LSE:TBCG

Stock Analysis Report

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Executive Summary

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TBCG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TBCG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.1%

TBCG

7.0%

GB Banks

0.9%

GB Market


1 Year Return

8.5%

TBCG

-28.1%

GB Banks

-9.1%

GB Market

Return vs Industry: TBCG exceeded the UK Banks industry which returned -31.2% over the past year.

Return vs Market: TBCG exceeded the UK Market which returned -10.2% over the past year.


Shareholder returns

TBCGIndustryMarket
7 Day7.1%7.0%0.9%
30 Day37.3%27.6%9.2%
90 Day45.9%26.8%6.6%
1 Year8.5%8.5%-27.9%-28.1%-5.5%-9.1%
3 Year-7.4%-13.3%-34.1%-40.5%1.4%-11.0%
5 Yearn/a-19.7%-32.9%26.5%-2.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TBCG (£13.26) is trading below our estimate of fair value (£33.8)

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


Price To Earnings Ratio

PE vs Industry: TBCG is good value based on its PE Ratio (8.4x) compared to the GB Banks industry average (10.8x).

PE vs Market: TBCG is good value based on its PE Ratio (8.4x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TBCG is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is TBC Bank Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBCG's forecast earnings growth (24.2% per year) is above the savings rate (1.2%).

Earnings vs Market: TBCG's earnings (24.2% per year) are forecast to grow slower than the UK market (26.9% per year).

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

Revenue vs Market: TBCG's revenue (14% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: TBCG's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TBCG's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has TBC Bank Group performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TBCG has a high level of non-cash earnings.

Growing Profit Margin: TBCG's current net profit margins (43.7%) are lower than last year (50.7%).


Past Earnings Growth Analysis

Earnings Trend: TBCG's earnings have grown by 13.6% per year over the past 5 years.

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

Earnings vs Industry: TBCG had negative earnings growth (-25.7%) over the past year, making it difficult to compare to the Banks industry average (-25.7%).


Return on Equity

High ROE: TBCG's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is TBC Bank Group'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: TBCG's Assets to Equity ratio (7.7x) is low.

Allowance for Bad Loans: TBCG has a sufficient allowance for bad loans (113%).

Low Risk Liabilities: 65% of TBCG's liabilities are made up of primarily low risk sources of funding.

Loan Level: TBCG has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: TBCG's Loans to Deposits ratio (116%) is appropriate.

Level of Bad Loans: TBCG has a high level of bad loans (3.2%).


Next Steps

Dividend

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

4.87%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TBCG'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 TBCG's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: TBCG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TBCG'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?

6.2yrs

Average management tenure


CEO

Vakhtang Butskhrikidze

4.5yrs

Tenure

GEL1,886,994

Compensation

Mr. Vakhtang Butskhrikidze serves as the Chief Executive Officer of TBC Bank Group PLC since May 2016. Mr. Butskhrikidze serves as Chief Executive Officer and Member of Management Board of JSC TBC Bank. Mr...


CEO Compensation Analysis

Compensation vs Market: Vakhtang's total compensation ($USD5.41M) is above average for companies of similar size in the UK market ($USD1.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vakhtang Butskhrikidze
CEO & Executive Director4.5yrsGEL1.89m1.45%
GEL 10.4m
Giorgi Megrelishvili
CFO & Member of Management Board0.083yrno datano data
Anna Romelashvili
Head of Investor Relationsno datano datano data
Nino Kacheishvili
Head of the Retail Loans Department7.83yrsno datano data
David Japaridze
Head of Customer Experienceno datano datano data
Tamar Chkhaidze
Head of Customer Experience Management group8.67yrsno datano data
Alexander Iskonyan
Deputy Head of Business Analysis and Quality Assurance7.83yrsno datano data
Victor Kukhalashvili
Head of Software Development Department8.17yrsno datano data
Otar Nadaraia
Chief Economist2.92yrsno datano data
Paata Gadzadze
Chief Executive Officer of TBC Insurance1.83yrsno datano data
Tata Kurtanidze
Deputy Head of Sales Departmentno datano datano data

6.2yrs

Average Tenure

Experienced Management: TBCG's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vakhtang Butskhrikidze
CEO & Executive Director4.5yrsGEL1.89m1.45%
GEL 10.4m
Nikoloz Enukidze
Independent Chairman1.33yrsGEL248.00k0.018%
GEL 132.6k
Eric Rajendra
Independent Non-Executive Director1.17yrsGEL68.00kno data
Arne Berggren
Independent Non-Executive Director1.25yrsGEL51.00kno data
Nicholas Haag
Senior Independent Non-Executive Director1.25yrsGEL157.00kno data
Maria Cicognani
Independent Non-Executive Director2.17yrsGEL149.00kno data
Tsira Kemularia
Independent Non-Executive Director2.17yrsGEL144.00kno data
Abhijit Akerkar
Independent Non Executive Director0.33yrno datano data

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: TBCG's board of directors are not considered experienced ( 1.3 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: TBCG insiders have only sold shares 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

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


Key Information

  • Name: TBC Bank Group PLC
  • Ticker: TBCG
  • Exchange: LSE
  • Founded: 1992
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£721.048m
  • Shares outstanding: 54.38m
  • Website: https://www.tbcbankgroup.com

Number of Employees


Location

  • TBC Bank Group PLC
  • 7 Marjanishvili Street
  • Tbilisi
  • 102
  • Georgia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TBCGLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 2016
TBCGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPAug 2016
TBCC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2016

Biography

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan. The company op...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 20:50
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.