LSE:0IKH

Stock Analysis Report

Executive Summary

Komercní banka, a.s., together with its subsidiaries, provides various retail, corporate, and investment banking services primarily in the Czech Republic, and Central and Eastern Europe.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.0%

0IKH

-3.0%

GB Banks

-0.5%

GB Market


1 Year Return

-19.5%

0IKH

-6.7%

GB Banks

6.0%

GB Market

Return vs Industry: 0IKH underperformed the UK Banks industry which returned -6.7% over the past year.

Return vs Market: 0IKH underperformed the UK Market which returned 6% over the past year.


Shareholder returns

0IKHIndustryMarket
7 Day-4.0%-3.0%-0.5%
30 Day-5.8%-3.2%-1.8%
90 Day-3.2%-3.9%2.4%
1 Year-14.9%-19.5%-2.0%-6.7%11.5%6.0%
3 Year-3.7%-17.1%-5.3%-16.2%18.2%3.5%
5 Year-6.8%-28.8%-3.1%-21.5%34.3%3.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0IKH (CZK765) is trading below our estimate of fair value (CZK923.81)

Significantly Below Fair Value: 0IKH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0IKH is poor value based on its PE Ratio (9.6x) compared to the Banks industry average (8.9x).

PE vs Market: 0IKH is good value based on its PE Ratio (9.6x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 0IKH is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is Komercní banka forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0IKH's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: 0IKH's earnings are forecast to decline over the next 3 years (-3.4% per year).

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

Revenue vs Market: 0IKH's revenue (1.7% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0IKH's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0IKH's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Komercní banka performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0IKH has high quality earnings.

Growing Profit Margin: 0IKH's current net profit margins (44.9%) are lower than last year (45.2%).


Past Earnings Growth Analysis

Earnings Trend: 0IKH's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 0IKH's earnings growth over the past year (0.4%) is below its 5-year average (3.5% per year).

Earnings vs Industry: 0IKH earnings growth over the past year (0.4%) underperformed the Banks industry 26.6%.


Return on Equity

High ROE: 0IKH's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Komercní banka'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: 0IKH has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0IKH's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: 0IKH has an appropriate level of bad loans (1.48%)


Next Steps

Dividend

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

7.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0IKH's dividend (7.67%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: 0IKH's dividend (7.67%) is in the top 25% of dividend payers in the UK market (5.03%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), 0IKH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0IKH's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Jan Juchelka (48yo)

2.5yrs

Tenure

Kč5,050,166

Compensation

Mr. Jan Juchelka has been Group Country Head for Czech Republic and Slovakia Societe Generale Grou since September 01, 2017. Mr. Juchelka has been the Chairman, Chief Executive Officer and Director of Kome ...


Leadership Team

NamePositionTenureCompensationOwnership
Jan Juchelka
Chairman of the Board & CEO2.5yrsKč5.05mno data
Vladimír Jerábek
Chief Operating Officer and Member of Management Board11.7yrsKč7.38mno data
Jirí Šperl
Executive Director of Strategy & Finance5.1yrsno datano data
Didier Luc Dominique Colin
Senior Executive Director2.3yrsKč2.01mno data
David Formánek
Senior Executive Director of Corporate & Investment Banking and Member of the Board of Directors1.5yrsno datano data
Miroslav Hiršl
Senior Executive Director of Retail Banking & Member of the Board of Directors1.5yrsno datano data
Margus Simson
Chief Digital Officer1.1yrsno datano data
Ida Balusková
Manager of Accounting & Reporting 0yrsno datano data
Tomáš Hochmeister
Executive Director of Investment Banking0.8yrsno datano data
Jakub Cerný
Head of Investor Relations0yrsno datano data

1.9yrs

Average Tenure

51yo

Average Age

Experienced Management: 0IKH's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jan Juchelka
Chairman of the Board & CEO2.5yrsKč5.05mno data
Jean-Luc Joseph Parer
Chairman of the Supervisory Board6.8yrsKč104.50kno data
Petra Wendelová
Member of the Supervisory Board0.8yrsno datano data
Giovanni Soma
Vice-Chairman of Supervisory Board6.8yrsno datano data
Petr Dvorák
Independent Member of the Supervisory Board2.7yrsno datano data
Cécile Camilli
Member of Supervisory Board0.8yrsno datano data
Sylva Kynychová
Member of Supervisory Board1.1yrsno datano data
Ondrej Kudrna
Member of Supervisory Board1.1yrsno datano data
Vojtech Šmajer
Member of Supervisory Board1.1yrsno datano data
Maylis Coupet
Member of Supervisory Board0.2yrsno datano data

1.1yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 0IKH's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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

Komercní banka, a.s.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Komercní banka, a.s.
  • Ticker: 0IKH
  • Exchange: LSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: Kč142.775b
  • Shares outstanding: 188.86m
  • Website: https://www.kb.cz

Number of Employees


Location

  • Komercní banka, a.s.
  • Na Príkope 33
  • Prague 1
  • Prague
  • 114 07
  • Czech Republic

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KOMBSEP (The Stock Exchange Prague Co. Ltd.)YesBearer SharesCZCZKNov 1993
KONNDB (Deutsche Boerse AG)YesBearer SharesDEEURNov 1993
0IKHLSE (London Stock Exchange)YesBearer SharesGBCZKNov 1993
KMER.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDNov 1993
KOMBKBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBCZKNov 1993

Biography

Komercní banka, a.s., together with its subsidiaries, provides various retail, corporate, and investment banking services primarily in the Czech Republic, and Central and Eastern Europe. The company’s Retail Banking segment provides current and savings accounts, term deposits, building savings, pension insurance, overdrafts, credit card loans, personal loans, and mortgages. Its Corporate Banking segment offers current accounts, term deposits, revolving loans, business loans, mortgages, leases, foreign currency and derivative products, syndicated and export financing, and guarantee transactions. The company’s Investment Banking segment is involved in financial instruments trading activities. The company also offers specialized financial services, such as pension savings and building society schemes, factoring, insurance, and consumer lending services; private banking services; and structured financing and advisory solutions in various sectors, including export finance, real estate finance, energy finance, leveraged finance, debt syndication, and debt capital markets. In addition, it is involved in the cash and non-cash payment operations; and provision of payment cards, and trade finance and cash management services, as well as Internet, telephone, and mobile banking services. Further, the company offers bond issuance and M&A advisory services; and international cash-pooling structures. The company serves individuals, small businesses, corporates, and municipalities. It provides its services through a network of approximately 365 branches, including 1 branch in Slovakia; and 776 ATMs. The company was founded in 1990 and is headquartered in Prague, the Czech Republic. Komercní banka, a.s. operates as a subsidiary of Société Générale Société anonyme 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:29
End of Day Share Price2020/02/25 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.