Nigerian (NSE) Energy Sector Analysis
- 7D-2.3%
- 3M3.2%
- 1Y41.2%
- YTD29.1%
Over the last 7 days, the Energy industry has dropped 2.3%, driven by a pullback from Oando of 6.5%. This takes the industry's 12 month performance to a gain of 41%.
Sector Valuation and Performance
Has the Nigerian Energy Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 02 Dec 2021 | ₦191.5b | ₦776.4b | ₦15.9b | 7.1x |
| Sat, 30 Oct 2021 | ₦203.5b | ₦712.1b | ₦13.5b | 7.7x |
| Mon, 27 Sep 2021 | ₦191.8b | ₦712.1b | ₦13.5b | 7.7x |
| Wed, 25 Aug 2021 | ₦189.3b | ₦1.3t | ₦42.5b | 6.8x |
| Thu, 01 Jul 2021 | ₦151.7b | ₦1.3t | ₦42.5b | 5.8x |
| Sun, 04 Apr 2021 | ₦142.4b | ₦1.2t | ₦37.1b | 8.2x |
| Wed, 06 Jan 2021 | ₦147.8b | ₦1.2t | ₦32.0b | 9.8x |
| Sat, 10 Oct 2020 | ₦104.5b | ₦1.3t | ₦78.3b | 7.7x |
| Fri, 03 Jul 2020 | ₦111.0b | ₦1.3t | ₦75.7b | 6.7x |
| Mon, 06 Apr 2020 | ₦105.7b | ₦1.5t | ₦76.9b | 4.8x |
| Thu, 09 Jan 2020 | ₦147.6b | ₦1.5t | ₦80.4b | 6x |
| Wed, 02 Oct 2019 | ₦145.6b | ₦1.6t | ₦33.8b | 6.1x |
| Sat, 06 Jul 2019 | ₦175.9b | ₦1.6t | ₦31.1b | 8.4x |
| Tue, 09 Apr 2019 | ₦215.8b | ₦1.7t | ₦35.6b | 8.2x |
| Mon, 31 Dec 2018 | ₦210.3b | ₦1.6t | ₦32.0b | 6.1x |
5.8x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 7.2x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Energy industry have declined 17% per year over the last three years, and revenues have also declined 20% per year. This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Nigerian Energy sector?
| Energy Services | -1.53% | |
| Oil and Gas | -2.37% | |
Industry PE: Investors are most optimistic about the Oil and Gas industry which is trading above its 3-year average PE ratio of 9.5x. However analysts are expecting annual earnings growth of 8.8%, which is lower than the prior year's growth of 96% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Energy Services industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 2.7x.
Forecasted Growth: Analysts are most optimistic on the Oil and Gas industry, expecting annual earnings growth of 8.8% over the next 5 years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| ARDOVA Ardova | 3.0%+₦522.0m | 4.6% | PE14.7x |