DB:BIRG

Stock Analysis Report

Bank of Ireland Group

Executive Summary

Bank of Ireland Group plc provides various banking and financial products and services in the Republic of Ireland, the United Kingdom, and internationally.


Snowflake Analysis

Very undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

BIRG

4.4%

DE Banks

9.9%

DE Market


1 Year Return

-67.3%

BIRG

-37.7%

DE Banks

-17.5%

DE Market

Return vs Industry: BIRG underperformed the German Banks industry which returned -37.7% over the past year.

Return vs Market: BIRG underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

BIRGIndustryMarket
7 Day-1.4%4.4%9.9%
30 Day-46.9%-25.5%-16.6%
90 Day-63.8%-27.2%-24.8%
1 Year-66.3%-67.3%-35.7%-37.7%-15.0%-17.5%
3 Yearn/a-43.7%-46.4%-17.4%-24.5%
5 Yearn/a-41.2%-53.2%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIRG (€1.79) is trading below our estimate of fair value (€3.4)

Significantly Below Fair Value: BIRG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BIRG is good value based on its PE Ratio (5x) compared to the Banks industry average (15.1x).

PE vs Market: BIRG is good value based on its PE Ratio (5x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: BIRG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BIRG is good value based on its PB Ratio (0.2x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of Ireland Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRG's forecast earnings growth (14% per year) is above the savings rate (-0.4%).

Earnings vs Market: BIRG's earnings (14% per year) are forecast to grow slower than the German market (14.4% per year).

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

Revenue vs Market: BIRG's revenue (0.9% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: BIRG's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIRG's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Bank of Ireland Group performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BIRG has high quality earnings.

Growing Profit Margin: BIRG's current net profit margins (14.5%) are lower than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: BIRG's earnings have declined by -9.9% per year over the past 5 years.

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

Earnings vs Industry: BIRG had negative earnings growth (-37.7%) over the past year, making it difficult to compare to the Banks industry average (0.7%).


Return on Equity

High ROE: BIRG's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Bank of Ireland Group'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: BIRG has a low level of unsold assets or inventory.

Debt Coverage by Assets: BIRG's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: BIRG has a low allowance for bad loans.

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

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

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

Level of Bad Loans: BIRG has a high level of bad loans (4.34%)


Next Steps

Dividend

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

9.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BIRG's dividend (9.76%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: BIRG's dividend (9.76%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

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

Growing Dividend: BIRG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.7%), BIRG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BIRG's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Francesca McDonagh (44yo)

2.42s

Tenure

€958,000

Compensation

Ms. Francesca Jane McDonagh has been Group Chief Executive Officer and Executive Director of Bank of Ireland Group Plc since October 2, 2017. Ms. McDonagh has been Executive Director at The Governor and Co ...


CEO Compensation Analysis

Compensation vs Market: Francesca's total compensation ($USD1.06M) is below average for companies of similar size in the German market ($USD1.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Francesca McDonagh
Group CEO & Executive Director2.42yrs€958.00k0.00037% 7.1k
Myles O'Grady
CFO & Non-Independent Executive Director0.17yrno datano data
Jacqueline Dorothy Noakes
Group Chief Operating Officer1.58yrsno datano data
Darach O'Leary
Head of Group Investor Relationsno datano datano data
Gabrielle Ryan
Group General Counselno datano datano data
Damien Garvey
Head of Group External Communications & Public Affairsno datano datano data
Henry Dummer
Chief Marketing Officer1.67yrsno datano data
Matthew Elliott
Chief People Officer1yrno datano data
David Deverall
Managing Directorno datano datano data
Ciaran O'Neill
Head of Global Equities for Fund Management Business15yrsno datano data

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: BIRG's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Francesca McDonagh
Group CEO & Executive Director2.42yrs€958.00k0.00037% 7.1k
Myles O'Grady
CFO & Non-Independent Executive Director0.17yrno datano data
Patrick Haren
Deputy Chairman & Senior Independent Director1.58yrs€126.00k0.00059% 11.4k
Patrick Kennedy
Independent Chairman of the Board1.58yrs€394.00k0.017% 323.1k
Richard Goulding
Independent Non-Executive Director2.67yrs€98.00k0.0014% 27.0k
Evelyn Bourke
Independent Non-Executive Director1.83yrs€79.00k0.0017% 32.9k
Fiona Muldoon
Independent Non-Executive Director4.67yrs€78.00k0.00027% 5.2k
Stephen Pateman
Independent Non-Executive Director1.42yrs€87.00k0.00012% 2.3k
Patrick Mulvihill
Independent Non-Executive Director8.25yrs€110.00k0.000020% 385.1
Ian Buchanan
Independent Non-Executive Director1.83yrs€134.00kno data

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: BIRG'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: BIRG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Bank of Ireland Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Ireland Group plc
  • Ticker: BIRG
  • Exchange: DB
  • Founded: 1783
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €1.925b
  • Shares outstanding: 1.07b
  • Website: https://www.bankofireland.com

Number of Employees


Location

  • Bank of Ireland Group plc
  • 40 Mespil Road
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIRGLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2017
BIRGISE (Irish Stock Exchange)YesOrdinary SharesIEEURJul 2017
BIRGXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 2017
BIRGIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2017
BIRGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2017
BIRGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2017
BKRI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2017
BKRI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2017

Biography

Bank of Ireland Group plc provides various banking and financial products and services in the Republic of Ireland, the United Kingdom, and internationally. The company operates through Retail Ireland, Wealth and Insurance, Retail UK, and Corporate and Treasury segments. Its products and services include current and savings accounts, and business deposits and accounts; personal, car, home improvement, graduate, and student loans, as well as overdrafts; business and farming loans, BREXIT loans, small medium enterprise loans, asset finance, commercial finance, hire purchase, and leasing services; and property, trade, and project finance. The company also offers account reconciliation, moving/sweeping funds, bulk payment services, direct debit originator, domestic and international payments, and FXPay services; international payments and credit cards; protection overview, mortgage protection, life cover, specified illness cover, income protection, protection for individuals, and protection for families; pensions and investments, foreign exchange, and treasury deposits and services; personal products; private banking services; leveraged acquisition finance; and funding and acquisition, cash management, transaction support and agency, and escrow services. In addition, it provides home, car, travel, and life insurance products. The company serves customers through a network of 264 branches and 1,550 self-serve devices in the Republic of Ireland. Bank of Ireland Group plc was founded in 1783 and is headquartered in Dublin, the Republic of Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:03
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.