NSE Alpha

New Analysis

Inputs from the half-year or annual report. All KES amounts in raw units (not millions).

Basic Information

Fundamental Inputs

Earnings per share — company profit allocated per share. Range: positive and growing is good; negative or falling year-on-year is bad.

Range guide Good: Positive & growing Average: Positive but flat Bad: Negative or falling

EPS from the prior period (full year vs full year). Range: if current EPS is higher than this, the company is growing earnings.

Range guide Good: Positive & growing Average: Positive but flat Bad: Negative or falling

Total income from sales before any costs. Range: higher than the previous year is good; shrinking revenue is a red flag.

Range guide Good: Higher than previous period Average: Within ±10% of previous Bad: Falling sharply

Revenue from the previous period. Range: compare to current revenue — steady growth is good.

Range guide Good: Higher than previous period Average: Within ±10% of previous Bad: Falling sharply

Total money the company owes (short + long term). Range: a Debt-to-Equity ratio below 0.5 is good; 0.5–1.5 is average; above 1.5 is risky.

Range guide Good: D/E < 0.5 Average: D/E 0.5–1.5 Bad: D/E > 1.5

Net worth of the company — assets minus liabilities. Range: positive and growing is good; falling equity means the company is getting poorer.

Range guide Good: Positive & growing Average: Positive but flat Bad: Negative or shrinking

Cash generated from core operations. Range: positive and ideally close to or above net income is good; negative OCF is a warning.

Range guide Good: Positive & ≥ net income Average: Positive but < net income Bad: Negative

Money spent on long-term assets like buildings, machines. Range: should be less than operating cash flow; too much capex can drain cash.

Range guide Good: Less than OCF Average: Roughly equals OCF Bad: Much higher than OCF

Profit after all expenses and taxes. Range: net profit margin of 10–20% is healthy; below 5% is thin; negative means losses.

Range guide Good: 10–20% net margin Average: 5–10% Bad: <5% or negative

Cash paid per share to shareholders. Range: a dividend yield of 3–6% is good; 0–2% is low; above 10% may be unsustainable.

Range guide Good: 3–6% yield Average: 1–3% Bad: 0% or >10%

Industry P/E is the average Price-to-Earnings ratio of comparable listed companies in the same NSE sector (e.g. banking, telecoms, manufacturing). It acts as a benchmark: a stock priced well below the sector average may be relatively undervalued; well above, relatively expensive. Range: NSE sector averages usually sit between 5 and 15. Data source: sector averages are aggregated from the NSE Daily Price List, CMA Kenya Quarterly Statistical Bulletins, and broker research notes (AIB-AXYS, Faida, Sterling, Genghis, Mwango Capital). The reference benchmark is refreshed weekly (every Monday after market close) and updated intra-week if a constituent reports new audited earnings.

Range guide Good: 5–10 for NSE Average: 10–15 Bad: <5 or >20