The Initiates Plc (TIP): A Rising Star in Waste Management?
Stock Analysis & Performance Overview
The Initiates Plc (TIP) is a Nigerian indigenous company that delivers international-standard waste management, industrial cleaning, and decontamination services to both public and private sectors, including the oil and gas industry. Listed on the Nigerian Stock Exchange (NGX) since October 25, 2016, TIP operates under the ticker symbol “TIP”, with an International Securities Identification Number (ISIN): NGINITSPLC05.
Currently, TIP is the 116th most valuable stock on the NGX, with a market capitalization of NGN 3.27 billion, making up 0.0049% of the total equity market. With 890 million shares outstanding, TIP has established itself as a key player in Nigeria’s waste management industry.
Stock Performance & Market Activity
The Initiates Plc is currently trading at NGN 3.67 per share as of February 26, 2025, after an 8% drop from its previous closing price of NGN 3.99. Despite this short-term decline, TIP has delivered a remarkable 46.8% year-to-date (YTD) gain, ranking 15th on the NGX in terms of performance. In the past four weeks alone, the stock has gained 29%, making it the 14th best performer on the exchange.
Over the last three months (Nov 27, 2024 - Feb 26, 2025), TIP has remained active on the NGX, ranking as the 63rd most traded stock. During this period, 80.6 million shares were exchanged across 2,142 deals, valued at NGN 258 million. The stock had its highest trading volume on January 31, 2025, with 5.9 million shares traded, while its lowest volume was recorded on December 19, 2024, at 33,715 shares.
Investors tracking TIP’s price movements should note that its 52-week low stands at NGN 1.62, while its 52-week high reached NGN 4.45.
Financial Performance (Q4 2024)
TIP reported strong financial results in Q4 2024, showing robust revenue growth and profitability. The company generated total revenue of NGN 2.01 billion, with a gross profit of NGN 775.06 million. Operating income stood at NGN 707.33 million, while pre-tax income was NGN 694.24 million. After-tax net income amounted to NGN 470.35 million, translating into earnings per share (EPS) of NGN 0.53.
In terms of assets and liabilities, TIP recorded total assets of NGN 5.21 billion, with total liabilities of NGN 2.82 billion, indicating a strong financial position.
Dividend & Revenue Breakdown
TIP pays annual dividends, with the most recent dividend per share at NGN 0.06. The last ex-dividend date was July 8, 2024, while the payment date was July 26, 2024. With a dividend yield of 1.5%, TIP offers investors a modest but consistent income stream.
Looking at revenue sources, TIP’s greatest contribution comes from Nigeria, which generated NGN 1.85 billion in revenue last year, compared to NGN 841.47 million in the previous year—an impressive year-over-year growth.
The company’s diverse services include:
• Waste Management Services
• Industrial Cleaning Services
• Thermal Desorption Unit
• Incineration
• Waste Treatment and Disposal
• Fixation and Stabilization
• E-Waste Services
• Equipment Supply
Technical Outlook & Investment Potential
Market sentiment remains bullish on TIP, with analysts rating it a strong buy. Investors looking for growth stocks in Nigeria’s waste management sector should keep an eye on this company.
The stock has experienced strong momentum in recent months, reflecting increasing investor confidence. Despite the recent 8% price dip, TIP’s long-term growth trajectory remains intact, with a 46.8% YTD return signaling strong upward momentum.
Key Takeaways for Investors
✅ Strong Growth Potential: The increasing demand for waste management services in Nigeria positions TIP for sustained growth.
✅ Market Positioning: The company’s strategic focus on industrial and hazardous waste management in partnership with major oil and gas players enhances its revenue stability.
✅ Consistent Trading Volume: TIP remains actively traded, making it a liquid stock for investors looking for easy entry and exit.
✅ Dividend Payout: While the 1.5% yield is modest, it offers an additional income stream for investors.
⚠️ Risks to Consider
❗ Market Volatility: The recent 8% drop in share price highlights short-term fluctuations that investors should monitor.
❗ Regulatory Risks: Government policies on waste management and environmental protection could impact TIP’s operations and profitability.
❗ Competition: The Nigerian waste management sector is highly competitive, with both local and international players vying for market share.
Final Verdict: Is TIP Worth Investing In?
With impressive year-to-date performance, strong revenue growth, and increasing investor interest, The Initiates Plc (TIP) presents a compelling investment opportunity in Nigeria’s waste management sector. While short-term price fluctuations may occur, the company’s fundamentals remain solid, making it a stock to watch for both growth and dividend investors.
