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COOP

Co-operative Bank of KenyaNASE:COOP Stock Report

Market Cap

KSh75.4b

7D

-2.3%

1Y

8.4%

Updated

18 Oct, 2021

Data

Company Financials +
COOP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends5/6

COOP Overview

The Co-operative Bank of Kenya Limited, together with its subsidiaries, provides corporate and retail banking, and investment and asset management services in Kenya and South Sudan.

Rewards

Earnings are forecast to grow 26.85% per year

Pays a reliable dividend of 7.78%

Risk Analysis

No risks detected for COOP from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Co-operative Bank of Kenya
Historical stock prices
Current Share PriceKSh12.85
52 Week HighKSh11.05
52 Week LowKSh14.05
Beta0.31
1 Month Change-4.81%
3 Month Change-4.46%
1 Year Change8.44%
3 Year Change-11.07%
5 Year Change23.86%
Change since IPO106.59%

Recent News & Updates

Shareholder Returns

COOPKE BanksKE Market
7D-2.3%-0.9%1.7%
1Y8.4%16.9%30.0%

Return vs Industry: COOP underperformed the KE Banks industry which returned 16.9% over the past year.

Return vs Market: COOP underperformed the KE Market which returned 30% over the past year.

Price Volatility

Is COOP's price volatile compared to industry and market?
COOP volatility
COOP Beta0.31
Industry Beta0.56
Market Beta1

Stable Share Price: COOP is less volatile than 75% of KE stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: COOP's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19684,016Gideon Muriukihttps://www.co-opbank.co.ke

The Co-operative Bank of Kenya Limited, together with its subsidiaries, provides corporate and retail banking, and investment and asset management services in Kenya and South Sudan. It operates in two segments: Retail Banking and Wholesale Banking. The company offers deposit/instant access, savings, current, and fixed/call deposit accounts; forex products; payment solutions; overdrafts; loans for micro small and medium enterprises, business mortgage and construction loans, supply chain financing, import duty finance, personal/consumer loans, working capital loans, and asset finance; funds transfer and trade finance services; insurance premium financing, mortgage finance, and investment services; bancassurance, consultancy and capacity building, stock brokerage, and leasing services; debit, credit, and prepaid cards; cash management solutions; and trust wealth management, custody and registrar, and treasury services.

Co-operative Bank of Kenya Fundamentals Summary

How do Co-operative Bank of Kenya's earnings and revenue compare to its market cap?
COOP fundamental statistics
Market CapKSh75.39b
Earnings (TTM)KSh10.98b
Revenue (TTM)KSh48.36b

6.9x

P/E Ratio

0.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COOP income statement (TTM)
RevenueKSh48.36b
Cost of RevenueKSh0
Gross ProfitKSh48.36b
ExpensesKSh37.38b
EarningsKSh10.98b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.87
Gross Margin100.00%
Net Profit Margin22.71%
Debt/Equity Ratio48.0%

How did COOP perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Co-operative Bank of Kenya undervalued compared to its fair value and its price relative to the market?

6.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COOP (KES12.85) is trading above our estimate of fair value (KES5.65)

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


Price To Earnings Ratio

PE vs Industry: COOP is poor value based on its PE Ratio (6.9x) compared to the KE Banks industry average (6.2x).

PE vs Market: COOP is poor value based on its PE Ratio (6.9x) compared to the KE market (6.5x).


Price to Earnings Growth Ratio

PEG Ratio: COOP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

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


Future Growth

How is Co-operative Bank of Kenya forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COOP's forecast earnings growth (26.9% per year) is above the savings rate (12.6%).

Earnings vs Market: COOP's earnings (26.9% per year) are forecast to grow faster than the KE market (13.6% per year).

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

Revenue vs Market: COOP's revenue (13.9% per year) is forecast to grow faster than the KE market (9.3% per year).

High Growth Revenue: COOP's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COOP's Return on Equity is forecast to be low in 3 years time (17.4%).


Past Performance

How has Co-operative Bank of Kenya performed over the past 5 years?

0.07%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COOP has high quality earnings.

Growing Profit Margin: COOP's current net profit margins (22.7%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: COOP's earnings have grown by 0.07% per year over the past 5 years.

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

Earnings vs Industry: COOP had negative earnings growth (-23%) over the past year, making it difficult to compare to the Banks industry average (-5.6%).


Return on Equity

High ROE: COOP's Return on Equity (11.9%) is considered low.


Financial Health

How is Co-operative Bank of Kenya'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: COOP's Assets to Equity ratio (6.2x) is low.

Allowance for Bad Loans: COOP has a low allowance for bad loans (52%).

Low Risk Liabilities: 86% of COOP's liabilities are made up of primarily low risk sources of funding.

Loan Level: COOP has an appropriate level of Loans to Assets ratio (53%).

Low Risk Deposits: COOP's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: COOP has a high level of bad loans (16.9%).


Dividend

What is Co-operative Bank of Kenya current dividend yield, its reliability and sustainability?

7.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COOP's dividend (7.78%) is higher than the bottom 25% of dividend payers in the KE market (4.19%).

High Dividend: COOP's dividend (7.78%) is low compared to the top 25% of dividend payers in the KE market (7.8%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.7%), COOP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COOP's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Gideon Muriuki (56 yo)

20.75yrs

Tenure

KSh117,040,000

Compensation

Dr. Gideon Maina Muriuki, CBS, MBS, serves as Director at Jamii Bora Bank Ltd. since August 2020. He has been Managing Director at The Co-operative Bank of Kenya Limited since 2001 and serves as its Chief...


CEO Compensation Analysis

Compensation vs Market: Gideon's total compensation ($USD1.05M) is about average for companies of similar size in the KE market ($USD860.13K).

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


Leadership Team

Experienced Management: COOP's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: COOP's board of directors are considered experienced (7.4 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

The Co-operative Bank of Kenya Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Co-operative Bank of Kenya Limited
  • Ticker: COOP
  • Exchange: NASE
  • Founded: 1968
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: KSh75.393b
  • Shares outstanding: 5.87b
  • Website: https://www.co-opbank.co.ke

Number of Employees


Location

  • The Co-operative Bank of Kenya Limited
  • Co-operative Bank House
  • L.R. No. 209/4290
  • Nairobi
  • 100
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:15
End of Day Share Price2021/10/18 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.