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WAPC

Lafarge AfricaNGSE:WAPCO Stock Report

Market Cap

₦402.7b

7D

-0.2%

1Y

37.2%

Updated

25 Oct, 2021

Data

Company Financials +
WAPCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

WAPCO Overview

Lafarge Africa Plc, together with its subsidiaries, manufactures and sells a range of cement products in Nigeria and South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Lafarge Africa
Historical stock prices
Current Share Price₦24.70
52 Week High₦17.55
52 Week Low₦31.50
Beta1.28
1 Month Change10.27%
3 Month Change7.86%
1 Year Change37.22%
3 Year Change35.34%
5 Year Change-48.00%
Change since IPO1,773.79%

Recent News & Updates

Shareholder Returns

WAPCONG Basic MaterialsNG Market
7D-0.2%1.1%1.5%
1Y37.2%66.7%40.2%

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

Return vs Market: WAPCO underperformed the NG Market which returned 40.9% over the past year.

Price Volatility

Is WAPCO's price volatile compared to industry and market?
WAPCO volatility
WAPCO Beta1.28
Industry Beta0.51
Market Beta1

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

Volatility Over Time: WAPCO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19591,379Khaled Abdel El Dokanihttps://www.lafarge.com.ng

Lafarge Africa Plc, together with its subsidiaries, manufactures and sells a range of cement products in Nigeria and South Africa. It also offers other cementitious products, such as ready-mix concrete, aggregates, and fly-ash. The company offers its products under the Elephant, Powermax, Supaset, Etex, SRC, Ashaka, and Supafix brands.

Lafarge Africa Fundamentals Summary

How do Lafarge Africa's earnings and revenue compare to its market cap?
WAPCO fundamental statistics
Market Cap₦402.69b
Earnings (TTM)₦35.84b
Revenue (TTM)₦255.05b

11.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAPCO income statement (TTM)
Revenue₦255.05b
Cost of Revenue₦180.33b
Gross Profit₦74.72b
Expenses₦38.89b
Earnings₦35.84b

Dividends

4.0%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Lafarge Africa undervalued compared to its fair value and its price relative to the market?

31.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAPCO (NGN24.7) is trading below our estimate of fair value (NGN35.96)

Significantly Below Fair Value: WAPCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WAPCO is good value based on its PE Ratio (11.1x) compared to the African Basic Materials industry average (12.1x).

PE vs Market: WAPCO is poor value based on its PE Ratio (11.1x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: WAPCO is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: WAPCO is good value based on its PB Ratio (1.1x) compared to the XF Basic Materials industry average (2.4x).


Future Growth

How is Lafarge Africa forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAPCO's forecast earnings growth (3.1% per year) is below the savings rate (13.2%).

Earnings vs Market: WAPCO's earnings (3.1% per year) are forecast to grow slower than the NG market (15.4% per year).

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

Revenue vs Market: WAPCO's revenue (3.6% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: WAPCO's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WAPCO's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Lafarge Africa performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAPCO has high quality earnings.

Growing Profit Margin: WAPCO's current net profit margins (14.1%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: WAPCO has become profitable over the past 5 years, growing earnings by 26.2% per year.

Accelerating Growth: WAPCO's earnings growth over the past year (55.8%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: WAPCO earnings growth over the past year (55.8%) exceeded the Basic Materials industry 44.8%.


Return on Equity

High ROE: WAPCO's Return on Equity (9.6%) is considered low.


Financial Health

How is Lafarge Africa's financial position?


Financial Position Analysis

Short Term Liabilities: WAPCO's short term assets (NGN116.5B) do not cover its short term liabilities (NGN121.3B).

Long Term Liabilities: WAPCO's short term assets (NGN116.5B) exceed its long term liabilities (NGN18.5B).


Debt to Equity History and Analysis

Debt Level: WAPCO's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: WAPCO's debt to equity ratio has reduced from 130.8% to 3.9% over the past 5 years.

Debt Coverage: WAPCO's debt is well covered by operating cash flow (600%).

Interest Coverage: WAPCO's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

What is Lafarge Africa current dividend yield, its reliability and sustainability?

4.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WAPCO's dividend (4.05%) is higher than the bottom 25% of dividend payers in the NG market (3.33%).

High Dividend: WAPCO's dividend (4.05%) is low compared to the top 25% of dividend payers in the NG market (7.34%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), WAPCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WAPCO's dividends in 3 years are forecast to be covered by earnings (72.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Khaled Abdel El Dokani

1.75yrs

Tenure

₦345,516,704

Compensation

Mr. Khaled Abdel Aziz El Dokani is Group Managing Director, Chief Executive Officer and Director at Lafarge Africa Plc since January 18, 2020. Prior to appointment, he was the Country CEO of Iraq, a role h...


CEO Compensation Analysis

Compensation vs Market: Khaled Abdel's total compensation ($USD839.71K) is about average for companies of similar size in the NG market ($USD877.75K).

Compensation vs Earnings: Insufficient data to compare Khaled Abdel's compensation with company performance.


Leadership Team

Experienced Management: WAPCO's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: WAPCO's board of directors are not considered experienced ( 1.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lafarge Africa Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Lafarge Africa Plc
  • Ticker: WAPCO
  • Exchange: NGSE
  • Founded: 1959
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₦402.695b
  • Shares outstanding: 16.11b
  • Website: https://www.lafarge.com.ng

Number of Employees


Location

  • Lafarge Africa Plc
  • 27B, Gerrard Road
  • Ikoyi
  • 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 16:46
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.