A quick glance at DANGSUGAR’s price chart reveals that DANGSUGAR has gained 85.4% in the 7 months since it touched a low of ₦8.90 on the 6th of April, 2020. Great returns for investors who had the nous to pick the stock during the Covid-19 inspired market rout! It gained 19.56% in the week just ended, racking up 6.10% on Friday alone, and closing just 10-kobo short of its 52-week high.
Dangote Sugar Refinery Plc is engaged in refining raw sugar into edible sugar and sells refined sugar. Its products include Vitamin-A fortified sugar and unfortified industrial sugar.
Its Vitamin-A fortified sugar is a fine white granulated sugar, which is the all-purpose white sugar that is ideal for table use, baking, and sweetening of beverages. Its unfortified sugar is a specially processed sugar grade used by pharmaceuticals, food, and beverage manufacturing companies.
DANGSUGAR Price and Fair Value
With an industry median price of ₦10.95, it would cost you about 50% more to buy DANGSUGAR stocks today because it currently trades at ₦16.50. The stock is perceived to be worth more than most other stocks in the food, beverage, and tobacco industry.
A comparison of DANGSUGAR’s fair value shows that the company’s intrinsic value is around ₦19.73. With a price this close to its fair value, we can deduce that the current market sentiment, reflected in the stock’s price, is a fair representation of the value of the company. It should also be considered that the median fair value of the industry is ₦8.76, which is about half of the fair value of the company.
We can reasonably deduce that DANGSUGAR is rightly perceived to be worth more than many of its industry peers and the market has priced that in, reflecting a price that is comparable with its value.
DANGSUGAR 1 Year Average Daily Volume
Dangote Sugar refinery Plc trades an average of 1.9 million shares daily. This is more than 4 times the industry’s median volume of shares traded daily, at 479,000 shares. We can infer that DANGSUGAR is more liquid than more companies in the industry.
With an average of 1.9 million shares traded daily, DANGSUGAR is not only more liquid than its industry median, but it is also more liquid than most companies in the entire market, ranking in the upper quartile of listed stocks by liquidity.
DANGSUGAR Market Capitalization
The median size of the “food, beverages, and tobacco” industry is ₦37.2 billion. DANGSUGAR’s market capitalization, as at the close of the stock market today, Friday, November 6, 2020, is ₦198 billion – more than 5 times its industry’s median. By this measure, DANGSUGAR is the third most capitalized company n this industry group, behind only Nestle Nigeria Plc and Nigerian Breweries Plc.
DANGSUGAR Dividend Yield
The dividend yield of Dangote Sugar Refinery Plc, based on all dividends it has paid in the last 12 months, is 6.67%, the highest in the industry. It should be noted that the median dividend yield of the industry group is 0.00% (inferring that most of those companies did not pay dividends over the same period). DANGSUGAR has therefore paid dividends with the best yields in its industry.
DANGSUGAR Net Profit Margin
Of the 17 companies in the food, beverage, and tobacco industry group, 8 of them reported trailing twelve-months profit of 0.00 or lower (negative). DANGUSGAR has a trailing twelve-month profit margin of 15.97%. This, once again, is the third-highest return in the industry.
The industry’s median value for net profit margin is 1.68%, indicating that DANGSUGAR is one of the most efficient companies in the industry. Its net profit margin is third after only Okomu Oil Palm Plc and Presco Plc.
DANGSUGAR Price to Earnings Ratio (PE Ratio)
Recall, from the previous section on profit margin, that the industry group has 50% of its companies reporting zero or lower profitability. When ranked by, price to earnings, DANGSUGAR has a price to earnings ratio of 6.09%. This is the lowest ratio in the industry, for companies that reported net positive profit margins.
Investors generally prefer companies with lower P.E. ratios. With its 6.09% P.E. Ratio, DANGSUGAR has the lowest ratio in the industry, making it even more attractive to potential investors.
DANGSUGAR Return on Equity (ROE)
DANGSUGAR has a return on equity of 29.82%. The food, beverages and, and tobacco industry’s median ROE is 0.97%. This implies that DANGSUGAR’s equity owners received higher returns on their equity than all industry peers except Nestle Nigeria Plc.
DANGSUGAR is arguably one of the best three companies in the food, beverages, and tobacco industry group of Nigerian public companies. It, comfortably, outshines most of its peers in the key ratios and statistics that investors like to see. If you are looking to invest in the Nigerian stock market and also have interests in food, beverages, and tobacco companies, DANGSUGAR should be on your watch-list.
Thank you once again for taking the time to visit our stock anatomy blog and also for reading this far. We are hopeful that the time invested in reading this piece has been worth it and that you are more comfortable making a better-informed decision when it comes to DANGSUGAR.
Taiwo Megbope is the Co-founder and Chief Growth Officer at Investor Hangout.
He is tasked with ensuring and managing the growth of the Investor Hangout project. His responsibilities include creating and implementing the project's vision as well as executing growth-generating strategies.
Taiwo is an avid researcher and autodidact. In his spare time, he enjoys spending time with his family and friends.