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SOVR

Sovereign Trust InsuranceNGSE:SOVRENINS Stock Report

Market Cap

₦2.7b

7D

4.3%

1Y

20.0%

Updated

20 Oct, 2021

Data

Company Financials
SOVRENINS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends0/6

SOVRENINS Overview

Sovereign Trust Insurance Plc operates as a non-life insurance company in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for Sovereign Trust Insurance
Historical stock prices
Current Share Price₦0.24
52 Week High₦0.20
52 Week Low₦0.39
Beta0.19
1 Month Change-4.00%
3 Month Change-17.24%
1 Year Change20.00%
3 Year Change20.00%
5 Year Change-52.00%
Change since IPO-72.57%

Recent News & Updates

Shareholder Returns

SOVRENINSNG InsuranceNG Market
7D4.3%2.7%0.6%
1Y20.0%32.2%38.8%

Return vs Industry: SOVRENINS underperformed the NG Insurance industry which returned 32.2% over the past year.

Return vs Market: SOVRENINS underperformed the NG Market which returned 38.8% over the past year.

Price Volatility

Is SOVRENINS's price volatile compared to industry and market?
SOVRENINS volatility
SOVRENINS Beta0.19
Industry Beta0.70
Market Beta1

Stable Share Price: SOVRENINS is more volatile than 90% of NG stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SOVRENINS's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of NG stocks.

About the Company

FoundedEmployeesCEOWebsite
1980157Olaotan Soyinkahttps://www.stiplc.com

Sovereign Trust Insurance Plc operates as a non-life insurance company in Nigeria. It offers motor, family wellbeing, personal/group accident, marine and aviation, oil and gas, car and engineering, travel, all risk, burglary house breaking, consequential loss, property, fire and extraneous perils, and workmen’s compensation insurance products. The company also provides electronic equipment, fidelity guarantee, goods in transit, money, professional indemnity, machinery breakdown, house holder house owner, and healthcare indemnity insurance products, as well as builder’s, public, product, and occupiers liability insurance.

Sovereign Trust Insurance Fundamentals Summary

How do Sovereign Trust Insurance's earnings and revenue compare to its market cap?
SOVRENINS fundamental statistics
Market Cap₦2.73b
Earnings (TTM)₦758.03m
Revenue (TTM)₦8.64b

3.6x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOVRENINS income statement (TTM)
Revenue₦8.64b
Cost of Revenue₦5.83b
Gross Profit₦2.81b
Expenses₦2.05b
Earnings₦758.03m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.067
Gross Margin32.51%
Net Profit Margin8.77%
Debt/Equity Ratio14.0%

How did SOVRENINS perform over the long term?

See historical performance and comparison

Valuation

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

3.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: SOVRENINS is good value based on its PE Ratio (3.6x) compared to the NG Insurance industry average (4.9x).

PE vs Market: SOVRENINS is good value based on its PE Ratio (3.6x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

How is Sovereign Trust 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 Sovereign Trust 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 Sovereign Trust Insurance performed over the past 5 years?

29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOVRENINS has high quality earnings.

Growing Profit Margin: SOVRENINS's current net profit margins (8.8%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SOVRENINS's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: SOVRENINS's earnings growth over the past year (60.8%) exceeds its 5-year average (29% per year).

Earnings vs Industry: SOVRENINS earnings growth over the past year (60.8%) exceeded the Insurance industry 3.1%.


Return on Equity

High ROE: SOVRENINS's Return on Equity (8.4%) is considered low.


Financial Health

How is Sovereign Trust Insurance's financial position?


Financial Position Analysis

Short Term Liabilities: SOVRENINS's short term assets (NGN9.7B) exceed its short term liabilities (NGN4.7B).

Long Term Liabilities: SOVRENINS's short term assets (NGN9.7B) exceed its long term liabilities (NGN33.0M).


Debt to Equity History and Analysis

Debt Level: SOVRENINS's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: SOVRENINS's debt to equity ratio has increased from 8.8% to 14% over the past 5 years.

Debt Coverage: SOVRENINS's debt is well covered by operating cash flow (24.8%).

Interest Coverage: SOVRENINS's interest payments on its debt are well covered by EBIT (26.1x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

5.7yrs

Average board tenure


CEO

Olaotan Soyinka

5.75yrs

Tenure

Mr. Olaotan Soyinka is an erudite and well-grounded Underwriter with over 20 years cognate experience. He is an Associate of the Chartered Insurance Institute of Nigeria. He joined Sovereign Trust Insuranc...


Board Members

Experienced Board: SOVRENINS's board of directors are considered experienced (5.7 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

Sovereign Trust Insurance Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Sovereign Trust Insurance Plc
  • Ticker: SOVRENINS
  • Exchange: NGSE
  • Founded: 1980
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₦2.727b
  • Shares outstanding: 11.36b
  • Website: https://www.stiplc.com

Number of Employees


Location

  • Sovereign Trust Insurance Plc
  • 17, Adetokunbo Ademola Street
  • Victoria Island
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:36
End of Day Share Price2021/10/20 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.