Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the previous week, as well as various analyst reports.
Nigeria Breweries: SELL
Recent Results: Results for the half year ended June 2019, show that revenue declined from N172 billion in 2018 to N170 billion in 2019. Profit before tax fell from N27.5 billion in 2018 to N19.4 billion in 2019. Profit after tax also declined from N18.4 billion in 2018 to N13.2 billion in 2019.
Price Information
Current Share Price: N50
Price to Earnings Ratio: 27.6X
Price to Book Ratio: 2.42
Year to Date: -41.52%
One Year Return: -49.95%
External View
Analysts at FBNQuest have an ‘Underperform’ rating on the stock. They have a target price of N72.10, which represents a potential upside of 44.3% from the stock’s price of N50 as at when the report was prepared.
Analysts at United Capital have a ‘Hold’ recommendation on the stock. They have a 12 month target price of N88.50. This represents a potential upside of 77% from the stock’s price of N50, as at when the report was prepared.
Our View
Nigerian Breweries is a SELL in Nairametrics’ opinion. The company, and the breweries sector as a whole, leave little or no room for optimism. Costs are challenged, and intense competition makes it difficult to pass them along to customers.
The company is also unlikely to attain its FY 2018 numbers, except there is a signficant uptick in the fourth quarter of the year.
Total Nigeria : SELL
Recent Results: Results for the half year ended June 2019, show that revenue fell from N156 billion in 2018 to N150 billion in 2019. Profit before tax fell sharply from N8.6 billion in 2018 to N202 million in 2019. Profit after tax also dropped from N5.6 billion in 2018 to N129 million in 2019.
Price Information
Current Share Price: N114.80
Price Earnings Ratio: 15.31X
Price to Book Ratio: 1.49
One Year Return: -33.94%
Year to Date Return: -43.45%
External View
Analysts at FBNQuest have an underperform rating on the stock. They have a target price of N152. This represents a potential upside of 19.2% from the stock’s price of N127.50 as at when the report was prepared.
Analysts at United Capital have a HOLD recommendation on the stock. They have a target price of N261.40. This represents a potential upside of 127.7% from the stock’s price of N114.8 as at when the report was prepared.
Our View
Total Nigeria is a SELL in Nairametrics’ opinion. The company’s poor full year results indicate that it is unlikely to meet its prior year’s performance. If there is no improvement in the next quarter, the firm could slip into a year to date financial loss.
The stock is also trading below a 5 year low, and could dip further if general market sentiments remain negative.
CCNN: HOLD
Recent Results: Results for the half year ended June 2019, show that revenue rose from N12 billion in 2018 to N32 billion in 2019. Profit before tax increased from N3.6 billion in 2018 to N9.7 billion in 2019. Profit after tax increased from N2.6 billion in 2018 to N7.2 billion in 2019.
Price Information
Current Share Price: N14
Price to Earnings Ratio: 5.56X
Price to Book Ratio: 0.54
One Year Return: -55.4%
Year to Date Return: 27.4%
External View
None
Our View
CCNN is a HOLD in Nairametrics’ opinion, as the stock is currently trading within range of other players in the sector. Dangote Cement, is trading at a price to earnings ratio of 7 times earnings.
FCMB:HOLD
Recent Results: Results for the six months ended June 2019, show that gross earnings increased from N83.9 billion in 2018 to N84.7 billion in 2019. Profit before tax increased from N7.1 billion in 2018 to N8.8 billion in 2019. Profit after tax increased from N5.7 billion in 2018 to N7.5 billion in 2019.
Price Information
Current Share Price: N1.68
Price to Earnings Ratio: 1.99X
Price to Book Ratio: 0.17
One Year Return: -7.62%
Year to Date Return: -11.11%
External View
Analysts at FBNQuest have a ‘Neutral’ recommendation on the stock. They have a target price of N2.50, which represents a potential upside of 48% from the stock’s price of N1.70 as at when the report was prepared.
Analysts at United Capital have a ‘Buy’ recommendation on the stock. They have a 12 month target price of N2.50. which represents a potential upside of 48% from the stock’s price of N1.70 as at when the report was prepared.
Our View
FCMB Group is a HOLD in Nairametrics’ opinion. The stock is currently trading at par with Fidelity Bank, its peer, which is trading at 1.79 times earnings. The stock’s year to date return is slightly better than the NSE All Share Index. A further decline in price would be necessary, to make taking a position in the stock tenable.
