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PRES

Presco NGSE:PRESCO Stock Report

Last Price

₦142.60

Market Cap

₦142.6b

7D

-10.0%

1Y

96.4%

Updated

15 Aug, 2022

Data

Company Financials +
PRESCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends3/6

PRESCO Stock Overview

Presco Plc engages in the oil palm plantations cultivation and development, palm oil milling, palm kernel processing, and vegetable oil refining businesses in Nigeria.

Presco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Presco
Historical stock prices
Current Share Price₦142.60
52 Week High₦200.00
52 Week Low₦73.00
Beta0.45
1 Month Change-9.98%
3 Month Change-28.70%
1 Year Change96.42%
3 Year Change218.30%
5 Year Change98.11%
Change since IPO5,604.00%

Recent News & Updates

Shareholder Returns

PRESCONG FoodNG Market
7D-10.0%2.2%-2.4%
1Y96.4%-1.6%1.9%

Return vs Industry: PRESCO exceeded the NG Food industry which returned 0.2% over the past year.

Return vs Market: PRESCO exceeded the NG Market which returned 2% over the past year.

Price Volatility

Is PRESCO's price volatile compared to industry and market?
PRESCO volatility
PRESCO Average Weekly Movement5.8%
Food Industry Average Movement5.0%
Market Average Movement5.7%
10% most volatile stocks in NG Market9.1%
10% least volatile stocks in NG Market3.1%

Stable Share Price: PRESCO is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRESCO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19911,199Felix Nwabukohttps://www.presco-plc.com

Presco Plc engages in the oil palm plantations cultivation and development, palm oil milling, palm kernel processing, and vegetable oil refining businesses in Nigeria. The company is involved in the extraction, refining, and fractioning of crude palm oil into finished products. It offers special palm oil; refined, bleached, and deodorized palm oil; palm olein; palm stearin; palm fatty acid distillate; and crude and refined palm kernel oil, as well as palm kernel cakes.

Presco Fundamentals Summary

How do Presco's earnings and revenue compare to its market cap?
PRESCO fundamental statistics
Market Cap₦142.60b
Earnings (TTM)₦22.67b
Revenue (TTM)₦67.67b

6.3x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRESCO income statement (TTM)
Revenue₦67.67b
Cost of Revenue₦15.70b
Gross Profit₦51.97b
Other Expenses₦29.30b
Earnings₦22.67b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)22.67
Gross Margin76.80%
Net Profit Margin33.50%
Debt/Equity Ratio151.2%

How did PRESCO perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PRESCO 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 PRESCO?

Other financial metrics that can be useful for relative valuation.

PRESCO 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/Revenue2.8x
Enterprise Value/EBITDA4.7x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

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

PRESCO PE Ratio vs Peers
The above table shows the PE ratio for PRESCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.6x
OKOMUOIL Okomu Oil Palm
11x0.8%₦206.9b
FLOURMILL Flour Mills of Nigeria
4.8x20.2%₦124.2b
DANGSUGAR Dangote Sugar Refinery
6.5x20.4%₦194.4b
GUINNESS Guinness Nigeria
11.8x16.8%₦184.0b
PRESCO Presco
6.3x-11.0%₦142.6b

Price-To-Earnings vs Peers: PRESCO is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (8.6x).


Price to Earnings Ratio vs Industry

How does PRESCO's PE Ratio compare vs other companies in the African Food Industry?

Price-To-Earnings vs Industry: PRESCO is good value based on its Price-To-Earnings Ratio (6.3x) compared to the NG Food industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is PRESCO'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.

PRESCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio8.9x

Price-To-Earnings vs Fair Ratio: PRESCO is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).


Share Price vs Fair Value

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

Below Fair Value: PRESCO (NGN142.6) is trading above our estimate of fair value (NGN76.19)

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


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 lower than the current share price.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRESCO's earnings are forecast to decline over the next 3 years (-11% per year).

Earnings vs Market: PRESCO's earnings are forecast to decline over the next 3 years (-11% per year).

High Growth Earnings: PRESCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PRESCO's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: PRESCO's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRESCO's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Presco 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


13.0%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: PRESCO's current net profit margins (33.5%) are lower than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: PRESCO's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: PRESCO's earnings growth over the past year (106.1%) exceeds its 5-year average (13% per year).

Earnings vs Industry: PRESCO earnings growth over the past year (106.1%) exceeded the Food industry 19.6%.


Return on Equity

High ROE: Whilst PRESCO's Return on Equity (52.4%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is Presco's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PRESCO's short term assets (NGN57.9B) exceed its short term liabilities (NGN33.8B).

Long Term Liabilities: PRESCO's short term assets (NGN57.9B) do not cover its long term liabilities (NGN72.6B).


Debt to Equity History and Analysis

Debt Level: PRESCO's net debt to equity ratio (110.1%) is considered high.

Reducing Debt: PRESCO's debt to equity ratio has increased from 13.6% to 151.2% over the past 5 years.

Debt Coverage: PRESCO's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: PRESCO's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


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Dividend

What is Presco current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PRESCO's dividend (5.33%) is higher than the bottom 25% of dividend payers in the NG market (3.69%).

High Dividend: PRESCO's dividend (5.33%) is low compared to the top 25% of dividend payers in the NG market (8.04%).


Stability and Growth of Payments

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

Growing Dividend: PRESCO's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.5%), PRESCO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: PRESCO 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?

6.2yrs

Average board tenure


CEO

Felix Nwabuko

no data

Tenure

Mr. Felix Onwuchekwa Nwabuko, FCA, ACIT, MBA, MIoD has been the Managing Director and Director of Presco Plc since February 1, 2015 and serves as its Chief Executive Officer. Mr. Nwabuko serves as Managin...


Board Members

Experienced Board: PRESCO's board of directors are considered experienced (6.2 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

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


Top Shareholders

Company Information

Presco Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Presco Plc
  • Ticker: PRESCO
  • Exchange: NGSE
  • Founded: 1991
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: ₦142.600b
  • Shares outstanding: 1.00b
  • Website: https://www.presco-plc.com

Number of Employees


Location

  • Presco Plc
  • Obaretin Estate
  • Km 22 Benin / Sapele Road
  • Benin City
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 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.