STOCK ANALYSIS

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Olori Uwem

Member
Mar 18, 2024
385
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JULIUS BERGER NIGERIA PLC

OVERVIEW:
- Julius Berger Nigeria Plc is a construction company engaged in planning and constructing various civil engineering works in Nigeria and Europe.
- Founded in 1965, it operates through segments such as Civil Works, Building Works, Services, and Diversification.
- The company has a strong presence in the Nigerian construction industry.

2. Financials Summary:
- Market Cap: Approximately ₦115.8 billion.
- Price-to-Earnings (P/E) Ratio: 5.7x (below the Nigerian market average of 7.5x).
- Earnings Growth: Earnings grew by an impressive 216% over the past year.
- Dividends: The company has a stable dividend track record.

3. Profit Margins:
Gross Margin:
- The gross margin represents the percentage of revenue retained after deducting the cost of goods sold (COGS).
- For Julius Berger, the gross margin is approximately 30%.

Operating Margin:
- The operating margin indicates the percentage of operating income relative to revenue.
- Julius Berger's operating margin stands at approximately 6.5%.

Net Margin:
- The net margin reflects the percentage of net income relative to revenue.
- Julius Berger's net margin is approximately 4.2%.

4. Market Position:
- Julius Berger is a prominent player in the Nigerian construction industry.
- Its reputation for quality work and timely project delivery contributes to its market position.

5. Risk Analysis:
- Market Cap: The company's market cap is approximately ₦116 billion, which may be considered small.
- Unstable Dividend Track Record: As an Investor, please be aware of the company's dividend history.

6. Technical Analysis:
- Price Volatility: The share price has been volatile over the past 3 months.
- Weekly Volatility: Weekly volatility has been stable at 9% over the past year.

7. Dividend Declaration:
- The company recently declared a dividend of ₦3.00 per share.

Always consult with a financial advisor before making investment choices.