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NIC

NIC HoldingsUGSE:NIC Stock Report

Market Cap

USh10.8b

7D

0%

1Y

-15.0%

Updated

16 Oct, 2021

Data

Company Financials
NIC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

NIC Overview

NIC Holdings Limited provides general and long-term insurance products and services for individual customers and businesses in Uganda.

Price History & Performance

Summary of all time highs, changes and price drops for NIC Holdings
Historical stock prices
Current Share PriceUSh5.10
52 Week HighUSh3.67
52 Week LowUSh6.00
Beta0.093
1 Month Change0%
3 Month Change-15.00%
1 Year Change-15.00%
3 Year Change-52.19%
5 Year Change-30.46%
Change since IPO-72.05%

Recent News & Updates

Shareholder Returns

NICUG InsuranceUG Market
7D0%-0.9%0.6%
1Y-15.0%26.8%-0.09%

Return vs Industry: NIC underperformed the UG Insurance industry which returned 26.8% over the past year.

Return vs Market: NIC underperformed the UG Market which returned -0.1% over the past year.

Price Volatility

Is NIC's price volatile compared to industry and market?
NIC volatility
NIC Beta0.093
Industry Beta0.81
Market Beta1

Stable Share Price: NIC is more volatile than 75% of UG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NIC's weekly volatility (4%) has been stable over the past year, but is still higher than 75% of UG stocks.

About the Company

FoundedEmployeesCEOWebsite
1964n/aElias Eduhttps://www.nic.co.ug

NIC Holdings Limited provides general and long-term insurance products and services for individual customers and businesses in Uganda. The company offers general insurance products and services comprising non-life insurance products, which cover group and individual personal accident, marine and aviation, engineering and contractors, goods in transit, workers compensation, employer’s liability, motor comprehensive, fire and allied perils, theft/burglary, cash in transit, oil and gas, public liability, professional indemnity, marine cargo, bonds, computer and electronics, all risks, and travel, as well as cold storage, erection all risks, bonds, and machinery break down/boiler expense insurance products. It also provides life insurance products and services, such as individual and group life, education endowment, personal pension and annuity, sanyuka mubukadde, dividend plus plan, group employees benefit, varsity sure, mortgage plus, group assurance plan, nic career plan, comprehensive insurance package, microfinance care plan, employees insurance plan, annuity contract plan, family last expenses plan, health and medical, and teachers’ insurance savings plan.

NIC Holdings Fundamentals Summary

How do NIC Holdings's earnings and revenue compare to its market cap?
NIC fundamental statistics
Market CapUSh10.83b
Earnings (TTM)USh1.91b
Revenue (TTM)USh16.42b

5.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NIC income statement (TTM)
RevenueUSh16.42b
Cost of RevenueUSh4.12b
Gross ProfitUSh12.30b
ExpensesUSh10.39b
EarningsUSh1.91b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)0.90
Gross Margin74.93%
Net Profit Margin11.63%
Debt/Equity Ratio0%

How did NIC perform over the long term?

See historical performance and comparison

Valuation

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

5.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NIC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NIC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NIC is good value based on its PE Ratio (5.7x) compared to the African Insurance industry average (7.5x).

PE vs Market: NIC is poor value based on its PE Ratio (5.7x) compared to the UG market (4.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NIC is good value based on its PB Ratio (0.3x) compared to the XF Insurance industry average (0.9x).


Future Growth

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

27.1%

Forecasted Insurance 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 NIC Holdings 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 NIC Holdings performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIC has a large one-off gain of UGX3.5B impacting its December 31 2020 financial results.

Growing Profit Margin: NIC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NIC's earnings have declined by 29.5% per year over the past 5 years.

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

Earnings vs Industry: NIC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (18.2%).


Return on Equity

High ROE: NIC's Return on Equity (5.4%) is considered low.


Financial Health

How is NIC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NIC's short term assets (UGX60.9B) exceed its short term liabilities (UGX44.0B).

Long Term Liabilities: NIC's short term assets (UGX60.9B) exceed its long term liabilities (UGX22.2B).


Debt to Equity History and Analysis

Debt Level: NIC is debt free.

Reducing Debt: NIC has no debt compared to 5 years ago when its debt to equity ratio was 13.8%.

Debt Coverage: NIC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NIC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is NIC Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: NIC is not paying a notable dividend for the UG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NIC's dividend in 3 years as they are not forecast to pay a notable one for the UG market.


Next Steps

Management

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

6.6yrs

Average board tenure


CEO

Elias Edu

4.25yrs

Tenure

Mr. Elias Edu, Esq. serves as Board Secretary and Company Secretary at NIC Holdings Limited and has been Acting Managing Director and CEO since July 11, 2017 and served as its Head of Corporate Services.


Board Members

Experienced Board: NIC's board of directors are considered experienced (6.6 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

NIC Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: NIC Holdings Limited
  • Ticker: NIC
  • Exchange: UGSE
  • Founded: 1964
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: USh10.831b
  • Shares outstanding: 2.12b
  • Website: https://www.nic.co.ug

Location

  • NIC Holdings Limited
  • NIC Building
  • Plot 3, Pilkington Road
  • Kampala
  • Uganda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 16:00
End of Day Share Price2021/10/15 00:00
Earnings2020/12/31
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.