DB:L6BA

Stock Analysis Report

Executive Summary

Liberbank, S.A. provides various banking products and services for households, SMEs, and self-employed customers in Spain and internationally.

Rewards

Trading at 40.5% below its fair value

Revenue is forecast to grow 4.01% per year

Earnings grew by 2.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.8% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Liberbank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: L6BA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

L6BA

3.2%

DE Banks

4.3%

DE Market


1 Year Return

-64.5%

L6BA

-37.3%

DE Banks

-14.2%

DE Market

Return vs Industry: L6BA underperformed the German Banks industry which returned -39% over the past year.

Return vs Market: L6BA underperformed the German Market which returned -16.6% over the past year.


Shareholder returns

L6BAIndustryMarket
7 Day0.5%3.2%4.3%
30 Day-44.8%-12.8%-9.0%
90 Day-62.1%-27.8%-21.6%
1 Year-63.9%-64.5%-35.3%-37.3%-11.7%-14.2%
3 Year-80.2%-89.1%-40.6%-43.5%-12.3%-19.6%
5 Year-89.9%-94.5%-41.3%-53.0%-14.0%-25.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Liberbank undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: L6BA (€0.12) is trading below our estimate of fair value (€0.21)

Significantly Below Fair Value: L6BA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: L6BA is good value based on its PE Ratio (3.7x) compared to the Banks industry average (15.2x).

PE vs Market: L6BA is good value based on its PE Ratio (3.7x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: L6BA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: L6BA is good value based on its PB Ratio (0.1x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Liberbank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: L6BA's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: L6BA's earnings are forecast to decline over the next 3 years (-1.8% per year).

High Growth Earnings: L6BA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: L6BA's revenue (4% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: L6BA's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: L6BA's Return on Equity is forecast to be low in 3 years time (2.8%).


Next Steps

Past Performance

How has Liberbank performed over the past 5 years?

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L6BA has high quality earnings.

Growing Profit Margin: L6BA's current net profit margins (20.1%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: L6BA has become profitable over the past 5 years, growing earnings by -14.3% per year.

Accelerating Growth: L6BA's earnings growth over the past year (2.3%) exceeds its 5-year average (-14.3% per year).

Earnings vs Industry: L6BA earnings growth over the past year (2.3%) exceeded the Banks industry 0.7%.


Return on Equity

High ROE: L6BA's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is Liberbank'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: L6BA's level of assets compared to its equity is moderate.

Allowance for Bad Loans: L6BA has a low allowance for bad loans.

Low Risk Liabilities: L6BA's liabilities are made up of primarily low risk sources of funding.

Loan Level: L6BA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: L6BA's loans are broadly funded by customer deposits.

Level of Bad Loans: L6BA has a high level of bad loans (3.23%)


Next Steps

Dividend

What is Liberbank's current dividend yield, its reliability and sustainability?

5.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: L6BA's dividend (5.26%) is higher than the bottom 25% of dividend payers in the German market (1.67%).

High Dividend: L6BA's dividend (5.26%) is in the top 25% of dividend payers in the German market (4.71%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether L6BA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if L6BA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), L6BA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: L6BA's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

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

6.4yrs

Average board tenure


CEO

Manuel Menendez Menendez (60yo)

no data

Tenure

€441,000

Compensation

Mr. Manuel Menéndez Menéndez has been Chief Executive Officer of Liberbank, SA since 2014 and also serves as its Director since May 5, 2011. Mr. Menéndez serves as the President of the Board of Directors a ...


CEO Compensation Analysis

Compensation vs Market: Manuel's total compensation ($USD476.91K) is below average for companies of similar size in the German market ($USD1.10M).

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


Board Members

NamePositionTenureCompensationOwnership
Manuel Menendez Menendez
CEO & Directorno data€441.00k0.058% 234.2k
Jorge Delclaux Bravo
Independent Director8.33yrs€140.00kno data
Felipe Fernandez Fernandez
Director8.92yrs€110.00k0.011% 44.4k
Maria Luisa Garana Corces
Independent Director5yrs€140.00k0.0060% 24.2k
Víctor Manuel Bravo Canadas
Director8.92yrs€83.00k0.010% 40.7k
Maria Encarnacion Paredes Rodriguez
Director7.25yrs€110.00k0.0080% 32.3k
Pedro Manuel Rivero Torre
President of the Board5.5yrs€190.00k0.0080% 32.3k
Ernesto Luis Tinajero Flores
Director5yrs€110.00kno data
Luis Masaveu Herrero
Director5yrs€110.00k0.13% 519.3k
María Grecna
Independent External Director0.17yrno datano data

6.4yrs

Average Tenure

60yo

Average Age

Experienced Board: L6BA's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: L6BA 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 2.6%.


Top Shareholders

Company Information

Liberbank, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Liberbank, S.A.
  • Ticker: L6BA
  • Exchange: DB
  • Founded: 2011
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €403.811m
  • Shares outstanding: 3.04b
  • Website: https://www.liberbank.es

Number of Employees


Location

  • Liberbank, S.A.
  • Camino Fuente de la Mora, 5
  • Madrid
  • Madrid
  • 28050
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBKBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURMay 2013
L6BADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2013
0RE4LSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2013
LBKEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2013
LBBR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2013

Biography

Liberbank, S.A. provides various banking products and services for households, SMEs, and self-employed customers in Spain and internationally. The company offers deposits and accounts; cards; mortgages and loans; investment and savings products; pension plans; annuities; and insurance products. The company was formerly known as Effibank and changed its name to Liberbank, S.A. in August 2011. The company was founded in 2011 and is based in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:23
End of Day Share Price2020/04/07 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.