Kenyan stock report - Safaricom

KENYA

Safaricom increases 1.0% October 19, 2017 15:00 EAT

NEWS BITES - AFRICA

Safaricom Limited (NR:SCOM), Kenya's largest Telecommunication and technology company by market cap, has increased 25.0c (1.0%) from its last trading session of October 18 to close at KES24.25. Compared with the NSE 20-Share Index which fell 47.6 points (1.3%) in the day, the relative price increase was 2.4%. The volume was 0.3 times the average daily trading volume of 11.7 million shares.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Technicals, Oversold/Bullish/Support Signals, High Performance Indicators

SECTION 2 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Beta, Turnover Rate & Turnover Period, Month-on-Month Comparison (Trailing Month - ended 18th)

SECTION 3 RANKING

Global, Regional, Market, Index, Sector

SECTION 4 PROFILE

Activities, Top Management, Issued Capital

SECTION 5 STOCK BUZZ

SECTION 1 SAFARICOM BULLISH SIGNALS

1.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 9.9%, divided by average yield of dividend yielding stocks in the NSE 20-Share Index of 8.2% is 120.8%. This suggests the stock is undervalued in dividend yield terms.

1.2 Technicals:

+ In the last three months the stock has hit a new 52-week high fourteen times, pointing to a significant uptrend.

+ The present value of KES1,000 (PV1000) invested one year ago in Safaricom is KES1,429, comprising a capital gain of KES277 and dividend reinvested of KES151.

PV10001-week1-month1-year
SCOM.NR9809601,429
NSE 20-Share Index9749541,094

+ The present value of KES1,000 (PV1000) invested five years ago in Safaricom is KES7,835, including a capital gain of KES5,246 and dividend reinvested of KES1,589.

+ 5 years Multiplier in KES = 7.835x

+ Compound Annual Growth Rate (CAGR) in KES = 50.9%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Safaricom is $US6,374, including a capital gain of $US4,081 and dividend reinvested of $US1,293.

+ 5 years ago USD 1 equalled KES 84.7458

+ 5 years Multiplier in USD = 6.374x

+ Compound Annual Growth Rate (CAGR) in USD = 44.8%

Oct 19, 2017: USD 1 equals KES 104.17

1.3 Oversold/Bullish/Support Signals:

+ The stock is oversold according to the Williams % R indicator of -85.7, suggesting the price is close to its 14-day low of KES24.0.

1.4 High Performance Indicators:

DescriptionValueRank In Market
Price/MAP500.98In Top Quartile
Price/MAP2001.17In Top Quartile
Price Change %1.0In Top Quartile

SECTION 2 PRICE VOLUME DYNAMICS

2.1 Technicals:

+ Volume: there were 2,985,100 shares worth KES72.4 million (US$694,931) traded today. In the past week, volume was 0.8 times average and the shares were down 2.0%.

+ Safaricom is at a discount of 8.5% to its 12-month high of KES26.50 on September 21. It is also at a premium of 58.7% to the 12-month low of KES15.28 on March 09.

2.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 23%.

SCOMClose (KES)Dividends (KES)Capital Gain %% YieldAnnual Return %
Oct 1924.252.4127.712.740.4
1 Yr ago18.980.6435.74.640.3
2 Yrs ago13.990.4719.3423.3
3 Yrs ago11.73-34.8-34.8
4 Yrs ago8.70.31124.18132.0

Close 5 years ago KES3.88

2.3 Beta:

+ Beta: the Beta of Safaricom stock is 0.8. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

2.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 6.4% (or a turnover period of 15 years 7 months). 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.

2.5 Month-on-Month Comparison (Trailing Month - ended 18th)

18 Oct18 Sep18 Aug18 Jul16 Jun18 May
Price 18 Oct (KES)2424.7523.5522.1122.8319.7
% Price Change-35.16.517.36.8
Avg Daily Volume11,729,15212,710,20512,913,29813,763,12212,889,57411,924,144
VWP (KES)24.9224.2123.0121.8220.6818.67
Price Range (KES)24 - 26.524 - 2523.07 - 23.7921.63 - 22.3522.35 - 23.0719.18 - 20.19
Relative Price Change %24.3-2-3.97.32.2
Volatility %10.418.513.3820.317.6

SECTION 3 RANKING

3.1 Global Rank [out of 47,822 stocks] and Rank in the Middle East & Africa Region [out of 2,304 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)9.3B1,58934
Total Assets (US$)1.5B7,845328
Revenue (US$)1.6B4,909121
Net Profit (US$)312.3M2,34084
Return on Equity %30.41,70090
Net Profit Margin %19.45,931492
Price to Book7.629,1981,507
Price/Earnings24.914,463931
Yield %10.0860147
PV$1000 (1Year) US$*1,40010,589394
US$* Change (1Year) %23.814,214530

* 1 year ago USD 1 = KES 102.04

Oct 19, 2017: USD 1 equals KES 104.17

3.2 Rank in the NSE 20-Share Index [out of 17 stocks] and Rank in the Total Kenyan Market [out of 41 stocks]

DescriptionValueIn NSE 20-Share IndexIn Total Kenyan Market
MCap (KES)970B11
Total Assets (KES)157B59
Revenue (KES)163.9B12
Net Profit (KES)31.9B11
Return on Equity %30.411
Net Profit Margin %19.4510
Price to Book7.61438
Price/Earnings24.9924
Yield %9.933
PV1000 (1Year)1,42926

SECTION 4 SAFARICOM PROFILE

4.1 Activities

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.

4.2 Top Management

The chairman is Nicholas Nganga.

4.3 Issued Capital

Based on 40,000,000,000 issued shares the market capitalisation is KES970 billion (US$9.3 billion).

SECTION 5 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

May 10: Safaricom announces dividend

Safaricom today announced a final dividend of 97.0c per share. The ex dividend date is Monday, September 18, 2017 and it is payable on Friday, December 01.

Physical Address: PO Box 46350 Nairobi, 00100 Kenya

State/Province/Country: Kenya

Exchange: The Nairobi Stock Exchange

ISIN: KE1000001402

NR:SCOM; KN:SCOM; SCOM.NR

Source: www.BuySellSignals.com