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ABSA

Absa Bank BotswanaBSM:ABSA Stock Report

Last Price

P4.64

Market Cap

P4.0b

7D

0%

1Y

-13.6%

Updated

19 Jan, 2022

Data

Company Financials
ABSA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends1/6

ABSA Stock Overview

Absa Bank Botswana Limited provides various financial services in Botswana.

Price History & Performance

Summary of all time highs, changes and price drops for Absa Bank Botswana
Historical stock prices
Current Share PriceP4.64
52 Week HighP0
52 Week LowP0
Beta0.059
1 Month Change0%
3 Month Change1.98%
1 Year Change-13.59%
3 Year Change-10.94%
5 Year Change-10.77%
Change since IPO2,764.20%

Recent News & Updates

Shareholder Returns

ABSABW BanksBW Market
7D0%-0.1%-0.2%
1Y-13.6%20.4%2.5%

Return vs Industry: ABSA underperformed the BW Banks industry which returned 20.4% over the past year.

Return vs Market: ABSA underperformed the BW Market which returned 2.5% over the past year.

Price Volatility

Is ABSA's price volatile compared to industry and market?
ABSA volatility
ABSA Average Weekly Movement0.6%
Banks Industry Average Movement3.7%
Market Average Movement1.4%
10% most volatile stocks in BW Market3.2%
10% least volatile stocks in BW Market0.2%

Stable Share Price: ABSA is not significantly more volatile than the rest of BW stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: ABSA's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19501,089Keabetswe Pheko-Moshaganehttps://www.absa.co.bw

Absa Bank Botswana Limited provides various financial services in Botswana. It operates through Retail, Business Banking, and Other; and Corporate and Investment Banking segments. The company offers transactional, current, savings, and transmission accounts; and term, fixed, interest and non-interest bearing, and cheque account deposits.

Absa Bank Botswana Fundamentals Summary

How do Absa Bank Botswana's earnings and revenue compare to its market cap?
ABSA fundamental statistics
Market CapP3.95b
Earnings (TTM)P418.99m
Revenue (TTM)P1.44b

9.4x

P/E Ratio

1.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABSA income statement (TTM)
RevenueP1.44b
Cost of RevenueP0
Gross ProfitP1.44b
ExpensesP1.02b
EarningsP418.99m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.49
Gross Margin100.00%
Net Profit Margin29.16%
Debt/Equity Ratio42.5%

How did ABSA perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

56%

Payout Ratio

Valuation

Is Absa Bank Botswana undervalued compared to its fair value and its price relative to the market?

9.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABSA (BWP4.64) is trading above our estimate of fair value (BWP4.39)

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


Price To Earnings Ratio

PE vs Industry: ABSA is poor value based on its PE Ratio (9.4x) compared to the African Banks industry average (6.4x).

PE vs Market: ABSA is good value based on its PE Ratio (9.4x) compared to the BW market (10.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ABSA is overvalued based on its PB Ratio (1.7x) compared to the XF Banks industry average (0.9x).


Future Growth

How is Absa Bank Botswana forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.6%

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 Absa Bank Botswana 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 Absa Bank Botswana performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABSA has a high level of non-cash earnings.

Growing Profit Margin: ABSA's current net profit margins (29.2%) are higher than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: ABSA's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: ABSA's earnings growth over the past year (34.1%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: ABSA earnings growth over the past year (34.1%) exceeded the Banks industry 13.8%.


Return on Equity

High ROE: ABSA's Return on Equity (17.7%) is considered low.


Financial Health

How is Absa Bank Botswana'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: ABSA's Assets to Equity ratio (9.1x) is low.

Allowance for Bad Loans: ABSA has a low allowance for bad loans (64%).

Low Risk Liabilities: 90% of ABSA's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABSA has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: ABSA's Loans to Deposits ratio (95%) is appropriate.

Level of Bad Loans: ABSA has a high level of bad loans (7%).


Dividend

What is Absa Bank Botswana current dividend yield, its reliability and sustainability?

4.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABSA's dividend (4.2%) isn’t notable compared to the bottom 25% of dividend payers in the BW market (4.22%).

High Dividend: ABSA's dividend (4.2%) is low compared to the top 25% of dividend payers in the BW market (8.21%).


Stability and Growth of Payments

Stable Dividend: ABSA's dividend payments have been volatile in the past 10 years.

Growing Dividend: ABSA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56%), ABSA's dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Keabetswe Pheko-Moshagane

2.75yrs

Tenure

P6,342,029

Compensation

Ms. Keabetswe Pheko-Moshagane serves as the Managing Director of Absa Bank Botswana Ltd (formerly known as Barclays Bank of Botswana Ltd.) since April 2019 and served as its Acting Chief Operating Officer...


CEO Compensation Analysis

Compensation vs Market: Keabetswe's total compensation ($USD546.68K) is about average for companies of similar size in the BW market ($USD701.07K).

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


Leadership Team

Experienced Management: ABSA's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ABSA's board of directors are not considered experienced ( 1.8 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.


Top Shareholders

Company Information

Absa Bank Botswana Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Absa Bank Botswana Limited
  • Ticker: ABSA
  • Exchange: BSM
  • Founded: 1950
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: P3.954b
  • Shares outstanding: 852.16m
  • Website: https://www.absa.co.bw

Number of Employees


Location

  • Absa Bank Botswana Limited
  • Prime Plaza
  • 5th Floor, Building 4
  • Gaborone
  • Botswana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:16
End of Day Share Price2022/01/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.