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ETI

Ecobank TransnationalNGSE:ETI Stock Report

Market Cap

₦179.5b

7D

8.1%

1Y

62.2%

Updated

21 Oct, 2021

Data

Company Financials +
ETI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends0/6

ETI Overview

Ecobank Transnational Incorporated, together with its subsidiaries, provides retail, corporate, and investment banking services in Africa and internationally.

Ecobank Transnational Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ecobank Transnational
Historical stock prices
Current Share Price₦7.30
52 Week High₦4.50
52 Week Low₦7.50
Beta0.54
1 Month Change39.05%
3 Month Change43.14%
1 Year Change62.22%
3 Year Change-54.37%
5 Year Change-27.00%
Change since IPO-95.67%

Recent News & Updates

Shareholder Returns

ETING BanksNG Market
7D8.1%1.5%1.4%
1Y62.2%23.4%41.3%

Return vs Industry: ETI exceeded the NG Banks industry which returned 23.6% over the past year.

Return vs Market: ETI exceeded the NG Market which returned 40.4% over the past year.

Price Volatility

Is ETI's price volatile compared to industry and market?
ETI volatility
ETI Beta0.54
Industry Beta0.87
Market Beta1

Stable Share Price: ETI is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ETI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198513,551Ade Ayeyemihttps://www.ecobank.com/group

Ecobank Transnational Incorporated, together with its subsidiaries, provides retail, corporate, and investment banking services in Africa and internationally. It operates through Corporate & Investment Banking, Commercial Banking, and Consumer Banking segments. The company offers current accounts, savings accounts, and term deposits; personal, auto/asset acquisition, mortgage, travel, and cash backed loans; and business overdrafts, business revolving credit plans, debtor finance, distributor finance schemes, and vehicle and asset finance, as well as cards, and Internet and mobile services.

Ecobank Transnational Fundamentals Summary

How do Ecobank Transnational's earnings and revenue compare to its market cap?
ETI fundamental statistics
Market CapUS$436.93m
Earnings (TTM)US$19.48m
Revenue (TTM)US$1.50b

22.5x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETI income statement (TTM)
RevenueUS$1.50b
Cost of RevenueUS$0
Gross ProfitUS$1.50b
ExpensesUS$1.48b
EarningsUS$19.48m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)0.00079
Gross Margin100.00%
Net Profit Margin1.30%
Debt/Equity Ratio115.3%

How did ETI perform over the long term?

See historical performance and comparison

Valuation

Is Ecobank Transnational undervalued compared to its fair value and its price relative to the market?

22.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ETI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ETI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ETI is poor value based on its PE Ratio (22.5x) compared to the NG Banks industry average (3.8x).

PE vs Market: ETI is poor value based on its PE Ratio (22.5x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: ETI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ETI is good value based on its PB Ratio (0.3x) compared to the NG Banks industry average (0.5x).


Future Growth

How is Ecobank Transnational forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

46.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETI's forecast earnings growth (46.4% per year) is above the savings rate (13.2%).

Earnings vs Market: ETI's earnings (46.4% per year) are forecast to grow faster than the NG market (15.2% per year).

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

Revenue vs Market: ETI's revenue (7.6% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: ETI's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETI's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has Ecobank Transnational performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETI has a large one-off loss of $237.7M impacting its June 30 2021 financial results.

Growing Profit Margin: ETI's current net profit margins (1.3%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: ETI has become profitable over the past 5 years, growing earnings by 31.9% per year.

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

Earnings vs Industry: ETI had negative earnings growth (-87.9%) over the past year, making it difficult to compare to the Banks industry average (10.5%).


Return on Equity

High ROE: ETI's Return on Equity (5.6%) is considered low.


Financial Health

How is Ecobank Transnational'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: ETI's Assets to Equity ratio (13.7x) is moderate.

Allowance for Bad Loans: ETI has a low allowance for bad loans (87%).

Low Risk Liabilities: 84% of ETI's liabilities are made up of primarily low risk sources of funding.

Loan Level: ETI has an appropriate level of Loans to Assets ratio (33%).

Low Risk Deposits: ETI's Loans to Deposits ratio (42%) is appropriate.

Level of Bad Loans: ETI has a high level of bad loans (7.4%).


Dividend

What is Ecobank Transnational current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ETI'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 ETI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: ETI is not paying a notable dividend for the NG market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Ade Ayeyemi (58 yo)

6.08yrs

Tenure

Mr. Ade Ayeyemi has been the Group Chief Executive Officer of Ecobank Transnational Incorporated since September 1, 2015 and served as its Executive Director since September 11, 2015. Mr. Ayeyemi served as...


Leadership Team

Experienced Management: ETI's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: ETI's board of directors are considered experienced (3.1 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

Ecobank Transnational Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Ecobank Transnational Incorporated
  • Ticker: ETI
  • Exchange: NGSE
  • Founded: 1985
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦179.526b
  • Shares outstanding: 24.59b
  • Website: https://www.ecobank.com/group

Number of Employees


Location

  • Ecobank Transnational Incorporated
  • 2365, Boulevard du Mono
  • B.P. 3261
  • Lome
  • Togo

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 20:59
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.