NEM
Investo's verdict, shared with you
NEM Insurance Plc is a high-quality Nigerian insurer generating a compelling ROE of 25–31% on a growing book value (BVPS ₦18.85, up from ₦16.84 in FY2025), with EPS of ₦4.80 and a 5.4% dividend yield providing durable income. However, at ₦28 the stock trades at 1.49x P/B and 5.83x P/E — materially above our blended fair value of ₦22.27, implying roughly 20% downside to intrinsic value even under constructive assumptions. We rate NEM a HOLD: the franchise quality is real and earns its premium over weak peers, but current pricing already reflects the earnings power, leaving limited margin of safety for new buyers.
Verdict published 2026-10-26 · fundamentals through FY2025 · reviewed as the data changes
Verdict moderated to Hold — Avoid was refused
Committee scores Value POSITIVE (overall constructive); an "avoid" against our own committee is not publishable without a re-derivation.
Published with 1 open flag · confidence downgraded
Our own committee reads this differently
Our rules-based factor scorecard scores this company's Value factor the opposite way to our fair value. Both cannot be right, so neither is presented as settled.
Committee scores Value POSITIVE (constructive) but our base fair value implies -20.5% downside.
Source: NGX live market data · Investo intelligence. Educational only — not financial advice.