LSE:BGEO

Stock Analysis Report

Bank of Georgia Group

Executive Summary

Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia.


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

BGEOIndustryMarket
7 Day-2.1%-8.5%-8.6%
30 Day11.5%-9.4%-8.4%
90 Day14.3%-11.1%-5.3%
1 Year4.4%0.1%-8.5%-14.3%4.0%-1.3%
3 Yearn/a-13.2%-24.5%7.6%-6.1%
5 Yearn/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

Valuation

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

NamePositionTenureCompensationOwnership
Kakhaber Kiknavelidze
Senior Advisor1.1yrsGEL3.14m0.12% GEL973.0k
Archil Gachechiladze
CEO & Director1.1yrsGEL1.63mno data
Sulkhan Gvalia
Deputy CEO & CFO0.8yrsGEL1.15mno data
Levan Kulijanishvili
Deputy CEO & Chief Operating Officer2.4yrsGEL967.29kno data
Ekaterina Shavgulidze
Group Head of Investment & Business Development2.8yrsno datano data
Vakhtang Bobokhidze
Deputy CEO & Chief Information Officer1.9yrsno datano data
Natia Kalandarishvili
Head of Investor Relations & Funding0yrsno datano data
Rebecca Wooldridge
General Counsel1.7yrsno datano data
George Chiladze
Deputy CEO & Chief Risk Officer6.4yrsno datano data
Mikheil Gomarteli
Deputy CEO of Retail Banking (Emerging and Mass Retail & Micro Business Banking)0yrsGEL1.45mno 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

NamePositionTenureCompensationOwnership
Archil Gachechiladze
CEO & Director1.1yrsGEL1.63mno data
Jonathan Muir
Independent Non-Executive Director2yrsGEL156.10kno data
Alasdair Breach
Independent Non-Executive Director9.1yrsGEL156.95kno data
Hanna-Leena Loikkanen
Senior Independent Non-Executive Director2yrsGEL170.02kno data
Neil Janin
Non-Executive Chairman of the Board8.3yrsGEL313.90k0.11% GEL843.5k
Tamaz Georgadze
Independent Non-Executive Director7.1yrsGEL167.35kno data
Véronique Mccarroll
Independent Non-Executive Director1.3yrsGEL13.09kno data
Cecil Quillen
Independent Non-Executive Director2yrsGEL114.33kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGEOLSE (London Stock Exchange)YesNew Common SharesGBGBPMay 2018
BGEOLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBGBPMay 2018
BDGS.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:36
End of Day Share Price2020/02/28 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.