LSE:CBQS

Stock Analysis Report

Commercial Bank (P.S.Q.C.)

Executive Summary

The Commercial Bank (P.S.Q.C.), together with its subsidiaries, engages in the conventional banking, brokerage services, and credit card businesses.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Commercial Bank (P.S.Q.C.)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBQS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

CBQS

-18.9%

GB Banks

-3.3%

GB Market


1 Year Return

477.9%

CBQS

-44.0%

GB Banks

-25.0%

GB Market

Return vs Industry: CBQS exceeded the UK Banks industry which returned -38% over the past year.

Return vs Market: CBQS exceeded the UK Market which returned -22.4% over the past year.


Shareholder returns

CBQSIndustryMarket
7 Day-5.3%-18.9%-3.3%
30 Day-5.3%-30.4%-19.5%
90 Day-5.3%-42.8%-28.9%
1 Year503.7%477.9%-40.1%-44.0%-21.0%-25.0%
3 Year405.9%367.3%-40.0%-48.2%-14.7%-25.8%
5 Year206.8%167.0%-38.6%-50.9%-1.5%-24.1%

Price Volatility Vs. Market

How volatile is Commercial Bank (P.S.Q.C.)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Commercial Bank (P.S.Q.C.) undervalued compared to its fair value and its price relative to the market?

8.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBQS ($0.89) is trading above our estimate of fair value ($0.82)

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


Price To Earnings Ratio

PE vs Industry: CBQS is poor value based on its PE Ratio (8.9x) compared to the Banks industry average (4.7x).

PE vs Market: CBQS is good value based on its PE Ratio (8.9x) compared to the UK market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: CBQS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CBQS is overvalued based on its PB Ratio (0.7x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Commercial Bank (P.S.Q.C.) forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBQS's forecast earnings growth (15.8% per year) is above the savings rate (0.5%).

Earnings vs Market: CBQS's earnings (15.8% per year) are forecast to grow faster than the UK market (15.5% per year).

High Growth Earnings: CBQS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBQS's revenue (12.4% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: CBQS's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBQS's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Commercial Bank (P.S.Q.C.) performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBQS has high quality earnings.

Growing Profit Margin: CBQS's current net profit margins (54.4%) are higher than last year (53.6%).


Past Earnings Growth Analysis

Earnings Trend: CBQS's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: CBQS's earnings growth over the past year (24.2%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: CBQS earnings growth over the past year (24.2%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: CBQS's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Commercial Bank (P.S.Q.C.)'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: CBQS has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CBQS has a high level of bad loans (5.02%)


Next Steps

Dividend

What is Commercial Bank (P.S.Q.C.)'s current dividend yield, its reliability and sustainability?

3.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBQS's dividend (3.85%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).

High Dividend: CBQS's dividend (3.85%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


Stability and Growth of Payments

Stable Dividend: CBQS's dividend payments have been volatile in the past 10 years.

Growing Dividend: CBQS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.1%), CBQS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBQS's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Joseph Abraham

3.83s

Tenure

Mr. Joseph Abraham has been the Group Chief Executive Officer of The Commercial Bank (P.Q.S.C.) since June 2016. Before joining Commercial Bank, Mr. Abraham served as the Chief Executive Officer of Indones ...


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Abraham
Group Chief Executive Officer3.83yrsno datano data
Omar Hussain Ibrahim Alfardan
MD & Non Independent and Executive Directorno datano datano data
Rehan Khan
EGM & CFO7.25yrsno datano data
Leonie Lethbridge
COO & EGM2.75yrsno datano data
Parvez Khan
Executive GM of Treasury & Investmentsno datano datano data
Dimitris Mavrogiannis
Chief Technology Officerno datano datano data
Shoaa Ahmad
Manager of Investor Relationsno datano datano data
Abdulla Fadli
Senior Assistant GM & Chief Compliance Officer2.25yrsno datano data
Ibrahim Al Emadi
Head of Corporate Communicationsno datano datano data
Hussein M. Al-Abdullah
EGM & Chief Marketing Officer2.75yrsno datano data

2.9yrs

Average Tenure

Experienced Management: CBQS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Omar Hussain Ibrahim Alfardan
MD & Non Independent and Executive Directorno datano datano data
Hussain Al-Fardan
Non Independent & Executive Vice Chairman6.08yrsno datano data
Sheikh Jabor Ali bin Jabor Al Thani
Director18.25yrsno datano data
Sheikh bin Ali bin Jabor Al-Thani
Chairman of the Board6.08yrsno datano data
Abdul Rahman Bin Al Attiyah
Director6.25yrsno datano data
Faisal bin Fahad Jassim Al Thani
Independent Director3yrsno datano data
Saleh Abdulla Mohamed Al Al Mannai
Independent Director3yrsno datano data
Khalaf Al Mannai
Representive Directorno datano datano data
Mohammed Ismail M. Al Emadi
Director6.25yrsno datano data

6.1yrs

Average Tenure

Experienced Board: CBQS's board of directors are considered experienced (6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Commercial Bank (P.S.Q.C.)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Commercial Bank (P.S.Q.C.)
  • Ticker: CBQS
  • Exchange: LSE
  • Founded: 1974
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ر.ق15.582b
  • Listing Market Cap: ر.ق4.280b
  • Shares outstanding: 4.05b
  • Website: https://www.cbq.qa

Number of Employees


Location

  • The Commercial Bank (P.S.Q.C.)
  • The Commercial Bank Plaza
  • PO Box 3232
  • Doha
  • Qatar

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBQKDSM (Doha Securities Market)YesOrdinary SharesQAQARJun 1996
CBQSLSE (London Stock Exchange)GDR (5 GDR REPR 1 ORD)REGSGBUSDJul 2008

Biography

The Commercial Bank (P.S.Q.C.), together with its subsidiaries, engages in the conventional banking, brokerage services, and credit card businesses. The company operates through four segments Wholesale Banking, Retail Banking, Alternatifbank A.S. (ABank), and Other Principal Subsidiaries. The Wholesale Banking segment provides demand and time deposit services; various conventional funded and non-funded credit facilities; currency exchange facilities; interest rate swaps and other derivative trading services; loan syndication and structured financing services; corporate lending; trade finance; other deposits; and letters of credit and guarantees, as well as manages money market funds and proprietary investment portfolio. This segment serves corporate, commercial, and multinational customers, as well as large, medium, and small enterprises. The Retail Banking segment offers personal current, savings, time, and investment account services; credit card and debit card services; consumer, personal, and vehicle loans, and residential mortgage services; and custodial and wealth management services to retail and individual customers. The ABank segment provides corporate, commercial, and retail banking products and services through a network of 48 branches in Turkey. The Other Principal Subsidiaries segment offers brokerage services; and issues debts for banks. The company also provides insurance products. It operates in Qatar, other GCC countries, rest of the Middle East, Europe, North America, and internationally. The company operates a network of 29 full service branches and 173 ATMs. The Commercial Bank (P.S.Q.C.) was incorporated in 1974 and is headquartered in Doha, Qatar. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 00:14
End of Day Share Price2020/04/01 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.