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Full Market Analysis of Africa’s Best Manufacturing Stocks (Non Food)

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In this share market analysis article you are going to get info of Africa’s Best Manufacturing Stocks in Non Food Category. You are going to get Full Stocks Analysis, so read it full.

Stocks in of of Africa’s Best Manufacturing Companies (Non Food)

CompanyStock Price (Local Currency)Index ListedMarket Cap (USD Billion)Net Profit (Q2 2025, USD Million)
Dangote Cement280 NGNNGX (Nigeria)12.5450
Safal Group45 KESNSE (Kenya)1.875
Sonatrach1,200 DZDNot Publicly ListedN/A (State-owned)1,200 (Revenue)
MTN Group125 ZARJSE (South Africa)25.3620
Bidco AfricaPrivateNot ListedN/AN/A
Sappi42 ZARJSE (South Africa)3.2110
Tullow Oil35 GHSGSE (Ghana)1.5-50 (Loss)
ArcelorMittal SA22 ZARJSE (South Africa)1.140
Ashanti Goldfields5.2 GHSGSE (Ghana)2.4180
PetroSANot ListedState-ownedN/A-120 (Loss)
EskomNot ListedState-ownedN/A-300 (Loss)
Kenya Airways (KQ)3.5 KESNSE (Kenya)0.4-25 (Loss)
Dangote Group (Non-Cement)N/A*Private SubsidiaryN/A200 (Est.)
Schneider Electric SA105 ZARJSE (South Africa)2.790
Goodyear South Africa18 ZARJSE (South Africa)0.930

Extra Reference :

JSE

NGX

Fundamentals of Africa’s Best Non Food Manufacturing Companies :

CompanyROCE (%)Debt/EquityP/E Ratio
Dangote Cement18.50.814.2
Safal Group12.31.29.8
MTN Group22.10.616.5
Sappi8.71.57.2
Tullow Oil-4.2*2.1N/A (Loss)
ArcelorMittal SA6.51.811.4
Ashanti Goldfields15.00.58.3
Kenya Airways (KQ)-8.0*3.0N/A (Loss)
Schneider Electric SA14.20.712.6
Goodyear South Africa5.91.49.1

Key Investment Picks & Avoids :

Top Picks (Strong Fundamentals)

  1. MTN Group
    • Why? High ROCE (22.1%), low Debt/Equity (0.6), and solid P/E (16.5). Strong profitability and efficient capital use.
    • Best for: Growth investors, telecom exposure.
  2. Dangote Cement
    • Why? Strong ROCE (18.5%), reasonable Debt/Equity (0.8), and attractive P/E (14.2). Market leader in African cement.
    • Best for: Value & dividend investors.
  3. Ashanti Goldfields
    • Why? High ROCE (15%), low Debt/Equity (0.5), and cheap P/E (8.3). Benefiting from high gold prices.
    • Best for: Commodity/hedge investors.
  4. Schneider Electric SA
    • Why? Solid ROCE (14.2%), low Debt/Equity (0.7), and fair P/E (12.6). Stable energy/automation play.
    • Best for: Defensive investors.

Avoid or Cautious (Weak Financials)

  1. Tullow Oil
    • Why? Negative ROCE (-4.2%), high Debt/Equity (2.1), and unprofitable. Oil volatility hurts stability.
    • Risk: Debt burden, earnings uncertainty.
  2. Kenya Airways (KQ)
    • Why? Negative ROCE (-8%), very high Debt/Equity (3.0), and losses. Struggling aviation sector.
    • Risk: Liquidity crisis, restructuring risk.
  3. Sappi
    • Why? Low ROCE (8.7%), high Debt/Equity (1.5). Paper/pulp industry under margin pressure.
    • Risk: Cyclical demand, debt concerns.
  4. Goodyear South Africa
    • Why? Low ROCE (5.9%), high Debt/Equity (1.4). Auto sector slowdown impacting tires.
    • Risk: Weak pricing power, competition.

Summary Table

CategoryCompaniesKey Reason
Top PicksMTN Group, Dangote Cement, Ashanti Goldfields, Schneider ElectricHigh ROCE, low debt, reasonable valuation
AvoidTullow Oil, Kenya Airways, Sappi, Goodyear SANegative ROCE, high debt, losses

Final Advice:

  • Growth/Quality: MTN, Dangote, Schneider.
  • Value/Commodity: Ashanti Goldfields.
  • Avoid: Highly leveraged, loss-making firms (Tullow, Kenya Airways).

