NGSE:CUSTODIAN

Stock Analysis Report

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Executive Summary

Custodian Investment Plc., through its subsidiaries, provides various insurance products and services in Nigeria. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Custodian Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CUSTODIAN is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CUSTODIAN's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-10.0%

CUSTODIAN

-2.4%

NG Insurance

-3.7%

NG Market


1 Year Return

-2.5%

CUSTODIAN

10.2%

NG Insurance

19.3%

NG Market

Return vs Industry: CUSTODIAN underperformed the NG Insurance industry which returned 14.6% over the past year.

Return vs Market: CUSTODIAN underperformed the NG Market which returned 20.6% over the past year.


Shareholder returns

CUSTODIANIndustryMarket
7 Day-10.0%-2.4%-3.7%
30 Day17.0%9.1%17.2%
90 Day19.4%12.6%33.9%
1 Year6.1%-2.5%14.4%10.2%29.6%19.3%
3 Year90.7%50.0%4.2%-3.6%-14.7%-28.6%
5 Year102.8%38.6%3.9%-8.4%24.5%-4.0%

Long-Term Price Volatility Vs. Market

How volatile is Custodian Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Custodian Investment undervalued compared to its fair value and its price relative to the market?

5.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CUSTODIAN (NGN5.85) is trading above our estimate of fair value (NGN1.33)

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


Price To Earnings Ratio

PE vs Industry: CUSTODIAN is poor value based on its PE Ratio (5.5x) compared to the NG Insurance industry average (4.7x).

PE vs Market: CUSTODIAN is good value based on its PE Ratio (5.5x) compared to the NG market (7.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CUSTODIAN is overvalued based on its PB Ratio (0.7x) compared to the NG Insurance industry average (0.4x).


Next Steps

Future Growth

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

59.7%

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 Custodian Investment 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.


Next Steps

Past Performance

How has Custodian Investment performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUSTODIAN has high quality earnings.

Growing Profit Margin: CUSTODIAN's current net profit margins (9.9%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: CUSTODIAN's earnings have grown by 9.1% per year over the past 5 years.

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

Earnings vs Industry: CUSTODIAN had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Insurance industry average (15%).


Return on Equity

High ROE: CUSTODIAN's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Custodian Investment's financial position?


Financial Position Analysis

Short Term Liabilities: CUSTODIAN's short term assets (NGN88.1B) exceed its short term liabilities (NGN88.0B).

Long Term Liabilities: CUSTODIAN's short term assets (NGN88.1B) exceed its long term liabilities (NGN13.9B).


Debt to Equity History and Analysis

Debt Level: CUSTODIAN is debt free.

Reducing Debt: CUSTODIAN has no debt compared to 5 years ago when its debt to equity ratio was 9.5%.

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

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


Balance Sheet


Next Steps

Dividend

What is Custodian Investment current dividend yield, its reliability and sustainability?

7.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CUSTODIAN's dividend (7.69%) is higher than the bottom 25% of dividend payers in the NG market (3.35%).

High Dividend: CUSTODIAN's dividend (7.69%) is low compared to the top 25% of dividend payers in the NG market (9.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), CUSTODIAN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average board tenure


CEO

Olu Wole Oshin

5.33yrs

Tenure

Mr. Oluwole B. Oshin, also known as Wole, B.Sc (Hons) MBA ACII FCIIN, founded Custodian Investment Plc (formerly known as Custodian and Allied Plc) in 1994 and has been its Managing Director since 1994 and...


Board Members

NamePositionTenureCompensationOwnership
Olu Wole Oshin
Group MD & Director5.33yrsno data26.54%
NGN 10.1b
Olatoye Odunsi
COO, MD & Directorno datano datano data
Ravi Sharma
Non-Executive Director4.08yrsno datano data
Omobola Johnson
Non-Executive Chairperson of the Board4.42yrsno data0.0014%
NGN 520.0k
Richard Asabia
Non-Executive Director9.42yrsno data0.37%
NGN 141.1m
Olakunle Ade Ojo
Non-Executive Director4.42yrsno data0.021%
NGN 8.0m
Ibrahim Dikko
Non-Executive Director8.5yrsno datano data
Ade-Odiachi Mimi
Non Executive Director0.083yrno datano data

4.4yrs

Average Tenure

Experienced Board: CUSTODIAN's board of directors are considered experienced (4.4 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

Custodian Investment Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Custodian Investment Plc
  • Ticker: CUSTODIAN
  • Exchange: NGSE
  • Founded: 1991
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₦38.232b
  • Shares outstanding: 5.88b
  • Website: https://www.custodianinsurance.com

Number of Employees


Location

  • Custodian Investment Plc
  • 16A Commercial Avenue
  • Sabo
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUSTODIANNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNJun 2007

Biography

Custodian Investment Plc., through its subsidiaries, provides various insurance products and services in Nigeria. The company operates through Non-life Business, Life Business, Pension Administration, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 16:33
End of Day Share Price2020/11/23 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.