Akbank T.A.S (IBSE:AKBNK) - Share price, News & Analysis

Q: What is the Fair Price of AKBNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AKBNK (TRY7.8) is trading below our estimate of [[fair value]] (TRY34.28)

AKBNK fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

AKBNK Stock Overview

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally.

Rewards

Trading at 77.2% below our estimate of its fair value

Earnings have grown 17.4% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Akbank T.A.S Competitors

Haci Ömer Sabanci Holding

IBSE:SAHOL

₺37.0b

Yapi ve Kredi Bankasi

IBSE:YKBNK

₺35.2b

Türkiye Is Bankasi

IBSE:ISCTR

₺52.0b

Turkiye Garanti Bankasi

IBSE:GARAN

₺56.6b

Price History & Performance

Summary of all time highs, changes and price drops for Akbank T.A.S
Historical stock prices
Current Share Price	₺7.80
52 Week High	₺9.65
52 Week Low	₺5.07
Beta	0.85
1 Month Change	-14.29%
3 Month Change	-2.99%
1 Year Change	44.98%
3 Year Change	3.59%
5 Year Change	-24.86%
Change since IPO	169,871.67%

Shareholder Returns

	AKBNK	TR Banks	TR Market
7D	-2.7%	-1.8%	-1.6%
1Y	45.0%	18.1%	50.3%

Return vs Industry: AKBNK exceeded the TR Banks industry which returned 20.6% over the past year.

Return vs Market: AKBNK underperformed the TR Market which returned 53.1% over the past year.

Price Volatility

Is AKBNK's price volatile compared to industry and market?
AKBNK volatility
AKBNK Average Weekly Movement	6.0%
Banks Industry Average Movement	6.0%
Market Average Movement	6.0%
10% most volatile stocks in TR Market	8.8%
10% least volatile stocks in TR Market	4.2%

Stable Share Price: AKBNK is not significantly more volatile than the rest of TR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AKBNK's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1948	12,653	Sabri Binbasgil	https://www.akbank.com

Akbank T.A.S., together with its subsidiaries, provides various banking products and services in Turkey and internationally. It operates through: Retail Banking; Commercial Banking, SME Banking, Corporate-Investment and Private Banking; and Treasury segments. The company’s retail banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfer, investment banking, and telephone and internet banking.

Akbank T.A.S Fundamentals Summary

How do Akbank T.A.S's earnings and revenue compare to its market cap?
AKBNK fundamental statistics
Market Cap	₺40.56b
Earnings (TTM)	₺18.15b
Revenue (TTM)	₺44.69b

2.2x

P/E Ratio

0.4x

P/B Ratio

Is AKBNK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AKBNK income statement (TTM)
Revenue	₺44.69b
Cost of Revenue	₺79.92m
Gross Profit	₺44.61b
Other Expenses	₺26.46b
Earnings	₺18.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	3.49
Gross Margin	99.82%
Net Profit Margin	40.61%
Debt/Equity Ratio	214.1%

How did AKBNK perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

3%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is AKBNK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AKBNK?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AKBNK. This is calculated by dividing AKBNK's market cap by their current preferred multiple.
What is AKBNK's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₺40.56b

AKBNK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does AKBNK's PE Ratio compare to its peers?

AKBNK PE Ratio vs Peers

The above table shows the PE ratio for AKBNK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	2.3x
SAHOL Haci Ömer Sabanci Holding	2x	-0.9%	₺37.0b
YKBNK Yapi ve Kredi Bankasi	2.2x	-3.1%	₺35.2b
ISCTR Türkiye Is Bankasi	2.2x	n/a	₺52.0b
GARAN Turkiye Garanti Bankasi	3.1x	-3.2%	₺56.6b
AKBNK Akbank T.A.S	2.2x	6.6%	₺40.6b

Forward PE

Price-To-Earnings vs Peers: AKBNK is good value based on its Price-To-Earnings Ratio (2.2x) compared to the peer average (2.3x).

Price to Earnings Ratio vs Industry

How does AKBNK's PE Ratio compare vs other companies in the Asian Banks Industry?

Price-To-Earnings vs Industry: AKBNK is good value based on its Price-To-Earnings Ratio (2.2x) compared to the TR Banks industry average (3.1x)

Price to Earnings Ratio vs Fair Ratio

What is AKBNK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AKBNK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.2x
Fair PE Ratio	4.8x

Price-To-Earnings vs Fair Ratio: AKBNK is good value based on its Price-To-Earnings Ratio (2.2x) compared to the estimated Fair Price-To-Earnings Ratio (4.8x).

Share Price vs Fair Value

What is the Fair Price of AKBNK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AKBNK (TRY7.8) is trading below our estimate of fair value (TRY34.28)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Akbank T.A.S forecast to perform in the next 1 to 3 years based on estimates from 11 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

6.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKBNK's forecast earnings growth (6.6% per year) is below the savings rate (8.9%).

Earnings vs Market: AKBNK's earnings (6.6% per year) are forecast to grow slower than the TR market (17.4% per year).

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

Revenue vs Market: AKBNK's revenue (6.2% per year) is forecast to grow slower than the TR market (14.7% per year).

High Growth Revenue: AKBNK's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AKBNK's Return on Equity is forecast to be low in 3 years time (19.3%).

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Past Performance

How has Akbank T.A.S performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.4%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: AKBNK's current net profit margins (40.6%) are higher than last year (35.1%).

Past Earnings Growth Analysis

Earnings Trend: AKBNK's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: AKBNK's earnings growth over the past year (159.8%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: AKBNK earnings growth over the past year (159.8%) underperformed the Banks industry 159.8%.

Return on Equity

High ROE: Whilst AKBNK's Return on Equity (20.02%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Akbank T.A.S'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: AKBNK's Assets to Equity ratio (9.4x) is low.

Allowance for Bad Loans: AKBNK has a sufficient allowance for bad loans (106%).

Low Risk Liabilities: 68% of AKBNK's liabilities are made up of primarily low risk sources of funding.

Loan Level: AKBNK has an appropriate level of Loans to Assets ratio (53%).

Low Risk Deposits: AKBNK's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: AKBNK has a high level of bad loans (4%).

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Dividend

What is Akbank T.A.S current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

1.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AKBNK's dividend (1.54%) is higher than the bottom 25% of dividend payers in the TR market (0.7%).

High Dividend: AKBNK's dividend (1.54%) is low compared to the top 25% of dividend payers in the TR market (3.72%).

Stability and Growth of Payments

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

Growing Dividend: AKBNK's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (2.9%), AKBNK's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: AKBNK's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).

Discover strong dividend paying companies

Management

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

9.0yrs

Average management tenure

CEO

Sabri Binbasgil (62 yo)

10.5yrs

Tenure

Mr. Sabri Hakan Binbasgil has been the Chief Executive Officer at Akbank T.A.S. since January 2012 and serves as its Member of International Advisory Board and General Manager. Mr. Binbasgil served as the...

Leadership Team

Experienced Management: AKBNK's management team is seasoned and experienced (9 years average tenure).

Board Members

Experienced Board: AKBNK's board of directors are seasoned and experienced ( 10.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31