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KCB

KCB GroupNASE:KCB Stock Report

Market Cap

KSh142.8b

7D

-1.3%

1Y

19.3%

Updated

21 Oct, 2021

Data

Company Financials +
KCB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health4/6
Dividends2/6

KCB Overview

KCB Group PLC, together with its subsidiaries, provides corporate, investment, and retail banking services in Kenya, Tanzania, South Sudan, Uganda, Rwanda, and Burundi.

Price History & Performance

Summary of all time highs, changes and price drops for KCB Group
Historical stock prices
Current Share PriceKSh44.45
52 Week HighKSh35.05
52 Week LowKSh50.75
Beta0.63
1 Month Change-7.30%
3 Month Change-0.22%
1 Year Change19.33%
3 Year Change14.71%
5 Year Change63.12%
Change since IPO558.52%

Recent News & Updates

Shareholder Returns

KCBKE BanksKE Market
7D-1.3%-0.7%0.1%
1Y19.3%17.0%28.0%

Return vs Industry: KCB exceeded the KE Banks industry which returned 17.2% over the past year.

Return vs Market: KCB underperformed the KE Market which returned 28.2% over the past year.

Price Volatility

Is KCB's price volatile compared to industry and market?
KCB volatility
KCB Beta0.63
Industry Beta0.56
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
18967,487Joshua Oigarahttps://kcbgroup.com

KCB Group PLC, together with its subsidiaries, provides corporate, investment, and retail banking services in Kenya, Tanzania, South Sudan, Uganda, Rwanda, and Burundi. The company operates through Retail Banking, Corporate Banking, Mortgages, Treasury, and Other segments. The Retail Banking segment offers customer current accounts, savings and fixed deposits, consumer loans, and mortgages based lending products to individuals.

KCB Group Fundamentals Summary

How do KCB Group's earnings and revenue compare to its market cap?
KCB fundamental statistics
Market CapKSh142.84b
Earnings (TTM)KSh27.33b
Revenue (TTM)KSh78.83b

5.2x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KCB income statement (TTM)
RevenueKSh78.83b
Cost of RevenueKSh0
Gross ProfitKSh78.83b
ExpensesKSh51.51b
EarningsKSh27.33b

Dividends

2.2%

Current Dividend Yield

12%

Payout Ratio

Valuation

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

5.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KCB (KES44.45) is trading above our estimate of fair value (KES34.61)

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


Price To Earnings Ratio

PE vs Industry: KCB is good value based on its PE Ratio (5.2x) compared to the KE Banks industry average (6.1x).

PE vs Market: KCB is good value based on its PE Ratio (5.2x) compared to the KE market (6.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KCB is overvalued based on its PB Ratio (0.9x) compared to the KE Banks industry average (0.8x).


Future Growth

How is KCB Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KCB's forecast earnings growth (15.7% per year) is above the savings rate (12.6%).

Earnings vs Market: KCB's earnings (15.7% per year) are forecast to grow faster than the KE market (13.8% per year).

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

Revenue vs Market: KCB's revenue (12.7% per year) is forecast to grow faster than the KE market (9.5% per year).

High Growth Revenue: KCB's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KCB's Return on Equity is forecast to be high in 3 years time (20.5%)


Past Performance

How has KCB Group performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: KCB's current net profit margins (34.7%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: KCB's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: KCB's earnings growth over the past year (36.5%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: KCB earnings growth over the past year (36.5%) exceeded the Banks industry -5.6%.


Return on Equity

High ROE: KCB's Return on Equity (17.9%) is considered low.


Financial Health

How is KCB 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: KCB's Assets to Equity ratio (6.7x) is low.

Allowance for Bad Loans: KCB has a low allowance for bad loans (67%).

Low Risk Liabilities: 92% of KCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: KCB has an appropriate level of Loans to Assets ratio (59%).

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

Level of Bad Loans: KCB has a high level of bad loans (15.8%).


Dividend

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

2.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KCB's dividend (2.25%) isn’t notable compared to the bottom 25% of dividend payers in the KE market (4.16%).

High Dividend: KCB's dividend (2.25%) is low compared to the top 25% of dividend payers in the KE market (7.89%).


Stability and Growth of Payments

Stable Dividend: KCB's dividend payments have been volatile in the past 10 years.

Growing Dividend: KCB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.8%), KCB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KCB's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Joshua Oigara (45 yo)

8.75yrs

Tenure

KSh116,200,000

Compensation

Mr. Joshua Nyamweya Oigara, CBS has been the Group Chief Executive Officer and Executive Director of KCB Group Plc January 1, 2013 and also serves as its Managing Director. Mr. Oigara serves as Group Chie...


CEO Compensation Analysis

Compensation vs Market: Joshua's total compensation ($USD1.05M) is about average for companies of similar size in the KE market ($USD944.32K).

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


Leadership Team

Experienced Management: KCB's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: KCB's board of directors are considered experienced (7.3 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

KCB Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: KCB Group PLC
  • Ticker: KCB
  • Exchange: NASE
  • Founded: 1896
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: KSh142.838b
  • Shares outstanding: 3.21b
  • Website: https://kcbgroup.com

Number of Employees


Location

  • KCB Group PLC
  • Kencom House
  • Moi Avenue
  • Nairobi
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:07
End of Day Share Price2021/10/21 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.