DB:TK2A

Stock Analysis Report

Thurgauer Kantonalbank

Executive Summary

Thurgauer Kantonalbank provides banking products and services for private, corporate, commercial, and public sectors in Switzerland.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TK2A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TK2A

-2.0%

DE Banks

2.2%

DE Market


1 Year Return

0.7%

TK2A

-37.6%

DE Banks

-17.2%

DE Market

Return vs Industry: TK2A exceeded the German Banks industry which returned -4.5% over the past year.

Return vs Market: TK2A underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

TK2AIndustryMarket
7 Day0%-2.0%2.2%
30 Day0%-25.3%-15.7%
90 Day0.2%-27.3%-24.0%
1 Year3.3%0.7%-35.7%-37.6%-14.9%-17.2%
3 Yearn/a-43.2%-45.9%-16.4%-23.3%
5 Yearn/a-41.6%-53.6%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TK2A (€92.8) is trading below our estimate of fair value (€226.25)

Significantly Below Fair Value: TK2A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TK2A is good value based on its PE Ratio (3.2x) compared to the Banks industry average (17x).

PE vs Market: TK2A is good value based on its PE Ratio (3.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TK2A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TK2A is good value based on its PB Ratio (0.2x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Thurgauer Kantonalbank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TK2A's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: TK2A's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: TK2A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TK2A's revenue (0.6% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: TK2A's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TK2A's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Thurgauer Kantonalbank performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TK2A has high quality earnings.

Growing Profit Margin: TK2A's current net profit margins (39.4%) are higher than last year (37.9%).


Past Earnings Growth Analysis

Earnings Trend: TK2A's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: TK2A's earnings growth over the past year (2.4%) is below its 5-year average (3.3% per year).

Earnings vs Industry: TK2A earnings growth over the past year (2.4%) underperformed the Banks industry 3.9%.


Return on Equity

High ROE: TK2A's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Thurgauer Kantonalbank'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: TK2A has a low level of unsold assets or inventory.

Debt Coverage by Assets: TK2A's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: TK2A's level of assets compared to its equity is moderate.

Allowance for Bad Loans: TK2A has a low allowance for bad loans.

Low Risk Liabilities: TK2A's liabilities are made up of primarily low risk sources of funding.

Loan Level: TK2A has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TK2A has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: TK2A has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TK2A's dividend (2.59%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: TK2A's dividend (2.59%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TK2A has been paying a dividend for less than 10 years.

Growing Dividend: TK2A's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.4%), TK2A's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TK2A's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Thomas Koller (50yo)

0.75

Tenure

CHF653,440

Compensation

Mr. Thomas Koller has been Chairman of Management Board, Head of Bank Management & Private Customers ad Interim Business Unit at Thurgauer Kantonalbank since January 1, 2019. He served as Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD661.60K) is about average for companies of similar size in the German market ($USD817.80K).

Compensation vs Earnings: Insufficient data to compare Thomas's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Koller
Chairman of Management Board0.75yrCHF653.44k0.010% CHF39.8k
Hanspeter Hutter
Chief Financial Officerno datano datano data
Rolf Brunner
Head of Business Unit Services & Member of the Management Board8.42yrsno data0.0014% CHF5.4k
David Strebel
Head of the Market Services Division & Member of the Management Board4.17yrsno data0.020% CHF79.5k
Remo Lobsiger
Head of Business Customers Division & Member of Management Board4.08yrsno data0.0050% CHF19.9k

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: TK2A's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
René Bock
President of the Bank Council11.08yrsCHF233.26k0.056% CHF223.6k
Max Soller
Member of the Bank Council11.08yrsCHF77.54k0.0092% CHF36.8k
Daniela Lutz Muller
Member of the Bank Council7.25yrsCHF63.74k0.011% CHF43.7k
Urs Saxer
Vice President of the Bank Council4.17yrsCHF111.54k0.027% CHF107.3k
Axel Vietze
Member of the Bank Council8.25yrsCHF63.74k0.070% CHF278.3k
Susanne Brandenberger
Member of the Bank Council3.25yrsCHF84.98k0.0082% CHF32.7k
Christoph Kohler
Member of the Bank Council4.17yrsCHF69.05kno data
Mike Franz
Member of the Bank Council2.25yrsCHF53.11kno data
Roman Giuliani
Member of the Bank Council3.33yrsCHF56.30k0.0070% CHF27.8k

4.2yrs

Average Tenure

55yo

Average Age

Experienced Board: TK2A's board of directors are considered experienced (4.2 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.


Top Shareholders

Company Information

Thurgauer Kantonalbank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thurgauer Kantonalbank
  • Ticker: TK2A
  • Exchange: DB
  • Founded: 1871
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CHF432.000m
  • Listing Market Cap: CHF397.551m
  • Shares outstanding: 4.00m
  • Website: https://www.tkb.ch

Number of Employees


Location

  • Thurgauer Kantonalbank
  • bench 1
  • Postfach
  • Weinfelden
  • Thurgau
  • 8570
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TKBPSWX (SIX Swiss Exchange)YesShare CapitalCHCHFApr 2014
0QS4LSE (London Stock Exchange)YesShare CapitalGBCHFApr 2014
TK2ADB (Deutsche Boerse AG)YesShare CapitalDEEURApr 2014

Biography

Thurgauer Kantonalbank provides banking products and services for private, corporate, commercial, and public sectors in Switzerland. It offers accounts, home and personal loans, property mortgages, asset management, financial planning, guarantees, cards, mobile payment, and online banking services. The company also provides finance investment and real estate services. It operates through a network of 28 branches and 77 ATMs. Thurgauer Kantonalbank was founded in 1871 and is headquartered in Weinfelden, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/25 22:16
End of Day Share Price2019/06/28 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.