SCOA Nigeria Plc has captured the market’s attention, soaring 437% in 2026.
From ₦7.10 in January to ₦38.15 by February, the stock stunned investors.
Market Sensation
Meanwhile, it ranks as the second-best performing on the Exchange, behind Zichis Agro-Allied Industries Plc.
An investor who bought ₦1 million in January 2025 now holds ₦18.52 million.
In other words, ₦1 million multiplied over 18 times in just over a year—a rare feat in any market.
However, questions loom.
Does trading activity or fundamentals justify this meteoric surge?
SCOA Trading Patterns
Trading data shows limited activity.
Between January and February, investors exchanged only 8.81 million shares, about 6.6% of the free float.
Consequently, average daily turnover accounted for just 0.16% of the float, suggesting the price raced ahead of actual trading.
Additionally, several consecutive limit-up sessions with identical open, high, low, and close prices indicate supply constraints rather than broad institutional accumulation.
Fundamentals And Valuation
Fundamentally, SCOA continues its recovery.
Revenue rose 41% in 2025 to ₦8.36 billion, while profits more than doubled to ₦477.9 million.
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Earnings per share have compounded over 48% annually since 2021, signalling steady growth.
Yet, challenges remain.
The company recorded negative operating cash flow of ₦8.69 billion, while receivables and inventory expanded sharply.
Furthermore, interest-bearing debt climbed 230% to ₦11.89 billion.
Valuation now demands caution.
SCOA trades at nearly 80 times trailing earnings and three times sales.
Meanwhile, its PEG ratio of 1.66 suggests that much of the expected growth already reflects in the current price.
Profit must reach between ₦1.2 billion and ₦1.6 billion in 2026 to justify current valuation multiples.
Even then, a 30x multiple requires over 70% earnings growth, putting pressure on future performance.
The balance sheet also warrants attention.
Current assets rose sharply, debt increased dramatically, and operating cash flow remained negative.
Ultimately, SCOA’s story combines rapid gains, recovery, and speculation.
Investors must exercise caution.
Smaller and mid-cap stocks continue attracting attention, but careful analysis of fundamentals, trading, and valuation remains essential for disciplined investment.
