Honeywell Flour vs Northern Nigeria Flour in 2025: Which inventory is cheaper? 

Honeywell FlourMills Plc and Northern Flour Mills Plc are among the many gamers within the NGX shopper items sector, particularly throughout the meals merchandise subsector.

Their share costs have been on spectacular rallies to this point this 12 months.

Honeywell shares have gained 265% year-to-date topping the patron items sector as of October 8, 2025, following an 89.76% acquire final 12 months.

Northern Flour Mills shares, then again, have appreciated by 113% year-to-date, after posting a 3.52% loss in 2024.

Whereas each shares have rewarded buyers handsomely, the important thing query now could be whether or not these rallies are supported by fundamentals and, extra importantly, which of the 2 affords higher worth and future upside.

An evaluation of the monetary efficiency and valuation of each corporations offers perception into their operational power and funding potential.

Monetary efficiency  

Honeywell Flour Mills and Northern Nigeria Flour Mills (NNFM) current contrasting narratives of consistency and restoration when reviewing their income and revenue trajectories.

Income efficiency
Honeywell Flour has maintained stable top-line development over the previous 5 years (2021–2025), accumulating N955 billion in income at a compound annual development fee (CAGR) of 36%.

• Nevertheless, in Q1 2026 (ended June 30, 2025), income declined by 16% YoY to N67.49 billion, representing about 18% of its 2025 monetary 12 months income.
• Notably, income from the Sagamu facility declined, whereas the Apapa facility continued to drive gross sales.

In distinction, Northern Nigeria Flour has proven stronger long-term income momentum.

• Although its five-year cumulative income was smaller at N101.41 billion, it recorded a sooner CAGR of 42%.
• Like Honeywell, NNFM’s Q1 income contracted; down 24% YoY to N6.82 billion, roughly 19% of its 2025 full-year income.
• Its gross sales stay pushed largely by wheat and maize merchandise.

Profitability pattern 

Revenue efficiency highlights the divergence between each companies.

Honeywell skilled volatility, with losses in 2022 and 2024 resulting in a cumulative lack of N3.91 billion over 5 years.

The corporate rebounded in FY 2025, posting N14.56 billion revenue after tax, the best in 5 years.

It sustained this restoration in Q1, rising revenue by 97% YoY to N2.6 billion, about 18% of its 2025 full-year revenue.

Northern Nigeria Flour, then again, has maintained a document of constant profitability, albeit at smaller volumes.

• Over 5 years, it generated a cumulative N3.69 billion revenue, reflecting a CAGR of 123%.

• Q1 2026 revenue fell 15% YoY to N296 million, pressured by rising overhead prices.

Total, each corporations reported related Q1 2026 revenue margins of roughly 4%.

Honeywell’s N67.5 billion income translated to a 4% web margin, whereas NNFM’s N6.8 billion income produced a comparable margin.

The modest, margin suggests the flour milling enterprise as a low-margin, high-volume trade,

Since each function at related margins, buyers would look past profitability ratios towards valuation and steadiness sheet power to determine which inventory affords higher worth or long-term upside.

Stability sheet  

The steadiness sheet highlights key variations in capital construction, asset composition, and shareholder worth.

Honeywell Flour Mills reported complete property of N180.66 billion as of June 30, 2025, pushed by inventories (N47 billion) and commerce receivables (N31.4 billion).

• Whole shareholders’ funds stood at N40.24 billion, representing about 22% of complete property, implying an asset-to-equity ratio of roughly 4.5x.
• Whole debt amounted to N25.33 billion, about 14% of complete property, indicating a reasonably leveraged steadiness sheet.

In distinction, Northern Nigeria Flour’s complete property expanded by 28% inside three months to N39 billion.

• Shareholders’ funds accounted for N9.94 billion, or about 25% of complete property, reflecting a conservative capital base.
• Notably, the corporate maintained a zero-debt place as of June 30, 2025.

Honeywell reveals stronger asset scale and development leverage, which may amplify returns in worthwhile years however could expose it to short-term liquidity or interest-rate dangers if debt prices rise.

Northern Nigeria Flour stands out for its low-risk steadiness sheet. Its debt-free steadiness sheet would possibly restrict development scalability.

Valuation  

Honeywell Flour Mills is at present valued at N182 billion on the inventory market, nearly equal to its complete property however a lot larger than its web property of N40 billion.

• The share value of N23 offers it a price-to-earnings (P/E) ratio of 10.7x, that means buyers are paying N10.7 for each N1 of revenue.
• In comparison with its income, it trades at a price-to-sales (P/S) ratio of 0.40x, displaying the inventory priced relative to its measurement.

Northern Nigeria Flour Mills, then again, has a smaller market capitalization of N16.7 billion beneath its complete property however above its web property of N9.94 billion.

• At a share value of N93.65, it trades at a P/E ratio of 9.86x, barely cheaper than Honeywell’s 10.7x.
• It additionally trades at 1.7x for its ebook worth and 0.5x for its gross sales, displaying a modest valuation in comparison with its income measurement.
• Its revenue development over the previous 5 years has been robust, averaging 90% per 12 months.

Which is healthier valued? 
Each corporations have grown effectively.

Northern Nigeria Flour Mills is the cheaper inventory primarily based on valuation metrics, buying and selling at decrease price-to-earnings and price-to-sales ratios, with a debt-free steadiness sheet that displays robust monetary self-discipline.

Nevertheless, Honeywell Flour Mills justifies its larger valuation in all probability primarily based on its bigger scale, stronger model, earnings restoration and development.