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Dangote Cement

NGSE:DANGCEM
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DANGCEM
NGSE
NGN2,130B
Market Cap
  1. Home
  2. NG
  3. Materials
Company description

Dangote Cement Plc, together with its subsidiaries, manufactures and distributes cement and related products in Nigeria. The last earnings update was 40 days ago. More info.


Add to Portfolio Compare Print
  • Dangote Cement has significant price volatility in the past 3 months.
DANGCEM Share Price and Events
7 Day Returns
0.2%
NGSE:DANGCEM
-4.5%
Africa Basic Materials
-4.8%
NG Market
1 Year Returns
-36.9%
NGSE:DANGCEM
-27.1%
Africa Basic Materials
-36.8%
NG Market
DANGCEM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dangote Cement (DANGCEM) 0.2% -31.2% -22% -36.9% -28.9% -35%
Africa Basic Materials -4.5% -20.8% -20% -27.1% -38.4% -45.8%
NG Market -4.8% -21.7% -26.5% -36.8% -31.3% -50.6%
1 Year Return vs Industry and Market
  • DANGCEM underperformed the Basic Materials industry which returned -27.1% over the past year.
  • DANGCEM matched the Nigeria Market (-36.8%) over the past year.
Price Volatility
DANGCEM
Industry
5yr Volatility vs Market

DANGCEM Value

 Is Dangote Cement undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dangote Cement to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dangote Cement.

NGSE:DANGCEM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 24.3%
Perpetual Growth Rate 10-Year NG Government Bond Rate 12.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NGSE:DANGCEM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NG Govt Bond Rate 12.7%
Equity Risk Premium S&P Global 12.4%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.806 (1 + (1- 30%) (17.69%))
0.937
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 12.68% + (0.937 * 12.41%)
24.31%

Discounted Cash Flow Calculation for NGSE:DANGCEM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dangote Cement is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NGSE:DANGCEM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NGN, Millions) Source Present Value
Discounted (@ 24.31%)
2020 200,339.00 Analyst x1 161,164.48
2021 229,877.00 Analyst x1 148,765.83
2022 221,115.00 Analyst x1 115,114.41
2023 223,989.82 Est @ 1.3% 93,808.80
2024 234,548.93 Est @ 4.71% 79,022.83
2025 251,210.98 Est @ 7.1% 68,086.59
2026 273,259.04 Est @ 8.78% 59,580.12
2027 300,442.03 Est @ 9.95% 52,697.66
2028 332,791.79 Est @ 10.77% 46,957.72
2029 370,534.27 Est @ 11.34% 42,059.75
Present value of next 10 years cash flows NGN867,258.00
NGSE:DANGCEM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NGN370,534.27 × (1 + 12.68%) ÷ (24.31% – 12.68%)
NGN3,590,883.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NGN3,590,883.17 ÷ (1 + 24.31%)10
NGN407,605.05
NGSE:DANGCEM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NGN867,258.00 + NGN407,605.05
NGN1,274,863.05
Equity Value per Share
(NGN)
= Total value / Shares Outstanding
= NGN1,274,863.05 / 17,040.51
NGN74.81
NGSE:DANGCEM Discount to Share Price
Calculation Result
Value per share (NGN) From above. NGN74.81
Current discount Discount to share price of NGN117.00
= -1 x (NGN117.00 - NGN74.81) / NGN74.81
-56.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Dangote Cement is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dangote Cement's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dangote Cement's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NGSE:DANGCEM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in NGN NGN11.79
NGSE:DANGCEM Share Price ** NGSE (2020-04-06) in NGN NGN117
Africa Basic Materials Industry PE Ratio Median Figure of 14 Publicly-Listed Basic Materials Companies 13.23x
Nigeria Market PE Ratio Median Figure of 99 Publicly-Listed Companies 5.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dangote Cement.

