{
  "id": 4431707,
  "title": "Dangote Sugar, 28% below its high, trades at 493x. Is it cheap?",
  "url": "https://urgent.news/2026/08/30/dangote-sugar-28-below-its-high-trades-at-493x-is-it-cheap",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-30T13:42:46.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/08/30/dangote-sugar-28-below-its-high-trades-at-493x-is-it-cheap/"
  },
  "original_language": "en",
  "account": "Dangote Sugar Refinery Plc stock traded at N69 per share on August 28, 2026, which is 28% lower than its 52-week high of N95.80. The stock's earnings per share (EPS) are just N0.14, meaning investors are paying approximately 493 times the company's earnings over the past 12 months. Typically, a high price-to-earnings (P/E) ratio suggests a stock is expensive, but this does not always mean it is a bad investment. Investors might be willing to pay a high multiple if they anticipate the company's earnings to grow rapidly in the future. Dangote Sugar's P/E ratio is currently high, but its earnings have been significantly impacted by losses in previous years. The company made profits of N22.1 billion in 2021 and N54.7 billion in 2022, but slipped into losses in 2023, 2024, and 2025, accumulating a total of N330 billion in losses. Despite these losses, Dangote Sugar still generated operating profit in 2023 (N72.7 billion) before suffering losses due to net finance costs, mostly from foreign exchange losses. The company's recovery in H1 2026, with a profit of N41.5 billion, provides a glimpse into its potential future earnings. However, the P/E ratio is based on past earnings, so it is essential to assess whether the H1 2026 recovery can continue. Dangote Sugar's management is cautiously optimistic about its financial performance in 2026, and the company aims to produce 1.5 million tonnes of refined sugar annually from locally grown sugarcane. So far, the company has managed to reduce its exchange losses and finance costs, which is encouraging. However, the recovery may take several quarters to fully materialize, making the current stock price less appealing than it might seem based on the P/E ratio alone.",
  "summary": "Dangote Sugar Refinery Plc stock closed at N69 as of August 28, 2026, about 28% below its 52-week high of N95.80. For some stocks, a decline of that size leaves them cheaper The post Dangote Sugar, 28% below its high, trades at 493x. Is it cheap? appeared first on Nairametrics .",
  "key_points": [
    "Dangote Sugar Refinery stock at N69 per share, 28% below 52-week high of N95.80",
    "EPS of N0.14, investors paying 493 times past 12 months earnings",
    "Company made profits in 2021 and 2022, but accumulated N330 billion losses from 2023-2025"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}