LSE:0RCP

Stock Analysis Report

Executive Summary

Eurobank Ergasias S.A. provides retail, corporate and private banking, asset management, treasury, capital markets, and other services.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

How has Eurobank Ergasias's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-14.7%

0RCP

-4.1%

GB Banks

-4.4%

GB Market


1 Year Return

11.8%

0RCP

-11.3%

GB Banks

1.4%

GB Market

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

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


Shareholder returns

0RCPIndustryMarket
7 Day-14.7%-4.1%-4.4%
30 Day-24.7%-8.0%-6.3%
90 Day-29.1%-9.1%-2.7%
1 Year11.8%11.8%-6.8%-11.3%6.7%1.4%
3 Year19.8%19.8%-10.1%-20.4%12.6%-1.5%
5 Year-94.8%-94.8%-6.7%-24.6%28.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Eurobank Ergasias undervalued compared to its fair value and its price relative to the market?

20.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0RCP (€0.68) is trading above our estimate of fair value (€0.41)

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


Price To Earnings Ratio

PE vs Industry: 0RCP is poor value based on its PE Ratio (20.3x) compared to the Banks industry average (8.9x).

PE vs Market: 0RCP is poor value based on its PE Ratio (20.3x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: 0RCP is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0RCP is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is Eurobank Ergasias forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RCP's forecast earnings growth (40.6% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RCP's earnings (40.6% per year) are forecast to grow faster than the UK market (13% per year).

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

Revenue vs Market: 0RCP's revenue (2.8% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0RCP's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RCP's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Eurobank Ergasias performed over the past 5 years?

67.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RCP has a high level of non-cash earnings.

Growing Profit Margin: 0RCP's current net profit margins (9.2%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: 0RCP has become profitable over the past 5 years, growing earnings by 67.1% per year.

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

Earnings vs Industry: 0RCP had negative earnings growth (-44.5%) over the past year, making it difficult to compare to the Banks industry average (26.6%).


Return on Equity

High ROE: 0RCP's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eurobank Ergasias'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: 0RCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RCP's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 0RCP is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 0RCP is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: 0RCP has a high level of bad loans (31.06%)


Next Steps

Dividend

What is Eurobank Ergasias's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%5.3%industryaverage6.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 0RCP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0RCP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0RCP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0RCP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 0RCP is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0RCP's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Fokion Karavias (55yo)

5yrs

Tenure

0

Mr. Fokion C. Karavias has been the Chief Executive Officer of Eurobank Ergasias S.A. since February 1, 2015 and serves as its Chairman of Executive Board and Executive Director Since June 01, 2014. Mr. Ka ...


Leadership Team

NamePositionTenureCompensationOwnership
Fokion Karavias
CEO, Chairman of Executive Board & Director5yrsno datano data
Charalambos Harris Kokologiannis
GM of Group Finance6.6yrsno datano data
Stavros Ioannou
Deputy CEO4.8yrsno datano data
Theodoros Kalantonis
Deputy CEO4.8yrsno datano data
Constantinos Vasiliou
Senior Advisor of Group Risk Management & Member of Management Board2.1yrsno datano data
Konstantinos Vassiliou
Deputy CEO1.6yrsno datano data
Christos Adam
Group Chief Risk Officer0yrsno datano data
Iakovos Giannaklis
GM of Retail Banking & Member of Executive Board5.4yrsno datano data
Michalis Louis
Head of International Activities General Division & Member of Executive Board0yrsno datano data
Anastasios panoysis
Managing Director of Problematic Retail Loan Banking & Member of Executive Board0yrsno datano data

5.2yrs

Average Tenure

56yo

Average Age

Experienced Management: 0RCP's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fokion Karavias
CEO, Chairman of Executive Board & Director5yrsno datano data
Stavros Ioannou
Deputy CEO4.8yrsno datano data
Theodoros Kalantonis
Deputy CEO4.8yrsno datano data
Konstantinos Vassiliou
Deputy CEO1.6yrsno datano data
Richard Boucher
Independent Non-Executive Director3.1yrsno datano data
Serghiy Stratonov
Chairman of Bank Universal - Ukraine0yrsno datano data
Georgios Chryssikos
Non-Executive Vice Chairman of the Board0.8yrsno datano data
Jawaid Mirza
Independent Non-Executive Director3.7yrsno datano data
Georgios Zanias
Non-Executive Chairman0.8yrsno datano data
Rajeev K. Kakar
Independent Non-Executive Director1.6yrsno datano data

3.1yrs

Average Tenure

57yo

Average Age

Experienced Board: 0RCP's board of directors are considered experienced (3.1 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 34.3%.


Top Shareholders

Company Information

Eurobank Ergasias S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eurobank Ergasias S.A.
  • Ticker: 0RCP
  • Exchange: LSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €2.592b
  • Shares outstanding: 3.71b
  • Website: https://www.eurobank.gr

Number of Employees


Location

  • Eurobank Ergasias S.A.
  • 8 Othonos Street
  • Athens
  • 105 57
  • Greece

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EUROBATSE (The Athens Stock Exchange)YesOrdinary SharesGREURApr 1999
EFGDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1999
EGFE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 1999
0RCPLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 1999
EGFE.YOTCPK (Pink Sheets LLC)UNSP ADR EA REP 0.5 ORD(POST REV SPLIT)USUSDOct 2008
EFGABST (Boerse-Stuttgart)UNSP ADR EA REP 0.5 ORD(POST REV SPLIT)DEEUROct 2008
EUROBATSE (The Athens Stock Exchange)EUR0.30GREURDec 2015
EFGDDB (Deutsche Boerse AG)EUR0.30DEEURDec 2015

Biography

Eurobank Ergasias S.A. provides retail, corporate and private banking, asset management, treasury, capital markets, and other services. The company’s Retail segment offers customer current accounts, savings, deposits and investment savings products, credit and debit cards, consumer loans, small business banking services, and mortgages. Its Corporate segment provides current accounts, deposits, overdrafts, loan and other credit facilities, custody, equity brokerage, cash management, and trade services, as well as foreign currency and derivative products to corporate entities. The company’s Wealth Management segment offers private banking services to medium and high net worth individuals; mutual fund and investment savings products; and institutional asset management services. Its Global and Capital Markets segment provides investment banking services, including corporate and institutional financing, merger and acquisitions advisory, and financial instruments trading services to corporate and institutional entities; and specialized financial advisory and intermediation services for private and large retail individuals, and small and large corporate entities. The company also offers business-to-business e-commerce, accounting, and tax; capital markets and advisory; leasing; factoring; credits claim, credit card, and fund management; real estate; and financial and other services. In addition, it engages in the special purpose financing and investment vehicle businesses, as well as informatics data processing activities. The company primarily operates in Greece, as well as in Central and Southeastern Europe. As of December 31, 2018, it operated a network of 653 branches and business/private banking centers. The company was formerly known as EFG Eurobank Ergasias S.A. and changed its name to Eurobank Ergasias S.A. in August 2012. Eurobank Ergasias S.A. was founded in 1990 and is based in Athens, Greece. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:49
End of Day Share Price2020/02/25 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.