NGSE:DANGCEM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NGSE:DANGCEM Share Price ÷ EPS (both in NGN)

= 117 ÷ 11.79

9.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dangote Cement is good value based on earnings compared to the Africa Basic Materials industry average.
  • Dangote Cement is overvalued based on earnings compared to the Nigeria market.
Price based on expected Growth
Does Dangote Cement's expected growth come at a high price?
Raw Data
NGSE:DANGCEM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
4.3%per year
Africa Basic Materials Industry PEG Ratio Median Figure of 7 Publicly-Listed Basic Materials Companies 0.37x
Nigeria Market PEG Ratio Median Figure of 24 Publicly-Listed Companies 0.48x

*Line of best fit is calculated by linear regression .

NGSE:DANGCEM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.92x ÷ 4.3%

2.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dangote Cement is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dangote Cement's assets?
Raw Data
NGSE:DANGCEM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in NGN NGN52.03
NGSE:DANGCEM Share Price * NGSE (2020-04-06) in NGN NGN117
Africa Basic Materials Industry PB Ratio Median Figure of 20 Publicly-Listed Basic Materials Companies 0.44x
Nigeria Market PB Ratio Median Figure of 128 Publicly-Listed Companies 0.59x
NGSE:DANGCEM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NGSE:DANGCEM Share Price ÷ Book Value per Share (both in NGN)

= 117 ÷ 52.03

2.25x

* Primary Listing of Dangote Cement.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dangote Cement is overvalued based on assets compared to the Africa Basic Materials industry average.
X
Value checks
We assess Dangote Cement's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. Dangote Cement has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DANGCEM Future Performance

 How is Dangote Cement expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dangote Cement expected to grow at an attractive rate?
  • Dangote Cement's earnings growth is positive but not above the low risk savings rate of 12.7%.
Growth vs Market Checks
  • Dangote Cement's earnings growth is positive but not above the Nigeria market average.
  • Dangote Cement's revenue growth is positive but not above the Nigeria market average.
Annual Growth Rates Comparison
Raw Data
NGSE:DANGCEM Future Growth Rates Data Sources
Data Point Source Value (per year)
NGSE:DANGCEM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 4.3%
NGSE:DANGCEM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2.4%
Africa Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
Africa Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Nigeria Market Earnings Growth Rate Market Cap Weighted Average 8.2%
Nigeria Market Revenue Growth Rate Market Cap Weighted Average 5.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NGSE:DANGCEM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in NGN Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NGSE:DANGCEM Future Estimates Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 994,209 256,842 1
2023-12-31 956,952 230,841 1
2022-12-31 967,520 364,955 215,271 4
2021-12-31 931,663 362,952 202,834 4
2020-12-31 905,556 344,977 205,833 5
2020-04-06
NGSE:DANGCEM Past Financials Data
Date (Data in NGN Millions) Revenue Cash Flow Net Income *
2019-12-31 891,671 426,115 200,935
2019-09-30 895,714 399,964 386,380
2019-06-30 886,504 392,388 395,956
2019-03-31 899,254 392,925 377,730
2018-12-31 901,213 375,348 388,983
2018-09-30 887,297 364,920 202,676
2018-06-30 875,345 396,860 201,330
2018-03-31 839,532 383,286 212,386
2017-12-31 805,582 345,375 198,585
2017-09-30 776,586 373,383 164,652
2017-06-30 735,588 302,553 153,068
2017-03-31 682,748 289,809 154,098

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dangote Cement's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • Dangote Cement's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NGSE:DANGCEM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Dangote Cement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NGSE:DANGCEM Future Estimates Data
Date (Data in NGN Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 11.05 11.05 11.05 1.00
2023-12-31 10.68 10.68 10.68 1.00
2022-12-31 13.34 16.68 10.30 3.00
2021-12-31 12.27 14.52 10.10 4.00
2020-12-31 12.24 12.76 11.20 4.00
2020-04-06
NGSE:DANGCEM Past Financials Data
Date (Data in NGN Millions) EPS *
2019-12-31 11.79
2019-09-30 22.67
2019-06-30 23.24
2019-03-31 22.17
2018-12-31 22.83
2018-09-30 11.89
2018-06-30 11.81
2018-03-31 12.46
2017-12-31 11.65
2017-09-30 9.66
2017-06-30 8.98
2017-03-31 9.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Dangote Cement is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Dangote Cement's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dangote Cement has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DANGCEM Past Performance

