Nigerian (NSE) Financials Sector Analysis
- 7D-2.1%
- 3M2.8%
- 1Y1.1%
- YTD-4.2%
Over the last 7 days, the Financials industry has dropped 1.8%, driven by a decline by Zenith Bank of 3.5%. Meanwhile, NEM Insurance actually outperformed within the industry, gaining 18% in the last week. As for the longer term, the industry's performance has been flat for the past year.
Sector Valuation and Performance
Has the Nigerian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | ₦3.7t | ₦3.8t | ₦949.1b | 4.6x |
| Tue, 02 Nov 2021 | ₦3.9t | ₦8.3t | ₦1.5t | 4.7x |
| Thu, 30 Sep 2021 | ₦3.5t | ₦3.8t | ₦952.6b | 4.7x |
| Sat, 28 Aug 2021 | ₦3.7t | ₦3.9t | ₦948.9b | 4.9x |
| Sun, 04 Jul 2021 | ₦3.7t | ₦3.9t | ₦948.9b | 4.7x |
| Wed, 07 Apr 2021 | ₦3.8t | ₦3.7t | ₦936.8b | 4.5x |
| Sat, 09 Jan 2021 | ₦3.6t | ₦3.7t | ₦929.9b | 4.3x |
| Fri, 02 Oct 2020 | ₦2.9t | ₦3.6t | ₦876.4b | 4.5x |
| Mon, 06 Jul 2020 | ₦2.6t | ₦3.5t | ₦919.5b | 3.9x |
| Thu, 09 Apr 2020 | ₦2.2t | ₦3.5t | ₦916.4b | 4x |
| Wed, 01 Jan 2020 | ₦3.4t | ₦3.4t | ₦902.9b | 5.1x |
| Sat, 05 Oct 2019 | ₦3.2t | ₦3.3t | ₦883.0b | 4.6x |
| Tue, 09 Jul 2019 | ₦3.4t | ₦3.2t | ₦822.1b | 5.7x |
| Mon, 01 Apr 2019 | ₦3.9t | ₦3.3t | ₦820.7b | 6.2x |
| Thu, 03 Jan 2019 | ₦3.8t | ₦3.2t | ₦798.8b | 6.2x |
6.2x
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 4.8x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Financials industry have grown 8.9% per year over the last three years, and revenues for these companies have grown 7.2% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Nigerian Financials sector?
| Capital Markets | 2.17% | |
| Insurance | 2.02% | |
| Mortgage Finance | 0% | |
| Banks | -2.39% | |
| Diversified Financial | -2.63% | |
Industry PE: Investors are most optimistic about the Mortgage Finance industry even though it's trading below its 3-year average PE ratio of 27.6x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 3.8x.
Forecasted Growth: Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 22% over the next 5 years. This is better than its past earnings decline of 35% per year. Meanwhile, the Banks industry is expected to see its earnings grow by 19% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| NEM NEM Insurance | 18.4%+₦3.5b | 74.5% | PE4.4x | |
| AIICO AIICO Insurance | 5.7%+₦1.5b | 111.9% | PS0.5x | |
| NGXGROUP Nigerian Exchange Group | 4.3%+₦1.4b | n/a | PE18.2x | |
| LINKASSURE Linkage Assurance | 9.8%+₦700.0m | 56.8% | PS1x | |
| UCAP United Capital | 1.0%+₦600.0m | 120.0% | PE5.8x |