SCOA Nigeria surges 437% YTD but valuation concerns grow

SCOA Nigeria Plc shares surged 437% year-to-date, rising from N7.10 to N38.15 by February 2026. The stock ranks second among best-performing Exchange stocks, with a 22% gain in February alone. However, the valuation appears stretched at 80x trailing earnings and 3x sales, up from 15x at year-end 2025. While revenue grew 41% YoY to N8.36 billion in 2025, the company reported negative operating cash flow of N8.69 billion and sharply rising debt. Trading data shows modest volume (6.6% of float) despite the rally, with multiple limit-up sessions suggesting supply constraints rather than institutional accumulation. The stock's fundamentals support a recovery story but not the current premium multiple, requiring disciplined investment with expectations of 160-245% earnings growth to justify the price.

SOURCE: https://nairametrics.com/2026/03/02/scoa-soars-437-in-2026-n7-to-n38-what-investors-should-know/