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BAMB

Bamburi CementNASE:BAMB Stock Report

Market Cap

KSh13.7b

7D

1.6%

1Y

61.9%

Updated

18 Oct, 2021

Data

Company Financials +
BAMB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends2/6

BAMB Overview

Bamburi Cement Limited, together with its subsidiaries, manufactures and sells cement and related products in Kenya and Uganda.

Rewards

PE ratio (12.4x) is below the Basic Materials industry average (13.7x)

Risk Analysis

Dividend of 7.97% is not well covered by earnings or forecast to be in the next 3 years


Price History & Performance

Summary of all time highs, changes and price drops for Bamburi Cement
Historical stock prices
Current Share PriceKSh37.65
52 Week HighKSh22.00
52 Week LowKSh47.05
Beta0.31
1 Month Change0.27%
3 Month Change-2.21%
1 Year Change61.93%
3 Year Change-73.11%
5 Year Change-76.47%
Change since IPO1,731.64%

Recent News & Updates

Shareholder Returns

BAMBKE Basic MaterialsKE Market
7D1.6%1.2%1.4%
1Y61.9%65.7%29.7%

Return vs Industry: BAMB underperformed the KE Basic Materials industry which returned 65.2% over the past year.

Return vs Market: BAMB exceeded the KE Market which returned 30% over the past year.

Price Volatility

Is BAMB's price volatile compared to industry and market?
BAMB volatility
BAMB Beta0.31
Industry Beta0.51
Market Beta1

Stable Share Price: BAMB is not significantly more volatile than the rest of KE stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BAMB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1951720Seddiq Hassanihttps://www.lafarge.co.ke/1_1_1-Bamburi_Cement

Bamburi Cement Limited, together with its subsidiaries, manufactures and sells cement and related products in Kenya and Uganda. It offers cement products under the FUNDI, Tembo, Nguvu, Multipurpose, Supaset, Powermax, Powerplus, Duracem, Rapidset, Powerwhite, Powercrete, and Roadcem names; and precast concrete paving blocks under the BamburiBlox brand. The company also provides pre-cast mold concrete products for various applications, including block drainage, hollow blocks, road kerbs, edge restraints, fencing products, and others; and ready mix concrete.

Bamburi Cement Fundamentals Summary

How do Bamburi Cement's earnings and revenue compare to its market cap?
BAMB fundamental statistics
Market CapKSh13.67b
Earnings (TTM)KSh1.11b
Revenue (TTM)KSh38.28b

12.4x

P/E Ratio

0.4x

P/S Ratio

Is BAMB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAMB income statement (TTM)
RevenueKSh38.28b
Cost of RevenueKSh32.54b
Gross ProfitKSh5.74b
ExpensesKSh4.64b
EarningsKSh1.11b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.05
Gross Margin15.00%
Net Profit Margin2.89%
Debt/Equity Ratio6.9%

How did BAMB perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

102%

Payout Ratio

Valuation

Is Bamburi Cement undervalued compared to its fair value and its price relative to the market?

12.36x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BAMB (KES37.65) is trading above our estimate of fair value (KES37.44)

Significantly Below Fair Value: BAMB is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: BAMB is good value based on its PE Ratio (12.4x) compared to the African Basic Materials industry average (13.7x).

PE vs Market: BAMB is poor value based on its PE Ratio (12.4x) compared to the KE market (6.5x).

Price to Earnings Growth Ratio

PEG Ratio: BAMB is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: BAMB is good value based on its PB Ratio (0.5x) compared to the XF Basic Materials industry average (1.3x).

Future Growth

How is Bamburi Cement forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAMB's forecast earnings growth (11% per year) is below the savings rate (12.6%).

Earnings vs Market: BAMB's earnings (11% per year) are forecast to grow slower than the KE market (13.6% per year).

High Growth Earnings: BAMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAMB's revenue (2.7% per year) is forecast to grow slower than the KE market (9.3% per year).

High Growth Revenue: BAMB's revenue (2.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BAMB's Return on Equity is forecast to be low in 3 years time (0.1%).

Past Performance

How has Bamburi Cement performed over the past 5 years?

-45.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAMB has high quality earnings.

Growing Profit Margin: BAMB's current net profit margins (2.9%) are higher than last year (2.8%).

Past Earnings Growth Analysis

Earnings Trend: BAMB's earnings have declined by 45.3% per year over the past 5 years.

Accelerating Growth: BAMB's earnings growth over the past year (15.1%) exceeds its 5-year average (-45.3% per year).

Earnings vs Industry: BAMB earnings growth over the past year (15.1%) underperformed the Basic Materials industry 44.8%.

Return on Equity

High ROE: BAMB's Return on Equity (3.5%) is considered low.

Financial Health

How is Bamburi Cement's financial position?

Financial Position Analysis

Short Term Liabilities: BAMB's short term assets (KES15.2B) exceed its short term liabilities (KES9.1B).

Long Term Liabilities: BAMB's short term assets (KES15.2B) exceed its long term liabilities (KES8.5B).

Debt to Equity History and Analysis

Debt Level: BAMB's debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BAMB's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BAMB's debt is well covered by operating cash flow (176.8%).

Interest Coverage: BAMB's interest payments on its debt are well covered by EBIT (28.3x coverage).

Balance Sheet

Dividend

What is Bamburi Cement current dividend yield, its reliability and sustainability?

7.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BAMB's dividend (7.97%) is higher than the bottom 25% of dividend payers in the KE market (4.19%).

High Dividend: BAMB's dividend (7.97%) is in the top 25% of dividend payers in the KE market (7.8%)

Stability and Growth of Payments

Stable Dividend: BAMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: BAMB's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.9%), BAMB's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BAMB's dividends in 3 years are not forecast to be well covered by earnings (129.7% payout ratio).

Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Seddiq Hassani (51 yo)

3.67yrs

Tenure

KSh60,226,000

Compensation

Mr. Seddiq Hassani, MSc Eng Mechanics, MSc Eng Aeronautics, PhD Mechanics has been Group Managing Director and Executive Director at Bamburi Cement Ltd since February 9, 2018. He served as Country Strategy...

CEO Compensation Analysis

Compensation vs Market: Seddiq's total compensation ($USD542.82K) is above average for companies of similar size in the KE market ($USD263.40K).

Compensation vs Earnings: Seddiq's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: BAMB's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: BAMB's board of directors are considered experienced (3.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Bamburi Cement Limited's employee growth, exchange listings and data sources

Key Information

Number of Employees

Location

  • Bamburi Cement Limited
  • Kitui Road
  • Off Kampala Road, Industrial Area
  • Nairobi
  • 100
  • Kenya

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:18
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.