Bank of Georgia Group
Market Cap
UK£798.2m
Last Updated
2020/02/28 22:36 UTC
Data Sources
Company Financials +
Executive Summary
Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has Bank of Georgia Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BGEO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
BGEO
-8.5%
GB Banks
-8.6%
GB Market
1 Year Return
0.1%
BGEO
-14.3%
GB Banks
-1.3%
GB Market
Return vs Industry: BGEO exceeded the UK Banks industry which returned -14.3% over the past year.
Return vs Market: BGEO exceeded the UK Market which returned -1.3% over the past year.
Shareholder returns
| BGEO | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -8.5% | -8.6% |
| 30 Day | 11.5% | -9.4% | -8.4% |
| 90 Day | 14.3% | -11.1% | -5.3% |
| 1 Year | 4.4%0.1% | -8.5%-14.3% | 4.0%-1.3% |
| 3 Year | n/a | -13.2%-24.5% | 7.6%-6.1% |
| 5 Year | n/a | -10.1%-27.8% | 23.4%-4.8% |
Price Volatility Vs. Market
How volatile is Bank of Georgia Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Does Bank of Georgia Group PLC (LON:BGEO) Have A Place In Your Dividend Portfolio?2 months ago | Simply Wall St
How Much Are Bank of Georgia Group PLC (LON:BGEO) Insiders Taking Off The Table?3 months ago | Simply Wall St
Why Bank of Georgia Group PLC (LON:BGEO) Is A Dividend RockstarValuation
Is Bank of Georgia Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BGEO (£16.91) is trading below our estimate of fair value (£49.78)
Significantly Below Fair Value: BGEO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BGEO is good value based on its PE Ratio (5.8x) compared to the Banks industry average (8.6x).
PE vs Market: BGEO is good value based on its PE Ratio (5.8x) compared to the UK market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: BGEO is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: BGEO is overvalued based on its PB Ratio (1.3x) compared to the GB Banks industry average (0.7x).
Next Steps
Future Growth
How is Bank of Georgia Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BGEO's forecast earnings growth (7.9% per year) is above the savings rate (0.5%).
Earnings vs Market: BGEO's earnings (7.9% per year) are forecast to grow slower than the UK market (13.2% per year).
High Growth Earnings: BGEO's earnings are forecast to grow, but not significantly.
Revenue vs Market: BGEO's revenue (12.1% per year) is forecast to grow faster than the UK market (3.8% per year).
High Growth Revenue: BGEO's revenue (12.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BGEO's Return on Equity is forecast to be high in 3 years time (21%)
Next Steps
Past Performance
How has Bank of Georgia Group performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BGEO has high quality earnings.
Growing Profit Margin: BGEO's current net profit margins (49%) are higher than last year (40.4%).
Past Earnings Growth Analysis
Earnings Trend: BGEO's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: BGEO's earnings growth over the past year (37.8%) exceeds its 5-year average (11.2% per year).
Earnings vs Industry: BGEO earnings growth over the past year (37.8%) exceeded the Banks industry 29.6%.
Return on Equity
High ROE: Whilst BGEO's Return on Equity (23.24%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Bank of Georgia Group'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: BGEO has a low level of unsold assets or inventory.
Debt Coverage by Assets: BGEO's debt is not covered by short term assets (assets are 0.6x debt).
Financial Institutions Analysis
Asset Level: BGEO's level of assets compared to its equity is low.
Allowance for Bad Loans: BGEO has a low allowance for bad loans.
Low Risk Liabilities: BGEO's liabilities are made up of primarily low risk sources of funding.
Loan Level: BGEO has an acceptable proportion of non-loan assets held.
Low Risk Deposits: BGEO's loans are broadly funded by customer deposits.
Level of Bad Loans: BGEO has a high level of bad loans (2.12%)
Next Steps
Dividend
What is Bank of Georgia Group's current dividend yield, its reliability and sustainability?
4.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BGEO's dividend (4.39%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).
High Dividend: BGEO's dividend (4.39%) is low compared to the top 25% of dividend payers in the UK market (5.4%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, BGEO has been paying a dividend for less than 10 years.
