ASX:BEN

Stock Analysis Report

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.8%

BEN

1.0%

AU Banks

0.4%

AU Market


1 Year Return

7.0%

BEN

11.1%

AU Banks

9.8%

AU Market

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

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


Shareholder returns

BENIndustryMarket
7 Day-2.8%1.0%0.4%
30 Day-4.3%-2.6%-1.3%
90 Day-4.7%1.0%-0.5%
1 Year14.5%7.0%18.5%11.1%16.1%9.8%
3 Year19.0%-1.3%21.0%0.9%36.1%17.9%
5 Year23.8%-9.5%22.9%-10.8%49.4%15.7%

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?

14.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BEN (A$11) is trading above our estimate of fair value (A$7.62)

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 (14.3x) compared to the Banks industry average (12.4x).

PE vs Market: BEN is good value based on its PE Ratio (14.3x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BEN is poor value based on its PEG Ratio (6.3x)


Price to Book Ratio

PB vs Industry: BEN is good value based on its PB Ratio (1x) 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 10 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: BEN's earnings (2.3% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: BEN's revenue (2.3% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: BEN's revenue (2.3% 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 (7.1%).


Next Steps

Past Performance

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

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BEN's earnings have grown by 0.8% 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 (-13.3%) over the past year, making it difficult to compare to the Banks industry average (-8.8%).


Return on Equity

High ROE: BEN's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: BEN'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 BEN's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: BEN's debt is covered by short term assets (assets are 1.391960x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: BEN has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: BEN has an appropriate level of bad loans (0.36%)


Next Steps

Dividend

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

6.36%

Current Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%2.4%markettop25%5.6%industryaverage5.8%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BEN's dividend (6.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: BEN's dividend (6.36%) is in the top 25% of dividend payers in the Australian market (5.59%)

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 (90.8%), 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 (83.9% payout ratio).


Next Steps

Management

What is the CEO of Bendigo and Adelaide Bank's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Marnie Baker (51yo)

1.3yrs

Tenure

AU$2,283,141

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

Compensation vs Earnings: Marnie's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: BEN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

8.9yrs

Average Tenure

60yo

Average Age

Experienced Board: BEN's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$48,04008 Sep 19
Vicki Carter
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares4,473
Max PriceAU$10.74
BuyAU$51,40819 Aug 19
Jacqueline Hey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,800
Max PriceAU$10.71
BuyAU$49,85014 Feb 19
Jacqueline Hey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceAU$9.97
BuyAU$10,08025 Nov 18
Jan Harris
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,000
Max PriceAU$10.08

Ownership Breakdown


Management Team

  • Marnie Baker (51yo)

    CEO, MD & Director

    • Tenure: 1.3yrs
    • Compensation: AU$2.28m
  • Bruce Speirs

    Executive of Business Banking

    • Tenure: 4.1yrs
    • Compensation: AU$594.98k
  • Richard Fennell

    Executive of Customer Banking

    • Tenure: 1.2yrs
    • Compensation: AU$1.14m
  • Taso Corolis

    Chief Risk Officer

    • Tenure: 0yrs
    • Compensation: AU$661.83k
  • Stella Thredgold

    Executive of Technology & Business Enablement

    • Tenure: 1.2yrs
    • Compensation: AU$586.13k
  • Will Conlan

    Company Secretary & General Counsel

    • Tenure: 0yrs
  • Louise Tebbutt

    Chief People Officer

    • Tenure: 1yrs
  • Travis Crouch

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: AU$519.84k
  • Nicole Rooke

    Head of Investor Relations

    • Tenure: 0yrs
  • Simon Fitzgerald

    Head of Public Relations

    • Tenure: 0yrs

Board Members

  • Tony Robinson (61yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: AU$243.12k
  • Robert Johanson (68yo)

    Independent Chairman of the Board

    • Tenure: 13.6yrs
    • Compensation: AU$503.63k
  • Jim Hazel (68yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: AU$201.45k
  • David Foster (50yo)

    Independent Director

    • Tenure: 0.08yrs
  • Marnie Baker (51yo)

    CEO, MD & Director

    • Tenure: 1.3yrs
    • Compensation: AU$2.28m
  • Jacquie Hey (53yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: AU$201.45k
  • David Matthews (61yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: AU$217.35k
  • Rob Hubbard (60yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: AU$201.45k
  • Jan Harris (60yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: AU$201.45k
  • Vicki Carter (55yo)

    Non Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$166.86k

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$5.472b
  • Shares outstanding: 493.84m
  • 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. It operates through three segments: Consumer, Business, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.