Bendigo and Adelaide Bank (ASX:BEN) - Share price, News & Analysis

BEN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	3/6

BEN Stock Overview

Bendigo and Adelaide Bank Limited provides banking and financial products and services to retail customers and small to medium sized businesses in Australia.

Rewards

Trading at 27.9% below our estimate of its fair value

Earnings grew by 106.7% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Shareholders have been diluted in the past year

Bendigo and Adelaide Bank Competitors

Bank of Queensland

ASX:BOQ

AU$4.8b

BNK Banking

ASX:BBC

AU$135.9m

BSP Financial Group

ASX:BFL

AU$2.3b

Liberty Financial Group

ASX:LFG

AU$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Bendigo and Adelaide Bank
Historical stock prices
Current Share Price	AU$10.52
52 Week High	AU$11.27
52 Week Low	AU$8.43
Beta	1.01
1 Month Change	-0.85%
3 Month Change	9.81%
1 Year Change	2.73%
3 Year Change	-5.57%
5 Year Change	-6.07%
Change since IPO	222.70%

Shareholder Returns

	BEN	AU Banks	AU Market
7D	2.0%	2.1%	-0.4%
1Y	2.7%	2.8%	-1.1%

Return vs Industry: BEN underperformed the Australian Banks industry which returned 2.8% over the past year.

Return vs Market: BEN exceeded the Australian Market which returned -1.1% over the past year.

Price Volatility

Is BEN's price volatile compared to industry and market?
BEN volatility
BEN Average Weekly Movement	3.2%
Banks Industry Average Movement	3.1%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: BEN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BEN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1858	4,575	Marnie Baker	https://www.bendigoadelaide.com.au

Bendigo and Adelaide Bank Limited provides banking and financial products and services to retail customers and small to medium sized businesses in Australia. The company operates through Consumer, Business, and Agribusiness segments. It offers a range of products and services, including personal and business banking, financial planning, commercial mortgages and unsecured loans, investment products, insurance, and superannuation.

Bendigo and Adelaide Bank Fundamentals Summary

How do Bendigo and Adelaide Bank's earnings and revenue compare to its market cap?
BEN fundamental statistics
Market Cap	AU$5.91b
Earnings (TTM)	AU$601.40m
Revenue (TTM)	AU$1.72b

9.8x

P/E Ratio

0.9x

P/B Ratio

Is BEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEN income statement (TTM)
Revenue	AU$1.72b
Cost of Revenue	AU$0
Gross Profit	AU$1.72b
Other Expenses	AU$1.12b
Earnings	AU$601.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 15, 2022

Earnings per share (EPS)	1.08
Gross Margin	100.00%
Net Profit Margin	34.92%
Debt/Equity Ratio	82.0%

How did BEN perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

48%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Bendigo and Adelaide Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEN's forecast earnings growth (1.2% per year) is below the savings rate (1.8%).

Earnings vs Market: BEN's earnings (1.2% per year) are forecast to grow slower than the Australian market (6.4% per year).

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

Revenue vs Market: BEN's revenue (3.9% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: BEN's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Bendigo and Adelaide Bank performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.02%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BEN has a high level of non-cash earnings.

Growing Profit Margin: BEN's current net profit margins (34.9%) are higher than last year (19.8%).

Past Earnings Growth Analysis

Earnings Trend: BEN's earnings have declined by 0.02% per year over the past 5 years.

Accelerating Growth: BEN's earnings growth over the past year (106.7%) exceeds its 5-year average (-0.02% per year).

Earnings vs Industry: BEN earnings growth over the past year (106.7%) exceeded the Banks industry 16.5%.

Return on Equity

High ROE: BEN's Return on Equity (9%) is considered low.

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BEN's Assets to Equity ratio (13.6x) is moderate.

Allowance for Bad Loans: BEN has a sufficient allowance for bad loans (313%).

Low Risk Liabilities: 93% of BEN's liabilities are made up of primarily low risk sources of funding.

Loan Level: BEN has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: BEN's Loans to Deposits ratio (94%) is appropriate.

Level of Bad Loans: BEN has an appropriate level of bad loans (0.1%).

Dividend

What is Bendigo and Adelaide Bank current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BEN's dividend (5.04%) is higher than the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: BEN's dividend (5.04%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.1%), BEN's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BEN's dividends in 3 years are forecast to be covered by earnings (69% payout ratio).

Discover strong dividend paying companies

Management

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

3.6yrs

Average management tenure

CEO

Marnie Baker (52 yo)

3.83yrs

Tenure

AU$1,926,951

Compensation

Ms. Marnie A. Baker, BBus (Acc), ASA, MAICD, SF FIN, has been Managing Director at Bendigo and Adelaide Bank Limited since July 02, 2018 and serves as its Chief Executive Officer. Ms. Baker has been a Dire...

CEO Compensation Analysis

Compensation vs Market: Marnie's total compensation ($USD1.36M) is below average for companies of similar size in the Australian market ($USD1.97M).

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

Leadership Team

Experienced Management: BEN's management team is considered experienced (3.6 years average tenure).

Board Members

Experienced Board: BEN's board of directors are considered experienced (8.5 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30