 Aug 2021 | R20.1b | R44.3b | R2.5b | 17.1x | 8.2x | 0.5x |
| Fri, 09 Jul 2021 | R24.1b | R44.3b | R2.5b | 24.7x | 9.8x | 0.5x |
Price to Earnings Ratio
10.1x
Current Industry PE
- Investors are pessimistic on the South African Telecom industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading close to its 3-year average PS ratio of 0.40x.
Past Earnings Growth
- Total earnings for the Telecom industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 11% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South African Telecom industry?
| ZA Market | 1.41% | |
| Telecom | 2.80% | |
| Telecom Services and Carriers | 3.71% | |
| Alternative Carriers | 4.36% | |
| Integrated Telecom Services | 3.70% | |
Industry PE
- Investors are most optimistic about the Alternative Carriers industry which is trading above its 3-year average PE ratio of 8.1x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Integrated Telecom Services industry, expecting annual earnings growth of 120% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Integrated Telecom Services industry is expected to see its earnings grow by 120% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TKG Telkom SA SOC | R24.95 | 4.2% +R493.9m | -21.5% | PS0.3x | |
| BLU Blue Label Telecoms | R4.39 | 2.1% +R80.7m | 5.8% | PE5.2x | |
| HUG Huge Group | R2.14 | 7.0% +R24.2m | -20.7% | PE10.4x | |
| CGN Cognition Holdings | R1.04 | 4.0% +R9.2m | 7.2% | PE23.2x |