Big cap West African companies averaged 57% ROE in Q3 2021

Published On: October 26, 2021By Tags: West-Africa

Dangote Cement, MTN Nigeria and BUA account for 52% by value of the Top 30 in West Africa, as of 30 September 2021.

Ghana and the BRVM had positive US$ returns year to date of 44.0% and 20.3% respectively.

Big cap stocks are far more profitable with ROE’s of 57% vs 18% for mid cap stocks. Further, their stock market returns are superior to mid-cap stocks.

Fundamental valuation outliers

NOTE: Valuations figures are listed as at 30 September 2021. Please click on the company name for updated share price.

“Companies with the highest and lowest Return on Equity

  1. Nestle Nigeria 133.5% with a share price at 1,480.00 NGN
  2. International Breweries -11.8% with a share price at 4.80 NGN

“Companies with the highest and lowest Price Earnings Ratio

  1. Nigerian Breweries 41.7x with a share price at 49.50 NGN
  2. International Breweries is loss-making

“Companies with highest and lowest Dividend Yield

  1. Zenith Bank 12.8% with a share price at 23.45 NGN
  2. Coris Bank Burkina Faso, Ecobank Ghana, ETI, International Breweries and NSIA Banque Côte d’Ivoire are currently not paying dividends

“Companies with highest and lowest Price Book Value Ratio

  1. Nestle Nigeria 40.04x with a share price at 1,480.00 NGN
  2. Ecobank Transnational Incorporated (ETI) 0.21x with a share price at 5.40 NGN

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About the Author: Hartland-Peel Africa Equity Research

Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.

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