THE INITIATES PLC (TIP): STOCK ANALYSIS
COMPANY OVERVIEW:
The Initiates Plc (TIP) is a professional waste management company based in Port Harcourt, Nigeria. They provide waste management, industrial cleaning, and decontamination services to both private and public sectors. TIP is listed on the Nigerian Stock Exchange and has a multidisciplinary and flexible workforce with all relevant permits necessary for delivering their services. The Initiates is the 49th most traded stock on the Nigerian Stock Exchange over the past three months (May 3 - Aug 2, 2024). TIP has traded a total volume of 78.5 million shares—in 1,893 deals—valued at NGN 150 million over the period, with an average of 1.25 million traded shares per session. With a market cap of 1.94 Billion, the Initiates began the year with a share price of 1.15 NGN and It has returned 89.6% YTD ranging it the 10th Best Performing Stock on the NGX YTD. However, the market is competitive with other key players like Chanja Datti Ltd and WestAfricaENRG also vying for market share.
RECENT FINANCIALS
Q2 2024 Financial Statement:
- Revenue: ₦703.67 Million (2023: NGN 373.25M) which represent 88.52% increase over same period in 2023
- Gross Profit: ₦178.15 million(N153.94 Million reported in Q2 2023) showing a significant performance
- Net Profit: ₦89.39Milion naira as against the Profit of N81.43 million reported in Q2 2023.
- TIP posted a total revenue of NGN1,014.92 Billion (2023: N570.15M) which represent over
78.01% increase as at half year in 2023. This was due to the new contracts with Matpatson and Seplat new rig at Oben. A gross Profit of N 355.15 Million naira was reported for the period showing an amazing performance in comparison to half year in 2023: N233.13 Million. A Net
Profit before tax of N182.27 Million naira is also an improvement of the profit of N86.87 Million reported at June 30th 2023 by 109.81%
- Earnings Per Share (EPS): ₦0.07
- Current Stock Price: ₦2.15
As of the latest available data, analysts have a "Hold" rating on The Initiates Plc (TIP). This rating suggests that the stock is expected to perform at a level similar to the overall market. Here are some key points that might influence this rating:
FACTORS INFLUENCING THE "HOLD" RATING:
1. Steady Financial Performance: TIP has shown consistent revenue, eps, profit margins, which is a positive sign.
2. Market Competition: The waste management sector in Nigeria is competitive, with several other players vying for market share.
3. Growth Potential: While TIP has a strong market position, the growth potential may be moderate compared to more aggressive sectors.
DIVIDEND DECLARATION:
The Initiates Plc has a dividend yield of approximately 2.79%. Here are some details about their dividend policy:
- Recent Dividend: TIP declared a dividend of ₦0.06 per share, which was to be paid on July 25.
- Payout Ratio: The payout ratio is around 13%, indicating that the dividends are well-covered by earnings.
- Dividend Stability: While TIP has been paying dividends for the past seven years, the payments have been somewhat volatile.
SWOT ANALYSIS OF THE INITIATES PLC (TIP)
STRENGTHS:
- Established Market Presence: TIP has a strong foothold in the Nigerian waste management industry, particularly in industrial cleaning and decontamination services.
- Diverse Service Offerings: The company provides a wide range of services, including thermal desorption, onsite drilling waste management, waste incineration, and E-waste processing.
- Experienced Workforce: TIP boasts a multidisciplinary and flexible workforce with all relevant permits necessary for delivering their services.
COMPANY OVERVIEW:
The Initiates Plc (TIP) is a professional waste management company based in Port Harcourt, Nigeria. They provide waste management, industrial cleaning, and decontamination services to both private and public sectors. TIP is listed on the Nigerian Stock Exchange and has a multidisciplinary and flexible workforce with all relevant permits necessary for delivering their services. The Initiates is the 49th most traded stock on the Nigerian Stock Exchange over the past three months (May 3 - Aug 2, 2024). TIP has traded a total volume of 78.5 million shares—in 1,893 deals—valued at NGN 150 million over the period, with an average of 1.25 million traded shares per session. With a market cap of 1.94 Billion, the Initiates began the year with a share price of 1.15 NGN and It has returned 89.6% YTD ranging it the 10th Best Performing Stock on the NGX YTD. However, the market is competitive with other key players like Chanja Datti Ltd and WestAfricaENRG also vying for market share.
RECENT FINANCIALS
Q2 2024 Financial Statement:
- Revenue: ₦703.67 Million (2023: NGN 373.25M) which represent 88.52% increase over same period in 2023
- Gross Profit: ₦178.15 million(N153.94 Million reported in Q2 2023) showing a significant performance
- Net Profit: ₦89.39Milion naira as against the Profit of N81.43 million reported in Q2 2023.
- TIP posted a total revenue of NGN1,014.92 Billion (2023: N570.15M) which represent over
78.01% increase as at half year in 2023. This was due to the new contracts with Matpatson and Seplat new rig at Oben. A gross Profit of N 355.15 Million naira was reported for the period showing an amazing performance in comparison to half year in 2023: N233.13 Million. A Net
Profit before tax of N182.27 Million naira is also an improvement of the profit of N86.87 Million reported at June 30th 2023 by 109.81%
- Earnings Per Share (EPS): ₦0.07
- Current Stock Price: ₦2.15
As of the latest available data, analysts have a "Hold" rating on The Initiates Plc (TIP). This rating suggests that the stock is expected to perform at a level similar to the overall market. Here are some key points that might influence this rating:
FACTORS INFLUENCING THE "HOLD" RATING:
1. Steady Financial Performance: TIP has shown consistent revenue, eps, profit margins, which is a positive sign.
2. Market Competition: The waste management sector in Nigeria is competitive, with several other players vying for market share.
3. Growth Potential: While TIP has a strong market position, the growth potential may be moderate compared to more aggressive sectors.
DIVIDEND DECLARATION:
The Initiates Plc has a dividend yield of approximately 2.79%. Here are some details about their dividend policy:
- Recent Dividend: TIP declared a dividend of ₦0.06 per share, which was to be paid on July 25.
- Payout Ratio: The payout ratio is around 13%, indicating that the dividends are well-covered by earnings.
- Dividend Stability: While TIP has been paying dividends for the past seven years, the payments have been somewhat volatile.
SWOT ANALYSIS OF THE INITIATES PLC (TIP)
STRENGTHS:
- Established Market Presence: TIP has a strong foothold in the Nigerian waste management industry, particularly in industrial cleaning and decontamination services.
- Diverse Service Offerings: The company provides a wide range of services, including thermal desorption, onsite drilling waste management, waste incineration, and E-waste processing.
- Experienced Workforce: TIP boasts a multidisciplinary and flexible workforce with all relevant permits necessary for delivering their services.