MTN Shares for the Public (Where to Buy Shares in South Africa)

MTN Group Limited is one of the companies that are currently doing well in the market – it is currently sitting at 9.5% net profit margins, which is higher than last year (6%).

MTN Group Limited was founded in 1994 and it has more than 280 million subscribers in 21 markets internationally.

Together with its subsidiaries, it operates in the telecommunications industry offering mobile voice, enterprise bundle, reverse bill URL, dedicated internet, enterprise mobility services, and international calling.

It also offers data analytics services, data centre hosting, cloud marketplace, server virtualization, domain management, and 0365.

Where can you buy the shares?

MTN shares are easily available to the public to invest in.

If you would like to buy the shares, you can access them through the following financial analysts; JP Morgan, Jonathan Kennedy-Good, UBS, John Kim, ABSA Capital, Niel Venter, Investec, Louise Pillay, and Prima Research, Ian Brink.

You can also buy them via authorised credit providers platforms such as EasyEquities – an investment online platform that allows anyone to buy shares in the brands and companies they like.

Moreover, it is easy to use, affordable, safe, and it is transparent about your investment. One can invest from as little as R5.

Are the shares worth it?

With so many companies affected by the pandemic, many have become a “high risk” to invest in but, the great news about MTN is that they are not part of the “not to consider” crew.

MTN is seen to be doing much better than last year which gives so much hope for potential growth. MTN is not as volatile as the rest of ZA stocks over the past 3 months, typically moving at +/- 5% a week.

It is predicted that in the next 1 to 3 years its annual earnings growth will be 12.7% which is way above the 9.2% savings rate.

It is reported to have exceeded the ZA wireless Telecom industry with a return of 34.9% over the past year. It has also exceeded the ZA market with a return of 19.1% over the past year. 

Following is MTN’s latest consensus forecast view:

  • Market cap: 190,311,245,558
  • EPS - TTM: 749.26
  • P/E ratio: 13.48
  • Forward P/E: 12.53
  • Dividend yield: 3.51 %
  • Last dividend: 3.55ZAR
  • Date of last dividend: 2020/03/11
  • Return on equity: 18.5 %
  • Return on assets: 9.39 %
  • Net asset value: 5,718.37
  • Authorised shares: 2,500,000,000
  • Issued shares: 1,884,269,758

In March 2021, MTN opted to pay down its accumulated debts instead of paying out dividends.

This was a wise move by the large mobile operator to keep the company afloat as it still battles to reduce debt amid uncertainty from the current pandemic. So, shareholders were advised not to be expectant of any dividends this year. 

Its share price is currently set at R101.02 which is below the estimated fair value of R209.13, this means that MTN is trading below its fair value by more than 20%.

Interestingly, the price is a good value based on its Price Earnings Ratio which is 10.7x compared to the African Wireless Telecom industry average which is 15.4x. This also applies to its Price to Earnings Growth Ratio of 0.8x. 

In the past 5 years, MTN’s earnings have grown drastically by 20.3% per year and its earnings growth over the past year has been recorded to be 86.2% which exceeds its 5-year average of 20.3% per year.

It has also exceeded the entire Telecom industry by 21%. 

So, in conclusion, investing in MTN will not be a bad move, instead, it can be one of your best buys. You will just have to regularly monitor your investment if you buy the shares at the current level, just in case there is a downfall but, overall, there is plenty of room to make a profit.

All the best with securing your financial freedom!