LSE:0QNU

Stock Analysis Report

Luzerner Kantonalbank

Executive Summary

Luzerner Kantonalbank AG provides banking products and services in Switzerland.


Snowflake Analysis

Established dividend payer with excellent balance sheet.

Share Price & News

How has Luzerner Kantonalbank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0QNU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.2%

0QNU

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

15.5%

0QNU

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0QNU exceeded the UK Banks industry which returned -6% over the past year.

Return vs Market: 0QNU exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

0QNUIndustryMarket
7 Day21.2%-3.6%0.05%
30 Day32.3%-3.6%-1.7%
90 Day32.0%-2.3%4.1%
1 Year18.6%15.5%-1.2%-6.0%12.6%7.1%
3 Yearn/a-6.7%-17.4%18.4%3.6%
5 Yearn/a-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Luzerner Kantonalbank undervalued compared to its fair value and its price relative to the market?

18.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0QNU (CHF545) is trading above our estimate of fair value (CHF252.03)

Significantly Below Fair Value: 0QNU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0QNU is poor value based on its PE Ratio (18.6x) compared to the Banks industry average (9.2x).

PE vs Market: 0QNU is poor value based on its PE Ratio (18.6x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 0QNU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0QNU is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Luzerner Kantonalbank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 0QNU's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if 0QNU's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0QNU's revenue (2.7% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0QNU's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QNU's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Luzerner Kantonalbank performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QNU has high quality earnings.

Growing Profit Margin: 0QNU's current net profit margins (42.3%) are higher than last year (41.6%).


Past Earnings Growth Analysis

Earnings Trend: 0QNU's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: 0QNU's earnings growth over the past year (2.2%) is below its 5-year average (3.3% per year).

Earnings vs Industry: 0QNU earnings growth over the past year (2.2%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0QNU's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Luzerner Kantonalbank'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: 0QNU has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QNU's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: 0QNU has a sufficient allowance for bad loans.

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

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

Low Risk Deposits: 0QNU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0QNU has an appropriate level of bad loans (0.17%)


Next Steps

Dividend

What is Luzerner Kantonalbank's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: 0QNU's dividend (2.84%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: 0QNU's dividend (2.84%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: 0QNU's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), 0QNU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QNU's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).


Next Steps

Management

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

10.1yrs

Average management tenure


CEO

Daniel Salzmann (55yo)

6.1yrs

Tenure

0

Mr. Daniel Salzmann has been Chief Executive Officer at Luzerner Kantonalbank AG since July 2014 and has been its Member of Executive Board since 2004. Mr. Salzmann serves as Head of Presidential Departmen ...


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Salzmann
CEO, Head of Presidential Department & Member of Executive Board6.1yrsno data0.054% CHF2.0m
Marcel Hurschler
CFO, Head of Department Finance & Computer Science and Member of Executive Board12.1yrsno data0.056% CHF2.1m
Beat Hodel
Head of Department Market Services & Member of Executive Board11.1yrsno data0.043% CHF1.6m
Leo Grüter
Head of Corporate Clients & Private Banking and Member of Executive Board10.1yrsno data0.047% CHF1.8m
Stefan Studer
Head of Private & Commercial Customers Department and Member of Executive Board5.1yrsno data0.026% CHF973.4k
Daniel von Arx
Head of Communications0yrsno datano data
André Chevalley
Head of Corporate Clients Segment - Lucerne0yrsno datano data
Flavio Ciglia
Head of Real Estate Services0yrsno datano data
Markus Ruggiero
Head of Cash Management Services0yrsno datano data
Claude Moser
Head of Import & Export Finance - Corporate Clients0yrsno datano data

10.1yrs

Average Tenure

53yo

Average Age

Experienced Management: 0QNU's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andreas Emmenegger
Director3.8yrsno data0.0028% CHF104.0k
Josef Felder
Vice Chairman of the Board4.1yrsCHF89.08k0.065% CHF2.4m
Markus Hongler
Director2.1yrsno data0.0012% CHF44.0k
Doris Schurter
Chairperson of the Board2.8yrsCHF82.09k0.041% CHF1.5m
Martha Scheiber
Director5.8yrsno data0.0055% CHF203.9k
Andreas Dietrich
Director4.8yrsno data0.0046% CHF171.5k
Stefan Portmann
Director2.8yrsno data0.0068% CHF254.6k
Franz Grüter
Director2.1yrsno data0.0052% CHF193.5k

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 0QNU's board of directors are considered experienced (3.3 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

Luzerner Kantonalbank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luzerner Kantonalbank AG
  • Ticker: 0QNU
  • Exchange: LSE
  • Founded: 1850
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CHF3.728b
  • Shares outstanding: 8.48m
  • Website: https://www.lukb.ch

Number of Employees


Location

  • Luzerner Kantonalbank AG
  • Pilatusstrasse 12
  • Lucerne
  • Lucerne
  • 6003
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUKNSWX (SIX Swiss Exchange)YesParticipation CertificatesCHCHFMar 2001
0QNULSE (London Stock Exchange)YesParticipation CertificatesGBCHFMar 2001
4J6DB (Deutsche Boerse AG)YesParticipation CertificatesDEEURMar 2001

Biography

Luzerner Kantonalbank AG provides banking products and services in Switzerland. The company offers savings accounts and deposit products; real estate and corporate finance; cards; and insurance products. It also provides payment, finance planning, property consultancy, asset management and administration, and investment products and advisory services. The company was formerly known as Kantonale Spar-und Leihkasse and changed its name to Luzerner Kantonalbank AG in 1892. Luzerner Kantonalbank AG was founded in 1850 and is headquartered in Lucerne, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:56
End of Day Share Price2020/02/18 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.