Last year, United Capital shares shed 11% year-to-date, closing at N20.40. So far this year, history seems to be repeating itself, with the price slipping another 11% to N18.10 as of last week and remaining below its 52-week high of N23.85.
For investors, the question is whether this repeated dip signals weakness in the company’s outlook or if it presents a golden entry point to accumulate shares at a discount.
The fundamentals are impressive. Over the last five years (2020-2024), United Capital has grown its profit at a compound annual rate of 25%, delivering a cumulative N64.45 billion.
It has sustained this momentum into 2025, with half-year profit up 54% to N11.9 billion. Revenue has also expanded strongly, compounding at 28% annually, with N24 billion already earned in H1 2025 against N43.43 billion in full-year 2024.
Cash generation is another strength. The company produced N980 billion in operating cash flow over five years, with free cash flow of N977 billion, giving it one of the strongest liquidity positions among its peers.
Its balance sheet remains solid at N1.5 trillion in assets and N167 billion in net assets.
United Capital also has dividend payout consistency. Dividends have grown at a 23% annual rate over the last five years, with both interim and final payouts. At today’s price, the dividend yield stands at 4.42%.
On valuation, United Capital trades at over 8x earnings, 2x its net assets, and 1.4x revenue. However, with profits compounding at 25% over five years, its PEG ratio of 0.33 makes it especially compelling.
That means United Capital looks undervalued relative to its growth rate, since a PEG below 1 typically signals a compelling growth-at-a-reasonable-price (GARP) opportunity.
With management reaffirming confidence in its growth outlook and a Pan-African strategy in play, the stock’s fundamentals suggest resilience.
As the company put it: “As we look ahead to the second half of the year, we remain focused and firmly committed to sustaining this strong performance. With a solid foundation, a clear strategic direction, and our retail and Pan-African play in full force, United Capital is well-positioned to continue delivering superior returns to shareholders and providing best-in-class solutions to all our stakeholders.”
Verdict & recommendation
United Capital combines steady earnings growth, consistent dividend payouts, strong cash flow, and a healthy balance sheet.
At a PEG of 0.33 and trading below its 52-week high, the current dip looks more like an opportunity than a red flag.
For long-term investors seeking a mix of growth and dividend income, the recommendation is: buy the dip and accumulate.
Meanwhile, short-term traders may watch for catalysts that could trigger a rebound toward the N23.85 level.
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someone to kindly explain how N1.5 trillion in assets compared to N167 billion in net assets be impressive? Could this be a typo?