LSE:MTRO

Stock Analysis Report

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Market Cap

UK£161.2m

Last Updated

2021/08/02 22:54 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and overvalued.


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

Stable Share Price: MTRO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MTRO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

MTRO

-0.2%

GB Banks

0.9%

GB Market


1 Year Return

-15.0%

MTRO

44.2%

GB Banks

25.9%

GB Market

Return vs Industry: MTRO underperformed the UK Banks industry which returned 44% over the past year.

Return vs Market: MTRO underperformed the UK Market which returned 22.5% over the past year.


Shareholder returns

MTROIndustryMarket
7 Day-1.9%-0.2%0.9%
30 Day-10.4%-2.1%1.6%
90 Day-17.6%-2.1%6.5%
1 Year-15.0%-15.0%47.2%44.2%26.0%25.9%
3 Year-96.8%-96.8%-22.8%-30.0%25.0%24.9%
5 Year-95.8%-95.8%3.3%-12.8%40.3%13.5%

Long-Term 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?

0.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MTRO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MTRO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MTRO is unprofitable, so we can't compare its PE Ratio to the UK Banks industry average.

PE vs Market: MTRO is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTRO is good value based on its PB Ratio (0.1x) compared to the GB Banks industry average (0.6x).


Future Growth

How is Metro Bank forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

62.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTRO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MTRO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MTRO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MTRO's revenue (10.8% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: MTRO's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTRO is forecast to be unprofitable in 3 years.


Past Performance

How has Metro Bank performed over the past 5 years?

-61.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTRO is currently unprofitable.

Growing Profit Margin: MTRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTRO is unprofitable, and losses have increased over the past 5 years at a rate of 61.7% per year.

Accelerating Growth: Unable to compare MTRO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTRO is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (19%).


Return on Equity

High ROE: MTRO has a negative Return on Equity (-17.72%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: MTRO's Assets to Equity ratio (20.1x) is very high.

Allowance for Bad Loans: MTRO has a low allowance for bad loans (53%).

Low Risk Liabilities: 93% of MTRO's liabilities are made up of primarily low risk sources of funding.

Loan Level: MTRO has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: MTRO's Loans to Deposits ratio (60%) is appropriate.

Level of Bad Loans: MTRO has a high level of bad loans (2.5%).


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MTRO'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 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

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

3.4yrs

Average management tenure


CEO

Dan Frumkin (57 yo)

1.58yrs

Tenure

UK£1,297,176

Compensation

Mr. Daniel Frumkin, also known as Dan, serves as a Non-Executive Director at Retail Money Market Limited since September 2020. He has been Chief Executive Officer of Metro Bank Plc since February 19, 2020 ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD1.80M) is above average for companies of similar size in the UK market ($USD568.06K).

Compensation vs Earnings: Insufficient data to compare Dan's compensation with company performance.


Leadership Team

Experienced Management: MTRO's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: MTRO's board of directors are not considered experienced ( 1.8 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

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£161.213m
  • 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


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 Analysis2021/08/02 22:54
End of Day Share Price2021/08/02 00:00
Earnings2021/06/30
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.