Nigerian stock report - Nigerian Breweries

NIGEA

Nigerian Breweries increases January 19, 2018 13:00 WAT

NEWS BITES - AFRICA

Nigerian Breweries PLC (LG:NB), Nigeria's 2nd largest Food/beverage/tobacco company by market cap, has increased NGN1.13 (0.8%) from its last trading session of January 18 to close at NGN143.0. Compared with the All Shares Index which rose 244.1 points (0.5%) in the day, the relative price increase was 0.3%. The volume was 0.6 times the average daily trading volume of 1.9 million shares.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Low Performance Indicators, A negative finish to 2017

SECTION 3 PRICE VOLUME DYNAMICS

Technicals

SECTION 4 RANKING

Global, Independent Rating

SECTION 5 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 NIGERIAN BREWERIES BULLISH SIGNALS

1.1 Fundamentals:

+ Total Liabilities/EBITDA of 3 is comfortably below the Joseph Piotroski benchmark of 5.

+ Net profit margin has averaged 12.7% in the last 3 years. This is better than the sector average of 8.4% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 17.1% is better than sector average of 3.0%. This is computed as net profit margin of 9.1% times asset turnover [sales/assets] of 0.85 times leverage factor [total assets/shareholders' equity] of 2.2.

1.2 Undervaluation [compared with sector average]:

+ Return on Equity 17.1% [3.0%].

+ Return on Assets 7.7% [3.1%].

1.3 Technicals:

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 144.31 minus the 26-day EMA of 142.44 is positive 1.87 suggesting a bullish signal.

1.4 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverNGN159.3 million (US$441,265)In Top 6%
Total Debt to Equity0.01In Top 7%
Price/Earnings/Growth0.1In Top 8%
Price Change %0.8In Top Quartile
Return on Capital Employed [ROCE] %29.9In Top Quartile
Volatility %1.6In Top Quartile
Return on Assets [ROA] %7.7In Top Quartile

SECTION 2 NIGERIAN BREWERIES BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 0.7%, divided by average yield of dividend yielding stocks in the All Shares Index of 2.2% is 31.7%. This suggests the stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 3.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom 4% of stocks by value of Q Ratio.

+ Net Profit margin is positive but falling in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit GrowthNet Profit Margin
Sep 17-19.1-97.90.4
Jun 17--13.7

2.2 Overvaluation [compared with sector average]:

+ Price/Sales of 3.6 [2.2].

+ Price to Book of 17.1 [10.0].

+ Dividend yield of 0.7% [1.0%].

2.3 Technicals:

Overbought/Bearish/Resistance Signals:

+ The Money Flow Index [MFI] is 87.8 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 7.2 suggests positive money flow was 7.2 times negative money flow.

2.4 Low Performance Indicators:

DescriptionValueRank In Market
% Prem to Vol Wtd Price0.04In Bottom 1%
Price to Sales3.6In Bottom Quartile

2.5 A negative finish to 2017

The stock has decreased NGN7.0 (or 4.9%) in FY 2017 to close at NGN135.0. The volume in FY 2017 equalled average trading of 1.8 million shares in the previous year.

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 1,120,053 shares worth NGN159.3 million (US$441,265) traded today. In the past week, volume was 1.1 times average and the shares were down 5.3%.

+ Nigerian Breweries is at a discount of 25.9% to its 12-month high of NGN193.0 on August 14, 2017. It is also at a premium of 26.8% to the 12-month low of NGN112.82 on February 14, 2017.

+ The present value of NGN1,000 (PV1000) invested one year ago in Nigerian Breweries is NGN1,015, comprising a capital gain of NGN7 and dividend reinvested of NGN8.

PV10001-week1-month1-year
NB.LG9471,0061,015
All Shares Index1,0511,1871,721

+ The present value of NGN1,000 (PV1000) invested five years ago in Nigerian Breweries is NGN1,044, including a capital loss of NGN69 and dividend reinvested of NGN113.

+ 5 years Multiplier in NGN = 1.044x

+ Compound Annual Growth Rate (CAGR) in NGN = 0.9%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Nigerian Breweries is $US452, including a capital loss of $US597 and dividend reinvested of $US49.

+ 5 years ago USD 1 equalled NGN 156.25

+ 5 years Multiplier in USD = 0.452x

+ Compound Annual Growth Rate (CAGR) in USD = -14.7%

Jan 19, 2018: USD 1 equals NGN 361.01

Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in NB would have produced a return of 1.4%.

NBClose (NGN)Dividends (NGN)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 1914310.70.71.4
1 Yr ago1423.655.8459.8
2 Yrs ago91.133.5(32.4)2.6(29.8)
3 Yrs ago134.765.75(15.8)3.6(12.2)
4 Yrs ago159.9734.126.1

Close 5 years ago NGN153.66

SECTION 4 RANKING

4.1 Global Rank [out of 47,420 stocks] and Rank in the Middle East & Africa Region [out of 2,280 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)3.1B4,069118
Total Assets (US$)1B9,731415
Revenue (US$)870.6M7,148201
Net Profit (US$)78.9M5,919223
Return on Equity %17.15,970347
Net Profit Margin %9.112,309824
Price to Book16.932,9401,516
Yield %0.718,3171,147
PV$1000 (1Year) US$*90730,4121,276
US$* Change (1Year) %-10.930,1481,252

* 1 year ago USD 1 = NGN 322.58

Jan 19, 2018: USD 1 equals NGN 361.01

4.2 Independent Rating

+ BSS/News Bites:

Nigerian Breweries PLC is placed 65/87 in BSS News Bites' ranking of Nigerian performers in the past year, a percentile ranking of 26.

SECTION 5 NIGERIAN BREWERIES FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD M)872.5817.4745.6
Pretax (USD M)110.3151.6170.9
Net (USD M)79105.8118.2
EPS (NGN)358482562

Net profit was down 25.3% from US$105.8 million in 2015 to US$79 million in 2016. Earnings Per Share (EPS) was down 25.7% from NGN482.0 to NGN358.0.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (NGN)
19 Jan 20181
19 Jan 20173.6
19 Jan 20163.5
19 Jan 20155.75
19 Jan 20143

SECTION 6 NIGERIAN BREWERIES PROFILE

6.1 Activities

Nigerian Breweries is a Nigeria-based company. It is a subsidiary of Heineken N.V. The Company is engaged in the brewing, marketing and selling of lager, stout, non-alcoholic malt drinks and soft drinks. Its brands include Star, Gulder, Legend, Heineken, Maltina, Amstel Malta and Fayrouz.

6.2 Industry & Sector

Classification LevelName of Sector
Economic SectorConsumer Non-Cyclicals
Business SectorFood & Beverages

6.3 Issued Capital

Based on 7,929,100,000 issued shares the market capitalisation is NGN1,133.9 billion (US$3.1 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

October 27 2017: Nigerian Breweries announces dividend

Nigerian Breweries today announced a final dividend of NGN1.0 per share. The dividend is payable on Thursday, November 23.

Contact: -5801116

Physical Address: Iganmu House Abebe Village Road Iganmu PO Box 545 Lagos Nigeria

State/Province/Country: Nigeria

Exchange: Nigerian Stock Exchange

ISIN: NGNB00000005

LG:NB; NL:NB; NB.LG

PermID: 4295885255

Source: www.BuySellSignals.com