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UACN

UAC of NigeriaNGSE:UACN Stock Report

Market Cap

₦31.7b

7D

3.3%

1Y

57.1%

Updated

19 Oct, 2021

Data

Company Financials +
UACN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends3/6

UACN Overview

UAC of Nigeria PLC, a diversified conglomerate, operates in the packaged foods and beverages, animal feeds and other edibles, real estate, paints, logistics, and quick service restaurant sectors in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for UAC of Nigeria
Historical stock prices
Current Share Price₦11.00
52 Week High₦6.60
52 Week Low₦11.50
Beta0.19
1 Month Change10.00%
3 Month Change10.00%
1 Year Change57.14%
3 Year Change10.00%
5 Year Change-43.30%
Change since IPO158.22%

Recent News & Updates

Shareholder Returns

UACNNG FoodNG Market
7D3.3%-2.2%0.6%
1Y57.1%25.8%38.8%

Return vs Industry: UACN exceeded the NG Food industry which returned 26.3% over the past year.

Return vs Market: UACN exceeded the NG Market which returned 38.9% over the past year.

Price Volatility

Is UACN's price volatile compared to industry and market?
UACN volatility
UACN Beta0.19
Industry Beta0.84
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
18791,396Fola Aiyesimojuhttps://www.uacnplc.com

UAC of Nigeria PLC, a diversified conglomerate, operates in the packaged foods and beverages, animal feeds and other edibles, real estate, paints, logistics, and quick service restaurant sectors in Nigeria. It manufactures and sells livestock feeds, edible oils, bottled water, snacks, and ice-creams; and paints and other decorative products. The company also offers logistics and supply chain services, including warehousing, transportation, and redistribution.

UAC of Nigeria Fundamentals Summary

How do UAC of Nigeria's earnings and revenue compare to its market cap?
UACN fundamental statistics
Market Cap₦31.69b
Earnings (TTM)₦2.35b
Revenue (TTM)₦91.22b

13.5x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UACN income statement (TTM)
Revenue₦91.22b
Cost of Revenue₦73.90b
Gross Profit₦17.32b
Expenses₦14.97b
Earnings₦2.35b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)0.82
Gross Margin18.99%
Net Profit Margin2.58%
Debt/Equity Ratio30.0%

How did UACN perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

82%

Payout Ratio

Valuation

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

13.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UACN (NGN11) is trading above our estimate of fair value (NGN5.41)

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


Price To Earnings Ratio

PE vs Industry: UACN is poor value based on its PE Ratio (13.5x) compared to the NG Food industry average (11.3x).

PE vs Market: UACN is poor value based on its PE Ratio (13.5x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: UACN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: UACN is good value based on its PB Ratio (0.6x) compared to the NG Food industry average (1.3x).


Future Growth

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

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UACN's forecast earnings growth (24.6% per year) is above the savings rate (13.2%).

Earnings vs Market: UACN's earnings (24.6% 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: UACN's revenue (6.2% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: UACN's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UACN's Return on Equity is forecast to be low in 3 years time (8%).


Past Performance

How has UAC of Nigeria performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: UACN's current net profit margins (2.6%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: UACN's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: UACN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UACN had negative earnings growth (-65.9%) over the past year, making it difficult to compare to the Food industry average (34.1%).


Return on Equity

High ROE: UACN's Return on Equity (6.9%) is considered low.


Financial Health

How is UAC of Nigeria's financial position?


Financial Position Analysis

Short Term Liabilities: UACN's short term assets (NGN63.4B) exceed its short term liabilities (NGN36.9B).

Long Term Liabilities: UACN's short term assets (NGN63.4B) exceed its long term liabilities (NGN6.5B).


Debt to Equity History and Analysis

Debt Level: UACN's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: UACN's debt to equity ratio has reduced from 38.7% to 30% over the past 5 years.

Debt Coverage: UACN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: UACN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UACN's dividend (5.91%) is higher than the bottom 25% of dividend payers in the NG market (3.25%).

High Dividend: UACN's dividend (5.91%) is low compared to the top 25% of dividend payers in the NG market (7.24%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.5%), UACN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UACN's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Fola Aiyesimoju (40 yo)

2.5yrs

Tenure

Mr. Folasope Babasola Aiyesimoju, also known as Fola, serves as Non-Executive Director at UACN Property Development Company Plc. He serves as Non-Executive Director at UAC of Nigeria PLC, since March 28, 2...


Leadership Team

Experienced Management: UACN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

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

UAC of Nigeria PLC's employee growth, exchange listings and data sources


Key Information

  • Name: UAC of Nigeria PLC
  • Ticker: UACN
  • Exchange: NGSE
  • Founded: 1879
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₦31.694b
  • Shares outstanding: 2.88b
  • Website: https://www.uacnplc.com

Number of Employees


Location

  • UAC of Nigeria PLC
  • UAC House
  • 1-5 Odunlami Street
  • Lagos
  • 12876
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:21
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.