ASX:ANZ

Stock Analysis Report

Australia and New Zealand Banking Group

Executive Summary

Australia and New Zealand Banking Group Limited provides various banking and financial products and services.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Australia and New Zealand Banking Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

ANZ

1.0%

AU Banks

0.4%

AU Market


1 Year Return

6.6%

ANZ

11.1%

AU Banks

9.8%

AU Market

Return vs Industry: ANZ underperformed the Australian Banks industry which returned 11.1% over the past year.

Return vs Market: ANZ underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

ANZIndustryMarket
7 Day1.0%1.0%0.4%
30 Day-0.5%-2.6%-1.3%
90 Day1.4%1.0%-0.5%
1 Year13.1%6.6%18.5%11.1%16.1%9.8%
3 Year16.5%-1.7%21.0%0.9%36.1%17.9%
5 Year12.8%-15.9%22.9%-10.8%49.4%15.7%

Price Volatility Vs. Market

How volatile is Australia and New Zealand Banking Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Australia and New Zealand Banking Group undervalued compared to its fair value and its price relative to the market?

12.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANZ (A$27.76) is trading above our estimate of fair value (A$25.03)

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


Price To Earnings Ratio

PE vs Industry: ANZ is good value based on its PE Ratio (12.4x) compared to the Banks industry average (12.4x).

PE vs Market: ANZ is good value based on its PE Ratio (12.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ANZ is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ANZ is overvalued based on its PB Ratio (1.3x) compared to the AU Banks industry average (1.1x).


Next Steps

Future Growth

How is Australia and New Zealand Banking Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANZ's forecast earnings growth (3.7% per year) is above the savings rate (2.3%).

Earnings vs Market: ANZ's earnings (3.7% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: ANZ's revenue (0.5% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: ANZ's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANZ's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Australia and New Zealand Banking Group performed over the past 5 years?

-1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANZ's earnings have declined by -1.6% per year over the past 5 years.

Accelerating Growth: ANZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ANZ had negative earnings growth (-12.5%) over the past year, making it difficult to compare to the Banks industry average (-8.8%).


Return on Equity

High ROE: ANZ's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: ANZ's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ANZ's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Australia and New Zealand Banking Group'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

Inventory Level: ANZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: ANZ's debt is covered by short term assets (assets are 1.316100x debt).


Financial Institutions Analysis

Asset Level: ANZ's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if ANZ has a sufficient allowance for bad loans.

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

Loan Level: ANZ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ANZ's loans are broadly funded by customer deposits.

Level of Bad Loans: ANZ has an appropriate level of bad loans (0.28%)


Next Steps

Dividend

What is Australia and New Zealand Banking Group's current dividend yield, its reliability and sustainability?

5.76%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.4%markettop25%5.6%industryaverage5.8%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ANZ's dividend (5.76%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ANZ's dividend (5.76%) is in the top 25% of dividend payers in the Australian market (5.59%)

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

Growing Dividend: ANZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.2%), ANZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANZ's dividends in 3 years are forecast to be covered by earnings (68.8% payout ratio).


Next Steps

Management

What is the CEO of Australia and New Zealand Banking Group's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Shayne Elliott (55yo)

3.8yrs

Tenure

AU$5,645,295

Compensation

Mr. Shayne Cary Elliott, B.Com has been Chief Executive Officer and Executive Director of Australia and New Zealand Banking Group Limited since January 1, 2016 and served as its Member of Management Board. ...


CEO Compensation Analysis

Compensation vs. Market: Shayne's total compensation ($USD3.86M) is about average for companies of similar size in the Australian market ($USD3.86M).

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


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: ANZ's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: ANZ's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Shayne Elliott (55yo)

    CEO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$5.65m
  • Alexis George (55yo)

    Deputy CEO & Group Executive of Wealth Australia

    • Tenure: 1.4yrs
    • Compensation: AU$2.04m
  • Mark Whelan (59yo)

    Group Executive of Institutional

    • Tenure: 3.7yrs
    • Compensation: AU$3.40m
  • Craig Sims

    Group General Manager of Operations & Services

    • Tenure: 3.8yrs
  • Michael Liarakos

    Chief Compliance Officer

    • Tenure: 3.3yrs
  • David Fisher

    Head of Technology

    • Tenure: 0yrs
  • Michelle Jablko (46yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: AU$2.70m
  • Kevin Corbally (49yo)

    Chief Risk Officer

    • Tenure: 1.6yrs
    • Compensation: AU$1.04m
  • Jill Campbell

    Group General Manager of Investor Relations

    • Tenure: 0yrs
  • Lynwen Connick

    Chief Information Security Officer

    • Tenure: 0yrs

Board Members

  • David Gonski (65yo)

    Independent Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: AU$825.00k
  • Ilana Atlas (64yo)

    Independent Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: AU$344.50k
  • Graeme Liebelt (65yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: AU$366.03k
  • JT Macfarlane (59yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$318.50k
  • Paula Dwyer (58yo)

    Independent Non Executive Director

    • Tenure: 7.5yrs
    • Compensation: AU$365.00k
  • Shayne Elliott (55yo)

    CEO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$5.65m
  • Tony Carter (61yo)

    Independent Director of ANZ Bank New Zealand

    • Tenure: 0yrs
  • Jane Halton (59yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$297.74k
  • John Key (57yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$160.54k

Company Information

Australia and New Zealand Banking Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australia and New Zealand Banking Group Limited
  • Ticker: ANZ
  • Exchange: ASX
  • Founded: 1835
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$78.054b
  • Shares outstanding: 2.81b
  • Website: https://www.anz.com

Number of Employees


Location

  • Australia and New Zealand Banking Group Limited
  • ANZ Centre Melbourne
  • Level 9
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANEW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
ANZASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1980
ANZNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1980
ANBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
ANZCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1980
ANZB.YOTCPK (Pink Sheets LLC)SPON ADR NPV (1 FOR 1 SHS)USUSDDec 1994
ANB1DB (Deutsche Boerse AG)SPON ADR NPV (1 FOR 1 SHS)DEEURDec 1994
ANZPEASX (Australian Securities Exchange)FRN CNV PERP AUD100AUAUDApr 2014

Biography

Australia and New Zealand Banking Group Limited provides various banking and financial products and services. The company’s Australia division offers retail products and services to consumers through the b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:33
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.