Nigerian Companies with Market Valuation Below N1bn
A large number of Nigerian companies have valuations of less than N1 billion in the stock market, compared with bellwethers with trillion naira valuations. Few among the things that differentiate large and small-cap stocks are the size of their balance sheet, earnings and dividend policies.
The history of payments is one of the key factors to consider when taking a position on a small cap. Often, highly capitalised companies’ stock could be relatively volatile due to demand and supply. Meanwhile, a large number of small-cap companies listed on the exchange have low demand.
They are also more likely less liquid because of the lack of popularity in the stock market. In the stock market, there is a number of stocks with a valuation of less than N1 billion. These include:
RT Briscoe, a holding company, is one of the small-cap stocks listed on the Nigerian Exchange worth N341.144 million as of Friday with a unit price of 29 kobo. With about 2 billion outstanding shares, (Ticker: RTBRISCOE) is a non-dividend paying stock with a very low net margin below 3%.
The company engages in automotive products, industrial equipment, and real estate businesses. It operates through the following segments: Motor Vehicles, Industrial Equipment, Aftersales Service, and Property Development.
John Holt Plc (Ticker: JOHNHOLT) has been around for a long time but the stock price has remained unimpressively low at 88 kobo, with a market valuation of N342.453 billion on Friday. The company’s margin is weak and that explains why it is less liquid and rather unpopular in the stock market with 390 million outstanding shares.
John Holt Plc engages in the assembly, sale, lease and service of power and cooling equipment, and fire fighting vehicles. It operates through Technical Products and Leasing Services; Property, Warehousing etc.
NCR Nigeria Plc (Ticker: NCR) engages in the provision of technology products and services that enable businesses to connect, interact, and transact with their customers. It was valued at N388.8 million on Friday at a market price of N3.60.
The company appears to be breaking value with its negative margin. Its earnings per share printed negative and it could be upturned by a strategic re-evaluation of its business model.
At a share price of 80 kobo, Tripple Gee & Co. Plc (Ticker: TrippleG) is worth N395.963 million in the Nigerian stock market but the company also has one of the weakest margins.
Tripple Gee & Co. Plc engages in the production of security documents, financial instruments, and computer stationery. It offers security print, packaging print, and radio frequency identification smart label solutions.
Shares of Trans Nationwide Express (Ticker: TRANSEXPR) were sold at 82 kobo in the stock market on Friday, unarguably one of the cheapest classes of listed companies’ stock. The company is worth N408.483 million to the Nigerian Exchange.
The company has a relatively okay profit margin for its size. The logistics company, which engages in domestic and international express delivery and storage services has been under earnings pressure. The board of directors approved bonus shares for shareholders in 2022.
At N588.358 million, (Ticker: OMATEK) is less stock market swan with a negative margin and 2.9 billion outstanding shares. The company is an earnings breaker, sold at 20 kobo per share in the local bourse on Friday.
Weak margin pushed earnings per share negative and it has a weak dividend record. The company engages in the manufacture, distribution, sale, and service of computers and home entertainment products. It also provides engineering services.
SCOA Nigeria Plc (Ticker: SCOA) was valued at N597.8 billion on Friday in the stock market. Sold at 92 kobo over 649.826 million outstanding shares, the company not only has a weaker profit margin but is also bedevilled with negative earnings per share.
The company engages in the distribution, maintenance and leasing of motor vehicles. It operates through the following segments: Auto, Equipment Premium, Trading, and Construction. The Auto segment assembles truck old buses and sale of harvesters, motor vehicles, leasing and services passengers, and other commercial vehicles.
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