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Zenith Bank Plc: Comprehensive Stock Analysis by prof2007: 10:41pm On Sep 09, 2020 |
ZENITH BANK PLC Stocks/Nigeria/Banks/NGSE:ZENITHBANK Market Capitalisation: ₦530.6b Data Last Updated: 09Sep2020 @ 00:38 UTC Data Sources: Company Financials + ANALYSIS Price to Earnings Ratio: 2.4x (below NG market of 6.2x). Earnings growth: 16.4% per year over past 5 years. Risk Analysis: High level of non-cash earnings; Unstable dividend track record. Snowflake Analysis Summary: Established dividend payer with adequate balance sheet. Share Price: No significant volatility in past 3 months. Market Performance: 7 Day Return @ -0.3% vs -1.1% for NG Banks vs 0.2% NG Market. 1 Year Return @ -7.4% vs -10.5% NG Banks vs -11.9% NG Market. Return vs Industry: ZENITHBANK matched NG Banks, which returned -7.9% over the past year. Return vs Market: ZENITHBANK exceeded NG Market, which returned -11.4% over past year. SHAREHOLDER RETURNS: ZENITH vs Industry vs Market 7 Day -0.3% -1.1% 0.2% 30 Day 0.6% -0.3% 0.9% 90 Day 1.5% -3.6% -0.9% 1 Year 8.6%-7.4% -0.2%-10.5% -4.1%-11.9% 3 Year 8.7%-25.7% -16.0%-32.8% -33.0%-43.8% 5 Year 84.5%-4.8% 22.0%-14.3% -17.2%-36.1% VALUATION (SHARE PRICE VS FAIR VALUE): Vs Fair Value: ZENITHBANK (NGN16.9) is trading above our estimate of fair value (NGN11.58) Vs PE Ratio (Industry): ZENITHBANK is good value based on PE Ratio 2.4x vs NG Banks avg of 2.9x. Vs PE Ratio (Market): ZENITHBANK is good value based on PE Ratio 2.4x vs NG market 6.2x. Vs Price to Earnings Growth Ratio: ZENITHBANK is good value based on PEG Ratio 0.9x. Vs Price to Book Ratio (Industry): ZENITHBANK is overvalued based on PB Ratio 0.5x vs NG Banks avg 0.4x. FUTURE EARNINGS GROWTH FORECAST Growth in 1 to 3 years: 2.7% per year Earnings vs NG Market: Slower, @ 2.7% vs 14.5% per year. High Growth Earnings: ZENITHBANK's earnings are forecast to grow, but not significantly. Revenue vs NG Market: Slower, @ 6.5% vs 7.5% per year. Future Return on Equity: High in 3 years time (20%). PAST PERFORMANCE Over the past 5 years: 16.4% Quality Earnings: High level of non-cash earnings. Growing Profit Margin: Current net profit margins (46%) are higher than last year (43.3%). Earnings Trend: Grew by 16.4% per year over the past 5 years. Accelerating Growth: Lower over the past year (11.6%) vs 5-year average (16.4% per year). Earnings vs Industry: Lower over the past year 11.6% vs NG Banks 16.3%. Return on Equity: High (22.6%). FINANCIAL HEALTH Asset Level: Low Assets to Equity ratio (7.7x). Allowance for Bad Loans: Low (83%). Risk Liabilities: Low (74% are primarily low-risk sources of funding). Loan to Assets Ratio: Appropriate (36%). Risk Deposits: Appropriately low (Loans to Deposits ratio 55%). Bad Loans Level: High (7.4%). DIVIDEND Current dividend yield: 16.57% Upcoming Dividend Payment: Interim. Ex Dividend Date: 17 Sep 2020. Dividend Pay Date: 22 Sep 2020. Dividend Yield vs Market: Higher @ 16.57% than bottom 25% of dividend payers in NGmarket (4.31%). Dividend Yield Rating: Good. Higher @ 16.57% than top 25% of dividend payers in the NGmarket (11%) Dividend Stability: Volatile in the past 10 years. Dividend Growth: Increased over the past 10 years. Dividend to Earnings Coverage: Well covered, @ 39.3% earnings payout ratio. Future Dividend to Earnings Coverage: Well covered, @ 44.4% forecast payout ratio in 3 years. KEY COMPANY INFORMATION Name: Zenith Bank Plc Ticker: ZENITHBANK Exchange: NGSE Founded: 1990 Industry: Diversified Banks Sector: Banks Market Cap: ₦530.601b Shares outstanding: 31.40b Website: https://www.zenithbank.com SOURCE (abridged): https://simplywall.st/stocks/ng/banks/ngse-zenithbank/zenith-bank-shares 1 Like 1 Share |
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