Would you consider adding TIP to your portfolio? Let’s discuss!
Stock Analysis & Performance Overview
The Initiates Plc (TIP) is a Nigerian indigenous company that delivers international-standard waste management, industrial cleaning, and decontamination services to both public and private sectors, including the oil and gas industry. Listed on the Nigerian Stock Exchange (NGX) since October 25, 2016, TIP operates under the ticker symbol “TIP”, with an International Securities Identification Number (ISIN): NGINITSPLC05.
Currently, TIP is the 116th most valuable stock on the NGX, with a market capitalization of NGN 3.27 billion, making up 0.0049% of the total equity market. With 890 million shares outstanding, TIP has established itself as a key player in Nigeria’s waste management industry.
Stock Performance & Market Activity
The Initiates Plc is currently trading at NGN 3.67 per share as of February 26, 2025, after an 8% drop from its previous closing price of NGN 3.99. Despite this short-term decline, TIP has delivered a remarkable 46.8% year-to-date (YTD) gain, ranking 15th on the NGX in terms of performance. In the past four weeks alone, the stock has gained 29%, making it the 14th best performer on the exchange.
Over the last three months (Nov 27, 2024 - Feb 26, 2025), TIP has remained active on the NGX, ranking as the 63rd most traded stock. During this period, 80.6 million shares were exchanged across 2,142 deals, valued at NGN 258 million. The stock had its highest trading volume on January 31, 2025, with 5.9 million shares traded, while its lowest volume was recorded on December 19, 2024, at 33,715 shares.
Investors tracking TIP’s price movements should note that its 52-week low stands at NGN 1.62, while its 52-week high reached NGN 4.45.
Financial Performance (Q4 2024)
TIP reported strong financial results in Q4 2024, showing robust revenue growth and profitability. The company generated total revenue of NGN 2.01 billion, with a gross profit of NGN 775.06 million. Operating income stood at NGN 707.33 million, while pre-tax income was NGN 694.24 million. After-tax net income amounted to NGN 470.35 million, translating into earnings per share (EPS) of NGN 0.53.
In terms of assets and liabilities, TIP recorded total assets of NGN 5.21 billion, with total liabilities of NGN 2.82 billion, indicating a strong financial position.
Dividend & Revenue Breakdown
TIP pays annual dividends, with the most recent dividend per share at NGN 0.06. The last ex-dividend date was July 8, 2024, while the payment date was July 26, 2024. With a dividend yield of 1.5%, TIP offers investors a modest but consistent income stream.
Looking at revenue sources, TIP’s greatest contribution comes from Nigeria, which generated NGN 1.85 billion in revenue last year, compared to NGN 841.47 million in the previous year—an impressive year-over-year growth.
The company’s diverse services include:
• Waste Management Services
• Industrial Cleaning Services
• Thermal Desorption Unit
• Incineration
• Waste Treatment and Disposal
• Fixation and Stabilization
• E-Waste Services
• Equipment Supply
Technical Outlook & Investment Potential
Market sentiment remains bullish on TIP, with analysts rating it a strong buy. Investors looking for growth stocks in Nigeria’s waste management sector should keep an eye on this company.
The stock has experienced strong momentum in recent months, reflecting increasing investor confidence. Despite the recent 8% price dip, TIP’s long-term growth trajectory remains intact, with a 46.8% YTD return signaling strong upward momentum.
Key Takeaways for Investors
✅ Strong Growth Potential: The increasing demand for waste management services in Nigeria positions TIP for sustained growth.
✅ Market Positioning: The company’s strategic focus on industrial and hazardous waste management in partnership with major oil and gas players enhances its revenue stability.
✅ Consistent Trading Volume: TIP remains actively traded, making it a liquid stock for investors looking for easy entry and exit.
✅ Dividend Payout: While the 1.5% yield is modest, it offers an additional income stream for investors.
⚠️ Risks to Consider
❗ Market Volatility: The recent 8% drop in share price highlights short-term fluctuations that investors should monitor.
❗ Regulatory Risks: Government policies on waste management and environmental protection could impact TIP’s operations and profitability.
❗ Competition: The Nigerian waste management sector is highly competitive, with both local and international players vying for market share.
Final Verdict: Is TIP Worth Investing In?
With impressive year-to-date performance, strong revenue growth, and increasing investor interest, The Initiates Plc (TIP) presents a compelling investment opportunity in Nigeria’s waste management sector. While short-term price fluctuations may occur, the company’s fundamentals remain solid, making it a stock to watch for both growth and dividend investors.
Would you consider adding TIP to your portfolio? Let’s discuss!
