Bank of Africa (BOA MC) Morocco
Financials
Following the stock’s 40% jump over the last three years, BOA has exhausted its upside, according to AlphaMena, whose valuation methods now flash red. The fruitful African expansion seems to be fully priced in and investors are looking for a new catalyst. Why not a new bold move by targeting the attractive and large Egyptian market? While BOA trades at a discount to the sector on both P/E (18%) and P/B (12%), this is warranted because of its low ROE and dividend yield (at 10% and 2.4% vs. 12.5% and 3.4% for its benchmark, respectively). BOA is fundamentally expensive amid an anticipated near-term reversal in monetary policy.
Edition: 182
- 22 March, 2024
United Bank of Africa (UBA NL) NL
Financials
Paul Hollingworth considers UBA to be an ideal candidate for a small GEM or Frontier Fund. A FV of 4%, PBV of 0.35x, Dividend Yield of 7.4%, Earnings Yield of 51.2% and a Total Return Ratio of 13x are derisory levels. UBA commands a PH Score™ of 10 (out of 10!) which captures value-quality trends. The fact that the bank also has a top decile VFM ranking globally (captures fundamental momentum, valuation, and technical indicators) only adds to Paul's bullishness.
Edition: 108
- 16 April, 2021