LSE:STAN

Stock Analysis Report

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Market Cap

UK£13.6b

Last Updated

2021/08/02 22:47 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet.


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

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


Market Performance


7 Day Return

0.7%

STAN

-0.2%

GB Banks

0.9%

GB Market


1 Year Return

11.5%

STAN

44.2%

GB Banks

25.9%

GB Market

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

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


Shareholder returns

STANIndustryMarket
7 Day0.7%-0.2%0.9%
30 Day-4.3%-2.1%1.6%
90 Day-13.5%-2.1%6.5%
1 Year12.9%11.5%47.2%44.2%26.0%25.9%
3 Year-33.7%-36.8%-22.8%-30.0%25.0%24.9%
5 Year-28.8%-32.8%3.3%-12.8%40.3%13.5%

Long-Term 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?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STAN (£4.37) is trading below our estimate of fair value (£7.72)

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 (21.8x) compared to the UK Banks industry average (12.9x).

PE vs Market: STAN is good value based on its PE Ratio (21.8x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: STAN is poor value based on its PEG Ratio (1.3x)


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 (0.6x).


Future Growth

How is Standard Chartered forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAN's forecast earnings growth (16.7% per year) is above the savings rate (0.9%).

Earnings vs Market: STAN's earnings (16.7% per year) are forecast to grow faster than the UK market (14.8% per year).

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

Revenue vs Market: STAN's revenue (5.2% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: STAN's revenue (5.2% 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 (6.2%).


Past Performance

How has Standard Chartered performed over the past 5 years?

55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAN has a large one-off loss of $536.0M impacting its March 31 2021 financial results.

Growing Profit Margin: STAN's current net profit margins (6.8%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: STAN has become profitable over the past 5 years, growing earnings by 55% per year.

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

Earnings vs Industry: STAN had negative earnings growth (-43.6%) over the past year, making it difficult to compare to the Banks industry average (19%).


Return on Equity

High ROE: STAN's Return on Equity (2.5%) is considered low.


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


Financial Institutions Analysis

Asset Level: STAN's Assets to Equity ratio (15.4x) is moderate.

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

Low Risk Liabilities: 63% of STAN's liabilities are made up of primarily low risk sources of funding.

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

Low Risk Deposits: STAN's Loans to Deposits ratio (71%) is appropriate.

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


Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STAN's dividend (1.48%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: STAN's dividend (1.48%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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 (32.3%), 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 (32.2% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Bill Winters (60 yo)

6.17yrs

Tenure

US$5,204,522

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. He joined Standard Chartered in Jun...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD5.20M) is above average for companies of similar size in the UK market ($USD3.64M).

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


Leadership Team

Experienced Management: STAN's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: STAN's board of directors are considered experienced (5.1 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.


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£13.594b
  • Shares outstanding: 3.11b
  • Website: https://www.sc.com

Number of Employees


Location

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

Listings


Biography

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, Europe, the Americas, and the Middle East. The company operates through Cor...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 22:47
End of Day Share Price2021/08/02 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.