CAP

CAP is a high-quality Nigerian coatings and chemicals franchise demonstrating consistent earnings compounding — EPS has grown from ₦1.51 in FY2021 to ₦7.05 in FY2025, with 9M 2026 results (revenue ₦33.7bn, PBT ₦6.6bn, both +21% YoY) confirming the trajectory remains intact. The business earns an exceptional FY2025 ROE of ~38%, is well-capitalised (equity ₦15.1bn vs total assets ₦24.7bn implying minimal leverage), and generates a meaningful dividend yield of ~3.6%. However, at the current price of ₦110, the stock trades at approximately 15.6x trailing EPS — meaningfully above our blended fair-value estimate of ₦92.60 — leaving limited margin of safety for new positions despite the quality of the underlying franchise.

Verdict published 2026-10-29 · fundamentals through FY2025 · reviewed as the data changes