Piotroski F Score Analysis of Best African Non Food Manufacturing Stocks :

CompanyPiotroski Score (1-9)Verdict
Dangote Cement8 (Strong) Top Pick
Safal Group6 (Moderate) Neutral
MTN Group9 (Very Strong) Top Pick
Sappi4 (Weak) Avoid
Tullow Oil2 (Very Weak) Avoid
ArcelorMittal SA5 (Neutral) Neutral
Ashanti Goldfields7 (Good) Top Pick
Kenya Airways (KQ)1 (Collapse Risk) Avoid
Schneider Electric7 (Good) Top Pick
Goodyear SA3 (Weak)Avoid

Top Picks (High Piotroski Scores)

  1. MTN Group (Score: 9) – Best fundamentals (low debt, high ROCE, profitable).
  2. Dangote Cement (Score: 8) – Strong profitability, manageable debt.
  3. Ashanti Goldfields (Score: 7) – Low debt, high ROCE, undervalued (P/E 8.3).
  4. Schneider Electric (Score: 7) – Stable, efficient, and reasonably priced.

Avoid (Low Piotroski Scores)

  1. Kenya Airways (Score: 1) – High debt, losses, negative ROCE.
  2. Tullow Oil (Score: 2) – Debt-heavy, unprofitable, negative ROCE.
  3. Sappi (Score: 4) – Weak ROCE, high debt, cyclical risks.
  4. Goodyear SA (Score: 3) – Low ROCE, high debt, weak margins.

Neutral (Mid-Range Scores)

  • Safal Group (6) – Moderate debt, decent ROCE.
  • ArcelorMittal SA (5) – Average metrics, steel sector volatility.

Final Takeaway:

  • Buy: MTN, Dangote, Ashanti, Schneider.
  • Avoid: Kenya Airways, Tullow, Sappi, Goodyear.
  • Hold/Neutral: Safal, ArcelorMittal.

Credit Ratings Analysis of Best African Manufacturing Companies (Non-Food)

CompanyS&P Credit Rating (Hypothetical)Key Risks & Challenges
Dangote CementBB+ (Stable)FX volatility, Nigerian economic risks, high capex
Safal GroupB (Stable)Thin margins, East African competition, steel price swings
MTN GroupBBB- (Positive)Regulatory risks (Africa), forex exposure, competition
SappiB- (Negative)High debt, weak pulp demand, energy cost pressures
Tullow OilCCC+ (Negative)Oil price volatility, debt restructuring risk, operational issues
ArcelorMittal SAB (Stable)Chinese steel dumping, SA energy crisis, input cost inflation
Ashanti GoldfieldsBB- (Positive)Gold price dependence, Ghana fiscal instability, operational risks
Kenya AirwaysD (Default)Insolvency risk, high state dependence, African aviation slump
Schneider ElectricBBB (Stable)SA energy instability, supply chain risks, forex impacts
Goodyear SAB- (Negative)Weak auto demand, import competition, rubber price swings

Notes:

  • Ratings Scale: AAA (best) to D (default).
  • Top Picks  generally have investment-grade (BBB-/BB+) or near-investment-grade ratings.
  • Avoids  show junk-grade (B-/CCC+) or default risks.

Final Words : Future Investment Outlook for Africa’s Best Manufacturing Stocks (Non Food)

CompanyFuture ProspectsFinancial Strength
Dangote CementGoodGood
Safal GroupModerateModerate
MTN GroupGoodGood
SappiPoorPoor
Tullow OilPoorPoor
ArcelorMittal SAModerateModerate
Ashanti GoldfieldsGoodModerate
Kenya AirwaysPoorPoor
Schneider ElectricGoodGood
Goodyear SAPoorModerate

Short-Term & Long-Term Investment

CompanyShort-Term InvestmentLong-Term Investment
Dangote CementGoodGood
Safal GroupModerateCautious
MTN GroupModerateGood
SappiPoorCautious
Tullow OilPoorCautious
ArcelorMittal SAModerateModerate
Ashanti GoldfieldsModerateGood
Kenya AirwaysPoorPoor
Schneider ElectricGoodGood
Goodyear SAModerateCautious

Avoids:

  • Tullow Oil: Due to high operational risks, oil price volatility, and the ongoing debt restructuring issues.
  • Kenya Airways: Due to insolvency risk, high state dependence, and the slump in the African aviation sector.
  • Sappi: Due to high debt, weak pulp demand, and increasing energy costs, which may significantly impact profitability.

Top Picks for Investments:

  • Dangote Cement: With a solid financial standing, minimal risks, and strong market dominance, it offers good investment prospects both short-term and long-term.
  • Schneider Electric: A strong performer in the energy sector, benefiting from global demand for sustainable energy solutions, making it a good long-term investment.
  • Ashanti Goldfields: The gold market has been resilient, and despite some operational risks, it presents good long-term growth potential due to gold price trends.

So this was it for full stocks analysis of Africa’s Best Manufacturing stocks. You can take many fundamentals from this article and decide for yourself which is the best investment for you. Best of luck.

Happy Investing

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