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EGH

Ecobank GhanaGHSE:EGH Stock Report

Market Cap

GH₵2.5b

7D

0%

1Y

30.2%

Updated

17 Oct, 2021

Data

Company Financials +
EGH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

EGH Overview

Ecobank Ghana Limited provides retail, corporate, investment banking, and other financial services in Ghana.

Ecobank Ghana Competitors

Standard Chartered Bank Ghana

GHSE:SCB

GH₵2.7b

GCB Bank

GHSE:GCB

GH₵1.4b

Societe Generale Ghana

GHSE:SOGEGH

GH₵851.0m

Access Bank (Ghana)

GHSE:ACCESS

GH₵607.1m

Price History & Performance

Summary of all time highs, changes and price drops for Ecobank Ghana
Historical stock prices
Current Share PriceGH₵7.81
52 Week HighGH₵0
52 Week LowGH₵0
Beta0.65
1 Month Change0.13%
3 Month Change11.57%
1 Year Change30.17%
3 Year Change-1.76%
5 Year Change25.78%
Change since IPO833.81%

Recent News & Updates

Shareholder Returns

EGHGH BanksGH Market
7D0%-0.1%-0.8%
1Y30.2%36.1%67.3%

Return vs Industry: EGH underperformed the GH Banks industry which returned 36.1% over the past year.

Return vs Market: EGH underperformed the GH Market which returned 67.3% over the past year.

Price Volatility

Is EGH's price volatile compared to industry and market?
EGH volatility
EGH Beta0.65
Industry Beta0.58
Market Beta1

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

Volatility Over Time: EGH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19891,636Dan Kwei-Kumah Sackeyhttps://ecobank.com/gh/personal-banking/countries

Ecobank Ghana Limited provides retail, corporate, investment banking, and other financial services in Ghana. It operates through three segments: Consumer Banking, Commercial Banking, and Corporate Banking. The company offers current, savings, and electronic accounts; personal, auto and asset acquisition, mortgage, travel, and cash backed loans, as well as salary advance facility; microfinance products and services; term deposits; investment and advisory services; investment management services; operating and finance lease services; and venture capital and fund management services.

Ecobank Ghana Fundamentals Summary

How do Ecobank Ghana's earnings and revenue compare to its market cap?
EGH fundamental statistics
Market CapGH₵2.52b
Earnings (TTM)GH₵622.00m
Revenue (TTM)GH₵1.80b

4.1x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGH income statement (TTM)
RevenueGH₵1.80b
Cost of RevenueGH₵0
Gross ProfitGH₵1.80b
ExpensesGH₵1.18b
EarningsGH₵622.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.93
Gross Margin100.00%
Net Profit Margin34.48%
Debt/Equity Ratio2.5%

How did EGH perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Ecobank Ghana undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGH (GHS7.81) is trading below our estimate of fair value (GHS14.05)

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


Price To Earnings Ratio

PE vs Industry: EGH's PE Ratio (4.1x) is in line with the GH Banks industry average.

PE vs Market: EGH is good value based on its PE Ratio (4.1x) compared to the GH market (5.3x).


Price to Earnings Growth Ratio

PEG Ratio: EGH is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EGH is overvalued based on its PB Ratio (1x) compared to the GH Banks industry average (0.7x).


Future Growth

How is Ecobank Ghana forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGH's forecast earnings growth (11.3% per year) is above the savings rate (9.1%).

Earnings vs Market: EGH's earnings (11.3% per year) are forecast to grow slower than the GH market (12.7% per year).

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

Revenue vs Market: EGH's revenue (12.2% per year) is forecast to grow slower than the GH market (15.8% per year).

High Growth Revenue: EGH's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EGH's Return on Equity is forecast to be high in 3 years time (23.1%)


Past Performance

How has Ecobank Ghana performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGH has high quality earnings.

Growing Profit Margin: EGH's current net profit margins (34.5%) are higher than last year (32.7%).


Past Earnings Growth Analysis

Earnings Trend: EGH's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: EGH's earnings growth over the past year (28.5%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: EGH earnings growth over the past year (28.5%) underperformed the Banks industry 32.6%.


Return on Equity

High ROE: EGH's Return on Equity (24.1%) is considered high.


Financial Health

How is Ecobank Ghana'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: EGH's Assets to Equity ratio (6.4x) is low.

Allowance for Bad Loans: EGH has a low allowance for bad loans (93%).

Low Risk Liabilities: 94% of EGH's liabilities are made up of primarily low risk sources of funding.

Loan Level: EGH has an appropriate level of Loans to Assets ratio (28%).

Low Risk Deposits: EGH's Loans to Deposits ratio (35%) is appropriate.

Level of Bad Loans: EGH has a high level of bad loans (6.7%).


Dividend

What is Ecobank Ghana current dividend yield, its reliability and sustainability?

7.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGH's dividend (7.04%) is higher than the bottom 25% of dividend payers in the GH market (4.71%).

High Dividend: EGH's dividend (7.04%) is low compared to the top 25% of dividend payers in the GH market (8.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), EGH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EGH's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Dan Kwei-Kumah Sackey

5.08yrs

Tenure

Mr. Daniel Nii Kwei-Kumah Sackey, also known as Dan, has been Managing Director of Ecobank Ghana Limited since September 1, 2016. Mr. Kwei-Kumah Sackey serves as Regional Executive of Anglophone West Afric...


Leadership Team

Experienced Management: EGH's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: EGH's board of directors are considered experienced (4.6 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

Ecobank Ghana Limited's employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Ecobank Ghana Limited
  • 2 Morocco Lane
  • Off The Independence Avenue
  • Accra
  • Ghana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:03
End of Day Share Price2021/10/13 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.