LSE:TBCG

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 71.3% below its fair value

Earnings are forecast to grow 9.59% per year

Earnings have grown 23.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

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


Market Performance


7 Day Return

7.0%

TBCG

-4.6%

GB Banks

-0.9%

GB Market


1 Year Return

1.7%

TBCG

-7.7%

GB Banks

6.2%

GB Market

Return vs Industry: TBCG exceeded the UK Banks industry which returned -7.7% over the past year.

Return vs Market: TBCG underperformed the UK Market which returned 6.2% over the past year.


Shareholder returns

TBCGIndustryMarket
7 Day7.0%-4.6%-0.9%
30 Day3.9%-5.7%-3.1%
90 Day8.0%-3.0%3.9%
1 Year5.5%1.7%-1.8%-7.7%11.9%6.2%
3 Year2.6%-6.5%-7.7%-19.1%17.3%2.4%
5 Yearn/a-4.2%-22.4%34.1%3.2%

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 (£13.2) is trading below our estimate of fair value (£45.93)

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 (5.3x) compared to the Banks industry average (9x).

PE vs Market: TBCG is good value based on its PE Ratio (5.3x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TBCG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TBCG is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is TBC Bank Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBCG's forecast earnings growth (9.6% per year) is above the savings rate (0.5%).

Earnings vs Market: TBCG's earnings (9.6% per year) are forecast to grow slower than the UK market (12.2% per year).

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

Revenue vs Market: TBCG's revenue (11% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: TBCG's revenue (11% 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 (19.3%).


Next Steps

Past Performance

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

23.1%

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 (50.7%) are higher than last year (46.5%).


Past Earnings Growth Analysis

Earnings Trend: TBCG's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: TBCG's earnings growth over the past year (27%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: TBCG earnings growth over the past year (27%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: Whilst TBCG's Return on Equity (20.42%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


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

Inventory Level: TBCG has a low level of unsold assets or inventory.

Debt Coverage by Assets: TBCG's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: TBCG's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: TBCG has a high level of bad loans (3.05%)


Next Steps

Dividend

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

4.01%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.8%markettop25%5.1%industryaverage6.5%forecastin3Years7.8%

Current dividend yield vs market & industry

Notable Dividend: TBCG's dividend (4.01%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: TBCG's dividend (4.01%) is low compared to the top 25% of dividend payers in the UK market (5.15%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TBCG has been paying a dividend for less than 10 years.

Growing Dividend: TBCG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), TBCG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TBCG's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Vakhtang Butskhrikidze 0

3.8yrs

Tenure

GEL3,356,000

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 of JSC TBC Bank. Mr. Butskhrikidze has been Chairm ...


CEO Compensation Analysis

Compensation vs Market: Vakhtang's total compensation ($USD3.36M) is above average for companies of similar size in the UK market ($USD1.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vakhtang Butskhrikidze
CEO & Executive Director3.8yrsGEL3.36m1.26% GEL9.2m
Giorgi Shagidze
CFO, Deputy CEO & Executive Director3.8yrsGEL1.72m0.10% GEL731.8k
Anna Romelashvili
Head of Investor Relations0yrsno datano data
Nino Kacheishvili
Head of the Retail Loans Department7.1yrsno datano data
David Japaridze
Head of Customer Experience0yrsno datano data
Tamar Chkhaidze
Head of Customer Experience Management group7.9yrsno datano data
Alexander Iskonyan
Deputy Head of Business Analysis and Quality Assurance7.1yrsno datano data
Victor Kukhalashvili
Head of Software Development Department7.4yrsno datano data
Otar Nadaraia
Chief Economist2.2yrsno datano data
Paata Gadzadze
Chief Executive Officer of TBC Insurance1.1yrsno datano data

5.4yrs

Average Tenure

Experienced Management: TBCG's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vakhtang Butskhrikidze
CEO & Executive Director3.8yrsGEL3.36m1.26% GEL9.2m
Giorgi Shagidze
CFO, Deputy CEO & Executive Director3.8yrsGEL1.72m0.10% GEL731.8k
Nikoloz Enukidze
Independent Chairman0.6yrsGEL166.00k0.018% GEL132.0k
Eric Rajendra
Independent Non-Executive Director0.4yrsGEL154.00kno data
Arne Berggren
Independent Non-Executive Director0.5yrsno datano data
Nicholas Haag
Senior Independent Director0.5yrsGEL135.00kno data
Maria Cicognani
Independent Non-Executive Director1.4yrsGEL38.00kno data
Tsira Kemularia
Independent Non-Executive Director1.4yrsGEL33.00kno data

1.0yrs

Average Tenure

61yo

Average Age

Experienced Board: TBCG's board of directors are not considered experienced ( 1 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

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£728.058m
  • Shares outstanding: 55.16m
  • Website: https://www.tbcbankgroup.com

Number of Employees


Location

  • TBC Bank Group PLC
  • 7 Marjanishvili Street
  • Tbilisi
  • 179
  • 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. The company operates through Retail; Corporate; and Micro, Small and Medium Enterprises segments. It offers various current/settlement accounts, and term deposits; mortgage, consumer, retail, and corporate loans, as well as loans for micro, small, and medium enterprises; credit cards, credit lines, letters of credit, and guarantees; and money transfer and currency exchange services. The company also provides motor, travel, personal accident, credit life and property, business property, liability, and cargo insurance products; finance leasing; payment services; and corporate advisory, debt and equity capital markets, brokerage, and research services. In addition, it offers Internet and mobile banking services. The company operates 149 branches, 1200 ATMs, 17,000 POS terminals, and 3,300 self-service terminals. TBC Bank Group PLC was founded in 1992 and is based in Tbilisi, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:51
End of Day Share Price2020/02/18 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.