LSE:0RQ1

Stock Analysis Report

Executive Summary

Bankia, S.A., together with its subsidiaries, provides various banking and financial products and services in Spain and internationally.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0RQ1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.3%

0RQ1

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

-55.8%

0RQ1

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: 0RQ1 underperformed the UK Banks industry which returned -33.5% over the past year.

Return vs Market: 0RQ1 underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

0RQ1IndustryMarket
7 Day2.3%-1.4%6.2%
30 Day-28.0%-22.0%-17.8%
90 Day-46.4%-34.6%-27.7%
1 Year-54.0%-55.8%-28.8%-33.5%-18.6%-22.7%
3 Year-74.3%-75.9%-32.0%-41.3%-13.4%-24.6%
5 Year-78.2%-80.7%-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0RQ1 (€1.02) is trading above our estimate of fair value (€0.78)

Significantly Below Fair Value: 0RQ1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0RQ1 is poor value based on its PE Ratio (6.5x) compared to the Banks industry average (4.6x).

PE vs Market: 0RQ1 is good value based on its PE Ratio (6.5x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0RQ1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0RQ1 is good value based on its PB Ratio (0.2x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Bankia forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RQ1's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: 0RQ1's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: 0RQ1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0RQ1's revenue (5.3% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0RQ1's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RQ1's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Bankia performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RQ1 has high quality earnings.

Growing Profit Margin: 0RQ1's current net profit margins (18.7%) are lower than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: 0RQ1 has become profitable over the past 5 years, growing earnings by -11.2% per year.

Accelerating Growth: 0RQ1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0RQ1 had negative earnings growth (-26%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0RQ1's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Bankia'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: 0RQ1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0RQ1's debt is not covered by short term assets (assets are 0.6x 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: 0RQ1 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 0RQ1 is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: 0RQ1's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0RQ1 has a low allowance for bad loans.

Low Risk Liabilities: 0RQ1's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0RQ1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0RQ1's loans are broadly funded by customer deposits.

Level of Bad Loans: 0RQ1 has a high level of bad loans (5.28%)


Next Steps

Dividend

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

11.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0RQ1's dividend (11.15%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0RQ1's dividend (11.15%) is in the top 25% of dividend payers in the UK market (7.3%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0RQ1 has been paying a dividend for less than 10 years.

Growing Dividend: 0RQ1's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.4%), 0RQ1's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RQ1's dividends in 3 years are forecast to be covered by earnings (61.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

José Sevilla Álvarez (55yo)

5.75s

Tenure

€770,000

Compensation

Mr. José Sevilla Álvarez is Chief Executive Officer of Bankia, SA ("Bankia"). Before joining Bankia he held various management positions in BBVA, where, he served as General Manager of Risks, Head of the O ...


CEO Compensation Analysis

Compensation vs Market: José Sevilla's total compensation ($USD853.75K) is below average for companies of similar size in the UK market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
José Ignacio Goirigolzarri Tellaeche
Executive Chairman of the Board7.83yrs€770.00k0.0085% 269.2k
José Sevilla Álvarez
CEO & Executive Director5.75yrs€770.00k0.0018% 57.3k
Antonio Ortega Parra
Director General of People5.75yrs€770.00k0.0025% 77.8k
Leopoldo Alvear Trenor
Deputy General Director of Financial Managementno datano datano data
Iñigo Velázquez
Head of Investor Relations & Ratingno datano datano data
Amalia Blanco Lucas
Deputy General Director of Communication & External Relationsno datano datano data
Fernando Sobrini Aburto
Deputy General Director of Asset Management & Investees5.75yrsno datano data
Gonzalo Alcubilla Povedano
Deputy General Director of Business Banking5.75yrsno datano data
Carlos Aguilera
Head of Business Banking Division - Murcia Region1.67yrsno datano data
David López Puig
Deputy General Director of People & Cultureno datano datano data

5.8yrs

Average Tenure

57yo

Average Age

Experienced Management: 0RQ1's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Ignacio Goirigolzarri Tellaeche
Executive Chairman of the Board7.83yrs€770.00k0.0085% 269.2k
José Sevilla Álvarez
CEO & Executive Director5.75yrs€770.00k0.0018% 57.3k
Antonio Ortega Parra
Director General of People5.75yrs€770.00k0.0025% 77.8k
Joaquín Ayuso García
Independent Director7.83yrs€100.00k0.0018% 57.3k
Eva Castillo Sanz
Lead Independent Director1yr€100.00k0.00082% 25.9k
Fernando Fernández Méndez de Andés
Independent Director7.83yrs€100.00k0.00054% 17.1k
José Luis Feito Higueruela
Independent Director7.83yrs€100.00k0.0016% 51.2k
Francisco Javier Campo García
Independent Director7.83yrs€100.00k0.0016% 52.2k
Jorge Cosmen Menéndez-Castañedo
Independent Director7.83yrs€100.00kno data
Antonio Greño Hidalgo
Independent Director4yrs€100.00k0.00068% 21.5k

7.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 0RQ1's board of directors are considered experienced (7.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Bankia, S.A.
  • Ticker: 0RQ1
  • Exchange: LSE
  • Founded: 2010
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €3.163b
  • Shares outstanding: 3.05b
  • Website: https://www.bankia.com

Number of Employees


Location

  • Bankia, S.A.
  • Paseo de la Castellana, 189
  • Madrid
  • Madrid
  • 28029
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKIABME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJul 2011
0RQ1LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2011
BNKX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2011
FV02DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2011
BKIA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2011
BKIAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2011
BKIAEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2011
FV02ETLX (Eurotlx)YesOrdinary SharesITEURJul 2011
BNKX.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 2013

Biography

Bankia, S.A., together with its subsidiaries, provides various banking and financial products and services in Spain and internationally. The company operates through Retail Banking and Business Banking segments. It provides retail banking products, such as salary direct deposits, mortgages, term deposits, credit cards, insurance, investment and pension funds, and other asset management services. The company also offers business banking; corporate banking; and capital markets services. As of December 31, 2017, it operated through a network of 2,423 offices. The company also operates a network of 6,086 ATMs. It primarily serves individuals, self-employed professionals, high net-worth customers, and companies, as well as micro, small, and medium-sized enterprises. The company was formerly known as Altae Banco, S.A. and changed its name to Bankia, S.A. in 2011. Bankia, S.A. was founded in 2010 and is headquartered in Madrid, Spain. Bankia, S.A. is a subsidiary of BFA Tenedora de Acciones, S.A.U. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 22:32
End of Day Share Price2020/03/27 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.