Australia and New Zealand Banking Group (NZSE:ANZ) - Share price, News & Analysis

ANZ fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

ANZ Stock Overview

Australia and New Zealand Banking Group Limited provides various banking and financial products and services in Australia and internationally.

Rewards

Trading at 34.1% below our estimate of its fair value

Earnings grew by 35.5% over the past year

Risk Analysis

Unstable dividend track record

Australia and New Zealand Banking Group Competitors

JPMorgan Chase

NYSE:JPM

US$347.3b

Bank of America

NYSE:BAC

US$280.5b

Industrial and Commercial Bank of China

SEHK:1398

HK$1.9t

China Construction Bank

SEHK:939

HK$1.4t

Price History & Performance

Summary of all time highs, changes and price drops for Australia and New Zealand Banking Group
Historical stock prices
Current Share Price	AU$28.70
52 Week High	AU$31.82
52 Week Low	AU$26.55
Beta	0.91
1 Month Change	-4.24%
3 Month Change	-5.65%
1 Year Change	-2.51%
3 Year Change	-4.33%
5 Year Change	-4.62%
Change since IPO	292.26%

Shareholder Returns

	ANZ	NZ Banks	NZ Market
7D	2.4%	2.5%	-1.1%
1Y	-2.5%	6.4%	-13.4%

Return vs Industry: ANZ underperformed the NZ Banks industry which returned 6.4% over the past year.

Return vs Market: ANZ exceeded the NZ Market which returned -13.4% over the past year.

Price Volatility

Is ANZ's price volatile compared to industry and market?
ANZ volatility
ANZ Average Weekly Movement	3.3%
Banks Industry Average Movement	3.4%
Market Average Movement	4.3%
10% most volatile stocks in NZ Market	7.5%
10% least volatile stocks in NZ Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1835	39,529	Shayne Elliott	https://www.anz.com.au

Australia and New Zealand Banking Group Limited provides various banking and financial products and services in Australia and internationally. Its Australia Retail and Commercial division offers various products and services to consumer customers through the branch network, mortgage specialists, contact centers, self-service channels, and third-party brokers, as well as financial planning services. It also provides asset financing for medium to large commercial customers, agribusiness customers, small business owners, high net worth individuals, and family groups.

Australia and New Zealand Banking Group Fundamentals Summary

How do Australia and New Zealand Banking Group's earnings and revenue compare to its market cap?
ANZ fundamental statistics
Market Cap	AU$71.44b
Earnings (TTM)	AU$6.76b
Revenue (TTM)	AU$19.02b

10.6x

P/E Ratio

1.2x

P/B Ratio

Is ANZ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ANZ income statement (TTM)
Revenue	AU$19.02b
Cost of Revenue	AU$0
Gross Profit	AU$19.02b
Other Expenses	AU$12.26b
Earnings	AU$6.76b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)	2.42
Gross Margin	100.00%
Net Profit Margin	35.56%
Debt/Equity Ratio	270.2%

How did ANZ perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Australia and New Zealand Banking Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

34.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ANZ (NZ$28.7) is trading below our estimate of fair value (NZ$43.54)

Significantly Below Fair Value: ANZ is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: ANZ is good value based on its PE Ratio (10.6x) compared to the Oceanic Banks industry average (13.9x).

PE vs Market: ANZ is good value based on its PE Ratio (10.6x) compared to the NZ market (17.3x).

Price to Earnings Growth Ratio

PEG Ratio: ANZ is poor value based on its PEG Ratio (188.4x)

Price to Book Ratio

PB vs Industry: ANZ is overvalued based on its PB Ratio (1.2x) compared to the XO Banks industry average (1x).

Future Growth

How is Australia and New Zealand Banking Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.06%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANZ's forecast earnings growth (0.06% per year) is below the savings rate (2%).

Earnings vs Market: ANZ's earnings (0.06% per year) are forecast to grow slower than the NZ market (6.6% per year).

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

Revenue vs Market: ANZ's revenue (3.9% per year) is forecast to grow slower than the NZ market (5.2% per year).

High Growth Revenue: ANZ's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ANZ's Return on Equity is forecast to be low in 3 years time (9.9%).

Past Performance

How has Australia and New Zealand Banking Group 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

-4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ANZ has high quality earnings.

Growing Profit Margin: ANZ's current net profit margins (35.6%) are higher than last year (30.2%).

Past Earnings Growth Analysis

Earnings Trend: ANZ's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: ANZ's earnings growth over the past year (35.5%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: ANZ earnings growth over the past year (35.5%) exceeded the Banks industry 17.6%.

Return on Equity

High ROE: ANZ's Return on Equity (11%) is considered low.

Financial Health

How is Australia and New Zealand Banking Group's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

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: ANZ's Assets to Equity ratio (16.5x) is moderate.

Allowance for Bad Loans: ANZ has a sufficient allowance for bad loans (208%).

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

Loan Level: ANZ has an appropriate level of Loans to Assets ratio (64%).

Low Risk Deposits: ANZ's Loans to Deposits ratio (87%) is appropriate.

Level of Bad Loans: ANZ has an appropriate level of bad loans (0.3%).

Dividend

What is Australia and New Zealand Banking Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ANZ's dividend (5.62%) is higher than the bottom 25% of dividend payers in the NZ market (3.12%).

High Dividend: ANZ's dividend (5.62%) is in the top 25% of dividend payers in the NZ market (5.62%)

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.1%), ANZ's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: ANZ's dividends in 3 years are forecast to be covered by earnings (72.6% payout ratio).

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

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

4.2yrs

Average management tenure

CEO

Shayne Elliott (57 yo)

6.33yrs

Tenure

AU$5,473,399

Compensation

Mr. Shayne Cary Elliott, B.Com has been Chief Executive Officer and Executive Director of Australia and New Zealand Banking Group Limited since January 1, 2016 and served as its Member of Management Board....

CEO Compensation Analysis

Compensation vs Market: Shayne's total compensation ($USD3.84M) is about average for companies of similar size in the NZ market ($USD4.05M).

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

Leadership Team

Experienced Management: ANZ's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: ANZ's board of directors are considered experienced (6 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30