Total Plc continues to be remain profitable posting a pretax profit of N5.6b for the first 9 months of this year representing a 38.5% increase. With a return on equity of 37% Total remains one of the few companies on the market posting returns of more than twice the rate of inflation. To put this into better perspective, Oando posted a returns on equity of 9%.
Total’s share price is currently N124, 11x its current earnings per share or 16x its prior year trailing earnings putting it squarely in the buy range for me. The fact that it traded for N200 just a year ago reflects my view that this stock may just be ripe for the picking. One problem though is the liquidity of the stock in the event that you wish to purchase.