Growing Dividend: BGEO's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.6%), BGEO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BGEO's dividends in 3 years are forecast to be well covered by earnings (38.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Archil Gachechiladze (39yo)
1.1yrs
Tenure
GEL1,628,094
Compensation
Mr. Archil Gachechiladze, CFA, has been Chief Executive Officer and Member of Management Board of JSC Bank of Georgia since Janauary 28, 2019. Mr. Gachechiladze has been Chief Executive Officer and Directo ...
CEO Compensation Analysis
Compensation vs Market: Archil's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD1.23M).
Compensation vs Earnings: Archil's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Senior Advisor | 1.1yrs | GEL3.14m | 0.12% GEL973.0k | |
| CEO & Director | 1.1yrs | GEL1.63m | no data | |
| Deputy CEO & CFO | 0.8yrs | GEL1.15m | no data | |
| Deputy CEO & Chief Operating Officer | 2.4yrs | GEL967.29k | no data | |
| Group Head of Investment & Business Development | 2.8yrs | no data | no data | |
| Deputy CEO & Chief Information Officer | 1.9yrs | no data | no data | |
| Head of Investor Relations & Funding | 0yrs | no data | no data | |
| General Counsel | 1.7yrs | no data | no data | |
| Deputy CEO & Chief Risk Officer | 6.4yrs | no data | no data | |
| Deputy CEO of Retail Banking (Emerging and Mass Retail & Micro Business Banking) | 0yrs | GEL1.45m | no data |
1.8yrs
Average Tenure
45yo
Average Age
Experienced Management: BGEO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.1yrs | GEL1.63m | no data | |
| Independent Non-Executive Director | 2yrs | GEL156.10k | no data | |
| Independent Non-Executive Director | 9.1yrs | GEL156.95k | no data | |
| Senior Independent Non-Executive Director | 2yrs | GEL170.02k | no data | |
| Non-Executive Chairman of the Board | 8.3yrs | GEL313.90k | 0.11% GEL843.5k | |
| Independent Non-Executive Director | 7.1yrs | GEL167.35k | no data | |
| Independent Non-Executive Director | 1.3yrs | GEL13.09k | no data | |
| Independent Non-Executive Director | 2yrs | GEL114.33k | no data |
2.0yrs
Average Tenure
52.5yo
Average Age
Experienced Board: BGEO's board of directors are not considered experienced ( 2 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.
Top Shareholders
Company Information
Bank of Georgia Group PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Bank of Georgia Group PLC
- Ticker: BGEO
- Exchange: LSE
- Founded: 2017
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: UK£798.247m
- Shares outstanding: 47.21m
- Website: https://bankofgeorgiagroup.com
Number of Employees
Location
- Bank of Georgia Group PLC
- 84 Brook Street
- London
- Greater London
- W1K 5EH
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BGEO | LSE (London Stock Exchange) | Yes | New Common Shares | GB | GBP | May 2018 |
| BGEOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | New Common Shares | GB | GBP | May 2018 |
| BDGS.F | OTCPK (Pink Sheets LLC) | Yes | New Common Shares | US | USD | May 2018 |
Biography
Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia. It operates through Retail Banking, Corporate Investment Banking, BNB, and Other Banking Business segments. The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and customers’ deposits for individuals and legal entities under the Express, Bank of Georgia, and SOLO brands. It primarily serves retail, mass retail, and mass affluent segments, as well as small and medium enterprises, and micro businesses. The Corporate Investment Banking segment offers loans and other credit facilities, funds transfers and settlement services, trade finance services, and documentary operations support services; and handles saving and term deposits for corporate and institutional customers, as well as provides private banking services to high net worth clients. The BNB segment offers retail and corporate banking services to clients in Belarus. The Other Banking Business segments provides compliance and governance services for various small corporate and social responsibility companies. As of December 31, 2018, the company operated 271 branches, 876 automated teller machines, and 3,115 Express Pay terminals. Bank of Georgia Group PLC was incorporated in 2017 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/28 22:36 |
| End of Day Share Price | 2020/02/28 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.