AIICO Insurance (NGSE:AIICO) - Share price, News & Analysis

AIICO fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

AIICO Overview

AIICO Insurance Plc provides risk underwriting and related financial services to corporate and individual customers in Nigeria.

Rewards

PE ratio (5.1x) is below the NG market (7.3x)

Risk Analysis

Earnings have declined by 4% per year over past 5 years

Profit margins (4.7%) are lower than last year (6.7%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (NGN15B)

Price History & Performance

Summary of all time highs, changes and price drops for AIICO Insurance
Historical stock prices
Current Share Price	₦0.94
52 Week High	₦0.61
52 Week Low	₦1.59
Beta	0.65
1 Month Change	-4.08%
3 Month Change	-11.32%
1 Year Change	49.30%
3 Year Change	60.63%
5 Year Change	118.79%
Change since IPO	-1.30%

Shareholder Returns

	AIICO	NG Insurance	NG Market
7D	-1.1%	4.7%	1.4%
1Y	49.3%	34.4%	41.3%

Return vs Industry: AIICO exceeded the NG Insurance industry which returned 34.4% over the past year.

Return vs Market: AIICO exceeded the NG Market which returned 41.3% over the past year.

Price Volatility

Is AIICO's price volatile compared to industry and market?
AIICO volatility
AIICO Beta	0.65
Industry Beta	0.70
Market Beta	1

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

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

About the Company

Founded	Employees	CEO	Website
1963	565	Babatunde Fajemirokun	https://www.aiicoplc.com

AIICO Insurance Plc provides risk underwriting and related financial services to corporate and individual customers in Nigeria. It operates through five segments: Life Insurance, Non-Life Insurance, Health, Pension Manager, and Wealth Management. The company offers various life insurance products, including annuity, term assurance, corporate savings, education, endowment, group life, income investment, life celebration, mortgage protection, term assurance, and payment plans.

AIICO Insurance Fundamentals Summary

How do AIICO Insurance's earnings and revenue compare to its market cap?
AIICO fundamental statistics
Market Cap	₦14.59b
Earnings (TTM)	₦2.90b
Revenue (TTM)	₦62.25b

5.1x

P/E Ratio

0.2x

P/S Ratio

Is AIICO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIICO income statement (TTM)
Revenue	₦62.25b
Cost of Revenue	₦49.74b
Gross Profit	₦12.51b
Expenses	₦9.61b
Earnings	₦2.90b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.18
Gross Margin	20.10%
Net Profit Margin	4.66%
Debt/Equity Ratio	0.0%

How did AIICO perform over the long term?

See historical performance and comparison

Valuation

Is AIICO Insurance undervalued compared to its fair value and its price relative to the market?

5.08x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: AIICO (NGN0.94) is trading above our estimate of fair value (NGN0.71)

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

Price To Earnings Ratio

PE vs Industry: AIICO's PE Ratio (5.1x) is in line with the NG Insurance industry average.

PE vs Market: AIICO is good value based on its PE Ratio (5.1x) compared to the NG market (7.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIICO's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: AIICO's PB Ratio (0.4x) is in line with the NG Insurance industry average.

Future Growth

How is AIICO Insurance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.0%

Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AIICO Insurance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has AIICO Insurance performed over the past 5 years?

-4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AIICO has high quality earnings.

Growing Profit Margin: AIICO's current net profit margins (4.7%) are lower than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: AIICO's earnings have declined by 4% per year over the past 5 years.

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

Earnings vs Industry: AIICO had negative earnings growth (-47.7%) over the past year, making it difficult to compare to the Insurance industry average (3.1%).

Return on Equity

High ROE: AIICO's Return on Equity (8.5%) is considered low.

Financial Health

How is AIICO Insurance's financial position?

Financial Position Analysis

Short Term Liabilities: AIICO's short term assets (NGN108.5B) exceed its short term liabilities (NGN60.0B).

Long Term Liabilities: AIICO's short term assets (NGN108.5B) do not cover its long term liabilities (NGN112.5B).

Debt to Equity History and Analysis

Debt Level: AIICO is debt free.

Reducing Debt: AIICO has no debt compared to 5 years ago when its debt to equity ratio was 15.9%.

Debt Coverage: AIICO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AIICO has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is AIICO Insurance current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AIICO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AIICO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AIICO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AIICO's dividend payments have been increasing.

Current Payout to Shareholders

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

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Insurance industry.

Management

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

2.1yrs

Average management tenure

CEO

Babatunde Fajemirokun

2.17yrs

Tenure

Mr. Babatunde Fajemirokun, A.C.I.I., B.A., M.B.A. & M.Sc., is the Managing Director and Chief Executive Officer at AIICO Insurance Plc (“AIICO”) since August 14, 2019 and was its Chief Operating Officer. H...

Leadership Team

Experienced Management: AIICO's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: AIICO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 2.6%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/22 15:40
End of Day Share Price	2021/10/22 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data