LSE:STAN

Stock Analysis Report

Executive Summary

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Standard Chartered's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STAN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

STAN

0.03%

GB Banks

10.0%

GB Market


1 Year Return

-25.5%

STAN

-35.7%

GB Banks

-23.0%

GB Market

Return vs Industry: STAN exceeded the UK Banks industry which returned -33.5% over the past year.

Return vs Market: STAN underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

STANIndustryMarket
7 Day8.2%0.03%10.0%
30 Day-19.0%-23.3%-17.6%
90 Day-36.1%-35.2%-27.3%
1 Year-22.7%-25.5%-31.2%-35.7%-18.9%-23.0%
3 Year-34.5%-39.1%-32.6%-41.8%-12.9%-24.2%
5 Year-51.7%-57.7%-30.8%-44.7%1.6%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Standard Chartered undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STAN (£4.56) is trading below our estimate of fair value (£8.64)

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


Price To Earnings Ratio

PE vs Industry: STAN is poor value based on its PE Ratio (9.9x) compared to the Banks industry average (4.6x).

PE vs Market: STAN is good value based on its PE Ratio (9.9x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: STAN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: STAN is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Standard Chartered forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAN's forecast earnings growth (14.7% per year) is above the savings rate (0.5%).

Earnings vs Market: STAN's earnings (14.7% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: STAN's revenue (4.5% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: STAN's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STAN's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Standard Chartered performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAN has high quality earnings.

Growing Profit Margin: STAN's current net profit margins (12.8%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: STAN's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: STAN's earnings growth over the past year (200.2%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: STAN earnings growth over the past year (200.2%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: STAN's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Standard Chartered'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: STAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: STAN's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: STAN has a high level of bad loans (2.44%)


Next Steps

Dividend

What is Standard Chartered's current dividend yield, its reliability and sustainability?

4.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STAN's dividend (4.78%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: STAN's dividend (4.78%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.4%), STAN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STAN's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Bill Winters (58yo)

4.75s

Tenure

US$5,932,000

Compensation

Mr. William Thomas Winters, also known as Bill, CBE has been the Group Chief Executive Officer of Standard Chartered PLC and Standard Chartered Bank since June 10, 2015. Mr. Winters served as the Chairman  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD7.36M) is above average for companies of similar size in the UK market ($USD5.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Winters
Group Chief Executive & Director4.75yrsUS$5.93m0.056% $8.1m
Andrew Halford
Group CFO & Director5.67yrsUS$3.64m0.022% $3.2m
David Whiteing
Group Chief Operating Officer1.17yrsno datano data
Sumit Dayal
Group Head of Corporate Finance4.92yrsno datano data
Michael Gorriz
Group Chief Information Officer4.67yrsno data0.0061% $873.8k
Mark Stride
Global Head of Investor Relationsno datano datano data
David Fein
Group General Counsel6.5yrsno datano data
Tracey McDermott
Group Head of Corporate Affairs2yrsno datano data
Jonathan Tracey
Global Head of Communications & Head of Media Relationsno datano datano data
Tanuj Kapilashrami
Group Head of Human Resources1.33yrsno datano data

4.7yrs

Average Tenure

58yo

Average Age

Experienced Management: STAN's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Winters
Group Chief Executive & Director4.75yrsUS$5.93m0.056% $8.1m
Andrew Halford
Group CFO & Director5.67yrsUS$3.64m0.022% $3.2m
Wai Yi Huen
Head of Retail Clients-Greater China Regionno datano datano data
Naguib Kheraj
Deputy Chairman3.25yrsUS$364.00k0.0013% $185.4k
Byron Grote
Independent Non-Executive Director5.67yrsUS$170.00k0.0019% $273.1k
Christine Hodgson
Senior Independent Director2yrsUS$327.00k0.000080% $11.5k
David Conner
Independent Non-Executive Director4.17yrsUS$277.00k0.00032% $46.0k
Gay Evans
Independent Non-Executive Director4.92yrsUS$202.00k0.000080% $11.5k
José Viñals Iñiguez
Group Chairman3.25yrsUS$1.30m0.00059% $84.8k
Jasmine Whitbread
Independent Non-Executive Director4.92yrsUS$212.00k0.00011% $15.8k

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: STAN's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STAN insiders have sold more shares than they have bought 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

Standard Chartered PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Standard Chartered PLC
  • Ticker: STAN
  • Exchange: LSE
  • Founded: 1853
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£14.371b
  • Shares outstanding: 3.16b
  • Website: https://www.sc.com

Number of Employees


Location

  • Standard Chartered PLC
  • 1 Basinghall Avenue
  • London
  • Greater London
  • EC2V 5DD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCBF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
STANLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1994
2888SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1994
STDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
STANLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1994
2888SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994
STDBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFMay 1994
2888SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994
37ZMLSE (London Stock Exchange)7.014%-FRN PERP USD100000 '144A'GBUSDMay 2007
37ZLLSE (London Stock Exchange)ADS EACH REPR 1 NON-CUM RED PRF SH'REGS'GBUSDJun 2007
58GZLSE (London Stock Exchange)6.409%-FRN PERP USD 'REGS'GBUSDMar 2009
STDKDB (Deutsche Boerse AG)6.409%-FRN PERP USD 'REGS'DEUSDMar 2009
580001BSE (Mumbai Stock Exchange)IDR EACH REPR 0.10 SHAREININRJun 2010
SCBF.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDNov 2018

Biography

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East. The company operates through Corporate & Institutional Banking, Retail banking, Commercial Banking, and Private Banking segments. It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management that include investments, portfolio management, insurance and advices, and planning services; and transaction banking services, such as cash management, payments and transactions, securities services, and trade financing products. The company also provides corporate finance products and services that include structured and project financing, strategic advising, and mergers and acquisitions; and financial market services, such as investment, risk management, and debt capital markets. It serves corporations, financial institutions, governments, high net worth individuals, small businesses, mid-sized companies, and individuals. The company operates through approximately 1,026 branches. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:01
End of Day Share Price2020/03/30 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.