LSE:HSBK

Stock Analysis Report

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Market Cap

US$4.4b

Last Updated

2021/07/23 21:25 UTC

Data Sources

Company Financials +

Executive Summary

JSC Halyk Bank, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Russia, Kyrgyzstan, Tajikistan, Georgia, and Uzbekistan. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has JSC Halyk bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HSBK is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HSBK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

HSBK

0.2%

GB Banks

0.6%

GB Market


1 Year Return

34.8%

HSBK

33.1%

GB Banks

18.9%

GB Market

Return vs Industry: HSBK exceeded the UK Banks industry which returned 30.3% over the past year.

Return vs Market: HSBK exceeded the UK Market which returned 16.6% over the past year.


Shareholder returns

HSBKIndustryMarket
7 Day-0.3%0.2%0.6%
30 Day-5.2%-3.2%-0.3%
90 Day5.9%-0.3%1.4%
1 Year52.0%34.8%35.8%33.1%24.3%18.9%
3 Year81.0%26.2%-24.7%-31.6%12.1%-0.7%
5 Year375.4%211.7%7.6%-9.1%40.8%13.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is JSC Halyk bank 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: HSBK ($14.96) is trading below our estimate of fair value ($42.02)

Significantly Below Fair Value: HSBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HSBK is good value based on its PE Ratio (5.1x) compared to the UK Banks industry average (15.3x).

PE vs Market: HSBK is good value based on its PE Ratio (5.1x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: HSBK is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HSBK is overvalued based on its PB Ratio (1.2x) compared to the GB Banks industry average (0.6x).


Future Growth

How is JSC Halyk bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBK's forecast earnings growth (6% per year) is above the savings rate (0.9%).

Earnings vs Market: HSBK's earnings (6% per year) are forecast to grow slower than the UK market (16.8% per year).

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

Revenue vs Market: HSBK's revenue (6.2% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: HSBK's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSBK's Return on Equity is forecast to be high in 3 years time (24.3%)


Past Performance

How has JSC Halyk bank performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSBK has high quality earnings.

Growing Profit Margin: HSBK's current net profit margins (58.5%) are higher than last year (54.2%).


Past Earnings Growth Analysis

Earnings Trend: HSBK's earnings have grown significantly by 25.8% per year over the past 5 years.

Accelerating Growth: HSBK's earnings growth over the past year (8%) is below its 5-year average (25.8% per year).

Earnings vs Industry: HSBK earnings growth over the past year (8%) exceeded the Banks industry 5.2%.


Return on Equity

High ROE: HSBK's Return on Equity (23.3%) is considered high.


Financial Health

How is JSC Halyk bank'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: HSBK's Assets to Equity ratio (6.6x) is low.

Allowance for Bad Loans: HSBK has a low allowance for bad loans (71%).

Low Risk Liabilities: 87% of HSBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: HSBK has an appropriate level of Loans to Assets ratio (42%).

Low Risk Deposits: HSBK's Loans to Deposits ratio (57%) is appropriate.

Level of Bad Loans: HSBK has a high level of bad loans (11.4%).


Dividend

What is JSC Halyk bank current dividend yield, its reliability and sustainability?

10.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSBK's dividend (10.73%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: HSBK's dividend (10.73%) is in the top 25% of dividend payers in the UK market (4.07%)


Stability and Growth of Payments

Stable Dividend: HSBK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HSBK's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.2%), HSBK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSBK's dividends in 3 years are forecast to be covered by earnings (65.2% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Umut Shayakhmetova (52 yo)

12.5yrs

Tenure

Ms. Umut Bolatkhanovna Shayakhmetova has been Chairman of Management Board - HR, Strategic Office, Legal, Compliance and Risk Management of JSC Halyk bank since January 22, 2009. Ms. Shayakhmetova has been...


Leadership Team

Experienced Management: HSBK's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: HSBK's board of directors are seasoned and experienced ( 12.3 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

JSC Halyk bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JSC Halyk bank
  • Ticker: HSBK
  • Exchange: LSE
  • Founded: 1923
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$4.375b
  • Shares outstanding: 292.47m
  • Website: https://halykbank.kz

Number of Employees


Location

  • JSC Halyk bank
  • 40 Al-Farabi Avenue
  • Almaty
  • A26M3K5
  • Kazakhstan

Listings


Biography

JSC Halyk Bank, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Russia, Kyrgyzstan, Tajikistan, Georgia, and Uzbekistan. It operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 21:25
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.