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TRAN

Transnational Corporation of NigeriaNGSE:TRANSCORP Stock Report

Market Cap

₦40.2b

7D

2.1%

1Y

62.3%

Updated

17 Oct, 2021

Data

Company Financials +
TRANSCORP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance2/6
Financial Health3/6
Dividends0/6

TRANSCORP Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Transnational Corporation of Nigeria
Historical stock prices
Current Share Price₦0.99
52 Week High₦0.59
52 Week Low₦1.40
Beta0.81
1 Month Change6.45%
3 Month Change5.32%
1 Year Change62.30%
3 Year Change-21.43%
5 Year Change1.02%
Change since IPO-89.30%

Recent News & Updates

Shareholder Returns

TRANSCORPNG Renewable EnergyNG Market
7D2.1%5.0%1.6%
1Y62.3%18.7%40.0%

Return vs Industry: TRANSCORP exceeded the NG Renewable Energy industry which returned 18.7% over the past year.

Return vs Market: TRANSCORP exceeded the NG Market which returned 40% over the past year.

Price Volatility

Is TRANSCORP's price volatile compared to industry and market?
TRANSCORP volatility
TRANSCORP Beta0.81
Industry Beta0.62
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
2004958Owen Omogiafohttps://www.transcorpnigeria.com

Transnational Corporation of Nigeria Plc, together with the subsidiaries, operates in the hospitality, power, agro-allied, and oil and gas sectors in Nigeria. It operates Transcorp Hilton Hotel, a 670-room 5-star hotel in Abuja; and Transcorps Hotels, Calabar, a 146-room hotel in Calabar. The company also produces orange and pineapple concentrates, mango purees, and orange peel oil for industrial markets.

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₦40.24b
Earnings (TTM)₦3.48b
Revenue (TTM)₦93.58b

11.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRANSCORP income statement (TTM)
Revenue₦93.58b
Cost of Revenue₦52.57b
Gross Profit₦41.00b
Expenses₦37.52b
Earnings₦3.48b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.086
Gross Margin43.82%
Net Profit Margin3.72%
Debt/Equity Ratio104.3%

How did TRANSCORP perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

12%

Payout Ratio

Valuation

Is Transnational Corporation of Nigeria 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: TRANSCORP (NGN0.99) is trading below our estimate of fair value (NGN7.47)

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


Price To Earnings Ratio

PE vs Industry: TRANSCORP is good value based on its PE Ratio (11.6x) compared to the Global Renewable Energy industry average (17x).

PE vs Market: TRANSCORP is poor value based on its PE Ratio (11.6x) compared to the NG market (7.5x).


Price to Earnings Growth Ratio

PEG Ratio: TRANSCORP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TRANSCORP's PB Ratio (0.6x) is in line with the XF Renewable Energy industry average.


Future Growth

How is Transnational Corporation of Nigeria forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRANSCORP's forecast earnings growth (42.4% per year) is above the savings rate (13.2%).

Earnings vs Market: TRANSCORP's earnings (42.4% per year) are forecast to grow faster than the NG market (15.3% per year).

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

Revenue vs Market: TRANSCORP's revenue (26% per year) is forecast to grow faster than the NG market (10.4% per year).

High Growth Revenue: TRANSCORP's revenue (26% per year) is forecast to grow faster 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


Past Performance

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

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRANSCORP has a large one-off loss of NGN6.5B impacting its June 30 2021 financial results.

Growing Profit Margin: TRANSCORP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TRANSCORP has become profitable over the past 5 years, growing earnings by 9% per year.

Accelerating Growth: TRANSCORP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TRANSCORP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (14.9%).


Return on Equity

High ROE: TRANSCORP's Return on Equity (7.9%) is considered low.


Financial Health

How is Transnational Corporation of Nigeria's financial position?


Financial Position Analysis

Short Term Liabilities: TRANSCORP's short term assets (NGN122.4B) exceed its short term liabilities (NGN106.2B).

Long Term Liabilities: TRANSCORP's short term assets (NGN122.4B) do not cover its long term liabilities (NGN132.2B).


Debt to Equity History and Analysis

Debt Level: TRANSCORP's debt to equity ratio (104.3%) is considered high.

Reducing Debt: TRANSCORP's debt to equity ratio has reduced from 118.9% to 104.3% over the past 5 years.

Debt Coverage: TRANSCORP's debt is well covered by operating cash flow (26.1%).

Interest Coverage: TRANSCORP's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRANSCORP's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the NG market (3.3%).

High Dividend: TRANSCORP's dividend (1.01%) is low compared to the top 25% of dividend payers in the NG market (7.31%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

0.8yrs

Average management tenure


CEO

Owen Omogiafo

1.58yrs

Tenure

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


Leadership Team

Experienced Management: TRANSCORP's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TRANSCORP's board of directors are not considered experienced ( 1.3 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

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


Top Shareholders

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
  • Market Cap: ₦40.242b
  • Shares outstanding: 40.65b
  • Website: https://www.transcorpnigeria.com

Number of Employees


Location

  • Transnational Corporation of Nigeria Plc
  • Transnational House
  • No. 38 Glover Road, (Formerly 22B)
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 15:22
End of Day Share Price2021/10/15 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.