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DANG

Dangote CementNGSE:DANGCEM Stock Report

Market Cap

₦4.8t

7D

0%

1Y

84.2%

Updated

25 Oct, 2021

Data

Company Financials +
DANGCEM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance6/6
Financial Health3/6
Dividends4/6

DANGCEM Overview

Dangote Cement Plc, together with its subsidiaries, engages in the preparation, manufacture, and distribution of cement and related products in Nigeria.

Dangote Cement Competitors

CRH

ISE:CRG

€31.6b

HeidelbergCement

XTRA:HEI

€12.5b

CEMEX. de

BMV:CEMEX CPO

Mex$200.3b

PPC

JSE:PPC

R8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Dangote Cement
Historical stock prices
Current Share Price₦280.00
52 Week High₦151.20
52 Week Low₦280.00
Beta0.45
1 Month Change14.29%
3 Month Change12.90%
1 Year Change84.21%
3 Year Change31.77%
5 Year Change60.00%
Change since IPO128.15%

Recent News & Updates

Shareholder Returns

DANGCEMNG Basic MaterialsNG Market
7D0%1.2%0.7%
1Y84.2%66.3%40.9%

Return vs Industry: DANGCEM exceeded the NG Basic Materials industry which returned 66.3% over the past year.

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

Price Volatility

Is DANGCEM's price volatile compared to industry and market?
DANGCEM volatility
DANGCEM Beta0.45
Industry Beta0.51
Market Beta1

Stable Share Price: DANGCEM is less volatile than 75% of NG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DANGCEM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199216,199Michel Puchercoshttps://www.dangotecement.com

Dangote Cement Plc, together with its subsidiaries, engages in the preparation, manufacture, and distribution of cement and related products in Nigeria. It operates in two segments, Nigeria and Pan Africa. The company is involved in bagging, distribution, and sale of cement; cement grinding; limestone mining; coal and power production; and manufacture of ceramic products, as well as providing contracting services.

Dangote Cement Fundamentals Summary

How do Dangote Cement's earnings and revenue compare to its market cap?
DANGCEM fundamental statistics
Market Cap₦4.76t
Earnings (TTM)₦338.73b
Revenue (TTM)₦1.25t

14.1x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DANGCEM income statement (TTM)
Revenue₦1.25t
Cost of Revenue₦512.91b
Gross Profit₦734.98b
Expenses₦396.25b
Earnings₦338.73b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)19.93
Gross Margin58.90%
Net Profit Margin27.14%
Debt/Equity Ratio69.6%

How did DANGCEM perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

80%

Payout Ratio

Valuation

Is Dangote Cement undervalued compared to its fair value and its price relative to the market?

14.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DANGCEM (NGN280) is trading above our estimate of fair value (NGN272.93)

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


Price To Earnings Ratio

PE vs Industry: DANGCEM is poor value based on its PE Ratio (14.1x) compared to the African Basic Materials industry average (12.1x).

PE vs Market: DANGCEM is poor value based on its PE Ratio (14.1x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: DANGCEM is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DANGCEM is overvalued based on its PB Ratio (6x) compared to the XF Basic Materials industry average (2.4x).


Future Growth

How is Dangote Cement forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DANGCEM's forecast earnings growth (4.5% per year) is below the savings rate (13.2%).

Earnings vs Market: DANGCEM's earnings (4.5% per year) are forecast to grow slower than the NG market (15.4% per year).

High Growth Earnings: DANGCEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: DANGCEM's revenue (6% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: DANGCEM's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DANGCEM's Return on Equity is forecast to be high in 3 years time (36%)


Past Performance

How has Dangote Cement performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DANGCEM has high quality earnings.

Growing Profit Margin: DANGCEM's current net profit margins (27.1%) are higher than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: DANGCEM's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: DANGCEM's earnings growth over the past year (62.6%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: DANGCEM earnings growth over the past year (62.6%) exceeded the Basic Materials industry 44.8%.


Return on Equity

High ROE: DANGCEM's Return on Equity (42.4%) is considered outstanding.


Financial Health

How is Dangote Cement's financial position?


Financial Position Analysis

Short Term Liabilities: DANGCEM's short term assets (NGN615.8B) do not cover its short term liabilities (NGN923.7B).

Long Term Liabilities: DANGCEM's short term assets (NGN615.8B) exceed its long term liabilities (NGN346.0B).


Debt to Equity History and Analysis

Debt Level: DANGCEM's debt to equity ratio (69.6%) is considered high.

Reducing Debt: DANGCEM's debt to equity ratio has increased from 51.3% to 69.6% over the past 5 years.

Debt Coverage: DANGCEM's debt is well covered by operating cash flow (99.7%).

Interest Coverage: DANGCEM's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet


Dividend

What is Dangote Cement current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DANGCEM's dividend (5.71%) is higher than the bottom 25% of dividend payers in the NG market (3.33%).

High Dividend: DANGCEM's dividend (5.71%) is low compared to the top 25% of dividend payers in the NG market (7.34%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.4%), DANGCEM's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DANGCEM's dividends in 3 years are forecast to be covered by earnings (86.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Michel Puchercos (64 yo)

1.67yrs

Tenure

Mr. Michel Puchercos served as Chief Executive Officer, Group Managing Director and Director of Lafarge Africa Plc until January 17, 2020. Mr. Puchercos serves as Group Managing Director, Chief Executive O...


Leadership Team

Experienced Management: DANGCEM's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: DANGCEM's board of directors are considered experienced (7.8 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

Dangote Cement Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Dangote Cement Plc
  • Ticker: DANGCEM
  • Exchange: NGSE
  • Founded: 1992
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₦4.760t
  • Shares outstanding: 17.00b
  • Website: https://www.dangotecement.com

Number of Employees


Location

  • Dangote Cement Plc
  • Union Marble House
  • 1 Alfred Rewane 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 21:41
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.