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TRAN

Transnational Corporation of Nigeria NGSE:TRANSCORP Stock Report

Last Price

₦1.10

Market Cap

₦44.7b

7D

5.8%

1Y

17.0%

Updated

03 Oct, 2022

Data

Company Financials +
TRANSCORP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends0/6

TRANSCORP Stock Overview

Transnational Corporation of Nigeria Plc, together with the subsidiaries, engages in the hospitality, power, agro-allied, and oil and gas businesses in Nigeria.

Transnational Corporation of Nigeria Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Transnational Corporation of Nigeria
Historical stock prices
Current Share Price₦1.10
52 Week High₦1.52
52 Week Low₦0.93
Beta0.65
1 Month Change0%
3 Month Change-12.00%
1 Year Change17.02%
3 Year Change10.00%
5 Year Change-18.52%
Change since IPO-88.11%

Recent News & Updates

Shareholder Returns

TRANSCORPNG Renewable EnergyNG Market
7D5.8%-4.5%0.004%
1Y17.0%7.1%-4.1%

Return vs Industry: TRANSCORP exceeded the NG Renewable Energy industry which returned 7.1% over the past year.

Return vs Market: TRANSCORP exceeded the NG Market which returned -4.1% over the past year.

Price Volatility

Is TRANSCORP's price volatile compared to industry and market?
TRANSCORP volatility
TRANSCORP Average Weekly Movement6.7%
Renewable Energy Industry Average Movement5.5%
Market Average Movement5.2%
10% most volatile stocks in NG Market8.2%
10% least volatile stocks in NG Market2.8%

Stable Share Price: TRANSCORP is more volatile than 75% of NG stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TRANSCORP's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of NG stocks.

About the Company

FoundedEmployeesCEOWebsite
20041,374Owen Omogiafohttps://www.transcorpnigeria.com

Transnational Corporation of Nigeria Plc, together with the subsidiaries, engages in the hospitality, power, agro-allied, and oil and gas businesses in Nigeria. The company operates Transcorp Hilton Abuja and Transcorp Hotels Calabar hotels, as well as Aura, a lifestyle and experience platform. It is also involved in the exploration, refining, and marketing of petroleum products, and oil and gas; general maritime marketing; manufacturing/processing of fruit concentrates from fruits; and growing and processing of food and cash crops activities.

Transnational Corporation of Nigeria Fundamentals Summary

How do Transnational Corporation of Nigeria's earnings and revenue compare to its market cap?
TRANSCORP fundamental statistics
Market Cap₦44.71b
Earnings (TTM)₦16.60b
Revenue (TTM)₦120.85b

2.7x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRANSCORP income statement (TTM)
Revenue₦120.85b
Cost of Revenue₦60.05b
Gross Profit₦60.80b
Other Expenses₦44.20b
Earnings₦16.60b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin50.31%
Net Profit Margin13.74%
Debt/Equity Ratio65.4%

How did TRANSCORP perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TRANSCORP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRANSCORP?

Other financial metrics that can be useful for relative valuation.

TRANSCORP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA3.9x
PEG Ratio0.1x

Price to Earnings Ratio vs Peers

How does TRANSCORP's PE Ratio compare to its peers?

TRANSCORP PE Ratio vs Peers
The above table shows the PE ratio for TRANSCORP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.5x
ACR Alsons Consolidated Resources
16.6xn/a₱5.2b
DOREENPWR Doreen Power Generations and Systems
7.1xn/a৳11.6b
KAPCO Kot Addu Power
2.7xn/aPK₨26.8b
8931 Ta-Yuan Cogeneration
30.7xn/aNT$3.7b
TRANSCORP Transnational Corporation of Nigeria
2.7x21.4%₦44.7b

Price-To-Earnings vs Peers: TRANSCORP is good value based on its Price-To-Earnings Ratio (2.7x) compared to the peer average (14.5x).


Price to Earnings Ratio vs Industry

How does TRANSCORP's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

Price-To-Earnings vs Industry: TRANSCORP is good value based on its Price-To-Earnings Ratio (2.7x) compared to the Global Renewable Energy industry average (16.3x)


Price to Earnings Ratio vs Fair Ratio

What is TRANSCORP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRANSCORP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TRANSCORP's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of TRANSCORP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TRANSCORP (NGN1.1) is trading above our estimate of fair value (NGN0.13)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Transnational Corporation of Nigeria forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRANSCORP's forecast earnings growth (21.4% per year) is above the savings rate (12.6%).

