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KFH

Kuwait Finance House K.S.C.P KWSE:KFH Stock Report

Last Price

د.ك0.86

Market Cap

د.ك8.0b

7D

7.1%

1Y

25.4%

Updated

29 Jun, 2022

Data

Company Financials +
KFH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends0/6

KFH Stock Overview

Kuwait Finance House K.S.C.P., together with its subsidiaries, provides Islamic banking services in the Middle East, North America, Europe, and Asia.

Kuwait Finance House K.S.C.P Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kuwait Finance House K.S.C.P
Historical stock prices
Current Share Priceد.ك0.86
52 Week Highد.ك1.04
52 Week Lowد.ك0.68
Beta0.34
1 Month Change-3.68%
3 Month Change-11.16%
1 Year Change25.36%
3 Year Change55.58%
5 Year Change190.23%
Change since IPO837.77%

Recent News & Updates

Shareholder Returns

KFHKW BanksKW Market
7D7.1%2.2%1.3%
1Y25.4%17.8%12.3%

Return vs Industry: KFH exceeded the KW Banks industry which returned 17.8% over the past year.

Return vs Market: KFH exceeded the KW Market which returned 12.3% over the past year.

Price Volatility

Is KFH's price volatile compared to industry and market?
KFH volatility
KFH Average Weekly Movement3.3%
Banks Industry Average Movement3.3%
Market Average Movement5.8%
10% most volatile stocks in KW Market9.0%
10% least volatile stocks in KW Market3.3%

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

Volatility Over Time: KFH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977n/aAbdulwahab Al-Rushoodhttps://www.kfh.com

Kuwait Finance House K.S.C.P., together with its subsidiaries, provides Islamic banking services in the Middle East, North America, Europe, and Asia. The company operates through four segments: Treasury, Retail and Private Banking, Corporate Banking, and Investment. The Treasury segment offers liquidity management, murabaha investments, and investments in Sukuk, as well as exchanges deposits with banks, financial institutions, and international banking relationships.

Kuwait Finance House K.S.C.P Fundamentals Summary

How do Kuwait Finance House K.S.C.P's earnings and revenue compare to its market cap?
KFH fundamental statistics
Market Capد.ك7.96b
Earnings (TTM)د.ك258.83m
Revenue (TTM)د.ك718.02m

30.8x

P/E Ratio

3.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KFH income statement (TTM)
Revenueد.ك718.02m
Cost of Revenueد.ك0
Gross Profitد.ك718.02m
Other Expensesد.ك459.20m
Earningsد.ك258.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.028
Gross Margin100.00%
Net Profit Margin36.05%
Debt/Equity Ratio144.7%

How did KFH perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KFH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KFH?

Other financial metrics that can be useful for relative valuation.

KFH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does KFH's PE Ratio compare to its peers?

KFH PE Ratio vs Peers
The above table shows the PE ratio for KFH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.5x
NBK National Bank of KuwaitK.P
21.5x13.5%د.ك7.9b
BOUBYAN Boubyan Bank K.S.C.P
65.6x32.0%د.ك2.9b
CBK Commercial Bank of Kuwait K.P.S.C
12.9xn/aد.ك990.5m
GBK Gulf Bank K.S.C.P
22.1x13.7%د.ك995.9m
KFH Kuwait Finance House K.S.C.P
30.8x11.0%د.ك8.0b

Price-To-Earnings vs Peers: KFH is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does KFH's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: KFH is expensive based on its Price-To-Earnings Ratio (30.8x) compared to the KW Banks industry average (25.9x)


Price to Earnings Ratio vs Fair Ratio

What is KFH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KFH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KFH's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of KFH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KFH (KWD0.87) is trading above our estimate of fair value (KWD0.12)

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


Price to Earnings Growth Ratio

PEG Ratio: KFH is poor value based on its PEG Ratio (2.8x)


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Future Growth

How is Kuwait Finance House K.S.C.P forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFH's forecast earnings growth (11% per year) is above the savings rate (9%).

Earnings vs Market: KFH's earnings (11% per year) are forecast to grow slower than the KW market (13.7% per year).

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

Revenue vs Market: KFH's revenue (11% per year) is forecast to grow faster than the KW market (10.2% per year).

High Growth Revenue: KFH'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: KFH's Return on Equity is forecast to be low in 3 years time (16%).


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Past Performance

How has Kuwait Finance House K.S.C.P performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.2%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: KFH's current net profit margins (36%) are higher than last year (28.5%).


Past Earnings Growth Analysis

Earnings Trend: KFH's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: KFH's earnings growth over the past year (67.9%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: KFH earnings growth over the past year (67.9%) exceeded the Banks industry 62.8%.


Return on Equity

High ROE: KFH's Return on Equity (15.1%) is considered low.


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Financial Health

How is Kuwait Finance House K.S.C.P's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

5/6

Financial Health Score 5/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: KFH's Assets to Equity ratio (9.9x) is low.

Allowance for Bad Loans: KFH has a sufficient allowance for bad loans (187%).

Low Risk Liabilities: 79% of KFH's liabilities are made up of primarily low risk sources of funding.

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

Low Risk Deposits: KFH's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: KFH has a high level of bad loans (2.8%).


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Dividend

What is Kuwait Finance House K.S.C.P current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KFH's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the KW market (2.59%).

High Dividend: KFH's dividend (1.26%) is low compared to the top 25% of dividend payers in the KW market (6.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Earnings Coverage: KFH is not paying a notable dividend for the KW market.


Future Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure


CEO

Abdulwahab Al-Rushood

7.42yrs

Tenure

Mr. Abdulwahab Issa Al-Rushood serves as an Acting Group Chief Executive Officer of Kuwait Finance House K.S.C.P. since October 18, 2020. Mr. Al-Rushood serves as Financial Institutions Officer at Kuwait F...


Leadership Team

Experienced Management: KFH's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: KFH's board of directors are considered experienced (8.3 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

Kuwait Finance House K.S.C.P.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kuwait Finance House K.S.C.P.
  • Ticker: KFH
  • Exchange: KWSE
  • Founded: 1977
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: د.ك7.964b
  • Shares outstanding: 9.21b
  • Website: https://www.kfh.com

Number of Employees


Location

  • Kuwait Finance House K.S.C.P.
  • Abdullah Al-Mubarak Street
  • Murqab
  • Kuwait City
  • 13110
  • Kuwait

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.