NSEI:CUB

Stock Analysis Report

City Union Bank

Executive Summary

City Union Bank Ltd. provides various banking products and services to personal and corporate clients in India.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

CUB

-1.0%

IN Banks

-1.4%

IN Market


1 Year Return

25.3%

CUB

5.6%

IN Banks

6.4%

IN Market

Return vs Industry: CUB exceeded the Indian Banks industry which returned 8.1% over the past year.

Return vs Market: CUB exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

CUBIndustryMarket
7 Day0.7%-1.0%-1.4%
30 Day-6.7%-4.0%-3.3%
90 Day1.3%-5.6%0.4%
1 Year25.6%25.3%6.0%5.6%8.4%6.4%
3 Year85.2%84.1%11.9%10.7%20.9%14.1%
5 Year177.4%169.2%6.3%2.9%30.7%18.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is City Union Bank undervalued compared to its fair value and its price relative to the market?

21.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CUB (₹221.85) is trading above our estimate of fair value (₹48.35)

Significantly Below Fair Value: CUB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CUB is poor value based on its PE Ratio (21.8x) compared to the Banks industry average (18.1x).

PE vs Market: CUB is poor value based on its PE Ratio (21.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CUB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CUB is overvalued based on its PB Ratio (3.1x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is City Union Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as City Union Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has City Union Bank performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUB has high quality earnings.

Growing Profit Margin: CUB's current net profit margins (38.7%) are higher than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: CUB's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: CUB's earnings growth over the past year (13.2%) is below its 5-year average (13.8% per year).

Earnings vs Industry: CUB earnings growth over the past year (13.2%) underperformed the Banks industry 25.5%.


Return on Equity

High ROE: CUB's Return on Equity (14.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is City Union 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: CUB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CUB's debt is covered by short term assets (assets are 3.8x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: Insufficient data to determine if CUB has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: CUB has a high level of bad loans (3.47%)


Next Steps

Dividend

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

0.22%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CUB's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: CUB's dividend (0.23%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: CUB is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: CUB is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CUB is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CUB's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

N. V. Kamakodi (45yo)

8.8yrs

Tenure

₹9,272,505

Compensation

Dr. N. V. Narayanan Kamakodi, B.Tech., MBA, CAIIB, Ph.D. has been an Managing Director and Chief Executive Officer of City Union Bank Ltd. since May 1, 2011. and served as its Executive President since Jan ...


CEO Compensation Analysis

Compensation vs Market: N. V.'s total compensation ($USD129.08K) is below average for companies of similar size in the Indian market ($USD634.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
N. V. Kamakodi
MD, CEO & Director8.8yrs₹9.27m0.14% 236.6m
R. Venkatasubramanian
Chief GM & COO3.1yrsno data0.0085% 13.9m
V. Ramesh
Secretary4.6yrs₹2.59m0.024% 39.6m
K. Maharajan
General Manager0yrsno datano data
K. Sridhar
Senior General Manager0yrsno data0.00020% 327.5k
S. Mohan
General Manager0yrsno data0.0093% 15.2m
K. Jayaraman
Deputy GM & Chief Risk Officer1.8yrsno data0.012% 20.4m
R. Sivalingam
Chief Manager9.3yrsno datano data
V. Ganesh
Chief Manager0yrsno datano data
G. Raja
Chief Manager0yrsno datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: CUB's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
N. V. Kamakodi
MD, CEO & Director8.8yrs₹9.27m0.14% 236.6m
Ramabadran Mohan
Non Executive Chairman0.8yrs₹2.05m0.020% 32.3m
Stephen Bernard
Independent Non-Executive Director3.5yrs₹1.84m0.00015% 245.6k
Mahalingam Narayanan
Independent Director3.8yrs₹1.67m0.0029% 4.8m
Thirukkarugavur Ramkumar
Additional Director0.7yrs₹155.62k0.022% 36.6m
Subramaniam Narayanan
Independent Director2.7yrs₹1.61mno data
Abarna Bhaskar
Independent Director5.3yrs₹1.99m0.0049% 8.1m
V. N. Shankar
Additional Director2yrs₹896.16k0.095% 156.0m
Thiruvalliangudi Sridhar
Additional Director2yrs₹826.16k0.000010% 16.4k
Vaidyanathan Kalyanasundaram
Independent Director0.8yrsno data0.000010% 16.4k

2.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CUB's board of directors are not considered experienced ( 2.3 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: CUB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

City Union Bank Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: City Union Bank Ltd.
  • Ticker: CUB
  • Exchange: NSEI
  • Founded: 1904
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹163.755b
  • Shares outstanding: 735.81m
  • Website: https://www.cityunionbank.com

Number of Employees


Location

  • City Union Bank Ltd.
  • Narayana No. 24 B
  • Gandhi Nagar
  • Kumbakonam
  • Tamil Nadu
  • 612001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532210BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1998
CUBNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1998

Biography

City Union Bank Ltd. provides various banking products and services to personal and corporate clients in India. It operates through four segments: Corporate/Wholesale Banking, Retail Banking, Treasury, and Other Banking Operations. The company offers savings and current accounts; salary accounts; and fixed deposits, flexi fix, recurring, and tax saver deposits. It also provides four and two wheeler loans, educational loans, housing loans, consumer and jewel loans, cash credits, working capital loans, bank guarantees, letters of credit, bills finance, foreign currency loans, and overdrafts. In addition, the company offers ATM services; locker facilities, cards, and cash management services; and real time gross settlement and national electronic fund transfer services. As of March 31, 2019, it operated through a network of 650 branches and 1,685 ATMs. The company was formerly known as The Kumbakonam City Union Bank Limited and changed its name to City Union Bank Ltd. in November 1987. City Union Bank Ltd. was incorporated in 1904 and is based in Kumbakonam, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:57
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.