BK Group (NASE:BKG) - Share price, News & Analysis

BKG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	4/6
Dividends	0/6

BKG Overview

BK Group PLC provides retail and corporate banking, insurance, brokerage, internet, and digital services in Rwanda.

Rewards

PE ratio (5x) is below the KE market (6.7x)

Revenue is forecast to grow 20.04% per year

Earnings grew by 17.5% over the past year

Risk Analysis

Highly volatile share price over the past 3 months

BK Group Competitors

Guaranty Trust Holding

NGSE:GTCO

₦626.2b

Price History & Performance

Summary of all time highs, changes and price drops for BK Group
Historical stock prices
Current Share Price	KSh27.50
52 Week High	KSh12.50
52 Week Low	KSh40.00
Beta	0.68
1 Month Change	-1.43%
3 Month Change	-6.78%
1 Year Change	111.54%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-11.29%

Shareholder Returns

	BKG	KE Banks	KE Market
7D	0%	-0.5%	-0.3%
1Y	111.5%	17.7%	27.6%

Return vs Industry: BKG exceeded the KE Banks industry which returned 17.3% over the past year.

Return vs Market: BKG exceeded the KE Market which returned 28.4% over the past year.

Price Volatility

Is BKG's price volatile compared to industry and market?
BKG volatility
BKG Beta	0.68
Industry Beta	0.56
Market Beta	1

Stable Share Price: BKG is more volatile than 90% of KE stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: BKG's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of KE stocks.

About the Company

Founded	Employees	CEO	Website
1966	1,133	Diane Karusisi	https://www.bk.rw

BK Group PLC provides retail and corporate banking, insurance, brokerage, internet, and digital services in Rwanda. The company offers personal current and joint, savings, and business accounts; fixed deposits; and consumer, car, agriculture, overdraft, plot, business, and mortgage loans, as well as debit and credit cards. It also provides trade finance services, such as letter of credit, guarantees/bonds, invoice discount, and LPO financing; asset finance services; and short-term financing services comprising inventory financing, cash credit lines, overdraft, and seasonal loans.

BK Group Fundamentals Summary

How do BK Group's earnings and revenue compare to its market cap?
BKG fundamental statistics
Market Cap	RF223.76b
Earnings (TTM)	RF45.13b
Revenue (TTM)	RF117.37b

5.0x

P/E Ratio

0.8x

P/B Ratio

Is BKG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKG income statement (TTM)
Revenue	RF117.37b
Cost of Revenue	RF0
Gross Profit	RF117.37b
Expenses	RF72.24b
Earnings	RF45.13b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	49.90
Gross Margin	100.00%
Net Profit Margin	38.45%
Debt/Equity Ratio	21.5%

How did BKG perform over the long term?

See historical performance and comparison

Valuation

Is BK Group undervalued compared to its fair value and its price relative to the market?

4.96x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BKG (KES27.5) is trading above our estimate of fair value (KES26.85)

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

Price To Earnings Ratio

PE vs Industry: BKG is good value based on its PE Ratio (5x) compared to the KE Banks industry average (6.1x).

PE vs Market: BKG is good value based on its PE Ratio (5x) compared to the KE market (6.7x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: BKG's PB Ratio (0.8x) is in line with the KE Banks industry average.

Future Growth

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

20.0%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BKG's forecast earnings growth is above the savings rate (12.6%).

Earnings vs Market: Insufficient data to determine if BKG's earnings are forecast to grow faster than the KE market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BKG's revenue (20% per year) is forecast to grow faster than the KE market (9.5% per year).

High Growth Revenue: BKG's revenue (20% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BKG's Return on Equity is forecast to be high in 3 years time (21.8%)

Past Performance

How has BK Group performed over the past 5 years?

17.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKG has high quality earnings.

Growing Profit Margin: BKG's current net profit margins (38.5%) are higher than last year (36.9%).

Past Earnings Growth Analysis

Earnings Trend: BKG's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: BKG's earnings growth over the past year (17.5%) exceeds its 5-year average (17.3% per year).

Earnings vs Industry: BKG earnings growth over the past year (17.5%) exceeded the Banks industry -5.6%.

Return on Equity

High ROE: BKG's Return on Equity (16.6%) is considered low.

Financial Health

How is BK Group'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: BKG's Assets to Equity ratio (5.2x) is low.

Allowance for Bad Loans: BKG has a low allowance for bad loans (96%).

Low Risk Liabilities: 89% of BKG's liabilities are made up of primarily low risk sources of funding.

Loan Level: BKG has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: BKG's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: BKG has a high level of bad loans (9.2%).

Dividend

What is BK Group current dividend yield, its reliability and sustainability?

11.88%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BKG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BKG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BKG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BKG's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: BKG is not paying a notable dividend for the KE market.

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

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

5.2yrs

Average management tenure

CEO

Diane Karusisi

5.67yrs

Tenure

Dr. Diane Karusisi serves as the Chief Executive Officer at BK Group Plc (formerly, Bank of Kigali Ltd.) Dr. Karusisi was in the Office of the President where she headed the Strategy and Policy Unit. Prior...

Leadership Team

Experienced Management: BKG's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: BKG's board of directors are not considered experienced ( 0.3 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: 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.

Data	Last Updated (UTC time)
Company Analysis	2021/10/26 16:23
End of Day Share Price	2021/10/26 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data