- The price of AAF stock is currently trading at 128 GBX.
- The price has recently given a breakout of the symmetrical pattern and 120 GBX resistance.
Airtel Africa Plc (LSE: AAF) was established on July 12, 2018. It is an African branch of an Indian telecom business that offers services including money and telecommunications.
Financial Analysis of Airtel Africa Plc’s (AAF) Stock
AAF’s gross profit has shown constant growth over the past three years. The firm’s gross profit increased to 1.63 Billion GBP in 2021 from 1.27 Billion GBP in 2020. In 2022, AAF again increased its gross profit to 2.05 Billion GBP. The firm’s TTM gross profit in 2023 surpassed the previous year’s gross profit by 2.09 Billion GBP.
In 2020, the company generated a net income of 259.60 Million GBP, which decreased by 10.90% compared to its previous year. In 2021, the firm was able to raise its net income to 461.98 Million GBP and recover from the decline with a growth rate of 77.36%. 2022, the organization’s net income climbed to 550.96 Million GBP. In comparison to the previous year, it grew by 19.26%. The Airtel Africa TMM net income has decreased to 284.46 Billion GBP compared to the previous year.
The company’s revenue has also constantly increased over the past three years. Rising from 2.98 billion GBX in 2020 to 3.45 billion GBX in 2021, a projected increase of 15.92%. In 2022, The firm again grew its revenue from the previous year by 26.53%, with a revenue of 4.37 billion GBP. The Airtel Africa TTM revenue for 2023 has surpassed the previous year’s revenue of 4.47 Billion GBP.
The debt-to-equity ratio of the company is below 2.00%, but it has also increased from 2020 to 2022. The company does not possess any potential threat for now regarding the debt ratio, but an increase in debt would surely affect the company’s performance and growth.
This company has a strong financial statement. The debt-to-equity ratio of this firm is also under control, but the company has not been able to provide a stable net income throughout the past three years. However, the company’s performance is healthy, with a strong financial statement. The company is only struggling to make a stable net income.
Technical Analysis of Airtel Africa Plc’s (AAF) Stock
The AAF stock price has been trading above the 104 GBX support level since the beginning of 2023. The price initiated a bullish recovery off the support in May 2023 and created the 2023 high of 135.8 GBX. After reaching the 135.8 GBX mark, the stock price encountered resistance and started to decline.
The stock price fell back to its support at 104 GBX and started to trade inside a symmetrical triangle pattern. Recently, the price has given the breakout of the pattern and the resistance level of 120 GBX (which is acting as a support now) huge volume.
As long as the price is trading above the 120 GBX level, the bullish sentiment and buyer’s control over the price will remain, and the price could reach its next resistance at 134 GBX. If the price also breaks above 134 GBX, it could reach its next resistance at 145 GBX.
However, for sellers to dominate the price, they must bring the price below 120 GBX, and then the price can fall to 93.00 GBX.
Conclusion
The AAF Stock is bullish at the time of writing. The price has broken out of the symmetrical triangle and 120 GBX resistance. The price is trading above the 120 GBX level and can sustain above it. The bullish sentiment and buyer’s control over the price will remain, and the price could reach its next resistance at 134 GBX. If the price also breaks above 134 GBX, it could reach its next resistance at 145 GBX.
However, for sellers to dominate the price, they must bring the price below 120 GBX, and then the price can fall to 93.00 GBX.
Technical levels
Resistance levels: 134 GBX and 145 GBX
Support levels: 120 GBX, 104 GBX and 93 GBX
Disclaimer
The views and opinions stated by the author or any other person named in this article, are for informational purposes only. They do not provide financial, investment, or other advice. Investing or trading comes with a risk of financial loss.
