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MBEN

Mutual Benefits AssuranceNGSE:MBENEFIT Stock Report

Market Cap

₦5.6b

7D

7.1%

1Y

50.0%

Updated

25 Oct, 2021

Data

Company Financials
MBENEFIT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends0/6

MBENEFIT Overview

Mutual Benefits Assurance Plc, together with its subsidiaries, primarily underwrites general and life insurance products in Nigeria and Liberia.

Price History & Performance

Summary of all time highs, changes and price drops for Mutual Benefits Assurance
Historical stock prices
Current Share Price₦0.30
52 Week High₦0.20
52 Week Low₦0.60
Beta0.30
1 Month Change0%
3 Month Change-21.05%
1 Year Change50.00%
3 Year Change7.14%
5 Year Change-40.00%
Change since IPO-55.62%

Recent News & Updates

Shareholder Returns

MBENEFITNG InsuranceNG Market
7D7.1%1.1%0.7%
1Y50.0%33.4%40.9%

Return vs Industry: MBENEFIT exceeded the NG Insurance industry which returned 33.4% over the past year.

Return vs Market: MBENEFIT exceeded the NG Market which returned 40.9% over the past year.

Price Volatility

Is MBENEFIT's price volatile compared to industry and market?
MBENEFIT volatility
MBENEFIT Beta0.30
Industry Beta0.69
Market Beta1

Stable Share Price: MBENEFIT is more volatile than 90% of NG stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MBENEFIT's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of NG stocks.

About the Company

FoundedEmployeesCEOWebsite
1995361Femi Asenugahttps://www.mutualng.com

Mutual Benefits Assurance Plc, together with its subsidiaries, primarily underwrites general and life insurance products in Nigeria and Liberia. The company operates through three segments: Assurance Business, Real Estate, and Microfinance Banking. Its general insurance products include property insurance, fire and special perils, burglary/housebreaking, householder, house-owner, marine cargo, marine hull, motor, goods-in-transit, all risk insurance, engineering, industrial all risks, liability/bond insurance, money, professional indemnity, fidelity guarantee, and public liability/product liability.

Mutual Benefits Assurance Fundamentals Summary

How do Mutual Benefits Assurance's earnings and revenue compare to its market cap?
MBENEFIT fundamental statistics
Market Cap₦5.62b
Earnings (TTM)₦1.57b
Revenue (TTM)₦19.98b

3.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBENEFIT income statement (TTM)
Revenue₦19.98b
Cost of Revenue₦15.07b
Gross Profit₦4.91b
Expenses₦3.34b
Earnings₦1.57b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.078
Gross Margin24.57%
Net Profit Margin7.87%
Debt/Equity Ratio16.9%

How did MBENEFIT perform over the long term?

See historical performance and comparison

Valuation

Is Mutual Benefits Assurance undervalued compared to its fair value and its price relative to the market?

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MBENEFIT (NGN0.3) is trading below our estimate of fair value (NGN0.37)

Significantly Below Fair Value: MBENEFIT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MBENEFIT is good value based on its PE Ratio (3.8x) compared to the NG Insurance industry average (5.1x).

PE vs Market: MBENEFIT is good value based on its PE Ratio (3.8x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MBENEFIT is good value based on its PB Ratio (0.3x) compared to the NG Insurance industry average (0.4x).


Future Growth

How is Mutual Benefits Assurance 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 Mutual Benefits Assurance 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 Mutual Benefits Assurance performed over the past 5 years?

55.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBENEFIT has a large one-off gain of NGN1.8B impacting its June 30 2021 financial results.

Growing Profit Margin: MBENEFIT's current net profit margins (7.9%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: MBENEFIT has become profitable over the past 5 years, growing earnings by 55.1% per year.

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

Earnings vs Industry: MBENEFIT had negative earnings growth (-53.3%) over the past year, making it difficult to compare to the Insurance industry average (3.1%).


Return on Equity

High ROE: MBENEFIT's Return on Equity (6.6%) is considered low.


Financial Health

How is Mutual Benefits Assurance's financial position?


Financial Position Analysis

Short Term Liabilities: MBENEFIT's short term assets (NGN38.5B) exceed its short term liabilities (NGN32.3B).

Long Term Liabilities: MBENEFIT's short term assets (NGN38.5B) exceed its long term liabilities (NGN23.7B).


Debt to Equity History and Analysis

Debt Level: MBENEFIT's debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: MBENEFIT's debt to equity ratio has reduced from 55.2% to 16.9% over the past 5 years.

Debt Coverage: MBENEFIT's debt is well covered by operating cash flow (56.8%).

Interest Coverage: Insufficient data to determine if MBENEFIT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Mutual Benefits Assurance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MBENEFIT'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 MBENEFIT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

5.5yrs

Average board tenure


CEO

Femi Asenuga

1.83yrs

Tenure

Mr. Olufemi Asenuga, also known as Femi, B.SC, M.SC, ACII, has been Managing Director and Chief Executive Officer at Mutual Benefits Assurance Plc since December 23, 2019. He serves as Managing Director an...


Board Members

Experienced Board: MBENEFIT's board of directors are considered experienced (5.5 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 been substantially diluted in the past year, with total shares outstanding growing by 79.6%.


Top Shareholders

Company Information

Mutual Benefits Assurance Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Mutual Benefits Assurance Plc
  • Ticker: MBENEFIT
  • Exchange: NGSE
  • Founded: 1995
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: ₦5.617b
  • Shares outstanding: 20.06b
  • Website: https://www.mutualng.com

Number of Employees


Location

  • Mutual Benefits Assurance Plc
  • Aret Adams House
  • 233 Ikorodu Road
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:47
End of Day Share Price2021/10/25 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.