LSE:BGEO

Stock Analysis Report

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Bank of Georgia Group

Executive Summary

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

Rewards

Trading at 53.9% below our estimate of its fair value

Earnings are forecast to grow 22.48% per year

Risk Analysis

No risks detected for BGEO from our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BGEO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

BGEO

7.0%

GB Banks

0.9%

GB Market


1 Year Return

-10.3%

BGEO

-28.1%

GB Banks

-9.1%

GB Market

Return vs Industry: BGEO exceeded the UK Banks industry which returned -31.2% over the past year.

Return vs Market: BGEO matched the UK Market which returned -10.2% over the past year.


Shareholder returns

BGEOIndustryMarket
7 Day6.3%7.0%0.9%
30 Day35.9%27.6%9.2%
90 Day35.1%26.8%6.6%
1 Year-10.3%-10.3%-27.9%-28.1%-5.5%-9.1%
3 Yearn/a-34.1%-40.5%1.4%-11.0%
5 Yearn/a-19.7%-32.9%26.5%-2.2%

Long-Term 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 (£12.5) is trading below our estimate of fair value (£27.1)

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 (8.2x) compared to the GB Banks industry average (10.8x).

PE vs Market: BGEO is good value based on its PE Ratio (8.2x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: BGEO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BGEO is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Bank of Georgia Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGEO's forecast earnings growth (22.5% per year) is above the savings rate (1.2%).

Earnings vs Market: BGEO's earnings (22.5% per year) are forecast to grow slower than the UK market (26.9% per year).

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

Revenue vs Market: BGEO's revenue (13.1% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: BGEO's revenue (13.1% 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 low in 3 years time (19.2%).


Next Steps

Past Performance

How has Bank of Georgia Group performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BGEO has high quality earnings.

Growing Profit Margin: BGEO's current net profit margins (38.4%) are lower than last year (47.6%).


Past Earnings Growth Analysis

Earnings Trend: BGEO's earnings have grown by 4.8% per year over the past 5 years.

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

Earnings vs Industry: BGEO had negative earnings growth (-30.3%) over the past year, making it difficult to compare to the Banks industry average (-25.7%).


Return on Equity

High ROE: BGEO's Return on Equity (13.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: BGEO's Assets to Equity ratio (8.9x) is low.

Allowance for Bad Loans: BGEO has a sufficient allowance for bad loans (124%).

Low Risk Liabilities: 69% of BGEO's liabilities are made up of primarily low risk sources of funding.

Loan Level: BGEO has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: BGEO's Loans to Deposits ratio (105%) is appropriate.

Level of Bad Loans: BGEO has a high level of bad loans (3.9%).


Next Steps

Dividend

What is Bank of Georgia Group current dividend yield, its reliability and sustainability?

5.34%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

2.3yrs

Average management tenure


CEO

Archil Gachechiladze (40 yo)

1.83yrs

Tenure

GEL3,347,419

Compensation

Mr. Archil Gachechiladze, CFA, has been Chief Executive Officer and Executive Director of JSC Bank of Georgia since January 28, 2019. Mr. Gachechiladze has been Chief Executive Officer and Director of Bank...


CEO Compensation Analysis

Compensation vs Market: Archil's total compensation ($USD9.60M) is above average for companies of similar size in the UK market ($USD1.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Archil Gachechiladze
CEO & Director1.83yrsGEL3.35mno data
Kakhaber Kiknavelidze
Senior Advisor1.83yrsGEL590.13k0%
GEL 0
Sulkhan Gvalia
Deputy CEO & CFO1.5yrsGEL1.15mno data
Levan Kulijanishvili
Deputy CEO & Chief Operating Officer3.17yrsGEL967.29kno data
Ekaterina Shavgulidze
Group Head of Investment & Business Development3.58yrsno datano data
Vakhtang Bobokhidze
Deputy CEO & Chief Information Officer2.67yrsno datano data
Natia Kalandarishvili
Head of Investor Relations & Fundingno datano datano data
Levan Gomshiashvili
Chief Marketing Officer1.5yrsno datano data
Nutsa Gogilashvili
Head of Customer Experience & Human Capital Management1.5yrsno datano data
George Chiladze
Deputy CEO & Chief Risk Officer7.17yrsno datano data
Mikheil Gomarteli
Deputy CEO of Retail Banking (Emerging and Mass Retail & Micro Business Banking)no dataGEL1.45mno data
Nika Gilauri
Head of Istanbul6.92yrsno datano data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: BGEO's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Archil Gachechiladze
CEO & Director1.83yrsGEL3.35mno data
Jonathan Muir
Independent Non-Executive Director2.75yrsGEL150.71kno data
Alasdair Breach
Independent Non-Executive Director9.08yrsGEL157.87kno data
Hanna-Leena Loikkanen
Senior Independent Non-Executive Director2.75yrsGEL181.40kno data
Neil Janin
Independent Non-Executive Chairman9.08yrsGEL313.90kno data
Tamaz Georgadze
Independent Non-Executive Director6.92yrsGEL161.38kno data
Véronique Mccarroll
Independent Non-Executive Director2.08yrsGEL125.47kno data
Cecil Quillen
Independent Non-Executive Director2.75yrsGEL157.87kno data

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: BGEO's board of directors are not considered experienced ( 2.8 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 not been meaningfully diluted in the past year.


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£589.352m
  • Shares outstanding: 47.53m
  • 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
GEBDB (Deutsche Boerse AG)YesNew Common SharesDEEURMay 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 and Investment Banking, BNB, and Other Banking ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 22:39
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.