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CWG

CWGNGSE:CWG Stock Report

Market Cap

₦3.2b

7D

0%

1Y

-50.8%

Updated

19 Oct, 2021

Data

Company Financials
CWG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends0/6

CWG Overview

CWG Plc engages in the supply, installation, integration, maintenance, and support of computer equipment, e-payment hardware, and ancillary equipment in Nigeria and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for CWG
Historical stock prices
Current Share Price₦1.25
52 Week High₦1.13
52 Week Low₦2.29
Beta-0.052
1 Month Change0%
3 Month Change0%
1 Year Change-50.79%
3 Year Change-50.79%
5 Year Change-53.18%
Change since IPO-78.63%

Recent News & Updates

Shareholder Returns

CWGNG ITNG Market
7D0%4.5%1.1%
1Y-50.8%-13.7%38.9%

Return vs Industry: CWG underperformed the NG IT industry which returned -13.7% over the past year.

Return vs Market: CWG underperformed the NG Market which returned 38.9% over the past year.

Price Volatility

Is CWG's price volatile compared to industry and market?
CWG volatility
CWG Beta-0.052
Industry Beta0.55
Market Beta1

Stable Share Price: CWG is less volatile than 75% of NG stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: CWG's weekly volatility (0%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992529Adewale Adeyipohttps://www.cwg-plc.com

CWG Plc engages in the supply, installation, integration, maintenance, and support of computer equipment, e-payment hardware, and ancillary equipment in Nigeria and internationally. It operates through IT Infrastructure, Communication and Integrated Services, Managed Support Services, Software, and platform Business segments. The IT Infrastructure segment supplies, installs, and supports computer hardware, operating and middleware systems, automated teller machines, etc. The Communication and Integrated Services segment offers VSAT and fiber connectivity, metropolitan area networks, wide area networks, local area networks, and systems integration services, as well as network communications support.

CWG Fundamentals Summary

How do CWG's earnings and revenue compare to its market cap?
CWG fundamental statistics
Market Cap₦3.16b
Earnings (TTM)₦412.06m
Revenue (TTM)₦12.25b

7.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWG income statement (TTM)
Revenue₦12.25b
Cost of Revenue₦9.71b
Gross Profit₦2.54b
Expenses₦2.12b
Earnings₦412.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.16
Gross Margin20.71%
Net Profit Margin3.36%
Debt/Equity Ratio23.7%

How did CWG perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWG (NGN1.25) is trading below our estimate of fair value (NGN12.82)

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


Price To Earnings Ratio

PE vs Industry: CWG is good value based on its PE Ratio (7.7x) compared to the African IT industry average (17.7x).

PE vs Market: CWG is poor value based on its PE Ratio (7.7x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CWG is overvalued based on its PB Ratio (3.7x) compared to the XF IT industry average (2.2x).


Future Growth

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

18.3%

Forecasted Software 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 CWG 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 CWG performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWG has high quality earnings.

Growing Profit Margin: CWG's current net profit margins (3.4%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: CWG has become profitable over the past 5 years, growing earnings by 31.9% per year.

Accelerating Growth: CWG's earnings growth over the past year (65.7%) exceeds its 5-year average (31.9% per year).

Earnings vs Industry: CWG earnings growth over the past year (65.7%) exceeded the IT industry -3.7%.


Return on Equity

High ROE: CWG's Return on Equity (48%) is considered outstanding.


Financial Health

How is CWG's financial position?


Financial Position Analysis

Short Term Liabilities: CWG's short term assets (NGN9.9B) exceed its short term liabilities (NGN9.7B).

Long Term Liabilities: CWG's short term assets (NGN9.9B) exceed its long term liabilities (NGN12.3M).


Debt to Equity History and Analysis

Debt Level: CWG's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: CWG's debt to equity ratio has increased from 3.7% to 23.7% over the past 5 years.

Debt Coverage: CWG's debt is well covered by operating cash flow (648.3%).

Interest Coverage: CWG's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

What is CWG current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.8yrs

Average management tenure


CEO

Adewale Adeyipo

2.83yrs

Tenure

Mr. Adewale Adeyipo has been Group, Managing Director and Chief Executive Officer at CWG Plc and has been its Executive Director since June 15, 2018 and also served as Acting Group, MD/CEO at CWG Plc since...


Leadership Team

Experienced Management: CWG's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: CWG's board of directors are considered experienced (4 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

CWG Plc's employee growth, exchange listings and data sources


Key Information

  • Name: CWG Plc
  • Ticker: CWG
  • Exchange: NGSE
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₦3.156b
  • Shares outstanding: 2.52b
  • Website: https://www.cwg-plc.com

Number of Employees


Location

  • CWG Plc
  • Plot 10, Adebayo Doherty Road
  • Block 54A
  • 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.