HONYFLOUR

Honeywell Flour Mills has executed a sharp operational turnaround, swinging from three consecutive years of losses (FY2022–FY2024 EPS all negative) to a filing-derived EPS of ₦2.08 in FY2026, underpinned by a 27% ROE and a Q1-2026 revenue run-rate of ₦112.9bn. At ₦17.00, the stock trades at a deeply discounted 8.2x trailing P/E against a peer-median of 17.9x and at only 2.2x book versus a sector median of 5.65x, implying ~130% upside to the blended base fair value of ₦39.09 — a dislocation the committee's rules-based scorecard also flags as 'positive' on value. The core thesis is that the market has not yet fully re-rated the company's restored earnings power following what appears to be a structural improvement in operating leverage and balance-sheet equity (BVPS of ₦7.68).

Verdict published 2026-09-05 · fundamentals through Q1-2026 · reviewed as the data changes