LSE:0QQZ

Stock Analysis Report

St. Galler Kantonalbank

Executive Summary

St. Galler Kantonalbank AG, a cantonal bank, provides banking services to the local population, and small and middle-sized companies in the Cantons of St.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

0QQZ

-4.1%

GB Banks

-4.4%

GB Market


1 Year Return

9.3%

0QQZ

-11.3%

GB Banks

1.4%

GB Market

Return vs Industry: 0QQZ exceeded the UK Banks industry which returned -11.3% over the past year.

Return vs Market: 0QQZ exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

0QQZIndustryMarket
7 Day0%-4.1%-4.4%
30 Day15.4%-8.0%-6.3%
90 Day20.7%-9.1%-2.7%
1 Year13.5%9.3%-6.8%-11.3%6.7%1.4%
3 Yearn/a-10.1%-20.4%12.6%-1.5%
5 Yearn/a-6.7%-24.6%28.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is St. Galler Kantonalbank undervalued compared to its fair value and its price relative to the market?

16.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0QQZ (CHF531) is trading above our estimate of fair value (CHF484.67)

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


Price To Earnings Ratio

PE vs Industry: 0QQZ is poor value based on its PE Ratio (16.5x) compared to the Banks industry average (8.9x).

PE vs Market: 0QQZ is good value based on its PE Ratio (16.5x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 0QQZ is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

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

-2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QQZ's earnings are forecast to decline over the next 3 years (-2.3% per year).

Earnings vs Market: 0QQZ's earnings are forecast to decline over the next 3 years (-2.3% per year).

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

Revenue vs Market: 0QQZ's revenue (0.1% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0QQZ's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QQZ's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has St. Galler Kantonalbank performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QQZ has high quality earnings.

Growing Profit Margin: 0QQZ's current net profit margins (34.2%) are higher than last year (33.2%).


Past Earnings Growth Analysis

Earnings Trend: 0QQZ's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: 0QQZ's earnings growth over the past year (3.4%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: 0QQZ earnings growth over the past year (3.4%) underperformed the Banks industry 26.6%.


Return on Equity

High ROE: 0QQZ's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is St. Galler 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: 0QQZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QQZ's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: 0QQZ has an appropriate level of bad loans (1.17%)


Next Steps

Dividend

What is St. Galler Kantonalbank's current dividend yield, its reliability and sustainability?

3.43%

Current Dividend Yield


Upcoming Dividend Payment

Purchase St. Galler Kantonalbank before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.4%marketbottom25%1.9%markettop25%5.3%industryaverage6.8%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: 0QQZ's dividend (3.43%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: 0QQZ's dividend (3.43%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

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

Growing Dividend: 0QQZ's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.5%), 0QQZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QQZ's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Roland Ledergerber (58yo)

12yrs

Tenure

CHF1,314,000

Compensation

Mr. Roland Ledergerber is Chairman of the Executive Board of St. Galler Kantonalbank AG since February 01, 2008 and is a Member of the Executive Board from June 2002. Mr. Ledergerber was an Interim Head of ...


CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD1.35M) is below average for companies of similar size in the UK market ($USD2.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roland Ledergerber
Chairman of the Management Board12yrsCHF1.31mno data
Felix Buschor
Head of the Service Center & Member of the Management Board11.8yrsno datano data
Albert Koller
Head of the Retail & Commercial Clients and Member of the Management Board12yrsno datano data
Christian Schmid
Head of Corporate Center & Member of Management Board11.8yrsno datano data
Hanspeter Wohlwend
Head of Private Banking & Member of Management Board1.9yrsno datano data
Thomas Stucki
Head of Investment Center0yrsno datano data
Adrian Kunz
Secretary General & Head of Corporate Communication0yrsno datano data
Christoph Schönenberger
Head of Legal & Compliance0yrsno datano data
Thomas Rüegg
Head of Marketing0yrsno datano data
Thomas Riklin
Head of Corporate Development0yrsno datano data

11.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 0QQZ's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siegfried Peyer
Chairman of Mgmt Board - Hyposwiss Private bank AG and CEO of Hyposwiss Privatbank AG - Zurich0yrsno datano data
Hans-Jürg Bernet
Vice Chairman of the Board6.8yrsCHF158.00kno data
Thomas Gutzwiller
Chairman of the Board6.8yrsCHF304.00kno data
Kurt Rüegg
Independent Director10.8yrsCHF121.00kno data
Manuel Ammann
Independent Director9.8yrsCHF121.00kno data
Adrian Rüesch
Independent Director8.8yrsCHF122.00kno data
Kurt Soentgerath
Chairman of St Galler Kantonalbank Deutschland AG0yrsno datano data
Claudia Viehweger
Independent Director5.8yrsCHF110.00kno data
Hans Wey
Independent Director5.6yrsCHF108.00kno data
Benedikt Würth
Independent Director3.7yrsCHF76.00kno data

6.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 0QQZ'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 been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

St. Galler Kantonalbank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: St. Galler Kantonalbank AG
  • Ticker: 0QQZ
  • Exchange: LSE
  • Founded: 1868
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: CHF2.824b
  • Shares outstanding: 5.98m
  • Website: https://www.sgkb.ch

Number of Employees


Location

  • St. Galler Kantonalbank AG
  • St. Leonhardstrasse 25
  • Sankt Gallen
  • St. Gallen
  • 9001
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGKNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFApr 2001
GNBNDB (Deutsche Boerse AG)YesRegistered SharesDEEURApr 2001
0QQZLSE (London Stock Exchange)YesRegistered SharesGBCHFApr 2001

Biography

St. Galler Kantonalbank AG, a cantonal bank, provides banking services to the local population, and small and middle-sized companies in the Cantons of St. Gallen and Appenzell Ausserrhoden. It offers asset management products, including funds and structured products; and financial planning services, such as succession planning, retirement planning, and wealth tax advisory services, as well as e-banking and investment research services. The company was formerly known as St. Gallische Kantonalbank and changed its name to St. Galler Kantonalbank AG in 2000. St. Galler Kantonalbank AG was founded in 1868 and is based in Sankt Gallen, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:32
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.