ASX:BOQ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Bank of Queensland

Executive Summary

Bank of Queensland Limited, together with its subsidiaries, provides various financial products and services in Australia.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

17.2%

BOQ

9.1%

AU Banks

4.0%

AU Market


1 Year Return

-34.7%

BOQ

-25.0%

AU Banks

-7.0%

AU Market

Return vs Industry: BOQ underperformed the Australian Banks industry which returned -25% over the past year.

Return vs Market: BOQ underperformed the Australian Market which returned -7% over the past year.


Shareholder returns

BOQIndustryMarket
7 Day17.2%9.1%4.0%
30 Day32.4%17.0%12.2%
90 Day-10.4%-9.7%-2.5%
1 Year-32.4%-34.7%-21.8%-25.0%-3.1%-7.0%
3 Year-31.7%-43.0%-13.9%-27.0%19.0%3.3%
5 Year-33.3%-51.0%-7.9%-32.1%33.9%5.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BOQ (A$6.21) is trading above our estimate of fair value (A$4.71)

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


Price To Earnings Ratio

PE vs Industry: BOQ is good value based on its PE Ratio (11x) compared to the Banks industry average (11.1x).

PE vs Market: BOQ is good value based on its PE Ratio (11x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: BOQ is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BOQ is good value based on its PB Ratio (0.7x) compared to the AU Banks industry average (1x).


Next Steps

Future Growth

How is Bank of Queensland forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOQ's forecast earnings growth (16.5% per year) is above the savings rate (2.3%).

Earnings vs Market: BOQ's earnings (16.5% per year) are forecast to grow faster than the Australian market (15% per year).

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

Revenue vs Market: BOQ's revenue (1.3% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: BOQ's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOQ's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Bank of Queensland performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOQ has high quality earnings.

Growing Profit Margin: BOQ's current net profit margins (23%) are lower than last year (30%).


Past Earnings Growth Analysis

Earnings Trend: BOQ's earnings have declined by -1.7% per year over the past 5 years.

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

Earnings vs Industry: BOQ had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Banks industry average (-13.6%).


Return on Equity

High ROE: BOQ's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Bank of Queensland'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: BOQ's Assets to Equity ratio (13.2x) is moderate.

Allowance for Bad Loans: BOQ has a sufficient allowance for bad loans (120%).

Low Risk Liabilities: 75% of BOQ's liabilities are made up of primarily low risk sources of funding.

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

Low Risk Deposits: BOQ's Loans to Deposits ratio (123%) is appropriate.

Level of Bad Loans: BOQ has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

4.82%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BOQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BOQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BOQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BOQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BOQ is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BOQ's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

George Frazis (55yo)

0.75

Tenure

Mr. George Frazis, B Eng (Hons) MBA (AGSM) MBA (Wharton) serves as the MD, CEO & Director of Bank of Queensland Ltd. since September 5, 2019. Mr. Frazis was an Executive Officer at Westpac Banking Corporat ...


Leadership Team

NamePositionTenureCompensationOwnership
Debra Eckersley
Group Executive People & Culture1.75yrsAU$602.58kno data
Lyn McGrath
Group Executive of Retail Banking1.83yrsAU$1.38m0.011% A$319.4k
Adam McAnalen
Chief Risk Officer1yrAU$659.07k0.0088% A$247.9k
George Frazis
MD, CEO & Director0.75yrno data0.011% A$310.4k
Ewen Stafford
CFO & COO0.58yrno datano data
Cherie Bell
General Manager of Investor Relationsno datano datano data
James Shaw
Head of Fundingno datano datano data
Tracy Hicks
Head of Corporate Affairsno datano datano data
Natasha Kelso
Head of BOQ Broker2yrsno datano data
Racheal Kellaway
Deputy CFO0.58yrno datano data

1.0yrs

Average Tenure

Experienced Management: BOQ's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Frazis
MD, CEO & Director0.75yrno data0.011% A$310.4k
Patrick Newton Allaway
Non-Executive Independent Chairman0.67yrAU$61.14k0.030% A$833.0k
Warwick Negus
Non-Executive Independent Director3.75yrsAU$210.80k0.0064% A$180.8k
Karen Lee Penrose
Non-Executive Independent Director4.58yrsAU$245.61k0.0037% A$105.6k
John Lorimer
Non-Executive Independent Director4.42yrsAU$208.05k0.0047% A$131.3k
Michelle Tredenick
Non-Executive Independent Director9.33yrsAU$255.75k0.0044% A$122.8k
Bruce Carter
Non-Executive Independent Director6.33yrsAU$261.28k0.010% A$286.5k
Kathleen Bailey-Lord
Independent Non-Executive Director1.08yrsAU$61.14k0.0016% A$45.1k

4.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BOQ's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 12%.


Top Shareholders

Company Information

Bank of Queensland Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Queensland Limited
  • Ticker: BOQ
  • Exchange: ASX
  • Founded: 1874
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: AU$2.817b
  • Shares outstanding: 453.61m
  • Website: https://www.boq.com.au

Number of Employees


Location

  • Bank of Queensland Limited
  • 100 Skyring Terrace
  • Level 6
  • Newstead
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
BKQN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BXZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BOQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BKQN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008
BOQPDASX (Australian Securities Exchange)NPV PERP EQTY PRF (CPS)AUAUDDec 2012

Biography

Bank of Queensland Limited, together with its subsidiaries, provides various financial products and services in Australia. The company operates in Retail Banking, BOQ Business, and Other segments. It offers personal banking services comprises savings and term deposits, and transactional accounts; debit and credit cards; home, personal, and car loans; and travel, home, content, and car insurance; as well as investment services comprising online share trading services; and self-managed superannuation funds. The company’s business banking services include transaction accounts, and savings and investment accounts; loans and finance products; merchant and payment products; and financial market and international services. It also offers Internet and mobile banking services. As of August 31, 2019, it had 65 corporate branches and 95 owner managed branches; and 572 company branded ATMs and 1,033 other ATMs, as well as 7 transaction centers. Bank of Queensland Limited was founded in 1874 and is based in Newstead, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 10:40
End of Day Share Price2020/06/05 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.