LSE:0HB5

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued established dividend payer.


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: 0HB5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.5%

0HB5

-18.9%

GB Banks

-3.3%

GB Market


1 Year Return

-42.3%

0HB5

-44.0%

GB Banks

-25.0%

GB Market

Return vs Industry: 0HB5 matched the UK Banks industry which returned -38% over the past year.

Return vs Market: 0HB5 underperformed the UK Market which returned -22.4% over the past year.


Shareholder returns

0HB5IndustryMarket
7 Day-16.5%-18.9%-3.3%
30 Day-40.4%-30.4%-19.5%
90 Day-51.0%-42.8%-28.9%
1 Year-38.0%-42.3%-40.1%-44.0%-21.0%-25.0%
3 Year-49.6%-57.3%-40.0%-48.2%-14.7%-25.8%
5 Year-43.1%-55.3%-38.6%-50.9%-1.5%-24.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HB5 (€27.72) is trading below our estimate of fair value (€78.44)

Significantly Below Fair Value: 0HB5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0HB5 is good value based on its PE Ratio (4.4x) compared to the Banks industry average (4.7x).

PE vs Market: 0HB5 is good value based on its PE Ratio (4.4x) compared to the UK market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0HB5 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 0HB5 is good value based on its PB Ratio (0.3x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is BNP Paribas forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HB5's forecast earnings growth (2.4% per year) is above the savings rate (0.5%).

Earnings vs Market: 0HB5's earnings (2.4% per year) are forecast to grow slower than the UK market (15.5% per year).

High Growth Earnings: 0HB5's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0HB5's revenue (2.5% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: 0HB5's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HB5's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has BNP Paribas performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HB5 has high quality earnings.

Growing Profit Margin: 0HB5's current net profit margins (18%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: 0HB5 has become profitable over the past 5 years, growing earnings by 13.3% per year.

Accelerating Growth: 0HB5's earnings growth over the past year (8.2%) is below its 5-year average (13.3% per year).

Earnings vs Industry: 0HB5 earnings growth over the past year (8.2%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0HB5's Return on Equity (7.7%) is considered low.


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: 0HB5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0HB5's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

Asset Level: 0HB5's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0HB5 has a low allowance for bad loans.

Low Risk Liabilities: 0HB5's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0HB5 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HB5's loans are broadly funded by customer deposits.

Level of Bad Loans: 0HB5 has a high level of bad loans (3.54%)


Next Steps

Dividend

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

11.98%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0HB5's dividend (11.27%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: 0HB5's dividend (11.27%) is in the top 25% of dividend payers in the UK market (7.27%)


Stability and Growth of Payments

Stable Dividend: 0HB5's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0HB5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), 0HB5's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0HB5's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Jean-Laurent Bonnafe (58yo)

8.33s

Tenure

€3,858,171

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 ($USD4.24M) is about average for companies of similar size in the UK market ($USD5.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Laurent Bonnafe
CEO & Director8.33yrs€3.86m0.0050% 1.6m
Philippe Bordenave
Chief Operating Officer8.33yrs€2.43m0.0061% 2.0m
Hugues Epaillard
Business Manager of Real Estate & Director2.17yrs€103.73kno data
Lars Machenil
Chief Financial Officer8.08yrsno datano data
Robert Gambi
Global Head of Investments0.92yrno datano data
Stéphane de Marnhac
Head of Investor Relations & Financial Information8.25yrsno datano data
Nathalie Hartmann
Head of the Group Compliance Function2.5yrsno datano data
Bertrand Cizeau
Head of Group Communications & Deputy Director of Company Engagement Departmentno datano datano data
Yves Paul Henri Martrenchar
Head of Group Human Resources7.58yrsno datano data
Thierry Dormeuil
Managing Director of Investment Banking Europeno datano datano data

8.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 0HB5's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Laurent Bonnafe
CEO & Director8.33yrs€3.86m0.0050% 1.6m
Hugues Epaillard
Business Manager of Real Estate & Director2.17yrs€103.73kno data
Nicolas Chanut
Chairman of Exane Inc and Chief Executive Officer of Exane Incno datano datano data
Jean-Yves Fillion
Chairman of Corporate and Institutional Banking - Americas & CEO of BNP Paribas - USA1.83yrsno datano data
Monique Cohen
Independent Director6.17yrs€124.27k0.00077% 248.8k
Michel Tilmant
Independent Director9.92yrs€133.64k0.000080% 25.9k
Michel Pébereau
Honorary Chairman8.33yrsno datano data
Denis Kessler
Independent Director19.92yrs€100.40k0.00021% 67.9k
Jean Lemierre
Chairman of the Board5.33yrs€1.01m0.0025% 798.1k
Philippe Avril
Chairman of BNP Paribas Securities (Japan) Limitedno datano datano data

7.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 0HB5's board of directors are considered experienced (7.3 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

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


Key Information

  • Name: BNP Paribas SA
  • Ticker: 0HB5
  • Exchange: LSE
  • Founded: 1848
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €32.313b
  • 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
BNPQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 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
BNPBIT (Borsa Italiana)YesOrdinary SharesITEUROct 1993
BNPXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1993
BNPPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1993
BNP NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 1993
BNPWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 1993
BNPMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1993
BNPQ.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1/2 ORD LVL I(SPON)USUSDNov 2000
BNPHDB (Deutsche Boerse AG)ADR EACH REPR 1/2 ORD LVL I(SPON)DEEURNov 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 offers long-term corporate vehicle leasing, and rental and other financing solutions; and digital banking and investment services, cash management, and factoring services to corporate clients, as well as wealth management services. It also provides credit solutions for individuals under the Cetelem, Cofinoga, and Findomestic brands; savings and protection solutions, including insuring individuals, and their personal projects and assets; and asset management, private banking, and real estate services. In addition, the company offers global market services, including investment, hedging, financing, and research across asset classes; security services comprising clearing, custody, and asset and fund services, as well as corporate trust, and market and financing services; and corporate trade and treasury, debt financing, specialized financing, strategic advisory, mergers and acquisition, and equity capital market services for institutional and corporate clients. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1848 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 00:53
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.