ositadima1:


Most of these companies run on debt, which has been a source of funding for a long time and did not start today. The question is whether these long-term debts will be subject to the new interest rates. I think we should focus more on what they pay as interest and what is left for shareholders afterward. In Nigeria, it seems debt is not a huge problem as long as there are positive cash flows and also positive FCF.

emmanuelewumi:
At N590 Dangote cement EPS of N11.00 for H1

At N109 BUA cement EPS of N1. 01 for H1

At N37 Lafarge cement EPS of N1.80 for H1

Raider76:


In layman's language can't we just compare the companies' Debt-to-Revenue ratios rather than the absolute debt values?

martosi:
Bua cement has a P/E ratio of 107.9.
Lafarge has the lowest P/E ratio 20.5.
Dangote’s P/E ratio 53. 6.

martosi:
Bua cement has a P/E ratio of 107.9.
Lafarge has the lowest P/E ratio 20.5.
Dangote’s P/E ratio 53. 6.

Mfunkynation:
Uncle Emma has been firing on since yesterday evening and this morning ....
We are all learning!
please keep it up 😘

emmanuelewumi:



Debt to NOPAT of 2 or Debt to FCF of 3 or less is ideal.

Debt to NOPAT of Dangote is less than 2, Debt to NOPAT of over 4 for BUA

Streetinvestor2:
Lol.You saw sell for presco just like I did. Would you now expect me to go sell presco I bought @442 yesterday because someone just said sell.This is the big question after I did DD and have a target of 1k for the stock.Dont forget I have anticipated #40 for dividend

Streetinvestor2:
Nice one,lol
I guess the alternative is now gari no wonder it is now expensive .He was only interested in buy hold and sell
He does not know that even consistant 20% is big to imagine forward looking of 65%. Is that not blood money

Raider76:


Thanks. So Dangote is ok BUA is not. What of WAPCO?

edwardaigb:
Good Morning brothers and sisters in the Lord.

zendi:

Good day, brother in The Lord.

emmanuelewumi:


It it for 6 months, you calculate for 12 months and make adjustments for increase in earnings based on the liquidation of debt. These are money going to the banks that will now come to shareholders.

I think if there is a repeat of what happened in Hi for the remaining part of 2024.

Dangote should have a full year EPS of N22,00 BUA will have a full year EPS of N2.00 and Lafarge will have a full year EPS of N5.60k

Dangote PE of 26

BUA PE of 54

Lafarge PE of 6.6

martosi:
Okay. For full year how did you get to N5.60k for Lafarge EPS when the H1 is N1.80k.

As for the H1 P/E calculation, I did it based on the current share price and if it is right to invest with the current share price based on it current earnings.

I know before the end of a full year, share prices of the 3 cement companies will fluctuate and change, hence we can do a full year calculation of P/E. I understand we can calculate forward P/E, but I just felt like if I want to invest currently, I should do that based on current price and earnings.

I may be wrong though..

emmanuelewumi:
Annual report is a goldmine of information for discerning investors.

Read it , study it and don't wait to be spoon fed.

If not you will become emotional when people like street investor cast your beloved stock. Monkey hunters will also prey on you


Invest with knowledge, figure, facts and information

emmanuelewumi:
At N590 Dangote cement EPS of N11.00 for H1

At N109 BUA cement EPS of N1. 01 for H1

At N37 Lafarge cement EPS of N1.80 for H1

emmanuelewumi:



Interest rates have been reviewed.

I just did an analysis of the expected interest expenses based on the NOPAT for the year. Most times NOPAT is usually higher than FCF.


Based on the H1 result you can calculate the Return on Invested Capital and Cash Return On Invested Capital. You will divide the FCF by the invested capital to get CROIC

ositadima1:



But my FGSUK2027S3 still pays me about 11% despite the 20% rates we see these days. Some of the long-term debts are locked in until maturity. I understand your point, though: less debt equates to more shareholder value. BUA Cement, with their highest dividend of 2.8 naira, is placed below 80, but you know how some favored stocks move. Based on the favorites anomaly and sentiments, it is approaching the value zone. I may buy it at below 100. I did so last year, and it gave me a small 1 million on the 1.5 million I invested when it started rising, I think one or two months after.

Wiseoldman:
Random question here. What determines who is placed as a chairman of a listed company e.g. Lafrage, Presco, MTN, e.t.c. would this be the largest shareholder, or maybe 'one' of the largest shareholders who gets voted up? Thanks!

SonofElElyonRet:

There you go again.. just pointing out to mr Emmanuel that the broker's recommendations were a bit surprising with regard to presco.. you too talk.. abi you be woman? Chochochochocho

kolaish:
@emmanuelewumi, you are good. Old man with wisdom and knowledge. When will you open your stockbroking firm