October 16, 2018

Latest Updates

Stocks To Buy, Sell Or Hold

Stocks To Buy, Sell Or Hold

Buy/Sell/Hold stocks are picked from the top gainers and losers of the prior week as well as various analyst reports. Here are our Buy/Sell/Hold picks for the week.

Cement Company of Northern Nigeria: HOLD

Latest Results

Results for the half year ended June 2018 show that revenue increased from N4.1 billion in 2017 to N6.6 billion in 2018. Profit before tax jumped from N687 million in 2017 to N2.1 billion in 2018. Profit after tax also increased from N515 million in 2017 to N1.5 billion in 2018.

Pricing

Current Share Price: N25
Price to Earnings ratio: 6.55X
Price to Book Ratio: 1.84
One Year Return: 213.42%
Year to Date: 163.16%

External View: None

Our View

CCNN is a HOLD in Nairametrics’ opinion. While the stock has done over a 100% year to date, it is trading at a price to earnings ratio much lower than the average PE ratio on the NSE. It is also trading far lower than market leader Dangote Cement which is trading at 20.4 times earnings, as well as the average PE ratio on the NSE.

Vitafoam Plc: HOLD

Recent Results

Results for the 9 months ended June 2018 show that revenue increased from N14.7 billion in 2017 to N16 billion in 2018. Profit before tax jumped from N258 million in 2017 to N788 million in 2018. Profit after tax also rose from N133 million in 2017 to N515 million in 2018.

Pricing

Current Share Price: N3.5
Price to Earnings Ratio: 10.21X
Price to Book Ratio: 1.04
One Year Return: 26.25%
Year to Date Return: 16.67%

External Views: None

Our View

Vitafoam is a HOLD in Nairametrics’ opinion. The stock is trading close to its year high of N3.6. Investors keen on entry should wait for a significant decline before doing so. The company’s full year results are due between now and December.

Also Read: Summary Os Stocks for 5th of October

Union Bank: SELL

Recent Results

Results for the half year ended September 2018 show that gross earnings increased from N56.6 billion in 2017 to N62 billion in 2018. Profit before tax increased from N9.4 billion in 2017 to N11.6 billion in 2018. Profit after tax also rose from N9.2 billion in 2017 to N11.4 billion in 2018.

Pricing

Current Share Price: N5.10
Price to Earnings Ratio: 8.12X
Price to Book Ratio: 0.52
One Year Return: -14.86%
Year to date Return: -34.62%

External View: None

Our View

Union Bank is a HOLD in our opinion. The stock is currently trading close to its year low of N5. Investors would be better off waiting for a further decline in price before entering.

UAC of Nigeria: SELL

Recent Results

Results for the half year ended June 2018 show that revenue fell from N47.3 billion in 2017 to N36.9 billion in 2018. Profit before tax increased from N1.8 billion in 2017 to N2.1 billion in 2018. Profit after tax increased from N1.1 billion in 2017 to N1.3 billion in 2018.

Pricing

Current Share Price: N10.7
Price to Earnings Ratio: 19.3x
Price to Book Ratio: 0.46
One Year Return: 24.42%
Year to Date Return: -36.69%

External View

Analysts at FBNQuest have a ‘Neutral’ rating on the stock. They have a target price of N14.3 which indicates a potential upside of 21.3% from the stock’s price of N11.8 as at when the report was prepared.

Our View

UAC is a SELL in Nairametrics’ opinion. The stock is currently trading at more than twice the PE ratio of Transcorp Plc, its peer which is trading at 6.69 times earnings.

 

This report was first posted on Nairametrics.

 

 

 

We think you'd love these too...

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *