GTCO

Guaranty Trust HoldingNGSE:GTCO Stock Report

Market Cap

₦648.1b

7D

3.9%

1Y

-1.3%

Updated

20 Oct, 2021

Data

Company Financials +
GTCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

GTCO Overview

Guaranty Trust Holding Company Plc operates as a financial holding company for Guaranty Trust Bank Plc that provides commercial banking services in Nigeria, rest of West Africa, East Africa, and Europe.

Guaranty Trust Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Guaranty Trust Holding
Historical stock prices
Current Share Price₦29.60
52 Week High₦26.95
52 Week Low₦38.45
Beta0.73
1 Month Change8.43%
3 Month Change0.34%
1 Year Change-1.33%
3 Year Change-18.90%
5 Year Change23.33%
Change since IPO11,375.49%

Recent News & Updates

Shareholder Returns

GTCONG BanksNG Market
7D3.9%3.2%0.6%
1Y-1.3%21.0%38.8%

Return vs Industry: GTCO underperformed the NG Banks industry which returned 21% over the past year.

Return vs Market: GTCO underperformed the NG Market which returned 38.8% over the past year.

Price Volatility

Is GTCO's price volatile compared to industry and market?
GTCO volatility
GTCO Beta0.73
Industry Beta0.87
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19905,071Segun Agbajehttps://www.gtbank.com

Guaranty Trust Holding Company Plc operates as a financial holding company for Guaranty Trust Bank Plc that provides commercial banking services in Nigeria, rest of West Africa, East Africa, and Europe. The company offers current accounts, deposits, overdrafts, loans and other credit facilities, foreign currency and derivative products, private banking services, investment savings products, custody, credit and debit cards, consumer loans, and mortgages products. It also provides international trade services; foreign currency and derivative products; and portfolio management, tenured deposits, FX forward contracts, financial advisory, loan syndication, cheque writing, corporate account management, customer synergy, foreign currency draft issue, cash-in-transit, security token, and fast-track banking services , as well as e-banking, IMT, and other services.

Guaranty Trust Holding Fundamentals Summary

How do Guaranty Trust Holding's earnings and revenue compare to its market cap?
GTCO fundamental statistics
Market Cap₦648.06b
Earnings (TTM)₦184.38b
Revenue (TTM)₦374.90b

3.5x

P/E Ratio

0.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GTCO income statement (TTM)
Revenue₦374.90b
Cost of Revenue₦5.15b
Gross Profit₦369.76b
Expenses₦185.37b
Earnings₦184.38b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.42
Gross Margin98.63%
Net Profit Margin49.18%
Debt/Equity Ratio14.1%

How did GTCO perform over the long term?

See historical performance and comparison

Dividends

10.1%

Current Dividend Yield

46%

Payout Ratio

Valuation

Is Guaranty Trust Holding undervalued compared to its fair value and its price relative to the market?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GTCO (NGN29.6) is trading below our estimate of fair value (NGN34.05)

Significantly Below Fair Value: GTCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GTCO is good value based on its PE Ratio (3.5x) compared to the NG Banks industry average (3.9x).

PE vs Market: GTCO is good value based on its PE Ratio (3.5x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

PEG Ratio: GTCO is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GTCO is overvalued based on its PB Ratio (0.8x) compared to the NG Banks industry average (0.5x).


Future Growth

How is Guaranty Trust Holding forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTCO's forecast earnings growth (14.8% per year) is above the savings rate (13.2%).

Earnings vs Market: GTCO's earnings (14.8% per year) are forecast to grow slower than the NG market (15.2% per year).

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

Revenue vs Market: GTCO's revenue (14.3% per year) is forecast to grow faster than the NG market (10.4% per year).

High Growth Revenue: GTCO's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GTCO's Return on Equity is forecast to be high in 3 years time (23.3%)


Past Performance

How has Guaranty Trust Holding performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: GTCO's current net profit margins (49.2%) are lower than last year (51.5%).


Past Earnings Growth Analysis

Earnings Trend: GTCO's earnings have grown by 8.3% per year over the past 5 years.

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

Earnings vs Industry: GTCO had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Banks industry average (10.5%).


Return on Equity

High ROE: GTCO's Return on Equity (23.4%) is considered high.


Financial Health

How is Guaranty Trust Holding'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: GTCO's Assets to Equity ratio (6.3x) is low.

Allowance for Bad Loans: GTCO has a low allowance for bad loans (80%).

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

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

Low Risk Deposits: GTCO's Loans to Deposits ratio (43%) is appropriate.

Level of Bad Loans: GTCO has a high level of bad loans (6%).


Dividend

What is Guaranty Trust Holding current dividend yield, its reliability and sustainability?

10.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GTCO's dividend (10.14%) is higher than the bottom 25% of dividend payers in the NG market (3.25%).

High Dividend: GTCO's dividend (10.14%) is in the top 25% of dividend payers in the NG market (7.24%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.7%), GTCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GTCO's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Segun Agbaje (57 yo)

10.33yrs

Tenure

Mr. Olusegun Julius Kosebinu, also known as Segun, has been the Chief Executive Officer and Managing Director of Guaranty Trust Holding Company plc (Formally known as Guaranty Trust Bank Plc) since July 12...


Leadership Team

Experienced Management: GTCO's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: GTCO'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.


Top Shareholders

Company Information

Guaranty Trust Holding Company Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Guaranty Trust Holding Company Plc
  • Ticker: GTCO
  • Exchange: NGSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦648.057b
  • Shares outstanding: 21.89b
  • Website: https://www.gtbank.com

Number of Employees


Location

  • Guaranty Trust Holding Company Plc
  • Plot 635
  • Akin Adesola Street
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:36
End of Day Share Price2021/10/20 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.