MTN Nigeria CommunicationsNSA:MTNN 85 ROE % is 195.78% as of Mar. 2026, which is 55% above its 10-year median of 126.58. GuruFocus rates NSA:MTNN with a GF Score™ of 85/100 and a GF Value™ of ₦612.30 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 349 Telecommunication Services companies, MTN Nigeria Communications ranks better than 98.57% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Telecom Services subindustry, MTN Nigeria Communications's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MTN Nigeria Communications ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, MTN Nigeria Communications's ROE % distribution charts can be found below:
* The bar in red indicates where MTN Nigeria Communications's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
MTN Nigeria Communications (NSA:MTNN) has a ROE % of 195.78% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MTN Nigeria Communications and its competitors. This is 55% above median its historical median of 126.58. According to the industry distribution chart, MTN Nigeria Communications ranks #5 out of 349 companies in the Telecommunication Services industry, placing it in the top 1.4%.
Is MTN Nigeria Communications' ROE % too high?
MTN Nigeria Communications' current ROE % of 195.78% is 55% above median its 10-year median of 126.58. The Telecommunication Services industry median ROE % is 7.41. MTN Nigeria Communications' value of 195.78% is 2542.1% above this industry median. Based on the distribution chart, MTN Nigeria Communications ranks #5 out of 349 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, MTN Nigeria Communications has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MTN Nigeria Communications' ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, MTN Nigeria Communications ranks #5 out of 349 companies for ROE %. This places MTN Nigeria Communications in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 7.41. MTN Nigeria Communications' value of 195.78% is 2542.1% above this benchmark. While the company's 10-year median is 126.58 vs. the industry median of 7.41, MTN Nigeria Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MTN Nigeria Communications's current ROE % of 195.78% is 2542.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MTN Nigeria Communications and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MTN Nigeria Communications's current ROE % is 195.78%, which is 55% above median its own 10-year median of 126.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTN Nigeria Communications stock overvalued right now?
Based on GuruFocus' analysis, MTN Nigeria Communications (NSA:MTNN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦612.30, compared to a current price of ₦830.00 — trading 35.6% above its estimated fair value. The current ROE % is 195.78%, which is 55% above median its 10-year median of 126.58 and 2542.1% above the Telecommunication Services industry median of 7.41. MTN Nigeria Communications' overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For MTN Nigeria Communications (NSA:MTNN), the current ROE % is 195.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MTN Nigeria Communications (NSA:MTNN) Overvalued in 2026?
Based on GuruFocus' analysis, MTN Nigeria Communications stock appears to be overvalued.
The current stock price of ₦830.00 is trading 35.6% above its estimated GF Value™ of ₦612.30.
GuruFocus considers MTN Nigeria Communications to be Significantly Overvalued.
Key valuation signals for NSA:MTNN:
ROE %: 195.78% (55% above median its 10-year median of 126.58)
GF Value™: ₦612.30 vs. price of ₦830.00 (35.6% above fair value)
Industry Position: 2542.1% above the Telecommunication Services median (#5 of 349)
No single metric tells the full story. See the NSA:MTNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTN Nigeria Communications PLC is a provider of communications services. The principal activities of the company are the provision of broadband fixed wireless access service, mobile broadband solutions, and fibre-to-the-home connectivity. The group operates in three reportable segments, namely, Consumer Business Unit (CBU), which consists of subscribers sitting in value propositions and tariff plans for Youth, High Value, and Mass segments, Enterprise Business Unit (EBU), which consists of small and medium organizations to whom the services are provided, and Wholesale Business Unit (WBU), which serves customers who buy MTN telecom products. The majority of the revenue is generated from the CBU segment.
85GF Score
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