ENXTPA:BNP

Stock Analysis Report

Executive Summary

BNP Paribas SA provides a range of banking and financial services in France and internationally.

Rewards

Trading at 5.3% below its fair value

Earnings are forecast to grow 2.85% per year

Earnings have grown 19.4% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.2%

BNP

2.8%

FR Banks

0.7%

FR Market


1 Year Return

25.1%

BNP

20.3%

FR Banks

20.6%

FR Market

Return vs Industry: BNP exceeded the French Banks industry which returned 20.3% over the past year.

Return vs Market: BNP exceeded the French Market which returned 20.6% over the past year.


Shareholder returns

BNPIndustryMarket
7 Day2.2%2.8%0.7%
30 Day3.8%4.7%0.3%
90 Day14.8%14.6%3.9%
1 Year34.3%25.1%29.6%20.3%24.9%20.6%
3 Year0.8%-14.6%1.6%-14.4%41.9%28.2%
5 Year36.8%7.4%37.4%6.8%71.6%47.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNP (€52.05) is trading below our estimate of fair value (€54.94)

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


Price To Earnings Ratio

PE vs Industry: BNP is good value based on its PE Ratio (8.8x) compared to the Banks industry average (9.2x).

PE vs Market: BNP is good value based on its PE Ratio (8.8x) compared to the French market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BNP is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: BNP 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 BNP Paribas forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNP's forecast earnings growth (2.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: BNP's earnings (2.9% per year) are forecast to grow slower than the French market (11.6% per year).

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

Revenue vs Market: BNP's revenue (2.3% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: BNP's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNP's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has BNP Paribas performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNP has high quality earnings.

Growing Profit Margin: BNP's current net profit margins (17.6%) are lower than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: BNP has become profitable over the past 5 years, growing earnings by 19.4% per year.

Accelerating Growth: BNP's earnings growth over the past year (1.1%) is below its 5-year average (19.4% per year).

Earnings vs Industry: BNP earnings growth over the past year (1.1%) underperformed the Banks industry 1.1%.


Return on Equity

High ROE: BNP's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BNP Paribas'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: BNP has a low level of unsold assets or inventory.

Debt Coverage by Assets: BNP's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BNP has a high level of bad loans (3.01%)


Next Steps

Dividend

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

5.80%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%1.5%markettop25%4.6%industryaverage5.9%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: BNP's dividend (5.8%) is higher than the bottom 25% of dividend payers in the French market (1.5%).

High Dividend: BNP's dividend (5.8%) is in the top 25% of dividend payers in the French market (4.57%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.2%), BNP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNP's dividends in 3 years are forecast to be covered by earnings (51.1% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Jean-Laurent Bonnafe (58yo)

8yrs

Tenure

€3,381,320

Compensation

Mr. Jean-Laurent Bonnafe has been the Chief Executive Officer at BNP Paribas SA since December 1, 2011. Mr. Bonnafe serves as the Chief Executive Officer at BNP Paribas España S.A. He served as Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Jean-Laurent's total compensation ($USD3.76M) is about average for companies of similar size in the French market ($USD3.76M).

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


Management Age and Tenure

7.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BNP's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

63yo

Average Age

Experienced Board: BNP's board of directors are considered experienced (6.9 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

  • Philippe Bordenave (65yo)

    Chief Operating Officer

    • Tenure: 8yrs
    • Compensation: €2.13m
  • Yves Paul Henri Martrenchar (62yo)

    Head of Group Human Resources

    • Tenure: 7.3yrs
  • Thierry Dormeuil (59yo)

    Managing Director of Investment Banking Europe

    • Tenure: 0yrs
  • Jean-Laurent Bonnafe (58yo)

    CEO & Director

    • Tenure: 8yrs
    • Compensation: €3.38m
  • Rob Gambi (61yo)

    Global Head of Investments

    • Tenure: 0.6yrs
  • Lars Machenil (50yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
  • Bertrand Cizeau (51yo)

    Head of Group Communications & Deputy Director of Company Engagement Department

    • Tenure: 0yrs
  • Stéphane de Marnhac

    Head of Investor Relations & Financial Information

    • Tenure: 7.9yrs
  • Nathalie Hartmann

    Head of the Group Compliance Function

    • Tenure: 2.2yrs
  • Hugues Epaillard (53yo)

    Business Manager of Real Estate & Director

    • Tenure: 1.8yrs
    • Compensation: €63.55k

Board Members

  • Monique Cohen (63yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: €128.72k
  • Michel Tilmant (67yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: €121.90k
  • Michel Pébereau (77yo)

    Honorary Chairman

    • Tenure: 8yrs
  • Denis Kessler (67yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: €100.16k
  • Jean Lemierre (69yo)

    Chairman of the Board

    • Tenure: 5yrs
    • Compensation: €1.02m
  • Jean-Laurent Bonnafe (58yo)

    CEO & Director

    • Tenure: 8yrs
    • Compensation: €3.38m
  • Nicolas Chanut

    Chairman of Exane Inc and Chief Executive Officer of Exane Inc

    • Tenure: 0yrs
  • Jean-Yves Fillion (60yo)

    Chairman of Corporate and Institutional Banking - Americas & CEO of BNP Paribas - USA

    • Tenure: 1.5yrs
  • Philippe Avril (59yo)

    Chairman of BNP Paribas Securities (Japan) Limited

    • Tenure: 0yrs
  • Hugues Epaillard (53yo)

    Business Manager of Real Estate & Director

    • Tenure: 1.8yrs
    • Compensation: €63.55k

Company Information

BNP Paribas SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BNP Paribas SA
  • Ticker: BNP
  • Exchange: ENXTPA
  • Founded: 1966
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €65.014b
  • Shares outstanding: 1.25b
  • Website: https://group.bnpparibas

Number of Employees


Location

  • BNP Paribas SA
  • 16 boulevard des Italiens
  • Paris
  • Ile-de-France
  • 75009
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNPBIT (Borsa Italiana)YesOrdinary SharesITEUROct 1993
BNPMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1993
BNPENXTPA (Euronext Paris)YesOrdinary SharesFREUROct 1993
BNPDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1993
BNPSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1993
0HB5LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1993
BNPQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1993
BNPXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1993
BNPWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 1993
BNPPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1993
BNP NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 1993
BNPHDB (Deutsche Boerse AG)ADR EACH REPR 1/2 ORD LVL I(SPON)DEEURNov 2000
BNPQ.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1/2 ORD LVL I(SPON)USUSDNov 2000

Biography

BNP Paribas SA provides a range of banking and financial services in France and internationally. It operates through two divisions, Retail Banking and Services, and Corporate and Institutional Banking. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 20:51
End of Day Share Price2019/12/13 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.