Arab Banking Corporation (B.S.C.) (BAX:ABC) - Share price, News & Analysis

ABC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	1/6

ABC Stock Overview

Arab Banking Corporation (B.S.C.) provides wholesale banking services in the Middle East, North Africa, Western Europe, Asia, North America, Latin America, and internationally.

Rewards

Price-To-Earnings ratio (9.1x) is below the BH market (13.1x)

Earnings grew by 3266.7% over the past year

Risk Analysis

Earnings have declined by 31.5% per year over past 5 years

Shares are highly illiquid

Arab Banking Corporation (B.S.C.) Competitors

Al Salam Bank B.S.C

BAX:SALAM

ب.د194.8m

Bank of Bahrain and Kuwait B.S.C

BAX:BBK

ب.د784.5m

Al Baraka Banking Group B.S.C

BAX:BARKA

US$391.5m

National Bank of Bahrain BSC

BAX:NBB

ب.د1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Arab Banking Corporation (B.S.C.)
Historical stock prices
Current Share Price	US$0.30
52 Week High	US$0.38
52 Week Low	US$0.29
Beta	-0.0074
1 Month Change	0%
3 Month Change	-10.24%
1 Year Change	1.71%
3 Year Change	-34.22%
5 Year Change	-0.67%
Change since IPO	-77.08%

Shareholder Returns

	ABC	BH Banks	BH Market
7D	0%	0.4%	-0.2%
1Y	1.7%	13.7%	16.2%

Return vs Industry: ABC underperformed the BH Banks industry which returned 11.7% over the past year.

Return vs Market: ABC underperformed the BH Market which returned 14.2% over the past year.

Price Volatility

Is ABC's price volatile compared to industry and market?
ABC volatility
ABC Average Weekly Movement	n/a
Banks Industry Average Movement	3.9%
Market Average Movement	3.0%
10% most volatile stocks in BH Market	4.1%
10% least volatile stocks in BH Market	1.5%

Stable Share Price: Insufficient data to determine ABC's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ABC's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1980	n/a	Khaled Said Kawan	https://www.bank-abc.com

Arab Banking Corporation (B.S.C.) provides wholesale banking services in the Middle East, North Africa, Western Europe, Asia, North America, Latin America, and internationally. It operates through MENA Subsidiaries, International Wholesale Banking, Group Treasury, ABC Brasil, and Other segments. The company offers wholesale banking services, including project and structured finance services to petrochemicals, oil and gas, power and water, renewable energy, mining and metals, infrastructure, shipping, aviation, and telecommunications; financing and advisory services; financial and capital market services; and traditional documentary credits, guarantees, export credit agency facilities, pre-export financing, forfaiting, and receivables financing services, as well as cutting-edge Islamic structures.

Arab Banking Corporation (B.S.C.) Fundamentals Summary

How do Arab Banking Corporation (B.S.C.)'s earnings and revenue compare to its market cap?
ABC fundamental statistics
Market Cap	US$922.70m
Earnings (TTM)	US$101.00m
Revenue (TTM)	US$808.00m

9.1x

P/E Ratio

0.2x

P/B Ratio

Is ABC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABC income statement (TTM)
Revenue	US$808.00m
Cost of Revenue	US$0
Gross Profit	US$808.00m
Other Expenses	US$707.00m
Earnings	US$101.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.033
Gross Margin	100.00%
Net Profit Margin	12.50%
Debt/Equity Ratio	67.7%

How did ABC perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

31%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ABC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ABC. This is calculated by dividing ABC's market cap by their current preferred multiple.
What is ABC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$922.70m

ABC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ABC's PE Ratio compare to its peers?

ABC PE Ratio vs Peers

The above table shows the PE ratio for ABC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.3x
SALAM Al Salam Bank B.S.C	8.9x	n/a	ب.د194.8m
BBK Bank of Bahrain and Kuwait B.S.C	14.6x	n/a	ب.د784.5m
BARKA Al Baraka Banking Group B.S.C	3.9x	n/a	US$391.5m
NBB National Bank of Bahrain BSC	21.8x	n/a	ب.د1.3b
ABC Arab Banking Corporation (B.S.C.)	9.1x	n/a	US$922.7m

Forward PE

Price-To-Earnings vs Peers: ABC is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (12.3x).

Price to Earnings Ratio vs Industry

How does ABC's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: ABC is good value based on its Price-To-Earnings Ratio (9.1x) compared to the BH Banks industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is ABC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ABC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ABC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ABC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ABC's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABC's PEG Ratio to determine if it is good value.

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Future Growth

How is Arab Banking Corporation (B.S.C.) forecast to perform in the next 1 to 3 years based on estimates from 0 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

11.5%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arab Banking Corporation (B.S.C.) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Arab Banking Corporation (B.S.C.)'s track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Arab Banking Corporation (B.S.C.) performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-31.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABC has high quality earnings.

Growing Profit Margin: ABC's current net profit margins (12.5%) are higher than last year (0.6%).

Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have declined by 31.5% per year over the past 5 years.

Accelerating Growth: ABC's earnings growth over the past year (3266.7%) exceeds its 5-year average (-31.5% per year).

Earnings vs Industry: ABC earnings growth over the past year (3266.7%) exceeded the Banks industry 42.3%.

Return on Equity

High ROE: ABC's Return on Equity (2.9%) is considered low.

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Financial Health

How is Arab Banking Corporation (B.S.C.)'s financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

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: ABC's Assets to Equity ratio (7.5x) is low.

Allowance for Bad Loans: ABC has a sufficient allowance for bad loans (107%).

Low Risk Liabilities: 83% of ABC's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABC has an appropriate level of Loans to Assets ratio (49%).

Low Risk Deposits: ABC's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: ABC has a high level of bad loans (3.7%).

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Dividend

What is Arab Banking Corporation (B.S.C.) current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

3.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ABC's dividend (3.36%) isn’t notable compared to the bottom 25% of dividend payers in the BH market (3.85%).

High Dividend: ABC's dividend (3.36%) is low compared to the top 25% of dividend payers in the BH market (5.92%).

Stability and Growth of Payments

Stable Dividend: ABC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ABC has only been paying a dividend for 8 years, and since then payments have fallen.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.8%), ABC's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

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Management

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

5.4yrs

Average management tenure

CEO

Khaled Said Kawan (65 yo)

9.17yrs

Tenure

Dr. Khaled Said Ramadan Kawan, Ph D., has been the Group Chief Executive Officer of Bank ABC since October 2013. He has been Chairman of Banco ABC Brasil S.A. since April 29, 2022.He serves as Chairman of...

Leadership Team

Experienced Management: ABC's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: ABC's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31