LSE:ZENB

Stock Analysis Report

Executive Summary

Zenith Bank Plc, through its subsidiaries, provides banking and other financial products and services to corporate and individual customers in Nigeria, rest of Africa, and internationally.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ZENB

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

0%

ZENB

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: ZENB exceeded the UK Banks industry which returned -33.5% over the past year.

Return vs Market: ZENB exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

ZENBIndustryMarket
7 Day0%-1.4%6.2%
30 Day0%-22.0%-17.8%
90 Day0%-34.6%-27.7%
1 Year13.3%0%-28.8%-33.5%-18.6%-22.7%
3 Year45.4%0%-32.0%-41.3%-13.4%-24.6%
5 Year-25.7%-61.3%-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Zenith Bank 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: ZENB ($2.9) is trading below our estimate of fair value ($10.9)

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


Price To Earnings Ratio

PE vs Industry: ZENB is good value based on its PE Ratio (1.9x) compared to the Banks industry average (4.6x).

PE vs Market: ZENB is good value based on its PE Ratio (1.9x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ZENB is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ZENB is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

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

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZENB's forecast earnings growth (4.2% per year) is above the savings rate (0.5%).

Earnings vs Market: ZENB's earnings (4.2% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: ZENB's revenue (7.6% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: ZENB's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZENB's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has Zenith Bank performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ZENB's current net profit margins (43.9%) are higher than last year (42.2%).


Past Earnings Growth Analysis

Earnings Trend: ZENB's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: ZENB's earnings growth over the past year (8%) is below its 5-year average (17.2% per year).

Earnings vs Industry: ZENB earnings growth over the past year (8%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: ZENB's Return on Equity (22.2%) is considered high.


Next Steps

Financial Health

How is Zenith Bank'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: ZENB has a low level of unsold assets or inventory.

Debt Coverage by Assets: ZENB's debt is covered by short term assets (assets are 3x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: ZENB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: ZENB has a high level of bad loans (4.22%)


Next Steps

Dividend

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

23.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZENB's dividend (22.22%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: ZENB's dividend (22.22%) is in the top 25% of dividend payers in the UK market (7.3%)


Stability and Growth of Payments

Stable Dividend: ZENB's dividend payments have been volatile in the past 10 years.

Growing Dividend: ZENB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.1%), ZENB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZENB's dividends in 3 years are forecast to be well covered by earnings (44.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Ebenezer Onyeagwu (57yo)

0.75

Tenure

Mr. Ebenezer N. Onyeagwu has been an Executive Director of Zenith Bank Plc since April 24, 2013 and has been its Group Managing Director and Chief Executive Officer since June 1, 2019. Mr. Onyeagwu served  ...


Leadership Team

NamePositionTenureCompensationOwnership
Ebenezer Onyeagwu
Group MD0.75yrno data0.14% NGN1.4m
Mukhtar Adam
Chief Financial Officer1.83yrsno datano data
Michael Anyimah
Head of Investor Relationsno datano datano data
Michael Otu
Company Secretary & General Counsel18yrsno datano data
Oladoyin Olugbuyi
Chief Compliance Officer1.17yrsno datano data
Temitope Fasoranti
General Manager2.25yrsno data0.016% NGN158.4k
Dennis Olisa
Executive Director2.25yrsno data0.023% NGN222.4k
Remy Umeoji
Deputy MD & Executive Directorno datano data0.22% NGN2.2m
Felix Egbon
Chief Risk Officerno datano datano data
Umar Ahmed
Executive Director3.42yrsno data0.024% NGN236.5k

1.8yrs

Average Tenure

Experienced Management: ZENB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ebenezer Onyeagwu
Group MD0.75yrno data0.14% NGN1.4m
Temitope Fasoranti
General Manager2.25yrsno data0.016% NGN158.4k
Dennis Olisa
Executive Director2.25yrsno data0.023% NGN222.4k
Remy Umeoji
Deputy MD & Executive Directorno datano data0.22% NGN2.2m
Umar Ahmed
Executive Director3.42yrsno data0.024% NGN236.5k
Henry Oroh
Executive Director0.58yrno data0.025% NGN244.3k
James Ovia
Chairman of the Board5.92yrsno data16.11% NGN157.9m
Jeffrey Efeyini
Non-Executive Director9.75yrsno data0.0017% NGN17.0k
Chukuka Enwemeka
Non-Executive Director9.75yrsno data0.00040% NGN3.9k
Oyewusi Ibidapo-Obe
Independent Non-Executive Director4yrsno data0.0013% NGN13.1k

4.0yrs

Average Tenure

67yo

Average Age

Experienced Board: ZENB's board of directors are considered experienced (4.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Zenith Bank Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zenith Bank Plc
  • Ticker: ZENB
  • Exchange: LSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦375.188b
  • Listing Market Cap: ₦980.115m
  • Shares outstanding: 31.40b
  • Website: https://www.zenithbank.com

Number of Employees


Location

  • Zenith Bank Plc
  • Zenith Heights
  • Plot 84/87
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZENITHBANKNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNNov 2004
ZENBLSE (London Stock Exchange)SPONS GDR EACH REPR 50 ORD SHS REG SGBUSDMar 2013

Biography

Zenith Bank Plc, through its subsidiaries, provides banking and other financial products and services to corporate and individual customers in Nigeria, rest of Africa, and internationally. Its products and services include corporate, investment, commercial, consumer, personal, and private banking products and services; and trade and foreign exchange, treasury, cash management, and other non-bank financial services. The company accepts current, savings, salary, and domiciliary accounts; fixed and call deposits, certificate of deposits, and short term investment funds; sole proprietorship/enterprise and partnership accounts, and trust funds; clubs, societies, and associations accounts; and limited liability company, non-governmental organization, embassies and high commission, and church accounts. It also offers term loans and leasing services; overdrafts, receivable/invoice discounting, and LPO finance services; import and export finance facilities; creative industry financing initiative; retail loans for schemes and non-schemes; and bonds and guarantees. In addition, the company provides personal funds management and investment, advisory, home remittance, and trust formation; funds transfer services; import letters of credit, import bills for collection, non-valid for forex/advance payment, export transactions, invisible remittance, and electronic services; and collection, payment, and reporting solutions. Further, it offers electronic banking services; credit, debit, prepaid, multi-purpose, branded and loyalty, and corporate cards; and general and life insurance products and services. As of December 31, 2019, it had 430 branches; 178 cash centers; 2,093 ATMs; and 50,427 POS terminals. The company also serves financial institutions, investment funds, and governments. The company was formerly known as Zenith International Bank Limited and changed its name to Zenith Bank Plc in May 2004. Zenith Bank Plc was founded in 1990 and is headquartered in Lagos, Nigeria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 23:04
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.