Why Safaricom Plc Is The Best Share To Buy At The NSE At The Moment

By Steve Biko Wafula / Published May 13, 2023 | 3:36 pm

KEY POINTS

Safaricom Plc has a strong track record of profitability and dividend payments. In the past five years, the company has generated an average annual profit of KES 67 billion.

KEY TAKEAWAYS

Safaricom Plc is trading at a relatively attractive valuation. The company's share price is currently trading at a price-to-earnings ratio of just 10. This is below the average price-to-earnings ratio for other mobile network operators in Africa. This attractive valuation makes Safaricom Plc a good value investment.

Safaricom Plc is a leading mobile network operator in Kenya, with a market share of over 60%. The company is also the largest listed company on the Nairobi Securities Exchange (NSE).

Safaricom has a strong track record of profitability and dividend payments, and it is well-managed and has a strong balance sheet.

Additionally, the company is expanding into new markets, investing in new technologies, and has a strong brand name and a loyal customer base. Finally, the company is relatively low-risk and trading at a relatively attractive valuation.

Why Safaricom Plc is a Good Investment;

There are many reasons why Safaricom Plc is a good investment. These include:

Strong track record of profitability and dividend payments
Well-managed and has a strong balance sheet
Expanding into new markets
Investing in new technologies
Strong brand name and a loyal customer base
Relatively low-risk
Trading at a relatively attractive valuation

Strong Track Record of Profitability and Dividend Payments;

Safaricom Plc has a strong track record of profitability and dividend payments. In the past five years, the company has generated an average annual profit of KES 67 billion. The company has also paid out an average annual dividend of KES 55 per share. This strong track record of profitability and dividend payments is a testament to the company’s sound business model and management team.

Well-Managed and Has a Strong Balance Sheet;

Safaricom Plc is well-managed and has a strong balance sheet. The company has a debt-to-equity ratio of just 0.2, which is very low for a company of its size. This strong balance sheet gives the company the financial flexibility to invest in new growth opportunities.

Expanding into New Markets;

Safaricom Plc is expanding into new markets. In 2017, the company acquired a controlling stake in a mobile network operator in Ethiopia. The company is also planning to expand into other African countries, such as South Sudan and Tanzania. This expansion into new markets will help the company to grow its revenue and profits.

Investing in New Technologies;

Safaricom Plc is investing in new technologies. The company is a pioneer in mobile money services, and it is also investing in other new technologies, such as 5G and artificial intelligence. These investments will help the company to stay ahead of the competition and continue to grow its business.

Strong Brand Name and a Loyal Customer Base

Safaricom Plc has a strong brand name and a loyal customer base. The company is the leading mobile network operator in Kenya, and it has a customer base of over 30 million subscribers. This strong brand name and loyal customer base give the company a competitive advantage.

Relatively Low-Risk

Safaricom Plc is relatively low-risk. The company has a strong track record of profitability and dividend payments, and it is well-managed and has a strong balance sheet. Additionally, the company is expanding into new markets, investing in new technologies, and has a strong brand name and a loyal customer base. All of these factors make Safaricom Plc a relatively low-risk investment.

Trading at a Relatively Attractive Valuation

Safaricom Plc is trading at a relatively attractive valuation. The company’s share price is currently trading at a price-to-earnings ratio of just 10. This is below the average price-to-earnings ratio for other mobile network operators in Africa. This attractive valuation makes Safaricom Plc a good value investment.

Safaricom Plc is a good investment for a number of reasons. The company has a strong track record of profitability and dividend payments, it is well-managed and has a strong balance sheet, it is expanding into new markets, investing in new technologies, has a strong brand name and a loyal customer base, and is relatively low-risk and trading at a relatively attractive valuation. If you are looking for a good investment, Safaricom Plc is a good option to consider.

About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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