₦airaland Forum

NettyNelly:
We use 18% - 25% cost of capital to judge (discount) most Nigerian businesses, but not upto 20 of the listed companies earn above 25% Return on Invested Capital. A quick Bloomberg screener will show you some names which NAHCO is one of them. A bussiness can only generate excess Return if its Return on Capital is higher than its Costs of capital. Or it has a high growth rate to compensate for it, when the Return on Capital evens out its cost of capital.

If a bussiness is able to generate excess Return above its cost of capital and still manages to grow revenue at a rate higher than inflation, that's a license to print money.

The next question to ask is "Is high ROIC and Earnings growth rate for NAHCO going to be there for the next 5 years?".

A short answer is;
1. The high entry barrier to NAHCO's bussiness is still intact, which fends off competition and keeps ROIC high for the business.
2. There’s still legroom for flight volumes to return to pre-covid levels, with the economy stabilizing. For a bussiness with high operating leverage, this will not only grow NAHCO's earnings but the ROIC as well. Which will translate into the excess cash flows it will distribute to shareholders.

Though we may not have a crystal ball on the strength of the growth engine for NAHCO, but with the high ROIC it has, even with a modest growth rate, NAHCO would still generate excess cash flows for shareholders.

Coolcash1:
I need a retard to start dumping in order to actualize this goal...

Agbalowomeri:
Ololo never enter
Shebi you are getting 10% dividend yield. This one is just devaluation repricing. By the time the streets hear the %s that people have been making in the past 2-3 years, then we are just getting set

emmanuelewumi:
From my own calculation Nahco ROIC for 2024 was 53%, while Presco ROIC for 2024 was 48%

Sunrisepebble:
I’m not arguing about the fundamentals of NAHCO, it’s a great business. My question now is where is it going to. It’s at N101, if we say it makes a N10 earnings for FY, and it trades at 10x PE and pays out N9 dividend then I think it’s fairly priced here, how much capital appreciation is left. If i’m sitting on 50m profit on the stock is it not justified to sell here?

emmanuelewumi:
From my own calculation Nahco ROIC for 2024 was 53%, while Presco ROIC for 2024 was 48%

Agbalowomeri:
For where. He still dey trek come from Sahel

NettyNelly:
A bussiness with 25% Return on Capital will get back its Invested capital in 3 years.

With 50% Return on Capital, they will do it in 18 months.

Agbalowomeri:
Don't worry e be like say you no experience ololo

Ololo is coming to town next year

ceelog:
Please correct me if i am wrong. The older account is the investment one?

sophy17:
Then his average or actual percentage gain on his Nahco investment is way below 2000%.

So that cannot be a good reason to have more than one brokerage account.

NettyNelly:
It looked overpriced at 60, even at 80 and now.

Use a masking tape to cover your target price.
You may be existing a potential 5 to 6 bagger in the next 5 years at a good price.

Nahco has been more than a 2 bagger in the last 7 months

sophy17:
Then his average or actual percentage gain on his Nahco investment is way below 2000%.

So that cannot be a good reason to have more than one brokerage account.

Sunrisepebble:
I’ve heard all arguments for NAHCO, I still think the upside is not as high as it once was.

At the end of the day I want to enjoy my profit even if I miss out on 10-20% gain. I’ll go back on my guest mode, in between end of Q2 and H1 results, I should be able to know how companies performed through market whisper and I’ll know where to start taking positions again.

Agbalowomeri:
Ololo never enter
Shebi you are getting 10% dividend yield. This one is just devaluation repricing. By the time the streets hear the %s that people have been making in the past 2-3 years, then we are just getting set

Princkez:
OANDO q1 2025 food is ready

Princkez:
https://doclib.ngxgroup.com/Financial_NewsDocs/44334_OANDO_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2025.pdf

crownprince2017:
Agba abeg tell me wetin una see there..
the fear of high blood pressure is the beginning of what again...

Mpeace:
eps from N4 to N9. "Over 100% increase in Profit after tax"

Princkez:
https://doclib.ngxgroup.com/Financial_NewsDocs/44334_OANDO_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2025.pdf

Agbalowomeri:
Ololo never enter
Shebi you are getting 10% dividend yield. This one is just devaluation repricing. By the time the streets hear the %s that people have been making in the past 2-3 years, then we are just getting set

Princkez:
https://doclib.ngxgroup.com/Financial_NewsDocs/44334_OANDO_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2025.pdf

opaclem:
🏢 Oando Plc – Q1 2025 Financial Summary

Reporting Period: January – March 2025
Prepared by: ChatGPT
Date: June 24, 2025

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📊 Financial Highlights (Q1 2025 vs Q1 2024)

Metric Q1 2025 Q1 2024 YoY Change

Revenue ₦932.6 billion ₦915.4 billion +1.9%
Gross Profit ₦85.4 billion ₦31.4 billion +172%
Operating Profit ₦(120.3) billion ₦117.2 billion ▼ Negative
Finance Income ₦149.6 billion ₦8.2 billion +1,721%
Profit Before Tax ₦(52.6) billion ₦70.3 billion ▼ Negative
Tax Credit ₦165.6 billion ₦(11.0) billion ▲
Net Profit (PAT) ₦113.1 billion ₦59.3 billion +90.5%
EPS (Basic & Diluted) ₦9.00 ₦5.00 +80%



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💰 Balance Sheet Snapshot (as of March 2025)

Item Q1 2025 FY 2024 Change

Total Assets ₦6.83 trillion ₦6.43 trillion +₦400bn
Total Liabilities ₦7.07 trillion ₦6.80 trillion +₦270bn
Total Equity ₦(240.1) billion ₦(361.0) billion ▲ ₦121bn
Cash & Equivalents ₦303.9 billion ₦221.8 billion +37%
Total Borrowings ₦3.04 trillion ₦2.77 trillion +₦270bn



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🎯 Valuation (based on EPS ₦9)

P/E Ratio Fair Price Estimate

5× ₦45
7× ₦63
8× ₦72
10× ₦90


Estimated Fair Value Range: ₦45 – ₦72
Current Market Price: ~₦62


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🧠 Strategic Recommendation

Short-Term Traders: ✅ Hold or ride momentum while technicals are strong.

Long-Term Investors: ⚠️ Exercise caution. Although EPS has surged, core operations remain further. loss-making. Wait for consistent operating profit and reduced leverage before accumulating

crownprince2017:
Agba abeg tell me wetin una see there..
the fear of high blood pressure is the beginning of what again...

yMcy56:
OANDO
Q1 performing magic.......
Lots of improvement.....
PBT: over +250% increase.....
PBT: over +90% increase......
Retained earnings: from (506) in 2024 to (181) in 2025.........lots of improvement......

** OANDO doing press up......when upward movement starts, e go loud gan ni 😁

* Over to the critics.......

https://doclib.ngxgroup.com/Financial_NewsDocs/44334_OANDO_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2025.pdf