Kenyan stock report - Safaricom
Safaricom lifts 2.2% on robust volume June 23, 2017 15:00 EAT
NEWS BITES - AFRICA
Safaricom Limited (NR:SCOM), Kenya's largest Telecommunication and technology company by market cap, has lifted 50.0c (2.2%) from its last trading session of June 21 to close at KES23.50. Compared with the NSE 20-Share Index which rose 11.3 points (0.3%) in the day, the relative price increase was 1.9%. The rise has been propped up by robust volume of 1.5 times the average daily volume of 12.8 million shares.
SAFARICOM BULLISH SIGNALS
+ The relative yield of the stock, defined by its yield of 6.1%, divided by average yield of dividend yielding stocks in the NSE 20-Share Index of 5.4% is 114.4%. This suggests the stock is undervalued in dividend yield terms.
+ Rises to Falls: in the past month the number of rises outnumbered falls 11:5 or 2.2:1.
+ The 2.1% discount to 12-month high of KES24.0 against the 47.8% premium to 12-month low of KES15.90 suggests the stock continues to push for new highs.
+ In the last three months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.
+ The present value of KES1,000 (PV1000) invested one year ago in Safaricom is KES1,401, comprising a capital gain of KES306 and dividend reinvested of KES96.
|NSE 20-Share Index||1,023||1,053||968|
+ The present value of KES1,000 (PV1000) invested five years ago in Safaricom is KES9,298, including a capital gain of KES6,363 and dividend reinvested of KES1,936.
+ 5 years Multiplier in KES = 9.298x
+ Compound Annual Growth Rate (CAGR) in KES = 56.2%
Present Value of USD1,000 invested 5 years ago:
+ The present value of USD1,000 (PV1000) invested five years ago in Safaricom is $US7,501, including a capital gain of $US4,940 and dividend reinvested of $US1,562.
+ 5 years ago USD 1 equalled KES 84.0336
+ 5 years Multiplier in USD = 7.501x
+ Compound Annual Growth Rate (CAGR) in USD = 49.6%
Jun 23, 2017: USD 1 equals KES 104.17
1.3 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||KES449.4 million (US$4.3 million)||In Top 6%|
|Price/MAP50||1.12||In Top Quartile|
|Price/MAP200||1.2||In Top Quartile|
SAFARICOM BEARISH SIGNALS
+ The price decreased 1.1% in the last week.
PRICE VOLUME DYNAMICS
+ Volume: there were 19,261,400 shares worth KES449.4 million (US$4.3 million) traded today. In the past week, volume was 0.8 times average and the shares were down 1.1%.
3.2 Moving Annual Return
|SCOM||Close (KES)||Dividends (KES)||Capital Gain %||% Yield||Annual Return %|
|1 Yr ago||18||0.64||13.2||4||17.2|
|2 Yrs ago||15.9||0.47||24.2||3.7||27.9|
|3 Yrs ago||12.8||0.31||95.7||4.7||100.5|
|4 Yrs ago||6.54||0.22||104.9||6.9||111.8|
+ Beta: the Beta of Safaricom stock is 0.6. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.4 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 6.2% (or a turnover period of 16 years 7 days). This average length of ownership of the stock at 1.2 times the average holding period of 13 years 6 months for stocks in the NSE 20-Share Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.
3.5 Month-on-Month Comparison (Trailing Month - ended 21st)
|21 Jun||19 May||21 Apr||21 Mar||21 Feb||20 Jan|
|Price 21 Jun (KES)||23||20.5||19.15||18.2||18||18.2|
|% Price Change||12.2||6.8||5.2||1.1||-1.4||-4.2|
|Avg Daily Volume||12,856,379||12,011,158||11,439,324||10,957,128||10,545,307||9,813,919|
|Price Range (KES)||20.25 - 24||18.7 - 22||17.75 - 19.8||15.9 - 19||17.9 - 19.2||17.8 - 19.7|
|Relative Price Change %||2.4||1.8||1.2||-0.3||-3.1|
4.1 Global Rank [out of 47,449 stocks] and Rank in the Middle East & Africa Region [out of 2,286 stocks]
|Description||Value||Global Rank||In MEA Region|
|Total Assets (US$)||1.5B||7,598||330|
|Net Profit (US$)||312.3M||2,291||80|
|Return on Equity %||30.4||1,685||89|
|Net Profit Margin %||19.4||5,808||489|
|Price to Book||7.6||29,727||1,532|
|PV$1000 (1Year) US$*||1,359||12,580||386|
|US$* Change (1Year) %||21.2||14,681||457|
* 1 year ago USD 1 = KES 101.01
Jun 23, 2017: USD 1 equals KES 104.17
4.2 Rank in the NSE 20-Share Index [out of 17 stocks] and Rank in the Total Kenyan Market [out of 42 stocks]
|Description||Value||In NSE 20-Share Index||In Total Kenyan Market|
|Total Assets (KES)||157B||5||9|
|Net Profit (KES)||31.9B||1||1|
|Return on Equity %||30.4||1||1|
|Net Profit Margin %||19.4||5||10|
|Price to Book||7.6||14||38|
|Date Paid||Value (c)||Type|
|01 Dec 2016||68||Special|
|01 Dec 2016||76||Final|
|Tr 12 Months||144|
|02 Dec 2015||64||Final|
|2015 - 2016||64|
|15 Dec 2014||47||Final|
|2014 - 2015||47|
|11 Sep 2013||31||Final|
|2013 - 2014||31|
|12 Sep 2012||22||Final|
|2012 - 2013||22|
Safaricom is engaged in the provision of mobile phone services. It provides products and services for telephony, general packet radio services, third generation, enhanced data GSM environment, data and fax. Its Safaricom PrePay service includes international dialling, voice mail and prepays roaming. Messaging includes ways of communication, such as short message service (SMS), e-mail and multimedia. With messaging service, customers also get daily updates for news, sports and entertainment. Its other products and services include Safaricom Shops and Safaricom Mail.
6.2 Top Management
The chairman is Nicholas Nganga and the chief financial officer is John Tombleson.
6.3 Issued Capital
Based on 40,000,000,000 issued shares the market capitalisation is KES940 billion (US$9 billion).
Physical Address: PO Box 46350 Nairobi, 00100 Kenya
Exchange: The Nairobi Stock Exchange
NR:SCOM; KN:SCOM; SCOM.NR