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GUIN

Guinness NigeriaNGSE:GUINNESS Stock Report

Market Cap

₦64.0b

7D

0.5%

1Y

83.1%

Updated

21 Oct, 2021

Data

Company Financials +
GUINNESS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends0/6

GUINNESS Overview

Guinness Nigeria Plc engages in brewing, packaging, marketing, and selling whisky, vodka, liqueur, gin, spirits, beers, ready-to-drink products, and non-alcoholic drinks primarily in Nigeria.

Rewards

Earnings are forecast to grow 35.37% per year

Became profitable this year

Risk Analysis

No risks detected for GUINNESS from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Guinness Nigeria
Historical stock prices
Current Share Price₦29.20
52 Week High₦15.60
52 Week Low₦36.00
Beta-0.35
1 Month Change-2.67%
3 Month Change-7.74%
1 Year Change83.07%
3 Year Change-63.77%
5 Year Change-63.50%
Change since IPO344.45%

Recent News & Updates

Shareholder Returns

GUINNESSNG BeverageNG Market
7D0.5%7.2%1.4%
1Y83.1%0.6%41.3%

Return vs Industry: GUINNESS exceeded the NG Beverage industry which returned -4.9% over the past year.

Return vs Market: GUINNESS exceeded the NG Market which returned 40.4% over the past year.

Price Volatility

Is GUINNESS's price volatile compared to industry and market?
GUINNESS volatility
GUINNESS Beta-0.35
Industry Beta0.68
Market Beta1

Stable Share Price: GUINNESS is less volatile than 75% of NG stocks over the past 3 months, typically moving +/- 3% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1950800Baker Magundahttps://www.guinness-nigeria.com

Guinness Nigeria Plc engages in brewing, packaging, marketing, and selling whisky, vodka, liqueur, gin, spirits, beers, ready-to-drink products, and non-alcoholic drinks primarily in Nigeria. The company offers its products under the Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Guinness Gold, Harp Lager, Smirnoff Ice, Satzenbrau Lager, Dubic Malt, Snapp, Orijin Spirit Mixed Drink, Orijin Bitters, Smirnoff Ice Double Black with Guarana, Orijin Zero and Orijin Herbal Gin, Baileys Delight, Gordons Moringa, Smirnoff X1, MrDowell’s, Royal Challenge, Orijin Ready To Drink, Malta Guinness Herbs Lite, Master’s Choice, Tappers, and Royal Kingdom Lager brands, as well as Johnnie Walker Red Label, Black Label, Gold Label Reserve, Platinum Label, and Blue Label scotch whisky brands. It also exports its products.

Guinness Nigeria Fundamentals Summary

How do Guinness Nigeria's earnings and revenue compare to its market cap?
GUINNESS fundamental statistics
Market Cap₦63.96b
Earnings (TTM)₦1.26b
Revenue (TTM)₦160.42b

51.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GUINNESS income statement (TTM)
Revenue₦160.42b
Cost of Revenue₦114.71b
Gross Profit₦45.71b
Expenses₦44.45b
Earnings₦1.26b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin28.49%
Net Profit Margin0.78%
Debt/Equity Ratio21.5%

How did GUINNESS perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

80%

Payout Ratio

Valuation

Is Guinness Nigeria undervalued compared to its fair value and its price relative to the market?

50.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GUINNESS (NGN29.2) is trading above our estimate of fair value (NGN12.04)

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


Price To Earnings Ratio

PE vs Industry: GUINNESS is poor value based on its PE Ratio (51x) compared to the African Beverage industry average (27.6x).

PE vs Market: GUINNESS is poor value based on its PE Ratio (51x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: GUINNESS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GUINNESS's PB Ratio (0.9x) is in line with the NG Beverage industry average.


Future Growth

How is Guinness Nigeria forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUINNESS's forecast earnings growth (35.4% per year) is above the savings rate (13.2%).

Earnings vs Market: GUINNESS's earnings (35.4% per year) are forecast to grow faster than the NG market (15.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GUINNESS's revenue (8.4% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: GUINNESS's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GUINNESS's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has Guinness Nigeria performed over the past 5 years?

-21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GUINNESS has high quality earnings.

Growing Profit Margin: GUINNESS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GUINNESS has become profitable over the past 5 years, growing earnings by -21% per year.

Accelerating Growth: GUINNESS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GUINNESS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Beverage industry (19.7%).


Return on Equity

High ROE: GUINNESS's Return on Equity (1.7%) is considered low.


Financial Health

How is Guinness Nigeria's financial position?


Financial Position Analysis

Short Term Liabilities: GUINNESS's short term assets (NGN74.7B) do not cover its short term liabilities (NGN83.0B).

Long Term Liabilities: GUINNESS's short term assets (NGN74.7B) exceed its long term liabilities (NGN12.2B).


Debt to Equity History and Analysis

Debt Level: GUINNESS's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: GUINNESS's debt to equity ratio has reduced from 86.6% to 21.5% over the past 5 years.

Debt Coverage: GUINNESS's debt is well covered by operating cash flow (327.5%).

Interest Coverage: GUINNESS's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Dividend

What is Guinness Nigeria current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GUINNESS's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.28%).

High Dividend: GUINNESS's dividend (1.58%) is low compared to the top 25% of dividend payers in the NG market (7.27%).


Stability and Growth of Payments

Stable Dividend: GUINNESS is not paying a notable dividend for the NG market, therefore no need to check if payments are stable.

Growing Dividend: GUINNESS is not paying a notable dividend for the NG market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GUINNESS is not paying a notable dividend for the NG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GUINNESS's dividend in 3 years as they are not forecast to pay a notable one for the NG market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Baker Magunda

3.25yrs

Tenure

Mr. Baker Magunda serves as Managing Director, Chief Executive Officer and Director of Guinness Nigeria Plc since 1st July 2018. Mr. Magunda served as Managing Director of Kenya Demand at East African Brew...


Leadership Team

Experienced Management: GUINNESS's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: GUINNESS's board of directors are considered experienced (4.3 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

Guinness Nigeria Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Guinness Nigeria Plc
  • Ticker: GUINNESS
  • Exchange: NGSE
  • Founded: 1950
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₦63.959b
  • Shares outstanding: 2.19b
  • Website: https://www.guinness-nigeria.com

Number of Employees


Location

  • Guinness Nigeria Plc
  • 24, Oba Akran Avenue
  • P.M.B.
  • Lagos
  • 21071
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:59
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.