WSE:ALR

Stock Analysis Report

Executive Summary

Alior Bank S.A. provides banking products and services to individuals, businesses, and enterprises in Poland.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

How has Alior Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

ALR

2.1%

PL Banks

1.5%

PL Market


1 Year Return

-42.2%

ALR

-6.4%

PL Banks

-3.1%

PL Market

Return vs Industry: ALR underperformed the Polish Banks industry which returned -6.4% over the past year.

Return vs Market: ALR underperformed the Polish Market which returned -3.1% over the past year.


Share holder returns

ALRIndustryMarket
7 Day0.7%2.1%1.5%
30 Day-12.0%-3.9%-2.1%
90 Day-31.1%-10.1%-7.7%
1 Year-42.2%-42.2%-3.2%-6.4%-0.2%-3.1%
3 Year-23.3%-23.3%14.7%6.2%12.0%4.0%
5 Year-39.7%-50.8%-12.4%-23.0%0.2%-11.9%

Price Volatility Vs. Market

How volatile is Alior Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alior Bank undervalued based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ALR (PLN36.06) is trading below our estimate of fair value (PLN52.01)

Significantly Undervalued: ALR is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: ALR is good value based on its PE Ratio (9.1x) compared to the Banks industry average (13x).

PE vs Market: ALR is good value based on its PE Ratio (9.1x) compared to the Polish market (10x).


Price Based on Expected Growth

Low PEG Ratio: ALR is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: ALR is good value based on its PB Ratio (0.7x) compared to the PL Banks industry average (1x).


Next Steps

Future Growth

How is Alior Bank expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ALR's forecast earnings growth (16.4% per year) is above the savings rate (2.9%).

Earnings vs Market: ALR's earnings (16.4% per year) are forecast to grow faster than the Polish market (10.3% per year).

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

Revenue vs Market: ALR's revenue (6.4% per year) is forecast to grow faster than the Polish market (5.3% per year).

High Growth Revenue: ALR's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ALR's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Alior Bank performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ALR's earnings have grown by 19% per year over the past 5 years.

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

Earnings vs Industry: ALR had negative earnings growth (-22.1%) over the past year, making it difficult to compare to the Banks industry average (2.9%).


Return on Equity

High ROE: ALR's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: ALR's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ALR's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Alior 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

Inventory Level: ALR has a low level of unsold assets or inventory.

Debt Coverage by Assets: ALR's debt is covered by short term assets (assets are 2.006730x debt).


Financial Institutions Analysis

Asset Level: ALR's level of assets compared to its equity is moderate.

Allowance for Bad Loans: ALR has a low allowance for bad loans.

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

Loan Level: ALR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ALR's loans are broadly funded by customer deposits.

Level of Bad Loans: ALR has a high level of bad loans (11.73%)


Next Steps

Dividend

What is Alior Bank's current dividend yield, its reliability and sustainability?

2.49%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.6%markettop25%7.3%industryaverage6.3%forecastin3Years2.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate ALR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ALR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Alior Bank's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Krzysztof Bachta 0

1yrs

Tenure

zł814,115

Compensation

Mr. Krzysztof Bachta serves as President of the Management Board at Alior Bank SA since February 26, 2019. He served as an Acting Chief Executive Officer of Alior Bank SA since October 2018 until February  ...


CEO Compensation Analysis

Compensation vs. Market: Krzysztof has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Polish market.

Compensation vs Earnings: Insufficient data to compare Krzysztof's compensation with company performance.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: ALR's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

Experienced Board: ALR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Tomasz Bilous

    Deputy CEO & Vice President of Management Board

    • Tenure: 0.7yrs
  • Piotr Bystrzanowski

    • Tenure: 0yrs
  • Marcin Jaszczuk

    Deputy President of the Management Board

    • Tenure: 1.6yrs
    • Compensation: zł846.52k
  • Agata Strzelecka

    Deputy President of the Management Board

    • Tenure: 1.5yrs
    • Compensation: zł807.07k
  • Mateusz Poznanski

    Deputy President of the Management Board

    • Tenure: 1.5yrs
    • Compensation: zł796.07k
  • Krzysztof Bachta

    CEO & President of the Management Board

    • Tenure: 1yrs
    • Compensation: zł814.12k
  • Marek Szczesniak

    Vice President of Management Board

    • Tenure: 0.8yrs
    • Compensation: zł799.45k
  • Dariusz Szwed

    Vice Chairman of Management Board & Deputy CEO

    • Tenure: 0yrs
  • Seweryn Kowalczyk

    Vice President of Management Board

    • Tenure: 0.8yrs
    • Compensation: zł790.34k
  • Tomasz Bilous

    Deputy CEO & Member of Management Board

    • Tenure: 0.8yrs

Board Members

  • Artur Kucharski (51yo)

    Member of the Supervisory Board

    • Tenure: 2yrs
    • Compensation: zł178.00k
  • Mikolaj Handsche

    Member of the Supervisory Board

    • Tenure: 2yrs
    • Compensation: zł190.00k
  • Maciej Rapkiewicz

    Member of the Supervisory Board

    • Tenure: 3.8yrs
  • Dariusz Gatarek

    Member of the Supervisory Board

    • Tenure: 3.8yrs
    • Compensation: zł198.00k
  • Tomasz Kulik

    Chairman of the Supervisory Board

    • Tenure: 2.1yrs
  • Wojciech Myslecki

    Member of the Supervisory Board

    • Tenure: 1.3yrs
    • Compensation: zł94.00k
  • Marcin Eckert

    Deputy Chairman of Supervisory Board

    • Tenure: 0.5yrs
    • Compensation: zł89.00k

Company Information

Alior Bank S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alior Bank S.A.
  • Ticker: ALR
  • Exchange: WSE
  • Founded: 2008
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: zł4.708b
  • Shares outstanding: 130.55m
  • Website: https://www.aliorbank.pl

Number of Employees


Location

  • Alior Bank S.A.
  • ul. Lopuszanska 38D
  • Warsaw
  • 02-232
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALRWSE (Warsaw Stock Exchange)YesRegistered SharesPLPLNDec 2012
0QBMLSE (London Stock Exchange)YesRegistered SharesGBPLNDec 2012
A6ODB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 2012

Biography

Alior Bank S.A. provides banking products and services to individuals, businesses, and enterprises in Poland. The company offers personal accounts and savings products; credits and loans; mortgages; cards; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 22:49
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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