Earnings vs Market: TRANSCORP's earnings (21.4% per year) are forecast to grow faster than the NG market (18% per year).

High Growth Earnings: TRANSCORP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRANSCORP's revenue (3.3% per year) is forecast to grow slower than the NG market (12.8% per year).

High Growth Revenue: TRANSCORP's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRANSCORP's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Transnational Corporation of Nigeria performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRANSCORP has a large one-off gain of NGN6.3B impacting its June 30 2022 financial results.

Growing Profit Margin: TRANSCORP's current net profit margins (13.7%) are higher than last year (3.7%).


Past Earnings Growth Analysis

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

Accelerating Growth: TRANSCORP's earnings growth over the past year (377.1%) exceeds its 5-year average (5% per year).

Earnings vs Industry: TRANSCORP earnings growth over the past year (377.1%) exceeded the Renewable Energy industry 7.1%.


Return on Equity

High ROE: TRANSCORP's Return on Equity (18.6%) is considered low.


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Financial Health

How is Transnational Corporation of Nigeria's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TRANSCORP's short term assets (NGN89.8B) do not cover its short term liabilities (NGN162.3B).

Long Term Liabilities: TRANSCORP's short term assets (NGN89.8B) do not cover its long term liabilities (NGN97.4B).


Debt to Equity History and Analysis

Debt Level: TRANSCORP's net debt to equity ratio (62.1%) is considered high.

Reducing Debt: TRANSCORP's debt to equity ratio has reduced from 113.9% to 65.4% over the past 5 years.

Debt Coverage: TRANSCORP's debt is not well covered by operating cash flow (9%).

Interest Coverage: TRANSCORP's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


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Dividend

What is Transnational Corporation of Nigeria current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.82%

Current Dividend Yield

Dividend Yield vs Market

Transnational Corporation of Nigeria Dividend Yield vs Market
How does Transnational Corporation of Nigeria dividend yield compare to the market?
SegmentDividend Yield
Company (Transnational Corporation of Nigeria)1.8%
Market Bottom 25% (NG)4.0%
Market Top 25% (NG)8.6%
Industry Average (Renewable Energy)3.5%
Analyst forecast in 3 Years (Transnational Corporation of Nigeria)n/a

Notable Dividend: TRANSCORP's dividend (1.82%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.96%).

High Dividend: TRANSCORP's dividend (1.82%) is low compared to the top 25% of dividend payers in the NG market (8.63%).


Stability and Growth of Payments

Stable Dividend: TRANSCORP is not paying a notable dividend for the NG market, therefore no need to check if payments are stable.

Growing Dividend: TRANSCORP is not paying a notable dividend for the NG market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: TRANSCORP is not paying a notable dividend for the NG market.


Cash Payout to Shareholders

Cash Flow Coverage: TRANSCORP is paying a dividend but the company has no free cash flows.


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Management

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

1.8yrs

Average management tenure


CEO

Owen Omogiafo

no data

Tenure

Mrs. Owen Omogiafo has been President of Transnational Corporation of Nigeria Plc since March 25, 2020 and serves as its Group Chief Executive Officer since December 2021 and served as its Chief Executive...


Leadership Team

Experienced Management: TRANSCORP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TRANSCORP's board of directors are not considered experienced ( 2.3 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

What is the ownership structure of TRANSCORP?
Owner TypeNumber of SharesOwnership Percentage
Institutions500,228,5671.2%
General Public40,147,761,72698.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 2 shareholders own 1.23% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
1.03%
Mirae Asset Global Investments Co., Ltd
417,740,027NGN459.5m3.21%no data
0.2%
Eaton Vance Management
82,488,540NGN90.7m0%no data

Company Information

Transnational Corporation of Nigeria Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Transnational Corporation of Nigeria Plc
  • Ticker: TRANSCORP
  • Exchange: NGSE
  • Founded: 2004
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Implied Market Cap: ₦44.713b
  • Shares outstanding: 40.65b
  • Website: https://www.transcorpnigeria.com

Number of Employees


Location

  • Transnational Corporation of Nigeria Plc
  • Transnational House
  • 38, Glover Road
  • Lagos
  • Nigeria


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRANSCORPNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNJan 2007

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.