Zain Bahrain B.S.C (BAX:ZAINBH) - Share price, News & Analysis

ZAINBH fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	4/6

ZAINBH Stock Overview

Zain Bahrain B.S.C. provides public telecommunications and related products and services in the Kingdom of Bahrain.

Rewards

PE ratio (9.1x) is below the BH market (13.6x)

Earnings have grown 6.5% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Zain Bahrain B.S.C Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zain Bahrain B.S.C
Historical stock prices
Current Share Price	ب.د0.14
52 Week High	ب.د0.15
52 Week Low	ب.د0.11
Beta	0.018
1 Month Change	-2.78%
3 Month Change	-4.76%
1 Year Change	23.89%
3 Year Change	102.90%
5 Year Change	45.83%
Change since IPO	-30.00%

Shareholder Returns

	ZAINBH	BH Wireless Telecom	BH Market
7D	-2.1%	1.5%	-2.3%
1Y	23.9%	-2.3%	27.0%

Return vs Industry: ZAINBH exceeded the BH Wireless Telecom industry which returned -2.3% over the past year.

Return vs Market: ZAINBH underperformed the BH Market which returned 27% over the past year.

Price Volatility

Is ZAINBH's price volatile compared to industry and market?
ZAINBH volatility
ZAINBH Average Weekly Movement	n/a
Wireless Telecom Industry Average Movement	3.7%
Market Average Movement	2.7%
10% most volatile stocks in BH Market	5.9%
10% least volatile stocks in BH Market	1.7%

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

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

About the Company

Founded	Employees	CEO	Website
2003	n/a	Duncan Howard	https://www.bh.zain.com

Zain Bahrain B.S.C. provides public telecommunications and related products and services in the Kingdom of Bahrain. It is involved in mobile and fixed broadband operation services; and trading of handsets and accessories. The company offers mobile postpaid and prepaid plans, broadband plans, devices, mobile application, roaming, and other value-added services.

Zain Bahrain B.S.C Fundamentals Summary

How do Zain Bahrain B.S.C's earnings and revenue compare to its market cap?
ZAINBH fundamental statistics
Market Cap	ب.د50.94m
Earnings (TTM)	ب.د5.62m
Revenue (TTM)	ب.د65.48m

9.1x

P/E Ratio

0.8x

P/S Ratio

Is ZAINBH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZAINBH income statement (TTM)
Revenue	ب.د65.48m
Cost of Revenue	ب.د18.82m
Gross Profit	ب.د46.66m
Other Expenses	ب.د41.04m
Earnings	ب.د5.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.015
Gross Margin	71.26%
Net Profit Margin	8.58%
Debt/Equity Ratio	0%

How did ZAINBH perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

52%

Payout Ratio

Valuation

Is Zain Bahrain B.S.C undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.07x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ZAINBH (BHD0.14) is trading above our estimate of fair value (BHD0.07)

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

Price To Earnings Ratio

PE vs Industry: ZAINBH is good value based on its PE Ratio (9.1x) compared to the Asian Wireless Telecom industry average (21.1x).

PE vs Market: ZAINBH is good value based on its PE Ratio (9.1x) compared to the BH market (13.6x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ZAINBH is good value based on its PB Ratio (0.7x) compared to the XA Wireless Telecom industry average (1.9x).

Future Growth

How is Zain Bahrain 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

17.2%

Forecasted Telecom 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 Zain Bahrain 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.

Past Performance

How has Zain Bahrain B.S.C performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

6.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZAINBH has high quality earnings.

Growing Profit Margin: ZAINBH's current net profit margins (8.6%) are lower than last year (8.9%).

Past Earnings Growth Analysis

Earnings Trend: ZAINBH's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: ZAINBH's earnings growth over the past year (1.2%) is below its 5-year average (6.5% per year).

Earnings vs Industry: ZAINBH earnings growth over the past year (1.2%) underperformed the Wireless Telecom industry 7.2%.

Return on Equity

High ROE: ZAINBH's Return on Equity (7.2%) is considered low.

Financial Health

How is Zain Bahrain B.S.C's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZAINBH's short term assets (BHD34.1M) do not cover its short term liabilities (BHD39.7M).

Long Term Liabilities: ZAINBH's short term assets (BHD34.1M) exceed its long term liabilities (BHD11.0M).

Debt to Equity History and Analysis

Debt Level: ZAINBH is debt free.

Reducing Debt: ZAINBH has no debt compared to 5 years ago when its debt to equity ratio was 13.6%.

Debt Coverage: ZAINBH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZAINBH has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Zain Bahrain B.S.C 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

5.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ZAINBH's dividend (5.71%) is higher than the bottom 25% of dividend payers in the BH market (3.73%).

High Dividend: ZAINBH's dividend (5.71%) is in the top 25% of dividend payers in the BH market (5.68%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ZAINBH has been paying a dividend for less than 10 years.

Growing Dividend: ZAINBH's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.8%), ZAINBH's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32.5%), ZAINBH's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Duncan Howard

2.25yrs

Tenure

Mr. Duncan Howard serves as Chief Executive Officer at Zain Bahrain B.S.C. since February 9, 2020. Mr. Howard had been the Chief Commercial Officer of Mobile Telecommunications Company K.S.C.P. since July...

Leadership Team

Experienced Management: ZAINBH's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: ZAINBH's board of directors are considered experienced (4.9 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31