  How has Dangote Cement performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dangote Cement's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dangote Cement's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Dangote Cement's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Dangote Cement's 1-year earnings growth is negative, it can't be compared to the Africa Basic Materials industry average.
Earnings and Revenue History
Dangote Cement's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dangote Cement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NGSE:DANGCEM Past Revenue, Cash Flow and Net Income Data
Date (Data in NGN Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 891,671.00 200,935.00 213,061.00
2019-09-30 895,714.00 386,380.00 212,616.00
2019-06-30 886,504.00 395,956.00 205,965.00
2019-03-31 899,254.00 377,730.00 198,953.00
2018-12-31 901,213.00 388,983.00 187,538.00
2018-09-30 887,297.00 202,676.00 175,694.00
2018-06-30 875,345.00 201,330.00 167,950.00
2018-03-31 839,532.00 212,386.00 157,567.00
2017-12-31 805,582.00 198,585.00 153,927.00
2017-09-30 776,586.00 164,652.00 141,064.00
2017-06-30 735,588.00 153,068.00 136,102.00
2017-03-31 682,748.00 154,098.00 134,942.00
2016-12-31 615,103.00 149,536.00 119,572.00
2016-09-30 568,367.00 156,423.00 118,873.00
2016-06-30 541,701.00 168,154.00 102,948.00
2016-03-31 517,508.00 168,559.00 88,455.00
2015-12-31 491,725.00 184,994.00 83,641.00
2015-09-30 446,875.00 186,921.00 80,241.00
2015-06-30 424,945.00 187,698.00 75,094.00
2015-03-31 402,808.00 182,434.00 66,417.00
2014-12-31 391,639.00 160,578.00 63,416.00
2014-09-30 407,407.01 186,112.80 57,891.38
2014-06-30 396,622.92 190,019.18 62,475.53
2014-03-31 394,318.21 195,900.33 62,819.21
2013-12-31 386,177.22 201,912.29 59,024.29
2013-09-30 362,945.86 194,525.34 57,200.22
2013-06-30 354,908.35 181,435.14 44,660.52

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Dangote Cement has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Dangote Cement used its assets more efficiently than the Africa Basic Materials industry average last year based on Return on Assets.
  • Dangote Cement has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dangote Cement's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dangote Cement has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DANGCEM Health

 How is Dangote Cement's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dangote Cement's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dangote Cement's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Dangote Cement's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Dangote Cement's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dangote Cement Company Filings, last reported 3 months ago.

NGSE:DANGCEM Past Debt and Equity Data
Date (Data in NGN Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 897,937.00 367,910.00 123,904.00
2019-09-30 856,582.00 395,083.00 91,827.00
2019-06-30 831,241.00 416,519.00 93,063.00
2019-03-31 1,046,709.00 238,542.00 173,687.00
2018-12-31 986,613.00 345,853.00 166,904.00
2018-09-30 782,277.00 379,888.00 157,982.00
2018-06-30 727,873.00 436,432.00 199,267.00
2018-03-31 864,233.00 319,758.00 215,263.00
2017-12-31 781,360.00 387,677.00 168,397.00
2017-09-30 863,870.00 398,547.00 130,133.00
2017-06-30 822,688.00 432,569.00 110,573.00
2017-03-31 869,167.00 332,208.00 143,857.00
2016-12-31 725,528.00 372,775.00 115,693.00
2016-09-30 748,426.00 386,667.00 86,872.00
2016-06-30 680,236.00 348,633.00 49,058.00
2016-03-31 698,354.00 218,071.00 65,742.00
2015-12-31 644,720.00 255,604.00 40,792.00
2015-09-30 626,908.00 278,554.00 38,571.00
2015-06-30 612,712.00 309,202.00 51,629.00
2015-03-31 662,270.28 229,664.65 48,996.41
2014-12-31 591,885.00 249,205.00 20,593.00
2014-09-30 570,894.98 229,317.04 35,594.72
2014-06-30 527,031.76 236,225.37 36,203.29
2014-03-31 599,667.03 176,296.32 113,578.88
2013-12-31 550,093.27 181,139.78 70,501.58
2013-09-30 523,786.30 158,491.83 69,150.24
2013-06-30 475,314.34 161,597.60 48,702.56
  • Dangote Cement's level of debt (41%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42% vs 41% today).
  • Debt is well covered by operating cash flow (115.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).
X
Financial health checks
We assess Dangote Cement's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dangote Cement has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DANGCEM Dividends

