United Capital Plc continues to current an intriguing story on the NGX. This inventory has been comparatively bearish in market valuation but stays remarkably bullish by way of monetary efficiency.
Over the previous 5 years (2020–2024), the corporate has delivered a compound annual development charge (CAGR) of 63% in revenue, accumulating N56.43 billion.
Its 2024 efficiency alone noticed revenue development of over 111%, and the momentum has carried into 2025.
- For the primary half of this yr, United Capital posted a 54% year-on-year rise in revenue after tax to N11.9 billion, whereas earnings per share (EPS) climbed 53.5% YoY.
- Gross earnings surged 57% to N23.76 billion, with charges and fee revenue driving over 64% of the highest line in Q2.
- Working revenue rose to N6.5 billion, supported by each sturdy income development and a extra contained expense profile.
Group CEO, Peter Ashade, summed it up: “United Capital Plc ended the primary half of the yr on a powerful and optimistic observe, persevering with our observe report of excellence and robust monetary efficiency… regardless of the prevailing macroeconomic challenges and market volatility.”
But, the inventory value tells a distinct story.
- United Capital started the yr at N20.40 per share however has since misplaced 8.33% of that worth, rating it 137th on the NGX in year-to-date efficiency.
- In 2024, the share value additionally declined by 11%.
- Despite the fact that the inventory has delivered a outstanding run over the long term, rising from simply N0.80 in 2020 to N20.40 in 2024, its current trajectory displays muted sentiment.
The distinction between stellar financials and a cautious market raises the query of whether or not the market is undervaluing United Capital’s development story or if traders are merely taking a wait-and-see strategy.
What’s valuation saying?
United Capital trades at a price-to-earnings (P/E) ratio of 11.91x, with a market capitalization of N337 billion in comparison with internet property of N166.9 billion and complete property of N1.586 trillion.
Its price-to-sales (P/S) ratio stands at 1.40x.
When set in opposition to its historic revenue development, a five-year CAGR of 63% and a 53% year-on-year rise in H1 2025, the inventory’s PEG ratio falls between 0.19 and 0.22, effectively beneath the benchmark of 1.
This implies that United Capital could also be considerably undervalued relative to its earnings development potential.
The query now’s whether or not the market will ultimately acknowledge this development trajectory and re-rate the inventory accordingly or proceed to miss one of many NGX’s most constant revenue tales.
On the steadiness sheet, the rise in managed funds to N923 billion from N847 billion reveals UCAP continues to be profitable investor belief, which is the lifeblood of its enterprise.
On the flip aspect, money stream tells a distinct story.
UCAP reported a adverse working money stream of N119 billion in H1 2025, largely from a working capital deficit.
For a enterprise constructed round fund mobilization, that type of swing could make traders nervous, even when income are sturdy.
In the meantime, shareholders should not overlooked; the group paid an interim dividend of N0.30 per share for H1 2025, representing a forty five% payout ratio.
It’s a wholesome sign of dedication to traders, although whether or not it’s sufficient to offset considerations round liquidity and market sentiment is one other matter.
Total, United Capital Plc is displaying traders a curious disconnect; income are surging, valuations look engaging, however the share value stays subdued.
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