Nigerian Aviation Handling Company Plc (NAHCO) and Skyway Aviation Handling Company Plc (SKYAVN) are both listed on the NGX in the services sector and transport-related subsector.
As of September 9, 2025, NAHCO’s share price has gained 128% year-to-date, while SKYAVN gained 169% YtD, both far outpacing the NGX All-Share Index’s 35.82% YtD gain.
But in 2024, NAHCO led with an impressive 88% YtD return, while SKYAVN delivered a 32% return over the same period.
In pure percentage-return terms, SKYAVN has outperformed NAHCO in 2025 so far. A N1 million investment in SKYAVN would now be worth N2.69 million, versus N2.28 million for the same investment in NAHCO.
That said, outperforming does not necessarily mean better value.
A closer look at the fundamentals, such as earnings growth, balance sheet strength, dividends, valuation multiples, debt profile, and overall risks, is required to determine which stock is the stronger investment going forward.
Revenue and Profitability
Both companies are doing well, but in different ways:
- NAHCO remains the bigger player, generating about N32 billion in revenue in H1 2025 and delivering N8.9 billion in profit. That translates to a 27.5% profit margin, meaning for every N1 earned, about 28 kobo is retained as profit.
- Skyway, though smaller with N21 billion in revenue, posted N8.13 billion in profit, achieving a much higher 39% profit margin.
This suggests Skyway is more efficient in converting revenue into profit.
Balance sheet strength
When placed side by side, Skyway comes across as the bigger player.
- Its balance sheet stands at N53 billion, reflecting 27% growth in the first half of the year. This expansion was largely driven by an increase in property, plant, and equipment (PPE) and trade receivables, indicating both ongoing investment in operational capacity and higher credit exposure to customers.
- By contrast, NAHCO’s balance sheet size is about N44 billion, down 6% over the same period. The decline stemmed from reductions in both PPE and trade receivables, which may signal lower capital spending and tighter customer balances, but also a potential slowdown in growth momentum.
Financial health
Looking deeper into leverage, the two companies differ sharply:
- Skyway: As of June 2025, debt stood at N4.4 billion, up 60% in six months. This pushed its equity multiple to 1.46, showing moderate use of leverage. While borrowings have increased, Skyway still maintains a conservative capital structure.
- NAHCO: Debt was about N6.23 billion, with an equity multiple of 2.54. This indicates a much higher reliance on debt. While leverage can amplify returns, it also raises risk exposure.
Investor takeaway:
Skyway appears to be balancing growth with moderate leverage, giving it more flexibility to fund expansion without overstretching its balance sheet.
NAHCO’s higher gearing suggests it is operating with less headroom, which could weigh on profit if interest costs rise.
Market valuation
NAHCO looks like the heavyweight.
- Its market capitalization stands at about N205 billion, comfortably above its N44 billion in total assets and N17 billion in net assets.
- This shows that investors are already pricing NAHCO at a significant premium to book value.
Skyway, on the other hand, trades at a lesser premium.
- Its market capitalization is about N122 billion, compared to N53 billion in total assets and N36 billion in net assets.
- This suggests a more modest premium, meaning investors are not stretching valuations as much as they are with NAHCO, possibly signaling room for rerating if Skyway continues to deliver strong margins and growth.
On revenue multiples, NAHCO looks cheaper. It trades at a price-to-sales (P/S) ratio of 2.93, meaning investors pay N2.93 for every N1 of revenue generated.
Skyway, by contrast, trades at a P/S ratio of 3.21, so investors are paying N3.21 for every N1 of revenue.
Earnings tell a similar story:
- Skyway: P/E ratio of 12.75x, meaning investors pay N12.75 for every N1 of earnings.
- NAHCO: P/E ratio of 11x, implying a cheaper valuation on earnings.
At current profit levels, it would take about 11 years for investors in NAHCO to recoup their investment, compared to almost 13 years for Skyway.
However, investors do not just pay for today’s earnings; they are betting on future growth, which could shorten the payback period.
- Over the past five years, NAHCO has compounded profit at an extraordinary 112% annually, far outpacing Skyway’s 59% CAGR.
- Yet, in H1 2025, Skyway’s profit is already almost double its full-year 2024 profit, signaling explosive near-term momentum.
- NAHCO, meanwhile, achieved about 69% of its 2024 full-year profit in H1 2025, strong, but more measured compared to Skyway’s surge.
Importantly, in absolute terms, NAHCO’s profit is slightly higher than Skyway’s.
Investor takeaway:
- On valuation multiples (P/S and P/E), NAHCO looks cheaper.
- On growth trajectory, Skyway is accelerating faster in 2025, which could justify its higher premium if sustained.
Perspective
- For long-term investors: NAHCO is the safer Buy, given its track record and cheaper multiples.
- For growth-seeking or speculative investors: Skyway is a Buy, with potential for significant upside if earnings acceleration sustains.
In essence, it is a choice between stability (NAHCO) and momentum (Skyway); both are Buys, but which one you choose depends on your risk appetite.
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