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NB

Nigerian Breweries NGSE:NB Stock Report

Last Price

₦48.40

Market Cap

₦397.9b

7D

0%

1Y

-2.2%

Updated

01 Oct, 2022

Data

Company Financials +
NB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends1/6

NB Stock Overview

Nigerian Breweries Plc engages in the brewing, marketing, and selling of lager, stout, non-alcoholic malt drinks, and soft drinks in Nigeria.

Nigerian Breweries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nigerian Breweries
Historical stock prices
Current Share Price₦48.40
52 Week High₦78.50
52 Week Low₦39.90
Beta0.81
1 Month Change6.37%
3 Month Change-17.69%
1 Year Change-2.22%
3 Year Change-3.87%
5 Year Change-71.53%
Change since IPO1,837.94%

Recent News & Updates

Shareholder Returns

NBNG BeverageNG Market
7D0%-0.6%0.004%
1Y-2.2%20.1%-4.1%

Return vs Industry: NB underperformed the NG Beverage industry which returned 20.1% over the past year.

Return vs Market: NB exceeded the NG Market which returned -4.1% over the past year.

Price Volatility

Is NB's price volatile compared to industry and market?
NB volatility
NB Average Weekly Movement3.1%
Beverage Industry Average Movement3.4%
Market Average Movement5.1%
10% most volatile stocks in NG Market8.3%
10% least volatile stocks in NG Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
19462,740Hans Essaadihttps://www.nbplc.com

Nigerian Breweries Plc engages in the brewing, marketing, and selling of lager, stout, non-alcoholic malt drinks, and soft drinks in Nigeria. The company offers its products under the Star, Heineken, Gulder, Goldberg, 33 Export, Life, More, Ace Bitters, Star Radler, Star Lite, Desperados, Tiger, Legend, Williams, Turbo King, Amstel, Maltina, Malta Gold, Hi-Malt, fayrouz, and Climax brands. It also provides Climax herbal energy drink.

Nigerian Breweries Fundamentals Summary

How do Nigerian Breweries's earnings and revenue compare to its market cap?
NB fundamental statistics
Market Cap₦397.89b
Earnings (TTM)₦23.69b
Revenue (TTM)₦502.11b

16.8x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NB income statement (TTM)
Revenue₦502.11b
Cost of Revenue₦300.88b
Gross Profit₦201.23b
Other Expenses₦177.54b
Earnings₦23.69b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.88
Gross Margin40.08%
Net Profit Margin4.72%
Debt/Equity Ratio46.8%

How did NB perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NB?

Other financial metrics that can be useful for relative valuation.

NB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA5.4x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does NB's PE Ratio compare to its peers?

NB PE Ratio vs Peers
The above table shows the PE ratio for NB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.2x
GUINNESS Guinness Nigeria
11.6x15.6%₦181.6b
CHAMPION Champion Breweries
17.9xn/a₦28.9b
DANGSUGAR Dangote Sugar Refinery
6.6x20.4%₦195.0b
NESTLE Nestlé Nigeria
20.9x14.0%₦963.1b
NB Nigerian Breweries
16.8x16.2%₦397.9b

Price-To-Earnings vs Peers: NB is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the peer average (14.2x).


Price to Earnings Ratio vs Industry

How does NB's PE Ratio compare vs other companies in the Global Beverage Industry?

Price-To-Earnings vs Industry: NB is good value based on its Price-To-Earnings Ratio (16.8x) compared to the Global Beverage industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is NB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.8x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: NB is expensive based on its Price-To-Earnings Ratio (16.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).


Share Price vs Fair Value

What is the Fair Price of NB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NB (NGN48.4) is trading below our estimate of fair value (NGN80.97)

Significantly Below Fair Value: NB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Nigerian Breweries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NB's forecast earnings growth (16.2% per year) is above the savings rate (12.6%).

Earnings vs Market: NB's earnings (16.2% per year) are forecast to grow slower than the NG market (18% per year).

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

Revenue vs Market: NB's revenue (8.3% per year) is forecast to grow slower than the NG market (12.9% per year).

High Growth Revenue: NB's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NB's Return on Equity is forecast to be high in 3 years time (21.1%)


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Past Performance

How has Nigerian Breweries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NB has a high level of non-cash earnings.

Growing Profit Margin: NB's current net profit margins (4.7%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: NB's earnings have declined by 22.7% per year over the past 5 years.

Accelerating Growth: NB's earnings growth over the past year (149.4%) exceeds its 5-year average (-22.7% per year).

Earnings vs Industry: NB earnings growth over the past year (149.4%) exceeded the Beverage industry 25.7%.


