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.

Rewards

Trading at 20.9% below its fair value

Earnings are forecast to grow 18.01% per year

Risk Analysis

Dividend of 2.35% is not well covered by earnings

Profit margins (3.8%) are lower than last year (9.5%)



Snowflake Analysis

Excellent balance sheet and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

STAN

0.4%

GB Banks

0.1%

GB Market


1 Year Return

16.9%

STAN

-0.4%

GB Banks

9.8%

GB Market

Return vs Industry: STAN exceeded the UK Banks industry which returned -0.4% over the past year.

Return vs Market: STAN exceeded the UK Market which returned 9.8% over the past year.


Shareholder returns

STANIndustryMarket
7 Day-2.3%0.4%0.1%
30 Day-6.6%-0.5%-0.2%
90 Day-0.7%2.2%2.0%
1 Year20.1%16.9%5.8%-0.4%15.5%9.8%
3 Year8.6%3.9%0.8%-11.8%20.1%4.8%
5 Year-12.5%-24.0%4.7%-15.6%44.5%11.5%

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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STAN (£6.78) is trading below our estimate of fair value (£8.57)

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 (48.4x) compared to the Banks industry average (10x).

PE vs Market: STAN is poor value based on its PE Ratio (48.4x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: STAN is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: STAN is good value based on its PB Ratio (0.5x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Standard Chartered forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAN's forecast earnings growth (18% per year) is above the savings rate (0.5%).

Earnings vs Market: STAN's earnings (18% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: STAN's revenue (4.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: STAN's revenue (4.1% 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 (7.6%).


Next Steps

Past Performance

How has Standard Chartered performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAN has high quality earnings.

Growing Profit Margin: STAN's current net profit margins (3.8%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: STAN's earnings have declined by -0.3% per year over the past 5 years.

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 (-60.1%) over the past year, making it difficult to compare to the Banks industry average (28.3%).


Return on Equity

High ROE: STAN's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


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 not covered by short term assets (assets are -165.7x 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 an appropriate level of bad loans (1.87%)


Next Steps

Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.0%markettop25%5.2%industryaverage5.8%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: STAN's dividend (2.35%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).

High Dividend: STAN's dividend (2.35%) is low compared to the top 25% of dividend payers in the UK market (5.19%).


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 high payout ratio (151.7%), STAN's dividend payments are not 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 (39.6% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Bill Winters (58yo)

4.5yrs

Tenure

US$5,950,000

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 ($USD7.83M) is above average for companies of similar size in the UK market ($USD4.96M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

Experienced Management: STAN's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: STAN's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$22,28627 Jun 19
Tracy Clarke
EntityIndividual
Shares3,171
Max PriceUS$7.03
SellUS$351,40027 Jun 19
Tracy Clarke
EntityIndividual
Shares50,000
Max PriceUS$7.03
BuyUS$206,48913 Mar 19
Mark Smith
EntityIndividual
Shares33,823
Max PriceUS$6.11
BuyUS$250,63513 Mar 19
Sunil Kaushal
EntityIndividual
Shares41,054
Max PriceUS$6.11
BuyUS$181,37313 Mar 19
Tracy Clarke
EntityIndividual
Shares29,709
Max PriceUS$6.11
BuyUS$387,46013 Mar 19
Pi Cheng Hung
EntityIndividual
Shares63,466
Max PriceUS$6.11
BuyUS$992,11713 Mar 19
William Winters
EntityIndividual
Role
Chief Executive Officer
Group Chief Executive & Director
Shares162,509
Max PriceUS$6.11
BuyUS$322,19713 Mar 19
Andrew Halford
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares52,776
Max PriceUS$6.11

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Gorriz (59yo)

    Group Chief Information Officer

    • Tenure: 4.4yrs
  • Andy Halford (60yo)

    Group CFO & Director

    • Tenure: 5.4yrs
    • Compensation: US$3.65m
  • Bill Winters (58yo)

    Group Chief Executive & Director

    • Tenure: 4.5yrs
    • Compensation: US$5.95m
  • David Fein (58yo)

    Group General Counsel

    • Tenure: 6.3yrs
  • Jon Tracey

    Global Head of Communications & Head of Media Relations

    • Tenure: 0yrs
  • Tracey McDermott (49yo)

    Group Head of Corporate Affairs

    • Tenure: 1.8yrs
  • David Whiteing (50yo)

    Group Chief Operating Officer

    • Tenure: 0.9yrs
  • Sumit Dayal

    Group Head of Corporate Finance

    • Tenure: 4.7yrs
  • Tanuj Kapilashrami (41yo)

    Group Head of Human Resources

    • Tenure: 1.1yrs
  • Mark Stride

    Global Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Naguib Kheraj (55yo)

    Deputy Chairman

    • Tenure: 3yrs
    • Compensation: US$357.00k
  • Byron Grote (71yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$160.00k
  • Andy Halford (60yo)

    Group CFO & Director

    • Tenure: 5.4yrs
    • Compensation: US$3.65m
  • Christine Hodgson (55yo)

    Senior Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$304.00k
  • David Conner (71yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$266.00k
  • Bill Winters (58yo)

    Group Chief Executive & Director

    • Tenure: 4.5yrs
    • Compensation: US$5.95m
  • Louis Cheung (56yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: US$135.00k
  • Gay Evans (65yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: US$192.00k
  • José Viñals Iñiguez (65yo)

    Group Chairman

    • Tenure: 3yrs
    • Compensation: US$1.32m
  • Mary Huen (64yo)

    Head of Retail Clients-Greater China Region

    • Tenure: 0yrs

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£21.667b
  • Shares outstanding: 3.19b
  • 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
2888SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994
2888SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1994
STDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
2888SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994
STANLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 1994
STANLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1994
58HALSE (London Stock Exchange)6.409%-FRN PERP USD100000 '144A'GBUSDDec 2006
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 & Institutiona ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 20:48
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
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.