LSE:0DP9

Stock Analysis Report

Executive Summary

Banca Transilvania S.A. provides various banking products and services.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0DP9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0DP9

0.6%

GB Banks

0.5%

GB Market


1 Year Return

53.4%

0DP9

-5.9%

GB Banks

6.6%

GB Market

Return vs Industry: 0DP9 exceeded the UK Banks industry which returned -6.5% over the past year.

Return vs Market: 0DP9 exceeded the UK Market which returned 6.1% over the past year.


Shareholder returns

0DP9IndustryMarket
7 Day0%0.6%0.5%
30 Day0%-1.9%-2.4%
90 Day5.3%0.08%4.0%
1 Year65.5%53.4%0.1%-5.9%12.2%6.6%
3 Yearn/a-7.3%-18.9%17.8%2.9%
5 Yearn/a0.4%-18.7%35.7%4.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0DP9 (RON2.6) is trading below our estimate of fair value (RON4.27)

Significantly Below Fair Value: 0DP9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0DP9 is good value based on its PE Ratio (10.3x) compared to the Banks industry average (10.5x).

PE vs Market: 0DP9 is good value based on its PE Ratio (10.3x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0DP9's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0DP9 is overvalued based on its PB Ratio (1.8x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Banca Transilvania forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0DP9's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: 0DP9's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: 0DP9's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0DP9's revenue (3.3% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0DP9's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0DP9's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Banca Transilvania performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0DP9 has high quality earnings.

Growing Profit Margin: 0DP9's current net profit margins (40.8%) are lower than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: 0DP9's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: 0DP9's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0DP9 had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Banks industry average (28.3%).


Return on Equity

High ROE: 0DP9's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banca Transilvania'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: 0DP9 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0DP9's debt is covered by short term assets (assets are 6.2x debt).


Financial Institutions Analysis

Asset Level: 0DP9's level of assets compared to its equity is low.

Allowance for Bad Loans: 0DP9 has a low allowance for bad loans.

Low Risk Liabilities: 0DP9's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0DP9 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0DP9's loans are broadly funded by customer deposits.

Level of Bad Loans: 0DP9 has a high level of bad loans (7.29%)


Next Steps

Dividend

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

6.12%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%1.8%markettop25%5.1%industryaverage6.2%forecastin3Years7.6%

Current dividend yield vs market & industry

Notable Dividend: 0DP9's dividend (6.12%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: 0DP9's dividend (6.12%) is in the top 25% of dividend payers in the UK market (5.1%)


Stability and Growth of Payments

Stable Dividend: 0DP9's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0DP9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.8%), 0DP9's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0DP9's dividends in 3 years are forecast to be covered by earnings (63.3% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Ömer Tetik (46yo)

6.7yrs

Tenure

Work Experience: • June 2013 - present Banca Transilvania S.A. - CEO • December 2010 – May 2013 Credit Europe Bank (Romania) S.A., former Finansbank (Romania) S.A - President • September 2009 -Decemb ...


Leadership Team

NamePositionTenureCompensationOwnership
Ömer Tetik
Chief Executive Officer6.7yrsno data0.080% RON10.6m
George Calinescu
Deputy CEO & CFO6.4yrsno data0.0059% RON783.3k
Leontin Toderici
Deputy CEO & COO14.3yrsno data0.087% RON11.6m
Laura Petrehus
Head of Public Relations0yrsno datano data
Ioana Olanescu
Executive Manager of Corporate Governance & Legal Division0yrsno datano data
Zoranca Doca
Executive Manager of Human Resources0yrsno datano data
Cristina Nistor
Deputy Chief Executive Officer of Retail Banking6.5yrsno data0.056% RON7.4m
Tiberiu Moisa
Deputy CEO of MidCorporate & SMEs3.8yrsno data0.024% RON3.2m
Luminita Runcan
Deputy CEO & Chief Risk Officer7yrsno data0.073% RON9.6m
Simona Nadasan
Deputy Chief Executive Officer of FI & Financial Markets1.3yrsno data0.0084% RON1.1m

6.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 0DP9's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Horia Ciorcila
Chairman of the Board18.1yrsno data4.46% RON591.1m
Doru Lionachescu
Independent Non-Executive Director3.8yrsno data0.013% RON1.7m
Costel Ceocea
Director9.8yrsno data0.048% RON6.4m
Thomas Grasse
Independent Vice Chairman0yrsno datano data
Ivo Gueorguiev
Independent Non-Executive Director5.8yrsno data0.012% RON1.6m
Vasile Puscas
Director7.8yrsno data0.023% RON3.1m
Mirela Bordea
Director2.8yrsno data0.0014% RON184.2k

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 0DP9's board of directors are considered experienced (6.8 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

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


Key Information

  • Name: Banca Transilvania S.A.
  • Ticker: 0DP9
  • Exchange: LSE
  • Founded: 1993
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: RON13.254b
  • Shares outstanding: 5.17b
  • Website: https://www.bancatransilvania.ro

Number of Employees


Location

  • Banca Transilvania S.A.
  • Cluj, str. G. Baritiu nr.8
  • Cluj-Napoca
  • 400027
  • Romania

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLVBVB (Bucharest Stock Exchange)YesCommon SharesRORONDec 1998
0DP9LSE (London Stock Exchange)YesCommon SharesGBRONDec 1998

Biography

Banca Transilvania S.A. provides various banking products and services. The company’s Large Corporate Clients segment offers transaction banking, treasury, trade finance, and retail products; and leasing, asset management, merger and acquisition consultancy, and capital market advisory services to companies, legal and public entities, and financial institutions. The company’s Medium Corporate Customers segment provides lending, current, and treasury services; bonus, structured finance, and co-financing of EU funded projects; and bancassurance, and financial and operating leases. Its Small and Medium Enterprises Clients segment offers services to companies that have undergone the incipient growth stages and whose business activity requires further attention. The company’s Micro Business Clients segment offers loans for working capital or investments, letters of guarantee, EU project co-financing, credit cards, leasing, invoice discounting, or factoring services. It also provides general and FX services, incoming and outgoing payments, cheques, promissory notes, salary payment agreements, or bancassurance services. The company’s Retail Customers segment offers savings and deposit accounts; consumer, car purchase, personal need, and mortgage loans; and payment and securities trading services. Its Treasury segment provides various treasury services. The company’s Leasing and Consumer Loans Granted by Non-Banking Financial Institutions segment offers lease facilities, consumer loans, and microfinance services. Its Other segment provides asset management, brokerage, factoring, and real estate services. The company operates an office in Cluj-Napoca, 54 branches, 435 agencies, 20 bank units, and 7 healthcare division units in Romania; 2 private banking agencies in Romania and Italy; and 1 regional office in Bucharest. Banca Transilvania S.A. was founded in 1993 and is headquartered in Cluj-Napoca, Romania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:22
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.