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ROYA

Royal ExchangeNGSE:ROYALEX Stock Report

Market Cap

₦2.9b

7D

-3.3%

1Y

136.0%

Updated

19 Oct, 2021

Data

Company Financials
ROYALEX fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ROYALEX Overview

Royal Exchange Plc provides general and health insurance, life assurance, asset management, credit financing, trusteeship, and microfinance banking services in Nigeria and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Royal Exchange
Historical stock prices
Current Share Price₦0.59
52 Week High₦0.20
52 Week Low₦0.84
Beta1.3
1 Month Change7.27%
3 Month Change7.27%
1 Year Change136.00%
3 Year Change195.00%
5 Year Change18.00%
Change since IPO1.06%

Recent News & Updates

Shareholder Returns

ROYALEXNG InsuranceNG Market
7D-3.3%2.7%0.6%
1Y136.0%32.2%38.8%

Return vs Industry: ROYALEX exceeded the NG Insurance industry which returned 31.2% over the past year.

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

Price Volatility

Is ROYALEX's price volatile compared to industry and market?
ROYALEX volatility
ROYALEX Beta1.3
Industry Beta0.70
Market Beta1

Stable Share Price: ROYALEX is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ROYALEX's weekly volatility has decreased from 11% to 4% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1918288n/ahttps://www.royalexchangeplc.com

Royal Exchange Plc provides general and health insurance, life assurance, asset management, credit financing, trusteeship, and microfinance banking services in Nigeria and internationally. The company operates through Non-Life Insurance, Life Insurance, Financial Services, Healthcare, and Asset Management segments. It offers fire, accident, motor, marine, oil and gas, engineering, bond, disability, liability, and agriculture insurance products.

Royal Exchange Fundamentals Summary

How do Royal Exchange's earnings and revenue compare to its market cap?
ROYALEX fundamental statistics
Market Cap₦2.89b
Earnings (TTM)-₦327.42m
Revenue (TTM)₦9.48b

0.3x

P/S Ratio

-8.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROYALEX income statement (TTM)
Revenue₦9.48b
Cost of Revenue₦5.12b
Gross Profit₦4.37b
Expenses₦4.69b
Earnings-₦327.42m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.067
Gross Margin46.05%
Net Profit Margin-3.45%
Debt/Equity Ratio33.7%

How did ROYALEX perform over the long term?

See historical performance and comparison

Valuation

Is Royal Exchange undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ROYALEX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ROYALEX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ROYALEX is unprofitable, so we can't compare its PE Ratio to the NG Insurance industry average.

PE vs Market: ROYALEX is unprofitable, so we can't compare its PE Ratio to the NG market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ROYALEX is overvalued based on its PB Ratio (0.9x) compared to the NG Insurance industry average (0.4x).


Future Growth

How is Royal Exchange 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 Royal Exchange 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 Royal Exchange performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROYALEX is currently unprofitable.

Growing Profit Margin: ROYALEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ROYALEX is unprofitable, but has reduced losses over the past 5 years at a rate of 19.2% per year.

Accelerating Growth: Unable to compare ROYALEX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ROYALEX is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (3.1%).


Return on Equity

High ROE: ROYALEX has a negative Return on Equity (-1.47%), as it is currently unprofitable.


Financial Health

How is Royal Exchange's financial position?


Financial Position Analysis

Short Term Liabilities: ROYALEX's short term assets (NGN14.3B) exceed its short term liabilities (NGN9.8B).

Long Term Liabilities: ROYALEX's short term assets (NGN14.3B) exceed its long term liabilities (NGN10.6B).


Debt to Equity History and Analysis

Debt Level: ROYALEX's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: ROYALEX's debt to equity ratio has increased from 12% to 33.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ROYALEX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ROYALEX has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 21.3% each year.


Dividend

What is Royal Exchange current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ROYALEX'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?

3.8yrs

Average management tenure


CEO

Royal Exchange has no CEO, or we have no data on them.


Leadership Team

Experienced Management: ROYALEX's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: ROYALEX's board of directors are seasoned and experienced ( 14.3 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

Royal Exchange Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Royal Exchange Plc
  • Ticker: ROYALEX
  • Exchange: NGSE
  • Founded: 1918
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: ₦2.888b
  • Shares outstanding: 4.90b
  • Website: https://www.royalexchangeplc.com

Number of Employees


Location

  • Royal Exchange Plc
  • New Africa House
  • 31, Marina Street
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

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