SASE:1020

Stock Analysis Report

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Market Cap

ر.س15.5b

Last Updated

2021/06/16 15:17 UTC

Data Sources

Company Financials +

Executive Summary

Bank AlJazira provides a range of Shari’ah compliant banking products and services for individuals, corporates, small to medium sized businesses, and institutions in the Kingdom of Saudi Arabia. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1020 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1020's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.2%

1020

1.9%

SA Banks

-0.07%

SA Market


1 Year Return

66.8%

1020

52.4%

SA Banks

15.5%

SA Market

Return vs Industry: 1020 exceeded the SA Banks industry which returned 52.3% over the past year.

Return vs Market: 1020 exceeded the SA Market which returned 17% over the past year.


Shareholder returns

1020IndustryMarket
7 Day4.2%1.9%-0.07%
30 Day-0.3%3.6%0.7%
90 Day26.7%15.2%4.1%
1 Year66.8%66.8%54.4%52.4%19.9%15.5%
3 Year40.5%30.4%52.9%38.2%41.8%28.3%
5 Year139.4%92.5%163.2%118.2%94.7%64.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

89.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1020's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1020's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1020 is poor value based on its PE Ratio (89.1x) compared to the SA Banks industry average (17.9x).

PE vs Market: 1020 is poor value based on its PE Ratio (89.1x) compared to the SA market (32.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1020 is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: 1020 is good value based on its PB Ratio (1.3x) compared to the SA Banks industry average (1.5x).


Future Growth

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

20.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1020's forecast earnings growth (20.7% per year) is above the savings rate (8.8%).

Earnings vs Market: 1020's earnings (20.7% per year) are forecast to grow faster than the SA market (7.9% per year).

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

Revenue vs Market: 1020's revenue (13.2% per year) is forecast to grow faster than the SA market (4% per year).

High Growth Revenue: 1020's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1020's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has Bank AlJazira performed over the past 5 years?

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1020 has a high level of non-cash earnings.

Growing Profit Margin: 1020's current net profit margins (9.4%) are lower than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: 1020's earnings have declined by 16.7% per year over the past 5 years.

Accelerating Growth: 1020's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1020 had negative earnings growth (-81.5%) over the past year, making it difficult to compare to the Banks industry average (-9.6%).


Return on Equity

High ROE: 1020's Return on Equity (1.5%) is considered low.


Financial Health

How is Bank AlJazira'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: 1020's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: 1020 has a sufficient allowance for bad loans (159%).

Low Risk Liabilities: 85% of 1020's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1020 has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: 1020's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: 1020 has a high level of bad loans (2.5%).


Dividend

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

3.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1020's dividend (3.18%) is higher than the bottom 25% of dividend payers in the SA market (1.51%).

High Dividend: 1020's dividend (3.18%) is low compared to the top 25% of dividend payers in the SA market (4.57%).


Stability and Growth of Payments

Stable Dividend: 1020 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1020's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.6%), 1020's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1020's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Naif Al Abdulkareem

0.58

Tenure

Mr. Naif Abdulkarim Al Abdulkareem has been Chief Executive Officer of Bank AlJazira since November 1, 2020 and serves as Managing Director & Executive Director since January 21, 2021. Mr. AlAbdulkareem is...


Leadership Team

Experienced Management: 1020's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: 1020's board of directors are not considered experienced ( 2.4 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

Bank AlJazira's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank AlJazira
  • Ticker: 1020
  • Exchange: SASE
  • Founded: 1975
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ر.س15.482b
  • Shares outstanding: 820.00m
  • Website: https://www.bankaljazira.com

Number of Employees


Location

  • Bank AlJazira
  • 7724 King Abdulaziz Road
  • Al-Shatea District
  • Jeddah
  • Saudi Arabia

Listings


Biography

Bank AlJazira provides a range of Shari’ah compliant banking products and services for individuals, corporates, small to medium sized businesses, and institutions in the Kingdom of Saudi Arabia. The compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/16 15:17
End of Day Share Price2021/06/16 00:00
Earnings2021/03/31
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.