ASX:BEN

Stock Analysis Report

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Bendigo and Adelaide Bank

Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BEN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BEN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

BEN

-3.1%

AU Banks

-1.1%

AU Market


1 Year Return

-8.6%

BEN

-5.1%

AU Banks

1.7%

AU Market

Return vs Industry: BEN underperformed the Australian Banks industry which returned -6.8% over the past year.

Return vs Market: BEN underperformed the Australian Market which returned 0% over the past year.


Shareholder returns

BENIndustryMarket
7 Day-2.2%-3.1%-1.1%
30 Day32.6%17.8%10.8%
90 Day37.7%20.8%8.1%
1 Year-5.2%-8.6%-2.2%-5.1%5.2%1.7%
3 Year-7.8%-22.0%-3.3%-17.1%24.1%8.7%
5 Year8.9%-19.1%10.4%-17.2%58.8%26.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BEN (A$8.99) is trading above our estimate of fair value (A$5.77)

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


Price To Earnings Ratio

PE vs Industry: BEN is poor value based on its PE Ratio (23.6x) compared to the AU Banks industry average (17.6x).

PE vs Market: BEN is poor value based on its PE Ratio (23.6x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: BEN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: BEN is good value based on its PB Ratio (0.8x) compared to the AU Banks industry average (1.1x).


Next Steps

Future Growth

How is Bendigo and Adelaide Bank forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEN's forecast earnings growth (16% per year) is above the savings rate (2.3%).

Earnings vs Market: BEN's earnings (16% per year) are forecast to grow slower than the Australian market (17.9% per year).

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

Revenue vs Market: BEN's revenue (4.6% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: BEN's revenue (4.6% 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 (6%).


Next Steps

Past Performance

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

-6.9%

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 (13.5%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: BEN's earnings have declined by 6.9% per year over the past 5 years.

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

Earnings vs Industry: BEN had negative earnings growth (-48.8%) over the past year, making it difficult to compare to the Banks industry average (-9.5%).


Return on Equity

High ROE: BEN's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Bendigo and Adelaide 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: BEN's Assets to Equity ratio (13.1x) is moderate.

Allowance for Bad Loans: BEN has a sufficient allowance for bad loans (183%).

Low Risk Liabilities: 91% 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 (85%).

Low Risk Deposits: BEN's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: BEN has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

6.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEN's dividend (6.9%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: BEN's dividend (6.9%) is in the top 25% of dividend payers in the Australian market (5.03%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127.2%), BEN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEN's dividends in 3 years are forecast to be covered by earnings (71.5% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Marnie Baker (51 yo)

2.42yrs

Tenure

AU$2,171,871

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 ($USD1.60M) is about average for companies of similar size in the Australian market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marnie Baker
CEO, MD & Director2.42yrsAU$2.17m0.12%
A$ 5.9m
Travis Crouch
Chief Financial Officer2.33yrsAU$687.58kno data
Alexandra Gartmann
Executive of Rural Bankno dataAU$689.25kno data
Richard Fennell
Executive of Customer Bankingno dataAU$1.08mno data
Bruce Speirs
Executive of Business Banking5.25yrsAU$672.42kno data
Taso Corolis
Chief Risk Officerno dataAU$758.14kno data
Ryan Brosnahan
Chief Transformation Officer1.08yrsAU$537.46kno data
Karen McRae
Head of Investor Relationsno datano datano data
Simon Fitzgerald
Head of Public Relationsno datano datano data
Louise Tebbutt
Chief People Officer2.17yrsno datano data
William Conlan
Chief of Staff1.17yrsno datano data
Carmen Lunderstedt
Company Secretary1.17yrsno datano data

2.2yrs

Average Tenure

Experienced Management: BEN's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marnie Baker
CEO, MD & Director2.42yrsAU$2.17m0.12%
A$ 5.9m
Antony Robinson
Independent Director14.67yrsAU$204.19k0.0081%
A$ 386.7k
James Hazel
Independent Director10.75yrsAU$201.78k0.0072%
A$ 340.6k
David Foster
Independent Director1.25yrsAU$166.40k0.0012%
A$ 58.5k
Jacqueline Hey
Independent Chairman of the Board1.17yrsAU$406.32k0.0079%
A$ 377.2k
David Matthews
Independent Director10.75yrsAU$217.28k0.0070%
A$ 334.4k
Robert Hubbard
Independent Director7.67yrsAU$201.78k0.0050%
A$ 237.4k
Jan Harris
Independent Director4.83yrsAU$201.78k0.0015%
A$ 71.8k
Vicki Carter
Independent Director2.25yrsAU$201.78k0.0025%
A$ 118.4k

7.7yrs

Average Tenure

61yo

Average Age

Experienced Board: BEN's board of directors are considered experienced (7.7 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 7.7%.


Top Shareholders

Company Information

Bendigo and Adelaide Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bendigo and Adelaide Bank Limited
  • Ticker: BEN
  • Exchange: ASX
  • Founded: 1858
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: AU$4.757b
  • Shares outstanding: 532.08m
  • Website: https://www.bendigoadelaide.com.au

Number of Employees


Location

  • Bendigo and Adelaide Bank Limited
  • The Bendigo Centre
  • Bendigo
  • Victoria
  • 3550
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BENASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1993
BXRB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1993
BDJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 1993
BENCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1993
BENPEASX (Australian Securities Exchange)CNV PRF SHS (CPS 2)AUAUDOct 2014
BENPFASX (Australian Securities Exchange)CNV PRF SHS (CPS 3)AUAUDJun 2015
BENPGASX (Australian Securities Exchange)CNV PRF SHS (CPS 4)AUAUDDec 2017

Biography

Bendigo and Adelaide Bank Limited provides banking and financial services to retail customers and small to medium sized businesses in Australia. The company operates through three segments: Consumer, Busin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 07:05
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.