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

WAPIC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

WAPIC Overview

Coronation Insurance Plc, through its subsidiaries, engages in the business of underwriting of life and non-life insurance for individuals and corporate entities in Nigeria and Ghana.

Rewards

Earnings grew by 67.7% over the past year

Risk Analysis

Earnings have declined by 14.2% per year over past 5 years

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

Does not have a meaningful market cap (NGN12B)

Price History & Performance

Summary of all time highs, changes and price drops for Coronation Insurance
Historical stock prices
Current Share Price	₦0.48
52 Week High	₦0.36
52 Week Low	₦0.79
Beta	0.67
1 Month Change	-4.00%
3 Month Change	-11.11%
1 Year Change	23.08%
3 Year Change	20.00%
5 Year Change	-5.88%
Change since IPO	49.61%

Shareholder Returns

	WAPIC	NG Insurance	NG Market
7D	0%	3.4%	1.6%
1Y	23.1%	26.9%	40.0%

Return vs Industry: WAPIC underperformed the NG Insurance industry which returned 26.9% over the past year.

Return vs Market: WAPIC underperformed the NG Market which returned 40% over the past year.

Price Volatility

Is WAPIC's price volatile compared to industry and market?
WAPIC volatility
WAPIC Beta	0.67
Industry Beta	0.70
Market Beta	1

Stable Share Price: WAPIC is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WAPIC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	79	Olamide Olajolo	https://www.coronationinsurance.com.ng

Coronation Insurance Plc, through its subsidiaries, engages in the business of underwriting of life and non-life insurance for individuals and corporate entities in Nigeria and Ghana. It operates in two segments, General Business and Life Business. The company offers travel, general accident, fire, motor, engineering, marine, homeowners, wealth, senior plan, mortgage, term, oil and gas, and life insurance products.

Coronation Insurance Fundamentals Summary

How do Coronation Insurance's earnings and revenue compare to its market cap?
WAPIC fundamental statistics
Market Cap	₦11.52b
Earnings (TTM)	₦945.56m
Revenue (TTM)	₦11.74b

12.2x

P/E Ratio

1.0x

P/S Ratio

Is WAPIC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAPIC income statement (TTM)
Revenue	₦11.74b
Cost of Revenue	₦7.88b
Gross Profit	₦3.86b
Expenses	₦2.91b
Earnings	₦945.56m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.039
Gross Margin	32.88%
Net Profit Margin	8.06%
Debt/Equity Ratio	0%

How did WAPIC perform over the long term?

See historical performance and comparison

Valuation

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

12.18x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

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

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

Price To Earnings Ratio

PE vs Industry: WAPIC is poor value based on its PE Ratio (12.2x) compared to the NG Insurance industry average (5.1x).

PE vs Market: WAPIC is poor value based on its PE Ratio (12.2x) compared to the NG market (7.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: WAPIC's PB Ratio (0.5x) is in line with the NG Insurance industry average.

Future Growth

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

27.1%

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 Coronation 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 Coronation Insurance performed over the past 5 years?

-14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WAPIC has a large one-off loss of NGN457.9M impacting its June 30 2021 financial results.

Growing Profit Margin: WAPIC's current net profit margins (8.1%) are higher than last year (5.3%).

Past Earnings Growth Analysis

Earnings Trend: WAPIC's earnings have declined by 14.2% per year over the past 5 years.

Accelerating Growth: WAPIC's earnings growth over the past year (67.7%) exceeds its 5-year average (-14.2% per year).

Earnings vs Industry: WAPIC earnings growth over the past year (67.7%) exceeded the Insurance industry 3.1%.

Return on Equity

High ROE: WAPIC's Return on Equity (4%) is considered low.

Financial Health

How is Coronation Insurance's financial position?

Financial Position Analysis

Short Term Liabilities: WAPIC's short term assets (NGN14.3B) do not cover its short term liabilities (NGN17.2B).

Long Term Liabilities: WAPIC's short term assets (NGN14.3B) exceed its long term liabilities (NGN402.1M).

Debt to Equity History and Analysis

Debt Level: WAPIC is debt free.

Reducing Debt: WAPIC had no debt 5 years ago.

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

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

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

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

Current Payout to Shareholders

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

Future Payout to Shareholders

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

5.0yrs

Average management tenure

CEO

Olamide Olajolo (45 yo)

0.33

Tenure

Mr. Olamide Olajolo serves as Managing Director, Chief Executive Officer and Executive Director at Coronation Insurance Plc since June 17, 2021. Mr. Olajolo has been Head of Technical at Zenith General Ins...

Leadership Team

Experienced Management: WAPIC's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: WAPIC's board of directors are not considered experienced ( 1.4 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 substantially diluted in the past year, with total shares outstanding growing by 79.3%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/18 21:40
End of Day Share Price	2021/10/18 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data