NSE ONE WEEK ACTIVITIES

TRIPPLE GEE FINANCIAL ANALYSIS FOR Q3 ENDED 31ST DECEMBER 2017

ROE (Return on Equity): this is used to measure management performance, it indicates how well a company uses the capital from shareholders to generate profit. The higher the ratio, the better and suggest higher level of management performance.

ROA (Return on assets): it indicates the percentage of profit that a company earns in relation to its overall total assets.it measures the amount of profit made by a company per Naira of its assets, the higher the ratio, the better

ROTC (Return on Total Capital): it measures the profit earned using both debt and equity capital the higher the ratio, the better

RE/TA (Retain Earnings to Total Assets): it indicates the percentage of total assets that is funded by the retained earnings of the company. It is an indicator of the degree to which the company is retaining its profit and using it to finance assets instead of using debt to finance business operation, the higher the ratio, the better.

RE/SHE (Retain Earnings to Stockholders Equity):  it indicates if the company is retaining earnings in the business or if they are being distributed to the owners of the business. A low ratio suggests that the company is distributing more cash than it is retaining in the business and probably financing growth with debt.

DAR (Debt to Asset Ratio): it shows the relationship between company’s liabilities and its assets. It indicates the proportion of assets that is financed by debt, the lower the ratio, the better.

OCFDR (Operating Cash flow to Debt Ratio): it is an estimate of the amount of time it would take a company to repay its debt if all cash flow is devoted. The higher the ratio in percentage term the better.

EV/EBITDA (Enterprise Value to Earnings Before Interest, Tax, Depreciation and Amortisation): it estimates the number of years in which the company will repay its acquisition cost to the buyer through its earnings.

DE (Debt to Equity ratio): it provides an indication of a company’s finance structure and whether the company is more reliant on borrowing (debt) or shareholders capital to fund business operation, the higher the ratio, the riskier the company.

FAIR VALUE: this is the value of the company relative to the return on FGN Savings Bond.

BVS (Book value per share): it is the difference between company’s asset and its liability.  it is a determinant of the value of a company equity relative to the market value.

PE (Price to Earnings): it indicates how much an investor pays for every one Naira the company earns. It can also be said to be the numbers of years it will take to recoup ones investment in the company.

EPS (Earnings per share): It indicates how much each share you own has earned.

DPS (Dividend per Share): Payments made to shareholders by company as a portion of the company’s profit for every share of stock owned in the company.

P/BV (Price to Book value)

OCF/S (Operating cash flow per share)

NPM (Net profit margin)

ITO (Inventory Turnover)

GUINNESS NIG DEC 31 2017 INTERIM FINANCIAL STATEMENT ANALYSIS

KEY

ROE (Return on Equity): this is used to measure management performance, it indicates how well a company uses the capital from shareholders to generate profit. The higher the ratio, the better and suggest higher level of management performance.

ROA (Return on assets): it indicates the percentage of profit that a company earns in relation to its overall total assets.it measures the amount of profit made by a company per Naira of its assets, the higher the ratio, the better

ROTC (Return on Total Capital): it measures the profit earned using both debt and equity capital the higher the ratio, the better

RE/TA (Retain Earnings to Total Assets): it indicates the percentage of total assets that is funded by the retained earnings of the company. It is an indicator of the degree to which the company is retaining its profit and using it to finance assets instead of using debt to finance business operation, the higher the ratio, the better.

RE/SHE (Retain Earnings to Stockholders Equity):  it indicates if the company is retaining earnings in the business or if they are being distributed to the owners of the business. A low ratio suggests that the company is distributing more cash than it is retaining in the business and probably financing growth with debt.

DAR (Debt to Asset Ratio): it shows the relationship between company’s liabilities and its assets. It indicates the proportion of assets that is financed by debt, the lower the ratio, the better.

OCFDR (Operating Cash flow to Debt Ratio): it is an estimate of the amount of time it would take a company to repay its debt if all cash flow is devoted. The higher the ratio in percentage term the better.

EV/EBITDA (Enterprise Value to Earnings Before Interest, Tax, Depreciation and Amortisation): it estimates the number of years in which the company will repay its acquisition cost to the buyer through its earnings.

DE (Debt to Equity ratio): it provides an indication of a company’s finance structure and whether the company is more reliant on borrowing (debt) or shareholders capital to fund business operation, the higher the ratio, the riskier the company.

FAIR VALUE: this is the value of the company relative to the return on FGN Savings Bond.

BVS (Book value per share): it is the difference between company’s asset and its liability.  it is a determinant of the value of a company equity relative to the market value.

PE (Price to Earnings): it indicates how much an investor pays for every one Naira the company earns. It can also be said to be the numbers of years it will take to recoup ones investment in the company.

EPS (Earnings per share): It indicates how much each share you own has earned.

DPS (Dividend per Share): Payments made to shareholders by company as a portion of the company’s profit for every share of stock owned in the company.

P/BV (Price to Book value)

OCF/S (Operating cash flow per share)

NPM (Net profit margin)

ITO (Inventory Turnover)

VITA FOAM Q4 2017 FINANCIAL ANALYSIS

** propose dividend

ROE (Return on Equity): this is used to measure management performance, it indicates how well a company uses the capital from shareholders to generate profit. The higher the ratio, the better and suggest higher level of management performance.

ROA (Return on assets): it indicates the percentage of profit that a company earns in relation to its overall total assets.it measures the amount of profit made by a company per Naira of its assets, the higher the ratio, the better

ROTC (Return on Total Capital): it measures the profit earned using both debt and equity capital the higher the ratio, the better

RE/TA (Retain Earnings to Total Assets): it indicates the percentage of total assets that is funded by the retained earnings of the company. It is an indicator of the degree to which the company is retaining its profit and using it to finance assets instead of using debt to finance business operation, the higher the ratio, the better.

