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ZENI

Zenith BankNGSE:ZENITHBANK Stock Report

Market Cap

₦784.9b

7D

0.2%

1Y

17.7%

Updated

25 Oct, 2021

Data

Company Financials +
ZENITHBANK fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends5/6

ZENITHBANK Overview

Zenith Bank Plc, through its subsidiaries, provides banking and other financial products and services in Nigeria, rest of Africa, and internationally.

Zenith Bank Competitors

Guaranty Trust Holding

NGSE:GTCO

₦624.0b

Access Bank

NGSE:ACCESS

₦331.0b

United Bank for Africa

NGSE:UBA

₦287.3b

Fidelity Bank

NGSE:FIDELITYBK

₦78.2b

Price History & Performance

Summary of all time highs, changes and price drops for Zenith Bank
Historical stock prices
Current Share Price₦24.90
52 Week High₦19.50
52 Week Low₦28.50
Beta0.96
1 Month Change5.96%
3 Month Change0.40%
1 Year Change17.73%
3 Year Change1.84%
5 Year Change69.39%
Change since IPO263.16%

Recent News & Updates

Shareholder Returns

ZENITHBANKNG BanksNG Market
7D0.2%-0.7%0.7%
1Y17.7%21.5%40.9%

Return vs Industry: ZENITHBANK underperformed the NG Banks industry which returned 21.5% over the past year.

Return vs Market: ZENITHBANK underperformed the NG Market which returned 40.9% over the past year.

Price Volatility

Is ZENITHBANK's price volatile compared to industry and market?
ZENITHBANK volatility
ZENITHBANK Beta0.96
Industry Beta0.87
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19907,847Ebenezer Onyeagwuhttps://www.zenithbank.com

Zenith Bank Plc, through its subsidiaries, provides banking and other financial products and services in Nigeria, rest of Africa, and internationally. Its products and services include corporate, investment, commercial, consumer, personal, and private banking products and services; and trade and foreign exchange, treasury, cash management, and other non-bank financial services. The company accepts current, savings, salary, and domiciliary accounts; fixed and call deposits, certificate of deposits, and short term investment funds; sole proprietorship/enterprise and partnership accounts, and trust funds; clubs, societies, and associations accounts; and limited liability company, non-governmental organization, embassies and high commission, and church accounts.

Zenith Bank Fundamentals Summary

How do Zenith Bank's earnings and revenue compare to its market cap?
ZENITHBANK fundamental statistics
Market Cap₦784.91b
Earnings (TTM)₦232.67b
Revenue (TTM)₦528.83b

3.4x

P/E Ratio

0.7x

P/B Ratio

Is ZENITHBANK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZENITHBANK income statement (TTM)
Revenue₦528.83b
Cost of Revenue₦0
Gross Profit₦528.83b
Expenses₦296.17b
Earnings₦232.67b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.41
Gross Margin100.00%
Net Profit Margin44.00%
Debt/Equity Ratio96.9%

How did ZENITHBANK perform over the long term?

See historical performance and comparison

Dividends

12.0%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is Zenith Bank undervalued compared to its fair value and its price relative to the market?

3.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZENITHBANK (NGN24.9) is trading below our estimate of fair value (NGN25.72)

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


Price To Earnings Ratio

PE vs Industry: ZENITHBANK is good value based on its PE Ratio (3.4x) compared to the NG Banks industry average (3.8x).

PE vs Market: ZENITHBANK is good value based on its PE Ratio (3.4x) compared to the NG market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZENITHBANK is overvalued based on its PB Ratio (0.7x) compared to the NG Banks industry average (0.5x).


Future Growth

How is Zenith Bank forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZENITHBANK's forecast earnings growth (12.1% per year) is below the savings rate (13.2%).

Earnings vs Market: ZENITHBANK's earnings (12.1% per year) are forecast to grow slower than the NG market (15.4% per year).

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

Revenue vs Market: ZENITHBANK's revenue (10.2% per year) is forecast to grow slower than the NG market (10.4% per year).

High Growth Revenue: ZENITHBANK's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZENITHBANK's Return on Equity is forecast to be low in 3 years time (19.4%).


Past Performance

How has Zenith Bank performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: ZENITHBANK's current net profit margins (44%) are lower than last year (46%).


Past Earnings Growth Analysis

Earnings Trend: ZENITHBANK's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: ZENITHBANK's earnings growth over the past year (4%) is below its 5-year average (12.8% per year).

Earnings vs Industry: ZENITHBANK earnings growth over the past year (4%) underperformed the Banks industry 10.5%.


Return on Equity

High ROE: ZENITHBANK's Return on Equity (20.4%) is considered high.


Financial Health

How is Zenith Bank'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: ZENITHBANK's Assets to Equity ratio (7.4x) is low.

Allowance for Bad Loans: ZENITHBANK has a low allowance for bad loans (68%).

Low Risk Liabilities: 78% of ZENITHBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: ZENITHBANK has an appropriate level of Loans to Assets ratio (34%).

Low Risk Deposits: ZENITHBANK's Loans to Deposits ratio (50%) is appropriate.

Level of Bad Loans: ZENITHBANK has a high level of bad loans (7.6%).


Dividend

What is Zenith Bank current dividend yield, its reliability and sustainability?

12.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZENITHBANK's dividend (12.05%) is higher than the bottom 25% of dividend payers in the NG market (3.33%).

High Dividend: ZENITHBANK's dividend (12.05%) is in the top 25% of dividend payers in the NG market (7.34%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.5%), ZENITHBANK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZENITHBANK's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Ebenezer Onyeagwu (59 yo)

2.33yrs

Tenure

Mr. Ebenezer N. Onyeagwu has been an Executive Director of Zenith Bank Plc since April 24, 2013 and has been its Group Managing Director and Chief Executive Officer since June 1, 2019. Mr. Onyeagwu served...


Leadership Team

Experienced Management: ZENITHBANK's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: ZENITHBANK's board of directors are considered experienced (5 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

Zenith Bank Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Zenith Bank Plc
  • Ticker: ZENITHBANK
  • Exchange: NGSE
  • Founded: 1990
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₦784.912b
  • Shares outstanding: 31.40b
  • Website: https://www.zenithbank.com

Number of Employees


Location

  • Zenith Bank Plc
  • Zenith Heights
  • Plot 84/87
  • Lagos
  • Nigeria

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:46
End of Day Share Price2021/10/25 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.