 What is Dangote Cement's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
13.68%
Current annual income from Dangote Cement dividends. Estimated to be 8.62% next year.
If you bought NGN2,000 of Dangote Cement shares you are expected to receive NGN274 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dangote Cement's pays a higher dividend yield than the bottom 25% of dividend payers in Nigeria (5.08%).
  • Dangote Cement's dividend is above the markets top 25% of dividend payers in Nigeria (12.01%).
Upcoming dividend payment

Purchase Dangote Cement before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NGSE:DANGCEM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Africa Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 9.1%
Nigeria Market Average Dividend Yield Market Cap Weighted Average of 68 Stocks 11.3%
Nigeria Minimum Threshold Dividend Yield 10th Percentile 2.2%
Nigeria Bottom 25% Dividend Yield 25th Percentile 5.1%
Nigeria Top 25% Dividend Yield 75th Percentile 12%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NGSE:DANGCEM Future Dividends Estimate Data
Date (Data in NGN) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 10.54 3.00
2021-12-31 9.86 3.00
2020-12-31 9.84 3.00
2020-04-06
NGSE:DANGCEM Past Annualized Dividends Data
Date (Data in NGN) Dividend per share (annual) Avg. Yield (%)
2020-02-26 16.000 11.058
2019-02-27 16.000 9.619
2019-02-26 16.000 8.312
2018-03-20 10.500 4.904
2017-02-28 8.500 4.065
2016-03-01 8.000 4.661
2015-03-26 6.000 3.684
2014-03-26 7.000 3.556
2013-04-25 3.000 1.499
2012-04-05 1.136 0.929
2012-04-04 1.136 1.075
2011-03-23 4.091 3.959

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dangote Cement has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Dangote Cement only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Dangote Cement's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Dangote Cement's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dangote Cement afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dangote Cement has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DANGCEM Management

 What is the CEO of Dangote Cement's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michel Puchercos
AGE 62
TENURE AS CEO 0.2 years
CEO Bio

Mr. Michel Puchercos served as Chief Executive Officer, Group Managing Director and Director of Lafarge Africa Plc until January 2020. Mr. Puchercos serves as Group Chief Executive Officer and Director at Dangote Cement Plc since February 01, 2020. Mr. Puchercos served as the Chief Executive Officer of Halla Cement Corp. from January 01, 2009 to March 2016. Mr. Puchercos started his career in 1982 at the French Ministry of Agriculture, where he was head of two departments. He left the Ministry after seven years to other companies as General Manager and Executive Vice President in the Biochemistry and Food industry. He joined Lafarge as Head of Strategy and Head of Purchasing in Orsan, Lafarge Biochemistry and in 1998 became Director of Cement Strategy and Information Systems, Lafarge Gypsum. In 2003, he became the Director of Cement strategy, Lafarge Group in France. In 2005, he moved into cement operations as the Chief Executive Officer for Lafarge operations in Kenya and Uganda while doubling as the Chairman of Tanzania operations. While in this role, he was the Head of African Health as well as Supply Chain Management Committees for East and South-East Africa. After four years in Sub-Saharan Africa, Mr. Puchercos moved to Asia as the President and Chief Executive Officer of Lafarge South Korea, where he remained for seven years. He was also a Special Advisor to the Chairman at Aso Cement in Japan. Mr. Puchercos served as a Director of ASO CEMENT Co., Ltd. He served as a Director of Bamburi Cement Ltd. until August 7, 2008. A French national, Mr. Puchercos has worked in South Korea, Kenya and Uganda, Tanzania and France. Mr. Puchercos is a graduate of Ecole Polytechnique in 1976 and the Ecole Nationale du Genie Rural, des Eaux etdes Forets (National School of Rural Engineering, Waterways and Forests) in 1981. He speaks various languages including French, English, Korean, Spanish and Swahili.