RE/SHE (Retain Earnings to Stockholders Equity):  it indicates if the company is retaining earnings in the business or if they are being distributed to the owners of the business. A low ratio suggests that the company is distributing more cash than it is retaining in the business and probably financing growth with debt.

DAR (Debt to Asset Ratio): it shows the relationship between company’s liabilities and its assets. It indicates the proportion of assets that is financed by debt, the lower the ratio, the better.

OCFDR (Operating Cash flow to Debt Ratio): it is an estimate of the amount of time it would take a company to repay its debt if all cash flow is devoted. The higher the ratio in percentage term the better.

EV/EBITDA (Enterprise Value to Earnings Before Interest, Tax, Depreciation and Amortisation): it estimates the number of years in which the company will repay its acquisition cost to the buyer through its earnings.

DE (Debt to Equity ratio): it provides an indication of a company’s finance structure and whether the company is more reliant on borrowing (debt) or shareholders capital to fund business operation, the higher the ratio, the riskier the company.

FAIR VALUE: this is the value of the company relative to the return on FGN Savings Bond.

BVS (Book value per share): it is the difference between company’s asset and its liability.  it is a determinant of the value of a company equity relative to the market value.

PE (Price to Earnings): it indicates how much an investor pays for every one Naira the company earns. It can also be said to be the numbers of years it will take to recoup ones investment in the company.

EPS (Earnings per share): It indicates how much each share you own has earned.

DPS (Dividend per Share): Payments made to shareholders by company as a portion of the company’s profit for every share of stock owned in the company.

P/BV (Price to Book value)

OCF/S (Operating cash flow per share)

CALENDAR EFFECT

The general hypothesis that certain months of the year provide above average return on stock investment is an old age argument. The most common calendar effects are the Monday effect, January effect and October effect. Because investors and speculator are keenly aware of these days and months of the year, they help to auto stimulate the phenomenon. The January effect which is an increase in the demand for stocks that it leads to a rally in prices can be attributed to the unspent December bonuses and other year-end financial reward/incentives that are put to work in January in the equity market leading to an increase in demand for stocks.  It can also be attributed to peoples new year resolution to invest and save for their future retirement and January being the first month of the new year sees a strong desire to follow through on their resolution, also because of the strong superstitious psychological expectation of gains in January effect, the  fear of missing out (FOMO) in the price rally draws in more speculator into the market making the effect a more too real self-fulfilling prophecy rather than a logical phenomenon based on fundamental analysis of the market. January effect actually makes nonsense of the efficient market hypothesis which states that all information is already reflected in the price of the stocks and thus you cannot use any new information to gain abnormal returns on your chosen stock. So the rally in price in January is not due to any new financial information not reviewed in December to the market but it is just a belief or emotion (FOMO FACTOR) that prices will appreciate.

Gazing through NSE ASI data to check if January effect  is statistically significant is neither here nor there, this might be due to the fact that the NSE is dominated by just five highly capitalized stocks (the big five namely Dangote cement, GTB, Nestle, NB, Zenith bank) which has a combined capitalization of N8.6 trillion representing 63% of the total market capitalization has the potential to make the NSE ASI not to be too representative of the overall effect of January appreciation. But considering the numbers of listed equity that have appreciated in price, January has witness more significant appreciation than depreciation over the preceding month.

JANUARY EFFECT ON THE MOST CAPITALIZED STOCKS

January effect is an increased in the prices of stocks during the month of January. The price rally is said to be due to an increase in buying due to herd mentality and some form of unfounded theories.

COMPARATIVE Q3 2017 ANALYSIS BETWEEN GTBANK AND ZENITH BANK

ROE (Return on Equity): this is used to measure management performance, it indicates how well a company uses the capital from shareholders to generate profit. The higher the ratio, the better and suggest higher level of management performance.

ROA (Return on assets): it indicates the percentage of profit that a company earns in relation to its overall total assets.it measures the amount of profit made by a company per Naira of its assets, the higher the ratio, the better

 DAR (Debt to Asset Ratio): it shows the relationship between company’s liabilities and its assets. It indicates the proportion of assets that is financed by debt, the lower the ratio, the better.

EV/EBITDA (Enterprise Value to Earnings Before Interest, Tax, Depreciation and Amortisation): it estimates the number of years in which the company will repay its acquisition cost to the buyer through its earnings.

DE (Debt to Equity ratio): it provides an indication of a company’s finance structure and whether the company is more reliant on borrowing (debt) or shareholders capital to fund business operation, the higher the ratio, the riskier the company.

BVS (Book value per share): it is the difference between company’s asset and its liability.  it is a determinant of the value of a company equity relative to the market value.

PE (Price to Earnings): it indicates how much an investor pays for every one Naira the company earns. It can also be said to be the numbers of years it will take to recoup ones investment in the company.

EPS (Earnings per share): It indicates how much each share you own has earned.

FAIR VALUE: this is the value of the company relative to the return on FGN Savings Bond.

MARKET CAPITALIZATION: this is the market value of a company’s stock. It is derived by multiplying the number of share outstanding by the current share price. It helps investors to determine the cost of buying the entire shares of a company.it is the theoretical cost of buying a company.

ENTERPRISE VALUE: this is the actual cost of buying a company as it calculates the accurate value of a company take over price by factoring the debt in the company’s books.