COMPARATIVE Q3 2017 FINANCIAL ANALYSIS FOR FOOD PRODUCT SECTOR

NOTE 

** Q2 SEPTEMBER 2017

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.

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 2 years 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.

P/BV (Price to Book value):

OCF/S (Operating cash flow per share):

FOOD PRODUCT SECTOR Q3 2017 MARKET CAPITALIZATION Vs ENTERPRISE VALUE

NOTE
**  Q2 SEPT 2017 RESULTS

TAKING ADVANTAGE OF THE NUMBERS

The investment game is a game of numbers just as anything of importance that has to do with human is measured in terms of numbers for example age, height, weight, experience, intelligence, wealth, victory to mention few, same goes for investment, trying to gain more currency with less and to do these you need to arm yourself with information about where and how to earn superior returns on your currency. Literally speaking the investment game is a form of currency war, gaining more currency with currency. who ever said wars are won on information and intelligence and that general/investor/speculator with the best intelligence due to information will always win is probably right because in the financial game knowing more than the other is more than half the game. So in this game/currency war knowing some few mumbo jumbo such as initial rate of return (ROR), return on equity (ROE), return on assets (ROA), book value per share (BV/S), price to earnings (PE), yield, inflation rate, interest rate, undervalued, overvalued etc. will give you a head start above the mass uneducated majority addicted to using currency to buy liabilities they don’t need rather than buying money with currency. Don’t get confused money and currency are two different tools in the game of investment and the return they give makes the difference between a consistent winner and a consistent loser.  So in this series taking advantage of the numbers I will be removing the veil from your financial consciousness and showing you how the devil is in the numbers so you can take advantage of the numbers to earn superior return with your currencies by exploiting all  available competing investment alternatives, all you have to do is just follow me...

STANBIC IBTC AND FCMB GROUP Q3 2017 COMPARATIVE 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.

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 2 years 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.

P/BV (Price to Book value):

OCF/S (Operating cash flow per share):

FCMB GROUP Q3 2017 FINANCIAL 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.

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 2 years 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):

P/BV (Price to Book value):

EPS (Earnings per share):

OCF/S (Operating cash flow per share):

BANKS Q3 2017 MARKET CAP Vs ENTERPRISE VALUE

COMPARATIVE FINANCIAL ANALYSIS OF BANKING SECTOR Q3 2017

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.

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 2 years 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):

P/BV (Price to Book value):

EPS (Earnings per share):

OCF/S (Operating cash flow per share):

STANBIC IBTC MARKET CAP VS ENTERPRISE VALUE

STANBIC IBTC Q3 2017 FINANCIAL 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.

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 2 years 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):

P/BV (Price to Book value):

EPS (Earnings per share):

OCF/S (Operating cash flow per share):

MARKET CAPITALIZATION Vs ENTERPRISE VALUE Q3 2017 TRANSPORT RELATED SERVICE SECTOR

COMPARATIVE FINANCIAL ANALYSIS Q3 2017 OF TRANSPORT RELATED SERVICE SECTOR

HOTEL AND LODGING COMPANIES MARKET CAP Vs ENTERPRISE VALUE

HOTELS AND LODGING SECTOR Q3 2017 COMPARATIVE ANALYSIS

PETROLEUM SECTOR Q3 2017 MARKET CAP Vs ENTERPRISE VALUE

PETROLEUM SECTOR Q3 2017 COMPARATIVE ANALYSIS

ENTERPRISE VALUE AND MARKET CAPITALIZATION OF INSURANCE COMPANIES Q3 2017

Q3 2017 COMPARATIVE ANALYSIS OF INSURANCE COMPANIES

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY, ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL,  RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, P/BV= PRICE TO BOOK VALUE PER SHARE, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN,OCFDR= OPERATING CASH FLOW TO DEBT RATIO, EV/EBITDA= ENTERPRISE VALUE TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

