Buy Or Sell Opportunity • May 25
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 24% to ج.م28.13. The fair value is estimated to be ج.م23.30, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 48%. Announcement • Apr 11
B Investments Holding S.A.E., Annual General Meeting, May 05, 2025 B Investments Holding S.A.E., Annual General Meeting, May 05, 2025, at 16:00 Egypt Standard Time. Location: cairo Egypt Buy Or Sell Opportunity • Nov 17
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 10% to ج.م24.95. The fair value is estimated to be ج.م20.75, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 54%. Buy Or Sell Opportunity • Oct 10
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 5.8% to ج.م22.96. The fair value is estimated to be ج.م18.78, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 58%. Buy Or Sell Opportunity • Aug 29
Now 20% overvalued Over the last 90 days, the stock has fallen 5.7% to ج.م22.44. The fair value is estimated to be ج.م18.66, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 58%. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: ج.م1.38 (vs ج.م0.29 in 2Q 2023) Second quarter 2024 results: EPS: ج.م1.38 (up from ج.م0.29 in 2Q 2023). Revenue: ج.م345.5m (up 23% from 2Q 2023). Net income: ج.م252.7m (up 432% from 2Q 2023). Profit margin: 73% (up from 17% in 2Q 2023). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 20
Upcoming dividend of US$0.02 per share Eligible shareholders must have bought the stock before 27 August 2024. Payment date: 29 August 2024. Payout ratio is on the higher end at 82% but the company is not cash flow positive. Trailing yield: 18%. Within top quartile of Egyptian dividend payers (7.0%). Higher than average of industry peers (15%). Reported Earnings • May 30
First quarter 2024 earnings released: EPS: ج.م5.57 (vs ج.م2.04 in 1Q 2023) First quarter 2024 results: EPS: ج.م5.57 (up from ج.م2.04 in 1Q 2023). Revenue: ج.م230.1m (up 257% from 1Q 2023). Net income: ج.م891.8m (up 173% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ج.م20.50, the stock trades at a trailing P/E ratio of 8.8x. Average trailing P/E is 13x in the Capital Markets industry in Egypt. Total returns to shareholders of 83% over the past three years. New Risk • May 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 36% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (107% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (36% increase in shares outstanding). Market cap is less than US$100m (ج.م3.78b market cap, or US$80.7m). Announcement • May 18
B Investments Holding S.A.E., Annual General Meeting, Jun 09, 2024 B Investments Holding S.A.E., Annual General Meeting, Jun 09, 2024, at 15:00 Egypt Standard Time. Location: cairo Egypt Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ج.م18.26, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 12x in the Capital Markets industry in Egypt. Total returns to shareholders of 81% over the past three years. Reported Earnings • Apr 03
Full year 2023 earnings released: EPS: ج.م3.17 (vs ج.م5.25 in FY 2022) Full year 2023 results: EPS: ج.م3.17 (down from ج.م5.25 in FY 2022). Revenue: ج.م569.3m (down 62% from FY 2022). Net income: ج.م518.0m (down 38% from FY 2022). Profit margin: 91% (up from 56% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ج.م27.00, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 23x in the Capital Markets industry in Egypt. Total returns to shareholders of 215% over the past three years. Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ج.م20.82, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 16x in the Capital Markets industry in Egypt. Total returns to shareholders of 138% over the past three years. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ج.م20.96, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 16x in the Capital Markets industry in Egypt. Total returns to shareholders of 151% over the past three years. Reported Earnings • Nov 22
Third quarter 2022 earnings released: EPS: ج.م3.66 (vs ج.م0.003 in 3Q 2021) Third quarter 2022 results: EPS: ج.م3.66 (up from ج.م0.003 in 3Q 2021). Revenue: ج.م1.27b (up ج.م1.26b from 3Q 2021). Net income: ج.م586.3m (up ج.م585.9m from 3Q 2021). Profit margin: 46% (up from 3.2% in 3Q 2021). The increase in margin was driven by higher revenue. New Risk • Nov 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 37% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (37% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (ج.م2.88b market cap, or US$93.1m). New Risk • Aug 17
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended June 2022. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported June 2022 fiscal period end). Share price has been highly volatile over the past 3 months (9.2% average weekly change). Revenue has declined by 62% over the past year. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Revenue is less than US$5m (ج.م123m revenue, or US$4.0m). New Risk • Jul 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ج.م2.82b (US$91.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Revenue has declined by 62% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported June 2022 fiscal period end). Revenue is less than US$5m (ج.م123m revenue, or US$4.0m). Market cap is less than US$100m (ج.م2.82b market cap, or US$91.3m). Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ج.م17.64, the stock trades at a trailing P/E ratio of 31.5x. Average trailing P/E is 18x in the Capital Markets industry in Egypt. Total returns to shareholders of 285% over the past three years. Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ج.م22.64, the stock trades at a trailing P/E ratio of 40.4x. Average forward P/E is 14x in the Capital Markets industry in Egypt. Total returns to shareholders of 407% over the past three years. Upcoming Dividend • May 22
