Airtel Africa Plc
Airtel Africa Plc Fundamental Analysis
Airtel Africa Plc (AAFRF) shows moderate financial fundamentals with a PE ratio of 23.58, profit margin of 10.58%, and ROE of 23.83%. The company generates $6.4B in annual revenue with weak year-over-year growth of -0.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAFRF's fundamental strength across five key dimensions:
Efficiency Score
WeakAAFRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAAFRF trades at attractive valuation levels.
Growth Score
WeakAAFRF faces weak or negative growth trends.
Financial Health Score
WeakAAFRF carries high financial risk with limited liquidity.
Profitability Score
ModerateAAFRF maintains healthy but balanced margins.
Key Financial Metrics
Is AAFRF Expensive or Cheap?
P/E Ratio
AAFRF trades at 23.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AAFRF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Airtel Africa Plc at 5.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.95 times EBITDA. This is generally considered low.
How Well Does AAFRF Make Money?
Net Profit Margin
For every $100 in sales, Airtel Africa Plc keeps $10.58 as profit after all expenses.
Operating Margin
Core operations generate 33.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.83 in profit for every $100 of shareholder equity.
ROA
Airtel Africa Plc generates $4.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Airtel Africa Plc generates strong operating cash flow of $2.81B, reflecting robust business health.
Free Cash Flow
Airtel Africa Plc generates strong free cash flow of $2.02B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.55 in free cash annually.
FCF Yield
AAFRF converts 12.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How AAFRF Stacks Against Its Sector Peers
| Metric | AAFRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.58 | 23.97 | Neutral |
| ROE | 23.83% | 990.00% | Weak |
| Net Margin | 10.58% | -58825.00% (disorted) | Strong |
| Debt/Equity | 2.04 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.58 | 1.70 | Weak Liquidity |
| ROA | 4.84% | -6510.00% (disorted) | Weak |
AAFRF outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Airtel Africa Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.03%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-42.50%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
57.99%
Industry Style: Growth, Technology, Streaming
High Growth