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.

Rewards

Earnings are forecast to grow 15.5% per year

Earnings have grown 13.8% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year



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

3.8%

CUB

-1.8%

IN Banks

-1.8%

IN Market


1 Year Return

32.4%

CUB

12.6%

IN Banks

5.2%

IN Market

Return vs Industry: CUB exceeded the Indian Banks industry which returned 12.6% over the past year.

Return vs Market: CUB exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

CUBIndustryMarket
7 Day3.8%-1.8%-1.8%
30 Day10.3%2.7%-0.9%
90 Day18.1%14.4%8.3%
1 Year32.8%32.4%13.0%12.6%7.2%5.2%
3 Year110.0%108.8%26.3%24.9%30.3%23.4%
5 Year220.6%211.1%11.3%7.8%39.3%26.8%

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?

23.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CUB (₹233.35) is trading above our estimate of fair value (₹73.32)

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 (23.3x) compared to the Banks industry average (22.1x).

PE vs Market: CUB is poor value based on its PE Ratio (23.3x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: CUB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: CUB is overvalued based on its PB Ratio (3.3x) compared to the IN Banks industry average (0.7x).


Next Steps

Future Growth

How is City Union Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUB's forecast earnings growth (15.5% per year) is above the savings rate (6.5%).

Earnings vs Market: CUB's earnings (15.5% per year) are forecast to grow slower than the Indian market (19.8% per year).

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

Revenue vs Market: CUB's revenue (11% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: CUB's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CUB's Return on Equity is forecast to be low in 3 years time (15.3%).


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 a high level of non-cash earnings.

Growing Profit Margin: CUB's current net profit margins (38.6%) are higher than last year (37.9%).


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 (15.1%) exceeds its 5-year average (13.8% per year).

Earnings vs Industry: CUB earnings growth over the past year (15.1%) underperformed the Banks industry 25.8%.


Return on Equity

High ROE: CUB's Return on Equity (14.1%) 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?

0.21%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: CUB's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CUB's dividend (0.21%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


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

What is the CEO of City Union Bank's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

N. V. Kamakodi (45yo)

8.6yrs

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 ($USD129.70K) is below average for companies of similar size in the Indian market ($USD588.10K).

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


Management Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Management: CUB's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CUB's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CUB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,125,00030 Sep 19
Janaki Ganesan
EntityIndividual
Shares5,000
Max Price₹225.00
Sell₹1,063,97323 Sep 19
R. Venkatasubramanian
EntityIndividual
Role
Chief Operating Officer
Chief GM & COO
Shares5,000
Max Price₹212.79
Sell₹1,049,80023 Sep 19
J. Sadagopan
EntityIndividual
Shares5,000
Max Price₹209.96
Sell₹1,072,85902 Jul 19
R. Lakshminarayanan
EntityIndividual
Shares5,000
Max Price₹214.57
Sell₹2,148,20001 Jul 19
V. Gopalakrishnan
EntityIndividual
Shares10,000
Max Price₹214.82
Sell₹2,300,12922 Apr 19
K. Sridhar
EntityIndividual
Role
Senior Key Executive
Senior General Manager
Shares12,000
Max Price₹191.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Management Team

  • V. Ramesh (56yo)

    Secretary

    • Tenure: 4.4yrs
    • Compensation: ₹2.59m
  • N. V. Kamakodi (45yo)

    MD, CEO & Director

    • Tenure: 8.6yrs
    • Compensation: ₹9.27m
  • K. Maharajan (55yo)

    General Manager

    • Tenure: 0yrs
  • K. Sridhar (57yo)

    Senior General Manager

    • Tenure: 0yrs
  • S. Mohan (56yo)

    General Manager

    • Tenure: 0yrs
  • R. Venkatasubramanian (57yo)

    Chief GM & COO

    • Tenure: 2.9yrs
  • K. Jayaraman

    Deputy GM & Chief Risk Officer

    • Tenure: 1.7yrs
  • R. Sivalingam (59yo)

    Chief Manager

    • Tenure: 9.1yrs
  • V. Ganesh (44yo)

    Chief Manager

    • Tenure: 0yrs
  • G. Raja (45yo)

    Chief Manager

    • Tenure: 0yrs

Board Members

  • Ramabadran Mohan (64yo)

    Non Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: ₹2.05m
  • Stephen Bernard (69yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.84m
  • N. V. Kamakodi (45yo)

    MD, CEO & Director

    • Tenure: 8.6yrs
    • Compensation: ₹9.27m
  • Mahalingam Narayanan (74yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: ₹1.67m
  • Thirukkarugavur Ramkumar (64yo)

    Additional Director

    • Tenure: 0.5yrs
    • Compensation: ₹155.62k
  • Subramaniam Narayanan (58yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹1.61m
  • Abarna Bhaskar (58yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹1.99m
  • V. N. Shankar (48yo)

    Additional Director

    • Tenure: 1.8yrs
    • Compensation: ₹896.16k
  • Thiruvalliangudi Sridhar (63yo)

    Additional Director

    • Tenure: 1.8yrs
    • Compensation: ₹826.16k
  • Vaidyanathan Kalyanasundaram (67yo)

    Independent Director

    • Tenure: 0.6yrs

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: ₹169.090b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 12:41
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.