Upcoming dividend of US$0.13 per share at 1.8% yield Eligible shareholders must have bought the stock before 29 May 2023. Payment date: 31 May 2023. Trailing yield: 1.8%. Lower than top quartile of Egyptian dividend payers (8.0%). Lower than average of industry peers (9.4%). Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ج.م26.45, the stock trades at a trailing P/E ratio of 47.2x. Average forward P/E is 14x in the Capital Markets industry in Egypt. Total returns to shareholders of 416% over the past three years. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improved over the past week After last week's 18% share price gain to ج.م20.01, the stock trades at a trailing P/E ratio of 35.7x. Average forward P/E is 15x in the Capital Markets industry in Egypt. Total returns to shareholders of 208% over the past three years. Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improved over the past week After last week's 16% share price gain to ج.م12.79, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 19x in the Capital Markets industry in Egypt. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 22% share price gain to ج.م11.91, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 19x in the Capital Markets industry in Egypt. Total returns to shareholders of 92% over the past three years. Reported Earnings • Aug 19
Second quarter 2022 earnings released: EPS: ج.م0.24 (vs ج.م0.14 in 2Q 2021) Second quarter 2022 results: EPS: ج.م0.24 (up from ج.م0.14 in 2Q 2021). Revenue: ج.م44.7m (up 19% from 2Q 2021). Net income: ج.م38.2m (up 74% from 2Q 2021). Profit margin: 85% (up from 58% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improved over the past week After last week's 20% share price gain to ج.م10.47, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 17x in the Capital Markets industry in Egypt. Total returns to shareholders of 60% over the past three years. Upcoming Dividend • Jun 14
Upcoming dividend of ج.م0.50 per share Eligible shareholders must have bought the stock before 21 June 2022. Payment date: 23 June 2022. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 5.3%. Lower than top quartile of Egyptian dividend payers (11%). Lower than average of industry peers (6.6%). Reported Earnings • Jun 03
First quarter 2022 earnings released: EPS: ج.م0.14 (vs ج.م0.32 in 1Q 2021) First quarter 2022 results: EPS: ج.م0.14 (down from ج.م0.32 in 1Q 2021). Revenue: ج.م14.8m (down 76% from 1Q 2021). Net income: ج.م22.3m (down 56% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: ج.م0.75 (vs ج.م1.78 in FY 2020) Full year 2021 results: EPS: ج.م0.75 (down from ج.م1.78 in FY 2020). Revenue: ج.م174.8m (down 53% from FY 2020). Net income: ج.م123.4m (down 57% from FY 2020). Profit margin: 71% (down from 77% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ج.م7.77, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 18x in the Capital Markets industry in Egypt. Total returns to shareholders of 10.0% over the past three years. Reported Earnings • Nov 21
Third quarter 2021 earnings released: EPS ج.م0.003 (vs ج.م0.19 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ج.م13.2m (down 69% from 3Q 2020). Net income: ج.م418.4k (down 99% from 3Q 2020). Profit margin: 3.2% (down from 73% in 3Q 2020). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 10% per year. Reported Earnings • Aug 21
Second quarter 2021 earnings released: EPS ج.م0.14 (vs ج.م0.53 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ج.م37.6m (down 60% from 2Q 2020). Net income: ج.م21.9m (down 74% from 2Q 2020). Profit margin: 58% (down from 92% in 2Q 2020). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Jun 20
First quarter 2021 earnings released: EPS ج.م0.32 (vs ج.م0.24 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ج.م61.3m (up 13% from 1Q 2020). Net income: ج.م50.6m (up 34% from 1Q 2020). Profit margin: 83% (up from 70% in 1Q 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 18
Upcoming dividend of ج.م1.25 per share Eligible shareholders must have bought the stock before 25 May 2021. Payment date: 27 May 2021. Trailing yield: 8.5%. Within top quartile of Egyptian dividend payers (8.1%). Higher than average of industry peers (5.0%). Reported Earnings • Apr 04
Full year 2020 earnings released: EPS ج.م1.78 (vs ج.م1.08 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ج.م370.3m (up 62% from FY 2019). Net income: ج.م287.9m (up 67% from FY 2019). Profit margin: 78% (up from 75% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 6% per year. Is New 90 Day High Low • Feb 23
New 90-day high: ج.م16.99 The company is up 53% from its price of ج.م11.13 on 25 November 2020. The Egyptian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 22% over the same period. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 23% share price gain to ج.م15.82, the stock is trading at a trailing P/E ratio of 13.7x, up from the previous P/E ratio of 11.2x. This compares to an average P/E of 15x in the Capital Markets industry in Egypt. Total returns to shareholders over the past year are 135%. Is New 90 Day High Low • Feb 01
New 90-day high: ج.م12.78 The company is up 17% from its price of ج.م10.89 on 03 November 2020. The Egyptian market is up 14% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Capital Markets industry, which is up 31% over the same period. Is New 90 Day High Low • Dec 30
New 90-day low: ج.م10.51 The company is down 1.0% from its price of ج.م10.65 on 01 October 2020. The Egyptian market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 4.0% over the same period. Is New 90 Day High Low • Oct 07
New 90-day high: ج.م12.90 The company is up 114% from its price of ج.م6.02 on 09 July 2020. The Egyptian market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 4.0% over the same period.