Return on Equity

High ROE: NB's Return on Equity (12.6%) is considered low.


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Financial Health

How is Nigerian Breweries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NB's short term assets (NGN149.3B) do not cover its short term liabilities (NGN304.6B).

Long Term Liabilities: NB's short term assets (NGN149.3B) exceed its long term liabilities (NGN39.2B).


Debt to Equity History and Analysis

Debt Level: NB's net debt to equity ratio (40.7%) is considered high.

Reducing Debt: NB's debt to equity ratio has increased from 8.6% to 46.8% over the past 5 years.

Debt Coverage: NB's debt is well covered by operating cash flow (32.7%).

Interest Coverage: NB's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


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Dividend

What is Nigerian Breweries's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.31%

Current Dividend Yield

Dividend Yield vs Market

Nigerian Breweries Dividend Yield vs Market
How does Nigerian Breweries dividend yield compare to the market?
SegmentDividend Yield
Company (Nigerian Breweries)3.3%
Market Bottom 25% (NG)4.0%
Market Top 25% (NG)8.6%
Industry Average (Beverage)4.9%
Analyst forecast in 3 Years (Nigerian Breweries)10.4%

Notable Dividend: NB's dividend (3.31%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.96%).

High Dividend: NB's dividend (3.31%) is low compared to the top 25% of dividend payers in the NG market (8.63%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.8%), NB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: NB is paying a dividend but the company has no free cash flows.


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Management

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

4.2yrs

Average management tenure


CEO

Hans Essaadi (56 yo)

1.17yrs

Tenure

Mr. Hans Essaadi serves as the Managing Director, Chief Executive Officer & Director at Nigerian Breweries Plc since July 31, 2021. He serves as the Managing Director of Al Haram Beverages, the Heineken Op...


Leadership Team

Experienced Management: NB's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: NB's board of directors are considered experienced (4.2 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

What is the ownership structure of NB?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders931,0460.01%
Employee Share Scheme3,262,0000.04%
Company Controlled Foundation25,101,6800.3%
Institutions159,594,1591.9%
General Public3,483,126,11442.4%
Private Companies4,548,890,90355.3%

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


Top Shareholders

Top 20 shareholders own 57.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
55.33%
L'Arche Green N.V.
4,548,890,903NGN220.2b0%no data
0.88%
First Sentier Investors (Australia) IM Ltd
72,389,244NGN3.5b0%0.02%
0.31%
The Nigerian Breweries-Felix Ohiwerei Education Trust Fund,Endowment Arm
25,101,680NGN1.2b0%no data
0.26%
Wellington Management Group LLP
20,997,556NGN1.0b0%no data
0.24%
Sanlam Investment Management (Pty) Ltd.
20,000,000NGN968.0m0%0.03%
0.16%
Mirae Asset Global Investments Co., Ltd
13,145,296NGN636.2m5.62%no data
0.11%
Eaton Vance Management
9,302,915NGN450.3m0%no data
0.076%
J.P. Morgan Asset Management, Inc.
6,229,228NGN301.5m0%no data
0.053%
Norges Bank Investment Management
4,391,306NGN212.5m0%no data
0.049%
SEI Investments Company
3,989,043NGN193.1m0%no data
0.048%
TRUSTUS Capital Management B.V.
3,914,971NGN189.5m121.65%0.4%
0.04%
Progress Trust CPFA Limited
3,262,000NGN157.9m0%no data
0.027%
Eurizon Capital S.A.
2,198,104NGN106.4m0%no data
0.016%
Eastspring Investments (Singapore) Limited
1,342,018NGN65.0m0%no data
0.011%
Kolawole Jamodu
874,065NGN42.3m0%no data
0.01%
Danske Capital AS
853,478NGN41.3m0%no data
0.01%
Fideuram Asset Management (Ireland) Limited
841,000NGN40.7m0%no data
0.00044%
Ifueko M. Okauru
35,992NGN1.7m0%no data
0.00023%
Rob Kleinjan
19,302NGN934.2k0%no data
0.00002%
Adeyinka Aroyewun
1,687NGN81.7k0%no data

Company Information

Nigerian Breweries Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Nigerian Breweries Plc
  • Ticker: NB
  • Exchange: NGSE
  • Founded: 1946
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: ₦397.892b
  • Shares outstanding: 8.22b
  • Website: https://www.nbplc.com

Number of Employees


Location

  • Nigerian Breweries Plc
  • Iganmu House
  • Abebe Village Road
  • Lagos
  • Nigeria


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNJan 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.