LSE:TGBD

Stock Analysis Report

Turkiye Garanti Bankasi

Executive Summary

Turkiye Garanti Bankasi A.S. provides various banking products and services.

Rewards

Trading at 66.5% below its fair value

Earnings are forecast to grow 31.48% per year

Risk Analysis

No risks detected for TGBD from our risk checks.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Turkiye Garanti Bankasi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TGBD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

TGBD

-1.4%

GB Banks

6.0%

GB Market


1 Year Return

42.9%

TGBD

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: TGBD exceeded the UK Banks industry which returned -0.2% over the past year.

Return vs Market: TGBD exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

TGBDIndustryMarket
7 Day0%-1.4%6.0%
30 Day0%-23.4%-20.3%
90 Day0%-34.8%-28.1%
1 Year42.9%42.9%-28.8%-33.5%-18.6%-22.7%
3 Year-48.6%-50.6%-32.0%-41.3%-13.4%-24.6%
5 Year-43.7%-47.1%-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

How volatile is Turkiye Garanti Bankasi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Turkiye Garanti Bankasi 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: TGBD ($1.8) is trading below our estimate of fair value ($5.37)

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


Price To Earnings Ratio

PE vs Industry: TGBD is good value based on its PE Ratio (6.2x) compared to the Banks industry average (10.9x).

PE vs Market: TGBD is good value based on its PE Ratio (6.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TGBD is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: TGBD is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Turkiye Garanti Bankasi forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGBD's forecast earnings growth (31.5% per year) is above the savings rate (1.2%).

Earnings vs Market: TGBD's earnings (31.5% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: TGBD's revenue (17.2% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: TGBD's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGBD's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Turkiye Garanti Bankasi performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGBD has high quality earnings.

Growing Profit Margin: TGBD's current net profit margins (35.1%) are lower than last year (39.5%).


Past Earnings Growth Analysis

Earnings Trend: TGBD's earnings have grown by 15.6% per year over the past 5 years.

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

Earnings vs Industry: TGBD had negative earnings growth (-13.1%) over the past year, making it difficult to compare to the Banks industry average (28.3%).


Return on Equity

High ROE: TGBD's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Turkiye Garanti Bankasi'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: TGBD has a low level of unsold assets or inventory.

Debt Coverage by Assets: TGBD's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: TGBD has a high level of bad loans (5.42%)


Next Steps

Dividend

What is Turkiye Garanti Bankasi's current dividend yield, its reliability and sustainability?

4.31%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TGBD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TGBD's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.5yrs

Average management tenure


CEO

Recep Bastug (51yo)

0.17

Tenure

Mr. Recep Bastug has been the President, Chief Executive Officer and Director of Türkiye Garanti Bankasi AS since September 1, 2019. Mr. Bastug started his career in Garanti BBVA Internal Audit Department  ...


Leadership Team

NamePositionTenureCompensationOwnership
Recep Bastug
President0.17yrno datano data
Aydin Güler
Executive Vice President of ALM3.92yrsno datano data
Handan Saygin
Senior Vice President of Investor Relations Departmentno datano datano data
Avni Düren
Executive Vice President of Legal Services & Collection3yrsno datano data
Emre Özbek
Head of Complianceno datano datano data
Luis Francisco González
Co-Director for Global Markets1.33yrsno datano data
Osman Tüzün
Executive Vice President of Human Resources & Support Services4.25yrsno datano data
Ali Temel
Executive VP & Chief Credit Risk Officer18.83yrsno datano data
Metin Kiliç
Senior Vice President of Assets & Liabilities Managementno datano datano data
Fulya Göyenç
Senior Vice President of Corporate Banking Coordinationno datano datano data

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: TGBD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Recep Bastug
President0.17yrno datano data
Sait Özen
Director16.5yrsno datano data
Belkis Yurdum
Independent Director6.58yrsno datano data
Javier Dionis
Director4.33yrsno datano data
Muammer Sezgin
Director15.42yrsno datano data
Süleyman Sözen
Chairman of the Board22.17yrsno datano data
Jaime Saenz de Tejada Pulido
Director5.08yrsno datano data
Ricardo Barredo
Independent Director2.5yrsno datano data
Rafael Salinas Martínez de Lecea
Director2.5yrsno datano data
Jorge Saenz- Azcunaga Carranza
Independent Vice Chairman of the Board2.17yrsno datano data

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: TGBD's board of directors are considered experienced (4.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Turkiye Garanti Bankasi A.S.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Turkiye Garanti Bankasi A.S.
  • Ticker: TGBD
  • Exchange: LSE
  • Founded: 1946
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₺39.732b
  • Listing Market Cap: ₺6.902b
  • Shares outstanding: 4.20b
  • Website: https://www.garantibbva.com.tr

Number of Employees


Location

  • Turkiye Garanti Bankasi A.S.
  • Levent Nispetiye Mah.Aytar Cad.
  • No:2 Besiktas
  • Istanbul
  • 34340
  • Turkey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GARANIBSE (Borsa Istanbul (BIST))YesCommon StockTRTRYJun 1992
TKGB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 1992
TKGZ.YOTCPK (Pink Sheets LLC)ADS (REPR 1 ORD) (144A)USUSDNov 1993
TKGB.YOTCPK (Pink Sheets LLC)ADS EACH 1 REPR 1 ORD TRY1 'LVL1'USUSDSep 2000
TGBDLSE (London Stock Exchange)ADS EACH 1 REPR 1 ORD TRY1 'LVL1'GBUSDSep 2000

Biography

Turkiye Garanti Bankasi A.S. provides various banking products and services. It offers current, savings, time and term deposit, ELMA, and deposit accounts; mutual funds, T-bills/government bonds, Eurobonds, repos, equities, dual currency deposit transactions, Turkish derivatives exchange, e-trader, forward transactions, and taxation services; general purpose, auto, revolving, house, discount, SME project, installment, working capital, foreign currency, and other loans, as well as spot TL and foreign currency, letters of guarantee and reference, and overdraft accounts; various cards; mortgage products; Internet and mobile/SMS banking; payment services; and safety boxes. The company also provides SME specific products, such as support packages, and foreign trade financing and legislation, as well as related services; cash management services; leasing, fleet management, and factoring services; and auto, liability, health, unemployment, life, house, individual accident, automobile, business premises, fire, freight, engineering, loan, and agriculture insurance products, as well as pension products. In addition, it offers corporate banking and private banking services; and project financing solutions. As of December 31, 2018, the company operated 926 branches in Turkey, as well as 7 branches and 2 representative offices internationally. The company was founded in 1946 and is headquartered in Istanbul, Turkey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/05 20:46
End of Day Share Price2019/11/04 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.