BME:BKIA

Stock Analysis Report

Executive Summary

Bankia, S.A., together with its subsidiaries, provides various banking and financial products and services in Spain and internationally.

Rewards

PE ratio (10.1x) is below the Spanish market (17.2x)

Risk Analysis

Earnings are forecast to decline by an average of -2.8% per year for the next 3 years

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

BKIA

1.4%

ES Banks

0.3%

ES Market


1 Year Return

-34.3%

BKIA

-9.5%

ES Banks

6.5%

ES Market

Return vs Industry: BKIA underperformed the Spanish Banks industry which returned -9.5% over the past year.

Return vs Market: BKIA underperformed the Spanish Market which returned 6.5% over the past year.


Shareholder returns

BKIAIndustryMarket
7 Day1.8%1.4%0.3%
30 Day-1.2%-3.2%0.4%
90 Day3.5%5.4%3.2%
1 Year-31.7%-34.3%-5.8%-9.5%10.4%6.5%
3 Year-48.9%-53.0%-17.7%-26.9%14.5%3.7%
5 Year-60.5%-65.1%-32.8%-45.4%12.8%-6.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKIA (€1.79) is trading above our estimate of fair value (€1.16)

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


Price To Earnings Ratio

PE vs Industry: BKIA is good value based on its PE Ratio (10.1x) compared to the Banks industry average (10.3x).

PE vs Market: BKIA is good value based on its PE Ratio (10.1x) compared to the Spanish market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BKIA is good value based on its PB Ratio (0.4x) compared to the ES Banks industry average (0.5x).


Next Steps

Future Growth

How is Bankia forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKIA's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: BKIA's earnings are forecast to decline over the next 3 years (-2.8% per year).

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

Revenue vs Market: BKIA's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: BKIA's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKIA's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Bankia performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKIA has high quality earnings.

Growing Profit Margin: BKIA's current net profit margins (18.5%) are higher than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: BKIA has become profitable over the past 5 years, growing earnings by -9.8% per year.

Accelerating Growth: BKIA's earnings growth over the past year (1%) exceeds its 5-year average (-9.8% per year).

Earnings vs Industry: BKIA earnings growth over the past year (1%) underperformed the Banks industry 3.7%.


Return on Equity

High ROE: BKIA's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bankia'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: BKIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: BKIA's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BKIA has a high level of bad loans (5.72%)


Next Steps

Dividend

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

6.47%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.3%markettop25%5.5%industryaverage5.8%forecastin3Years7.0%

Current dividend yield vs market & industry

Notable Dividend: BKIA's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Spanish market (2.34%).

High Dividend: BKIA's dividend (6.47%) is in the top 25% of dividend payers in the Spanish market (5.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), BKIA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKIA's dividends in 3 years are forecast to be covered by earnings (65.2% payout ratio).


Next Steps

Management

What is the CEO of Bankia's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

José Sevilla Álvarez (55yo)

5.5yrs

Tenure

€800,000

Compensation

Mr. José Sevilla Álvarez is Chief Executive Officer of Bankia, SA ("Bankia"). Before joining Bankia he held various management positions in BBVA, where he served as General Manager of Risks, Head of the Of ...


CEO Compensation Analysis

Compensation vs Market: José's total compensation ($USD887.11K) is above average for companies of similar size in the Spanish market ($USD110.89K).

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


Management Age and Tenure

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: BKIA's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BKIA's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€8,30004 Sep 19
Laura González Molero
EntityIndividual
Shares5,000
Max Price€1.66

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • José Ignacio Goirigolzarri Tellaeche (65yo)

    Executive Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: €800.00k
  • Amalia Blanco Lucas (58yo)

    Deputy General Director of Communication & External Relations

    • Tenure: 0yrs
  • Antonio Ortega Parra (72yo)

    • Tenure: 5.5yrs
    • Compensation: €800.00k
  • José Sevilla Álvarez (55yo)

    CEO & Executive Director

    • Tenure: 5.5yrs
    • Compensation: €800.00k
  • Gonzalo Alcubilla Povedano (51yo)

    Deputy General Director of Business Banking

    • Tenure: 5.5yrs
  • Leopoldo Alvear Trenor

    Deputy General Director of Financial Management

    • Tenure: 0yrs
  • Fernando Sobrini Aburto (56yo)

    Deputy General Director of Asset Management & Investees

    • Tenure: 5.5yrs
  • Iñigo Velázquez

    Head of Investor Relations & Rating

    • Tenure: 0yrs
  • Carlos Aguilera

    Head of Business Banking Division - Murcia Region

    • Tenure: 1.4yrs
  • David López Puig

    Deputy General Director of People & Culture

    • Tenure: 0yrs

Board Members

  • José Ignacio Goirigolzarri Tellaeche (65yo)

    Executive Chairman of the Board

    • Tenure: 7.6yrs
    • Compensation: €800.00k
  • Joaquín Ayuso García (64yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: €100.00k
  • Antonio Ortega Parra (72yo)

    • Tenure: 5.5yrs
    • Compensation: €800.00k
  • María Eva Castillo Sanz (57yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: €100.00k
  • José Sevilla Álvarez (55yo)

    CEO & Executive Director

    • Tenure: 5.5yrs
    • Compensation: €800.00k
  • Fernando Fernández Méndez de Andés (63yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: €100.00k
  • José Luis Feito Higueruela (67yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: €100.00k
  • Francisco Javier Campo García (64yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: €100.00k
  • Jorge Cosmen Menéndez-Castañedo (51yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: €100.00k
  • Antonio Greño Hidalgo (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €100.00k

Company Information

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


Key Information

  • Name: Bankia, S.A.
  • Ticker: BKIA
  • Exchange: BME
  • Founded: 2010
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €5.425b
  • Shares outstanding: 3.05b
  • Website: https://www.bankia.com

Number of Employees


Location

  • Bankia, S.A.
  • Paseo de la Castellana, 189
  • Madrid
  • Madrid
  • 28029
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKIABME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJul 2011
0RQ1LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2011
BNKX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2011
FV02DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2011
BKIA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2011
BKIAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2011
BKIAEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2011
FV02ETLX (Eurotlx)YesOrdinary SharesITEURJul 2011
BNKX.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 2013

Biography

Bankia, S.A., together with its subsidiaries, provides various banking and financial products and services in Spain and internationally. The company operates through Retail Banking and Business Banking seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:35
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.