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OTP

OTP Bank Nyrt BUSE:OTP Stock Report

Last Price

Ft9.21k

Market Cap

Ft2.6t

7D

3.3%

1Y

-47.4%

Updated

16 Aug, 2022

Data

Company Financials +
OTP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends5/6

OTP Stock Overview

OTP Bank Nyrt., together with its subsidiaries, provides commercial banking services to retail clients, corporations and agricultural enterprises, and private and institutional investors in Hungary and internationally.

OTP Bank Nyrt Competitors

Price History & Performance

Summary of all time highs, changes and price drops for OTP Bank Nyrt
Historical stock prices
Current Share PriceFt9,212.00
52 Week HighFt19,590.00
52 Week LowFt7,738.00
Beta0.99
1 Month Change13.39%
3 Month Change-14.51%
1 Year Change-47.42%
3 Year Change-24.80%
5 Year Change-10.87%
Change since IPO8,673.33%

Recent News & Updates

Shareholder Returns

OTPHU BanksHU Market
7D3.3%1.7%1.8%
1Y-47.4%-11.0%-24.6%

Return vs Industry: OTP underperformed the Hungarian Banks industry which returned -11.9% over the past year.

Return vs Market: OTP underperformed the Hungarian Market which returned -23.2% over the past year.

Price Volatility

Is OTP's price volatile compared to industry and market?
OTP volatility
OTP Average Weekly Movement6.1%
Banks Industry Average Movement4.2%
Market Average Movement4.6%
10% most volatile stocks in HU Market8.7%
10% least volatile stocks in HU Market2.9%

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

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

About the Company

FoundedEmployeesCEOWebsite
194935,370Sandor Csanyihttps://www.otpbank.hu

OTP Bank Nyrt., together with its subsidiaries, provides commercial banking services to retail clients, corporations and agricultural enterprises, and private and institutional investors in Hungary and internationally. It offers current, foreign currency, securities, long term investment, and retirement savings accounts; bank and business cards; agricultural, mortgage, and housing loans, as well as overdraft facilities; and invests in government and fixed income bonds, mutual funds, mortgages, shares, and certificates, stock exchange transaction orders, investment fund shares, and government securities. The company also provides cash management services, such as domestic and international transfers, batch payments, liquidity and savings management, and financing; real estate development, leasing, and management services; wealth planning, commercial factoring, refinancing, finance lease, housing savings, fund management, and e-services; and Internet, mobile phone, SMS, telephone, and private banking services.

OTP Bank Nyrt Fundamentals Summary

How do OTP Bank Nyrt's earnings and revenue compare to its market cap?
OTP fundamental statistics
Market CapFt2.58t
Earnings (TTM)Ft282.87b
Revenue (TTM)Ft1.30t

9.1x

P/E Ratio

0.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTP income statement (TTM)
RevenueFt1.30t
Cost of RevenueFt0
Gross ProfitFt1.30t
Other ExpensesFt1.01t
EarningsFt282.87b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 04, 2022

Earnings per share (EPS)1.01k
Gross Margin100.00%
Net Profit Margin21.81%
Debt/Equity Ratio98.9%

How did OTP perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is OTP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OTP?

Other financial metrics that can be useful for relative valuation.

OTP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does OTP's PE Ratio compare to its peers?

OTP PE Ratio vs Peers
The above table shows the PE ratio for OTP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.8x
A316140 Woori Financial Group
3.3x2.6%₩8.8t
2890 SinoPac Financial Holdings
12.1x11.0%NT$196.4b
BIRG Bank of Ireland Group
6.9x20.9%€6.4b
DSCT Israel Discount Bank
8.7x4.2%₪25.3b
OTP OTP Bank Nyrt
9.1x19.5%Ft2.6t

Price-To-Earnings vs Peers: OTP is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (7.8x).


Price to Earnings Ratio vs Industry

How does OTP's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: OTP is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the European Banks industry average (8.7x)


Price to Earnings Ratio vs Fair Ratio

What is OTP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OTP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate OTP's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of OTP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OTP (HUF9212) is trading below our estimate of fair value (HUF23341.14)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is OTP Bank Nyrt forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTP's forecast earnings growth (19.5% per year) is above the savings rate (1.1%).

Earnings vs Market: OTP's earnings (19.5% per year) are forecast to grow faster than the Hungarian market (9.6% per year).

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

Revenue vs Market: OTP's revenue (5.1% per year) is forecast to grow faster than the Hungarian market (1.5% per year).

High Growth Revenue: OTP's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OTP's Return on Equity is forecast to be low in 3 years time (14.1%).


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Past Performance

How has OTP Bank Nyrt performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.0%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: OTP's current net profit margins (21.8%) are lower than last year (32%).


Past Earnings Growth Analysis

Earnings Trend: OTP's earnings have grown by 6% per year over the past 5 years.

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

Earnings vs Industry: OTP had negative earnings growth (-27.7%) over the past year, making it difficult to compare to the Banks industry average (29.4%).


Return on Equity

High ROE: OTP's Return on Equity (8.9%) is considered low.


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Financial Health

How is OTP Bank Nyrt's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: OTP's Assets to Equity ratio (9.7x) is low.

Allowance for Bad Loans: OTP has a sufficient allowance for bad loans (166%).

Low Risk Liabilities: 85% of OTP's liabilities are made up of primarily low risk sources of funding.

Loan Level: OTP has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: OTP's Loans to Deposits ratio (76%) is appropriate.

Level of Bad Loans: OTP has a high level of bad loans (3.5%).


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Dividend

What is OTP Bank Nyrt current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OTP's dividend (4.67%) is higher than the bottom 25% of dividend payers in the Hungarian market (3.3%).

High Dividend: OTP's dividend (4.67%) is low compared to the top 25% of dividend payers in the Hungarian market (6.01%).


Stability and Growth of Payments

Stable Dividend: OTP's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.5%), OTP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OTP's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


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Management

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

13.1yrs

Average management tenure


CEO

Sandor Csanyi (70 yo)

30.25yrs

Tenure

Ft9,720,000

Compensation

Dr. S ndor Cs nyi serves as Managing Director of Group Governance Directorate at OTP Bank Nyrt.since October 2021. He has been the Chief Executive Officer and Chairman of the Board at OTP Bank Nyrt. since...


Leadership Team

Experienced Management: OTP's management team is seasoned and experienced (13.1 years average tenure).


Board Members

Experienced Board: OTP's board of directors are seasoned and experienced ( 10.3 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

OTP Bank Nyrt.'s employee growth, exchange listings and data sources


Key Information

  • Name: OTP Bank Nyrt.
  • Ticker: OTP
  • Exchange: BUSE
  • Founded: 1949
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: Ft2.575t
  • Shares outstanding: 279.53m
  • Website: https://www.otpbank.hu

Number of Employees


Location

  • OTP Bank Nyrt.
  • 16, NAdor Street
  • Budapest
  • 1051
  • Hungary

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.