TOTAL reported a rise in its profit after tax of approximately 21%, from GHS 10.14 million in Q1-2017 to GHS 12.24 million in Q1-2018. The increase in profits reported for the period was driven by growth in revenues rising from GHS 464.21 million in Q1-2017 to GHS 530.45 million in Q1-2018. Its earnings per share increased from GHS 0.0906 in Q1-2017 to GHS 0.094 in Q1-2018. TOTAL’s return on equity for Q1-2018 stands at 5.01%.
The company’s inventory turnover ratio which indicates the number of times its stocks were sold and replaced increased from 5.7 in Q1-2017 to 6.1 in Q1-2018. The company’s ability to efficiently use its assets to generate revenues proxied by the total asset turnover ratio rose from GHS 0.70 in Q1-2017 to 0.79 in Q1-2018. Its times-interest-earned ratio which measures the company’s ability to cover obligations on debt stayed at 5.6. TOTAL’s current ratio which denotes the company’s ability to cover its short-term liabilities increased to 0.77 in Q1-2018 from 0.73 in Q1-2017.
In terms of share price performance, TOTAL has rewarded investors with a YTD return of 69.97%. It rewarded investors with a YTD return of 78.28% in 2017. TOTAL is also a dividend paying stock and has paid an interim dividend of GHS 0.0631 in 2017. The Board of TOTAL will be recommending a final dividend of GHS 0.07011 for the 2017 financial year. Trading above its book value per share of GHS 1.6, GN analysts remain confident that the share price of TOTAL will appreciate in the short to medium term anchored on growth in its profits for Q1-2018.
The composite index and the Financial Stock index nudged higher, rising to 3,485.83 and 3,204.09 to peg at a YTD return of 35.12% and 38.67% respectively. There were 4 gainers [ BOPP, EGH, UNIL & ETI] and 2 losers [EGL & CAL]. AGA topped the charts in terms of volume as 2,950,000 shares worth GHS 110,920,000 changed hands.
Trading activity on the Ghana Alternative Market was hushed as no shares changed hands.
On the Currency market, the Cedi appreciated marginally against the Euro but lost to the Dollar and the British pound at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.4086 to the USD, GHS 5.983 to the GBP and GHS 5.2566 to the EURO at week close. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date appreciation of 0.27%.
Story: GN Research