Valuation
37
SOVRENINS · Sovereign Trust Insurance Plc
Avoid Neutral Quality 1/5Distress proxy: 5.17 (Safe)
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Composite score
34.2
Tier: Avoid
Last close
₦2
As of latest snapshot
30-day ADV
₦13.6M
Liquidity signal
Market cap
₦27.89B
Financial Services
Financials
27
Technical
40
AI bottom line
Valuation is the dominant headwind: SOVRENINS trades at 116.5x P/E versus a 7.8x sector median while generating just 2.0% ROE against a 17.3% peer average, signaling the market is pricing in earnings that haven't materialized. Monitor whether management arrests the -8.2% cash burn margin and rebuilds profitability; sustained negative FCF with thin 0.7% net margins leaves minimal room for operational missteps.
Stock Snowflake 5-axis radar
Blue = SOVRENINS. Gold dash = Financial Services median. Bigger area = better across the five research dimensions.
What the model is seeing
- Trades at P/E 116.5x — about 1394% above the Financial Services median of 7.8x.
- ROE of 2.0% — well below sector median of 17.3%. Capital is underperforming.
- Below both 50-day (-17.0%) and 200-day (-33.7%) moving averages — sustained downtrend.
Risk flags
Moderate liquidity — 30d ADV ≈ ₦13.6M
Premium valuation — P/E 116.5x vs sector median 7.8x
Cash burn — FCF margin -8.2%
Price & trend
Close price with 50-day and 200-day moving averages, last 12 months.
Composite score history
How the model has rated this stock over the available history. Tier changes happen at 75 / 60 / 40.
Key metrics
Valuation
P/E ratio116.5x
P/B ratio1.8x
P/S ratio0.6x
EV/EBITDA34.7x
FCF yield-13.4%
Financials
ROE2.0%
ROA1.1%
Net margin0.7%
FCF margin-8.2%
Debt / Equity0.3x
Technical
Last close₦2
Above 50d MA-17.0%
Above 200d MA-33.7%
ADX (trend)52.0
RSI43.9
Dividend history 1 fiscal year shown
All amounts are gross of Nigeria's 10% withholding tax on dividends. Bonus ratios are 'new shares for shares held'.
Current yield: 1.50%
| FY | Interim DPS | Final DPS | Total cash | Bonus | Qualification | Payment |
|---|---|---|---|---|---|---|
| 2023 | ₦0.03 | — | ₦0.03 | — | — | 26 Sep 2024 |
Peers in Financial Services
Closest names by composite score within the same sector. Click a symbol to open its detail page.
| Symbol | Composite | P/E | P/B | ROE | Tier |
|---|---|---|---|---|---|
| LIVINGTRUST | 33.8 | 32.3x | 3.6x | 20.0% | Illiquid |
| REGALINS | 32.9 | 21.5x | — | — | Avoid |
| GUINEAINS | 36.0 | — | 1.6x | -2.5% | Avoid |
| UBA | 38.5 | 4.8x | 0.4x | 7.6% | Avoid |
| MANSARD | 40.2 | 1272.7x | 1.9x | 0.2% | Neutral |
| FIDELITYBK | 43.4 | 5.2x | 0.8x | 16.2% | Neutral |
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