Q3 2017 FINANCIAL RESULTS OF INSURANCE COMPANIES

COMPARATIVE FINANCIAL ANALYSIS OF PAINT/BUILDING MATERIAL SECTOR Q3 2017

LAFARGE AFRICA, DANGOTE CEMENT, CCNN Q3 2017 COMPARATIVE FINANCIAL ANALYSIS

Dangote cement leads the  cement industry with a good financial result to back it up, it has EPS and return on equity that is far above the industry average, low on debt and reasonable return on asset and its assets are largely financed by retain earnings which is good and it is fairly priced

KEY NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY, ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, P/BV= PRICE TO BOOK VALUE PER SHARE, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN,OCFDR= OPERATING CASH FLOW TO DEBT RATIO, EV/EBITDA= ENTERPRISE VALUE TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

OKOMU OIL, PRESCO, FTN COCOA Q3 2017 COMPARATIVE ANALYSIS

With the agricultural sector set to be the dominant sector years to come and a net foreign exchange earner, a look at the listed players shows varying degree of financial strength.

 Datachef strongly favours Okomu oil because of its low risk factor and long term expected durable growth, it has the highest return on investment capital and equity which is more than double that of Presco which is an indication of management efficiency in utilizing the company’s resource which has also translated to higher earnings per share and with a PE of a single digit it is also considered cheap amongst its peer group.

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY, ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, P/BV= PRICE TO BOOK VALUE PER SHARE, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN,OCFDR= OPERATING CASH FLOW TO DEBT RATIO, EV/EBITDA= ENTERPRISE VALUE TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

INTERNATIONAL BREWERIES SEPTEMBER Q2 2017 FINANCIAL ANALYSIS

2YRS FGN SB AVERAGE RATE						13.01%
3YRS FGN SB AVERAGE RATE						14.01%
TREASURY BILLS						17.72%

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY,  ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, MVS= MARKET VALUE PER SHARE, MV/BV= MARKET TO BOOK VALUE RATIO, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN, D/EBITDA= DEBT TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

MORISON Q3 2017 FINANCIAL ANALYSIS

2YRS FGN SB AVERAGE RATE						13.01%
3YRS FGN SB AVERAGE RATE						14.01%
TREASURY BILLS						18.86%

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY,  ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, MVS= MARKET VALUE PER SHARE, MV/BV= MARKET TO BOOK VALUE RATIO, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN, D/EBITDA= DEBT TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

DIAMOND BANK Q3 2017 FINANCIAL ANALYSIS

2YRS FGN SB AVERAGE RATE						13.01%
3YRS FGN SB AVERAGE RATE						14.01%
TREASURY BILLS						18.86%

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY, ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL,  RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE,  MVS= MARKET VALUE PER SHARE, MV/BV= MARKET TO BOOK VALUE RATIO, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN, D/EBITDA= DEBT TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

UNION BANK Q3 2017 FINANCIAL ANALYSIS

2YRS FGN SB AVERAGE RATE						13.01%
3YRS FGN SB AVERAGE RATE						14.01%
TREASURY BILLS						18.86%

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY,  ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, MVS= MARKET VALUE PER SHARE, MV/BV= MARKET TO BOOK VALUE RATIO, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN, D/EBITDA= DEBT TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND

AIICO INSURANCE Q3 2017 FINANCIAL ANALYSIS

2YRS FGN SB AVERAGE RATE						13.01%
3YRS FGN SB AVERAGE RATE						14.01%
TREASURY BILLS						18.86%

KEY

NPM=NET PROFIT MARGIN, ITO= INVENTORY TURNOVER, ROE= RETURN ON EQUITY, ROA= RETURN ON ASSETS, ROTC=  RETURN ON TOTAL CAPITAL, RE/TA= RETAIN EARNINGS TO TOTAL ASSET RATIO
DE= DEBT TO EQUITY, DAR= DEBT TO ASSET RATIO, BVS= BOOK VALUE PER SHARE, MVS= MARKET VALUE PER SHARE, MV/BV= MARKET TO BOOK VALUE RATIO, PE= PRICE EARNING RATIO
EPS EARNINGS PER SHARE, ROR= RATE OF RETURN, D/EBITDA= DEBT TO EBITDA RATIO, FGN SB FEDEDRAL GOVT SAVINGS BOND