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MEBL

Meezan Bank KASE:MEBL Stock Report

Last Price

PK₨129.85

Market Cap

PK₨211.3b

7D

-0.2%

1Y

37.6%

Updated

18 May, 2022

Data

Company Financials +
MEBL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends4/6

MEBL Stock Overview

Meezan Bank Limited, an Islamic bank, provides corporate, commercial, consumer, investment, and retail banking services in Pakistan.

Meezan Bank Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Meezan Bank
Historical stock prices
Current Share PricePK₨129.85
52 Week HighPK₨158.90
52 Week LowPK₨93.66
Beta0.59
1 Month Change-10.90%
3 Month Change-6.94%
1 Year Change37.63%
3 Year Change91.22%
5 Year Change143.13%
Change since IPO6,307.15%

Recent News & Updates

Shareholder Returns

MEBLPK BanksPK Market
7D-0.2%-1.2%-1.8%
1Y37.6%-0.4%-12.4%

Return vs Industry: MEBL exceeded the PK Banks industry which returned -0.4% over the past year.

Return vs Market: MEBL exceeded the PK Market which returned -12.4% over the past year.

Price Volatility

Is MEBL's price volatile compared to industry and market?
MEBL volatility
MEBL Average Weekly Movement4.8%
Banks Industry Average Movement4.8%
Market Average Movement5.7%
10% most volatile stocks in PK Market8.9%
10% least volatile stocks in PK Market3.5%

Stable Share Price: MEBL is not significantly more volatile than the rest of PK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MEBL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199711,710Irfan Siddiquihttps://www.meezanbank.com

Meezan Bank Limited, an Islamic bank, provides corporate, commercial, consumer, investment, and retail banking services in Pakistan. The company operates through Corporate and Commercial Banking, Retail Banking, Trading and Sales, and Others segments. It offers trade finance, export finance, project finance, Ijarah, guarantees, and bills of exchange relating to its corporate and commercial customers.

Meezan Bank Fundamentals Summary

How do Meezan Bank's earnings and revenue compare to its market cap?
MEBL fundamental statistics
Market CapPK₨211.26b
Earnings (TTM)PK₨31.36b
Revenue (TTM)PK₨90.27b

6.7x

P/E Ratio

2.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEBL income statement (TTM)
RevenuePK₨90.27b
Cost of RevenuePK₨1.22b
Gross ProfitPK₨89.05b
Other ExpensesPK₨57.69b
EarningsPK₨31.36b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)19.28
Gross Margin98.64%
Net Profit Margin34.74%
Debt/Equity Ratio469.3%

How did MEBL perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

31%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


7.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MEBL (PKR129.85) is trading below our estimate of fair value (PKR140.12)

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


Price To Earnings Ratio

PE vs Industry: MEBL is poor value based on its PE Ratio (6.7x) compared to the PK Banks industry average (4.9x).

PE vs Market: MEBL is poor value based on its PE Ratio (6.7x) compared to the PK market (5.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MEBL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MEBL is overvalued based on its PB Ratio (2.3x) compared to the PK Banks industry average (0.7x).


Future Growth

How is Meezan Bank forecast to perform in the next 1 to 3 years based on estimates from 6 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


12.0%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MEBL's forecast earnings growth is above the savings rate (10.2%).

Earnings vs Market: Insufficient data to determine if MEBL's earnings are forecast to grow faster than the PK market

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

Revenue vs Market: MEBL's revenue (12% per year) is forecast to grow faster than the PK market (3.3% per year).

High Growth Revenue: MEBL's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEBL's Return on Equity is forecast to be high in 3 years time (29.4%)


Past Performance

How has Meezan Bank 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


34.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEBL has high quality earnings.

Growing Profit Margin: MEBL's current net profit margins (34.7%) are higher than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: MEBL's earnings have grown significantly by 34.7% per year over the past 5 years.

Accelerating Growth: MEBL's earnings growth over the past year (33.9%) is below its 5-year average (34.7% per year).

Earnings vs Industry: MEBL earnings growth over the past year (33.9%) exceeded the Banks industry 11.6%.


Return on Equity

High ROE: Whilst MEBL's Return on Equity (33.69%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Meezan Bank'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: MEBL's Assets to Equity ratio (22.6x) is very high.

Allowance for Bad Loans: MEBL has a sufficient allowance for bad loans (133%).

Low Risk Liabilities: 72% of MEBL's liabilities are made up of primarily low risk sources of funding.

Loan Level: MEBL has an appropriate level of Loans to Assets ratio (44%).

Low Risk Deposits: MEBL's Loans to Deposits ratio (64%) is appropriate.

Level of Bad Loans: MEBL has an appropriate level of bad loans (1.4%).


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.31%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MEBL's dividend (4.31%) is higher than the bottom 25% of dividend payers in the PK market (3.72%).

High Dividend: MEBL's dividend (4.31%) is low compared to the top 25% of dividend payers in the PK market (11.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.4%), MEBL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MEBL's dividends in 3 years are forecast to be well covered by earnings (37.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Irfan Siddiqui

25.33yrs

Tenure

PK₨10,637,000

Compensation

Mr. Irfan Siddiqui serves as the Chief Executive Officer and President of Meezan Bank Limited. Mr. Siddiqui served as the Chairman of the Board at Al Meezan Investment Management Limited until 2007, which...


Board Members

Experienced Board: MEBL's board of directors are considered experienced (3.3 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

Meezan Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Meezan Bank Limited
  • Ticker: MEBL
  • Exchange: KASE
  • Founded: 1997
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: PK₨211.257b
  • Shares outstanding: 1.63b
  • Website: https://www.meezanbank.com

Number of Employees


Location

  • Meezan Bank Limited
  • Meezan House
  • C-25, Estate Avenue
  • Karachi
  • 75730
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 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.