ASX:ABA

Stock Analysis Report

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Executive Summary

Auswide Bank Ltd provides various personal and business banking products and services in Australia.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Auswide Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

ABA

0.9%

AU Mortgage

3.1%

AU Market


1 Year Return

-7.7%

ABA

-15.5%

AU Mortgage

-6.9%

AU Market

Return vs Industry: ABA exceeded the Australian Mortgage industry which returned -15.5% over the past year.

Return vs Market: ABA matched the Australian Market which returned -6.9% over the past year.


Shareholder returns

ABAIndustryMarket
7 Day1.7%0.9%3.1%
30 Day9.3%8.2%13.0%
90 Day-15.9%-28.1%-6.0%
1 Year-2.1%-7.7%-4.2%-15.5%-3.0%-6.9%
3 Year9.9%-8.2%0.007%-23.7%17.8%2.2%
5 Year25.2%-6.9%2.0%-40.5%34.4%5.4%

Price Volatility Vs. Market

How volatile is Auswide Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Auswide Bank undervalued compared to its fair value and its price relative to the market?

11.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABA (A$4.7) is trading above our estimate of fair value (A$4.18)

Significantly Below Fair Value: ABA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABA is poor value based on its PE Ratio (11x) compared to the Mortgage industry average (10.4x).

PE vs Market: ABA is good value based on its PE Ratio (11x) compared to the Australian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: ABA is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: ABA is good value based on its PB Ratio (0.8x) compared to the AU Mortgage industry average (0.9x).


Next Steps

Future Growth

How is Auswide Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABA's forecast earnings growth (1.9% per year) is below the savings rate (2.3%).

Earnings vs Market: ABA's earnings (1.9% per year) are forecast to grow slower than the Australian market (14.5% per year).

High Growth Earnings: ABA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABA's revenue (3.8% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: ABA's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABA's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Auswide Bank performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABA has high quality earnings.

Growing Profit Margin: ABA's current net profit margins (24.2%) are lower than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: ABA's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: ABA's earnings growth over the past year (5.4%) is below its 5-year average (8.3% per year).

Earnings vs Industry: ABA earnings growth over the past year (5.4%) exceeded the Mortgage industry 5.3%.


Return on Equity

High ROE: ABA's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Auswide Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ABA's Assets to Equity ratio (15.6x) is moderate.

Allowance for Bad Loans: ABA has a low allowance for bad loans (62%).

Low Risk Liabilities: 85% of ABA's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABA has an appropriate level of Loans to Assets ratio (84%).

Low Risk Deposits: ABA's Loans to Deposits ratio (106%) is appropriate.

Level of Bad Loans: ABA has an appropriate level of bad loans (0.2%).


Next Steps

Dividend

What is Auswide Bank's current dividend yield, its reliability and sustainability?

7.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABA's dividend (7.55%) is higher than the bottom 25% of dividend payers in the Australian market (2.52%).

High Dividend: ABA's dividend (7.55%) is in the top 25% of dividend payers in the Australian market (6.55%)


Stability and Growth of Payments

Stable Dividend: ABA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ABA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.2%), ABA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABA's dividends in 3 years are forecast to be covered by earnings (82.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Martin Barrett (54yo)

7.33yrs

Tenure

AU$784,075

Compensation

Mr. Martin John Barrett, BA(ECON), MBA, has served as Managing Director and Director of Auswide Bank Ltd. since September 2013. Mr. Barrett has extensive experience in the banking sector, having previously ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD544.50K) is above average for companies of similar size in the Australian market ($USD259.62K).

Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Barrett
MD & Executive Director7.33yrsAU$784.08k0.44% A$851.7k
William Schafer
Company Secretary & CFO19.17yrsAU$401.54k0.082% A$158.9k
Mark Rasmussen
Chief Operating Officer5.42yrsAU$278.27k0.011% A$20.4k
Stephen Caville
Chief Information Officer9.58yrsAU$237.21k0.11% A$204.8k
Gayle Job
Chief People & Property Officer4yrsAU$243.89k0.28% A$537.5k
Craig Lonergan
Chief Risk Officer5.92yrsAU$248.64k0.033% A$63.6k
Damian Hearne
Chief Customer Officer4yrsAU$363.29kno data
Joanne Norris
Administration Managerno datano datano data
Dale Hancock
Group Treasurer7.42yrsno datano data

6.6yrs

Average Tenure

Experienced Management: ABA's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Barrett
MD & Executive Director7.33yrsAU$784.08k0.44% A$851.7k
John Humphrey
Independent Chairman of the Board10.58yrsAU$163.40k0.074% A$143.2k
Gregory Kenny
Independent Non-Executive Director6.58yrsAU$102.13k0.035% A$68.1k
Barry Dangerfield
Independent Non-Executive Director8.58yrsAU$102.13k0.10% A$196.5k
Sandra Birkensleigh
Independent Non-Executive Director5.33yrsAU$102.13kno data

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: ABA's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ABA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Auswide Bank Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Auswide Bank Ltd
  • Ticker: ABA
  • Exchange: ASX
  • Founded: 1966
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: AU$192.631m
  • Shares outstanding: 42.43m
  • Website: https://www.auswidebank.com.au

Location

  • Auswide Bank Ltd
  • 16-20 Barolin Street
  • Bundaberg
  • Queensland
  • 4670
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1994
ABACHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1994

Biography

Auswide Bank Ltd provides various personal and business banking products and services in Australia. The company accepts personal and business accounts, and term deposits; and grants home loans, car and personal loans, business loans, and overdrafts. It also offers credit cards; self-managed superannuation fund accounts; and home and contents, landlord, car, caravan or trailer, boat, travel, trade and services, and farm insurance products, as well as insurance to protect professional office based business. In addition, the company provides foreign exchange, financial advisory, and business support services. The company was formerly known as Wide Bay Australia Ltd and changed its name to Auswide Bank Ltd in April 2015. Auswide Bank Ltd was founded in 1966 and is headquartered in Bundaberg, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 10:35
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.