CEO Compensation
  • Insufficient data for Michel to compare compensation growth.
  • Insufficient data for Michel to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure of the Dangote Cement management team in years:

1.3
Average Tenure
  • The average tenure for the Dangote Cement management team is less than 2 years, this suggests a new team.
Management Team

Michel Puchercos

TITLE
Group CEO & Director
AGE
62
TENURE
0.2 yrs

Guillaume Moyen

TITLE
Acting Group Chief Financial Officer
TENURE
1.1 yrs

Arvind Pathak

TITLE
Deputy Group MD
AGE
59
TENURE
2.3 yrs

Temilade Aduroja

TITLE
Head of Investor Relations
TENURE
0.2 yrs

Mahmud Kazaure

TITLE
Group Chief Legal Counsel & Company Secretary

Adeyemi Fajobi

TITLE
Group Chief Sales & Marketing Officer
TENURE
1.3 yrs

Musa Rabiu

TITLE
Group Chief Human Resources Officer
TENURE
3.1 yrs

Adenike Fajemirokun

TITLE
Group Chief Risk Officer

Juan-Carlos Rincon

TITLE
Head of Transport
TENURE
3.4 yrs

Massimo Bettanin

TITLE
Group Chief of Health
Board of Directors Tenure

Average tenure and age of the Dangote Cement board of directors in years:

10.5
Average Tenure
62
Average Age
  • The average tenure for the Dangote Cement board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Aliko Dangote

TITLE
Chairman of the Board
COMPENSATION
NGN48M
AGE
62

Michel Puchercos

TITLE
Group CEO & Director
AGE
62
TENURE
0.2 yrs

Arvind Pathak

TITLE
Deputy Group MD
AGE
59

Ernest Ebi

TITLE
Independent Non-Executive Director
COMPENSATION
NGN55M
TENURE
6.3 yrs

Emmanuel Ikazoboh

TITLE
Independent Non-Executive Director
COMPENSATION
NGN54M
AGE
70
TENURE
6.3 yrs

Devakumar Victor Edwin

TITLE
Non Executive Director
COMPENSATION
NGN52M
TENURE
14.8 yrs

Sani Dangote

TITLE
Non Executive Director
COMPENSATION
NGN50M
TENURE
14.8 yrs

Olakunle Alake

TITLE
Non Executive Director
COMPENSATION
NGN51M
TENURE
14.8 yrs

Abdu Dantata

TITLE
Non-Executive Director
COMPENSATION
NGN49M
TENURE
14.8 yrs

Douraid Zaghouani

TITLE
Non-Executive Director
COMPENSATION
NGN49M
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NGN) Value (NGN)
X
Management checks
We assess Dangote Cement's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dangote Cement has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DANGCEM News

Simply Wall St News

DANGCEM Company Info

Description

Dangote Cement Plc, together with its subsidiaries, manufactures and distributes cement and related products in Nigeria. It operates through two segments, Nigeria and Pan Africa. The company also engages in bagging and distribution of cement; limestone mining; coal production; and property investment activities. It has operations in Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania, Zambia, and internationally. The company was formerly known as Obajana Cement Plc and changed its name to Dangote Cement Plc in July 2010. The company was incorporated in 1992 and is headquartered in Lagos, Nigeria. Dangote Cement Plc is a subsidiary of Dangote Industries Limited.

Details
Name: Dangote Cement Plc
DANGCEM
Exchange: NGSE
Founded: 1992
NGN2,130,063,425,625
17,040,507,405
Website: http://www.dangotecement.com
Address: Dangote Cement Plc
Union Marble House,
1 Alfred Rewane Road,
Lagos,
Nigeria
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NGSE DANGCEM Ordinary Shares Nigerian Stock Exchange NG NGN 27. Oct 2010
Number of employees
Current staff
Staff numbers
16,245
Dangote Cement employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 18:08
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.