LSE:MTRO

Stock Analysis Report

Executive Summary

Metro Bank PLC, together with its subsidiaries, provides retail and commercial banking services in the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Metro Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

MTRO

6.9%

GB Banks

1.9%

GB Market


1 Year Return

-92.2%

MTRO

-2.2%

GB Banks

2.4%

GB Market

Return vs Industry: MTRO underperformed the UK Banks industry which returned -2.2% over the past year.

Return vs Market: MTRO underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

MTROIndustryMarket
7 Day-1.4%6.9%1.9%
30 Day-29.7%1.9%-1.1%
90 Day-56.9%-4.4%-1.8%
1 Year-92.2%-92.2%3.9%-2.2%7.4%2.4%
3 Year-92.5%-92.5%12.7%-2.1%18.2%3.7%
5 Yearn/a1.8%-18.3%35.7%6.1%

Price Volatility Vs. Market

How volatile is Metro Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Metro Bank undervalued compared to its fair value and its price relative to the market?

16.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MTRO (£2.04) is trading above our estimate of fair value (£2)

Significantly Undervalued: MTRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTRO is poor value based on its PE Ratio (17x) compared to the Banks industry average (9.1x).

PE vs Market: MTRO is poor value based on its PE Ratio (17x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MTRO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MTRO is good value based on its PB Ratio (0.2x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is Metro Bank forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

55.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTRO's forecast earnings growth (55.9% per year) is above the savings rate (1.2%).

Earnings vs Market: MTRO's earnings (55.9% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: MTRO's revenue (16.5% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: MTRO's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MTRO's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Metro Bank performed over the past 5 years?

84.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MTRO has become profitable over the past 5 years, growing earnings by 84% per year.

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

Earnings vs Industry: MTRO had negative earnings growth (-42.4%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: MTRO's Return on Equity (0.7%) is considered low.


Return on Assets

ROA vs Industry: MTRO's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MTRO's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Metro 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

Inventory Level: MTRO has a low level of unsold assets or inventory.

Debt Coverage by Assets: MTRO's debt is covered by short term assets (assets are 2.303340x debt).


Financial Institutions Analysis

Asset Level: MTRO's level of assets compared to its equity is moderate.

Allowance for Bad Loans: MTRO has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: MTRO has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

What is Metro Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage5.7%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Metro Bank's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Craig Donaldson (47yo)

9.8yrs

Tenure

UK£800,944

Compensation

Mr. Craig Donaldson has been Chief Executive Officer and Executive Director of Metro Bank PLC since March 5, 2010. Mr. Donaldson served as Head of North American institutional foreign exchange sales of Nat ...


CEO Compensation Analysis

Compensation vs. Market: Craig's total compensation ($USD1.03M) is about average for companies of similar size in the UK market ($USD874.66K).

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


Management Age and Tenure

4.2yrs

Average Tenure

50yo

Average Age

Experienced Management: MTRO's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

68yo

Average Age

Experienced Board: MTRO's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: MTRO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£49,50926 Jul 19
Craig Donaldson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares12,900
Max PriceUK£3.84
BuyUK£376,24304 Mar 19
Vernon Hill
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares41,000
Max PriceUK£9.19
BuyUK£100,25904 Mar 19
Craig Donaldson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares11,100
Max PriceUK£9.03
BuyUK£9,94501 Mar 19
Anna Melis
EntityIndividual
Shares990
Max PriceUK£10.05
BuyUK£99,27213 Nov 18
Michael Snyder
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares4,400
Max PriceUK£22.56
BuyUK£147,77609 Nov 18
Michael Snyder
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares6,400
Max PriceUK£23.09
BuyUK£217,62531 Oct 18
Craig Donaldson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares10,000
Max PriceUK£21.76

Ownership Breakdown


Management Team

  • Vernon Hill (73yo)

    Founder & Chairman

    • Tenure: 6.8yrs
    • Compensation: UK£505.00k
  • Craig Donaldson (47yo)

    CEO & Executive Director

    • Tenure: 9.8yrs
    • Compensation: UK£800.94k
  • Aisling Kane (50yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Mark Price

    Chief Credit Officer

    • Tenure: 6.8yrs
  • Danny Harmer (51yo)

    Chief People Officer

    • Tenure: 0yrs
  • Aileen Gillan (50yo)

    Chief Risk Officer

    • Tenure: 6.6yrs
  • David Arden (50yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.18m
  • Ian Walters (56yo)

    Managing Director of Retail & Business Banking

    • Tenure: 4.2yrs
  • Julie Barnsley

    Head of Private Banking Services

    • Tenure: 4.1yrs
  • Cheryl Newton

    Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • Roger Farah (66yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£70.82k
  • Vernon Hill (73yo)

    Founder & Chairman

    • Tenure: 6.8yrs
    • Compensation: UK£505.00k
  • Gene Lockhart (69yo)

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: UK£99.19k
  • Ben Gunn (68yo)

    Deputy Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£90.63k
  • Stuart D. Bernau (68yo)

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: UK£90.63k
  • Craig Donaldson (47yo)

    CEO & Executive Director

    • Tenure: 9.8yrs
    • Compensation: UK£800.94k
  • James Reuben

    Member of Advisory Board

    • Tenure: 0yrs
  • David Arden (50yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.18m
  • Rachael Robathan

    Member of Advisory Board

    • Tenure: 4.1yrs
  • Michael Snyder (68yo)

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: UK£70.63k

Company Information

Metro Bank PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metro Bank PLC
  • Ticker: MTRO
  • Exchange: LSE
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: UK£351.738m
  • Shares outstanding: 172.42m
  • Website: https://www.metrobankonline.co.uk

Number of Employees


Location

  • Metro Bank PLC
  • One Southampton Row
  • London
  • Greater London
  • WC1B 5HA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTROLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2016
6MBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2016
MTROLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2016
MBNK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2016

Biography

Metro Bank PLC, together with its subsidiaries, provides retail and commercial banking services in the United Kingdom. The company offers personal banking products and services, including current and savin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:52
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.