ENXTPA:ACA

Stock Analysis Report

Crédit Agricole

Executive Summary

Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services worldwide.

Rewards

Trading at 3.3% below its fair value

Earnings are forecast to grow 1.8% per year

Earnings grew by 6.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

ACA

-1.6%

FR Banks

-0.2%

FR Market


1 Year Return

25.0%

ACA

19.2%

FR Banks

22.9%

FR Market

Return vs Industry: ACA exceeded the French Banks industry which returned 22.3% over the past year.

Return vs Market: ACA exceeded the French Market which returned 24.1% over the past year.


Shareholder returns

ACAIndustryMarket
7 Day-1.1%-1.6%-0.2%
30 Day-2.9%-4.3%0.6%
90 Day6.9%7.4%6.8%
1 Year33.6%25.0%28.4%19.2%27.2%22.9%
3 Year18.1%1.0%-3.9%-19.1%42.4%28.8%
5 Year49.7%17.1%32.6%3.1%62.7%39.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACA (€12.92) is trading below our estimate of fair value (€13.36)

Significantly Below Fair Value: ACA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACA is poor value based on its PE Ratio (10.4x) compared to the Banks industry average (9.7x).

PE vs Market: ACA is good value based on its PE Ratio (10.4x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ACA is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: ACA is good value based on its PB Ratio (0.6x) compared to the XE Banks industry average (0.7x).


Next Steps

Future Growth

How is Crédit Agricole forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACA's forecast earnings growth (1.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: ACA's earnings (1.8% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: ACA's revenue (3.1% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: ACA's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACA's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Crédit Agricole performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACA has high quality earnings.

Growing Profit Margin: ACA's current net profit margins (19.1%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: ACA's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: ACA's earnings growth over the past year (6.2%) is below its 5-year average (15.1% per year).

Earnings vs Industry: ACA earnings growth over the past year (6.2%) exceeded the Banks industry 1.1%.


Return on Equity

High ROE: ACA's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crédit Agricole'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: ACA has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACA's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: ACA's level of assets compared to its equity is very high.

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

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

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

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

Level of Bad Loans: ACA has an appropriate level of bad loans (1.61%)


Next Steps

Dividend

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

5.46%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.5%markettop25%4.4%industryaverage6.1%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: ACA's dividend (5.34%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: ACA's dividend (5.34%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

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

Growing Dividend: ACA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), ACA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACA's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Philippe Brassac (60yo)

4.7yrs

Tenure

€2,214,767

Compensation

Mr. Philippe Brassac serves as Chairman at Credit Agricole Corporate and Investment Bank. He has been the President of Federation Bancaire Francaise since September 01, 2016. Mr. Brassac serves as the Chie ...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD2.46M) is below average for companies of similar size in the French market ($USD3.59M).

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


Management Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: ACA's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

62yo

Average Age

Experienced Board: ACA's board of directors are considered experienced (7.7 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.


Ownership Breakdown

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


Management Team

  • Jérôme Grivet (57yo)

    Deputy GM

    • Tenure: 5yrs
  • Xavier Musca (59yo)

    Deputy Chief Executive Officer

    • Tenure: 7.5yrs
    • Compensation: €1.31m
  • Cyril Meilland

    Head of Investors Relations

    • Philippe Brassac (60yo)

      Chief Executive Officer

      • Tenure: 4.7yrs
      • Compensation: €2.21m
    • Stéphane Priami (53yo)

      Group Head of Compliance

      • Pierre Minor (66yo)

        Head of Legal Affairs

        • Tenure: 4.2yrs
      • Clotilde L'Angevin (41yo)

        Head of Investor Relations

        • Tenure: 1yrs
      • Denis Marquet

        Head of Group Communications

        • Tenure: 9yrs
      • Véronique Faujour

        Head of Marketing & Communication

        • Michel Ganzin

          Deputy General Manager


          Board Members

          • Noël Dupuy (72yo)

            Chairman of the Crcam Touraine & Poitou and Director of the Fnca

            • Compensation: €42.50k
          • Laurence Dors (63yo)

            Independent Director

            • Tenure: 10.7yrs
            • Compensation: €64.68k
          • Dominique Lefebvre (58yo)

            Chairman of the Board

            • Tenure: 4.2yrs
            • Compensation: €560.00k
          • Véronique Flachaire (62yo)

            Director

            • Tenure: 9.9yrs
            • Compensation: €45.08k
          • Françoise Gri (62yo)

            Independent Director

            • Tenure: 7.7yrs
            • Compensation: €123.62k
          • M. Cazals (72yo)

            Chairman & Director of the CRCAM Toulouse et Midi Toulousain

            • Compensation: €19.80k
          • Pierre Cambefort (55yo)

            Non-Voting Director

            • Tenure: 1.3yrs
            • Compensation: €8.40k
          • Raphaël Appert (58yo)

            Deputy Chairman

            • Compensation: €45.01k
          • Monica Mondardini (59yo)

            Independent Director

            • Tenure: 9.7yrs
            • Compensation: €52.32k
          • Catherine Pourre (62yo)

            Independent Director

            • Tenure: 2.7yrs
            • Compensation: €124.00k

          Company Information

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


          Key Information

          • Name: Crédit Agricole S.A.
          • Ticker: ACA
          • Exchange: ENXTPA
          • Founded:
          • Industry: Diversified Banks
          • Sector: Banks
          • Market Cap: €36.410b
          • Shares outstanding: 2.88b
          • Website: https://www.credit-agricole.com

          Number of Employees


          Location

          • Crédit Agricole S.A.
          • 50 Avenue Jean Jaurès
          • Montrouge
          • Ile-de-France
          • 92120
          • France

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          CRAR.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDDec 2001
          XCADB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 2001
          ACAENXTPA (Euronext Paris)YesRegistered SharesFREURDec 2001
          0HAILSE (London Stock Exchange)YesRegistered SharesGBEURDec 2001
          ACABIT (Borsa Italiana)YesRegistered SharesITEURDec 2001
          XCAXTRA (XETRA Trading Platform)YesRegistered SharesDEEURDec 2001
          ACAPBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURDec 2001
          ACAWBAG (Wiener Boerse AG)YesRegistered SharesATEURDec 2001
          CRAR.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

          Biography

          Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services worldwide. It operates through five segments: Asset Gathering; French Retail Banking - LCL; International Retail Banking; Specialised Financial Services; and Large Customers. The company offers payment instruments, loans, and saving products; savings/retirement, death and disability/creditor/group, and property and casualty insurance products; and expertise and investment solutions for active, passive, real estate, and alternative asset management. It also provides wealth management services that allow individual customers to manage, protect, and transfer their assets; and consumer finance and flow management services. In addition, the company offers financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; and financing services for renewable energy and public infrastructure projects, as well as leasing services. Further, it provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; and asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, custody, fund administration, middle-office, forex, security lending and borrowing, and fund distribution support and services to issuers. Crédit Agricole S.A. serves retail and corporate customers, banks and financial institutions, government agencies, and local authorities. The company is headquartered in Montrouge, France. Crédit Agricole S.A. is a subsidiary of SAS Rue La Boétie. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/22 20:57
          End of Day Share Price2020/01/22 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.