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MoneyCentral value stock screener has found a couple of low-debt stocks delivering high returns for investors.
When companies binge on excessive debt or decide to take on outsized leverage, they expose themselves to potential bankruptcy and financial failure which leads to loss of employment and dividend. If the entity is a large one, the economy also suffers.
Of course, rising inflation which drives up interest rates makes interest payments on money borrowed painful, and if the economy goes bust or slips into a recession, companies with lots of debts are going to be ensnared in the dungeon of bankruptcy.
Low-debt companies are a safe haven against policy uncertainty and the aforementioned issues.
Here are five NGX traded companies that have low-debt that deliver high returns. I call them the safe haven stocks.
International breweries Plc
With a 134.23 percent year-to-date (YTD) returns, International Breweries Plc is a stock to own. The Nigeria-based brewing company brews, packages and markets beer, alcoholic flavored/non-alcoholic beverages, and soft drinks.
The company was proactive as it had raised rights issue to reduce its debts and interest payment obligation, which added strength to the bottom line (profit).
For the first six months through June 2025, the company reverted to the path of profitability, posting a profit after tax of N41.28 billion from a loss of N106.78 billion.
International Breweries is totally debt free.
Nascon Allied
Nascon Allied Industries Plc has a market capitalization of N243.22 billion and its shares have gained 187.08 percent so far this year, outperforming the NGXASI index.
The company has little debt with a debt to equity ratio of 2.10 percent, and lately it posted a profit margin of 19.94 percent. The consumer goods giant’s stock is cheap as evidenced by a price to earnings ratio of 9.24, an appropriate entry point for investors.
Okomu Oil Palm
Okomu Oil Palm Plc stock is up 129.73 percent year to date (YTD) as the company continues to benefit from a currency devaluation that underpins its earnings.
It has a debt to equity ratio of 7.80 percent, which gives the firm the leeway to tap the debt market for financing of its working capital and other expansion plans.
The company has a price to earnings ratio of 14.40 percent and a dividend yield of 6.21 percent.
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