Mkombozi Commercial Bank (DAR:MKCB) - Share price, News & Analysis

MKCB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

MKCB Overview

Mkombozi Commercial Bank Plc provides banking and related services in Tanzania.

Rewards

PE ratio (4.2x) is below the TZ market (10.8x)

Became profitable this year

Risk Analysis

Earnings have declined by 36.4% per year over past 5 years

Shares are highly illiquid

Does not have a meaningful market cap (TZS16B)

Price History & Performance

Summary of all time highs, changes and price drops for Mkombozi Commercial Bank
Historical stock prices
Current Share Price	TSh780.00
52 Week High	TSh780.00
52 Week Low	TSh780.00
Beta	-0.0022
1 Month Change	0%
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	-23.53%
Change since IPO	-48.00%

Shareholder Returns

	MKCB	TZ Banks	TZ Market
7D	0%	-2.7%	-0.9%
1Y	n/a	24.5%	3.7%

Return vs Industry: Insufficient data to determine how MKCB performed against the TZ Banks industry.

Return vs Market: Insufficient data to determine how MKCB performed against the TZ Market.

Price Volatility

Is MKCB's price volatile compared to industry and market?
MKCB volatility
MKCB Beta	-0.0022
Industry Beta	0.68
Market Beta	1

Stable Share Price: Insufficient data to determine MKCB's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine MKCB's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
2007	164	Respige Kimati	https://www.mkombozibank.co.tz

Mkombozi Commercial Bank Plc provides banking and related services in Tanzania. It offers savings, current, and fixed deposit accounts. It operates through three segments: Treasury, Retail Banking, and Other.

Mkombozi Commercial Bank Fundamentals Summary

How do Mkombozi Commercial Bank's earnings and revenue compare to its market cap?
MKCB fundamental statistics
Market Cap	TSh16.08b
Earnings (TTM)	TSh3.85b
Revenue (TTM)	TSh19.86b

4.2x

P/E Ratio

0.8x

P/B Ratio

Is MKCB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MKCB income statement (TTM)
Revenue	TSh19.86b
Cost of Revenue	TSh0
Gross Profit	TSh19.86b
Expenses	TSh16.01b
Earnings	TSh3.85b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)	186.75
Gross Margin	100.00%
Net Profit Margin	19.39%
Debt/Equity Ratio	0%

How did MKCB perform over the long term?

See historical performance and comparison

Valuation

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

4.18x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

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

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

Price To Earnings Ratio

PE vs Industry: MKCB is good value based on its PE Ratio (4.2x) compared to the TZ Banks industry average (4.3x).

PE vs Market: MKCB is good value based on its PE Ratio (4.2x) compared to the TZ market (10.8x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: MKCB's PB Ratio (0.8x) is in line with the TZ Banks industry average.

Future Growth

How is Mkombozi Commercial Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.4%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mkombozi Commercial Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Mkombozi Commercial Bank performed over the past 5 years?

-36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MKCB has high quality earnings.

Growing Profit Margin: MKCB became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MKCB's earnings have declined by 36.4% per year over the past 5 years.

Accelerating Growth: MKCB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MKCB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (11%).

Return on Equity

High ROE: MKCB's Return on Equity (18.7%) is considered low.

Financial Health

How is Mkombozi Commercial 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

Financial Institutions Analysis

Asset Level: MKCB's Assets to Equity ratio (10.7x) is moderate.

Allowance for Bad Loans: MKCB has a low allowance for bad loans (39%).

Low Risk Liabilities: 97% of MKCB's liabilities are made up of primarily low risk sources of funding.

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

Low Risk Deposits: MKCB's Loans to Deposits ratio (60%) is appropriate.

Level of Bad Loans: MKCB has a high level of bad loans (10.3%).

Dividend

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

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Dividend Coverage: MKCB is not paying a notable dividend for the TZ market.

Future Payout to Shareholders

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

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?

1.8yrs

Average management tenure

CEO

Respige Kimati (47 yo)

1.75yrs

Tenure

Mr. Respige Onesmo Kimati has been Managing Director and Director of Mkombozi Commercial Bank PLC since January 18, 2020. He is Chief Executive Officer at Mkombozi Commercial Bank Plc. Mr. Kimati has aboar...

Leadership Team

Experienced Management: MKCB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: MKCB's board of directors are not considered experienced ( 3 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.

Data	Last Updated (UTC time)
Company Analysis	2021/10/21 15:00
End of Day Share Price	2021/10/12 00:00
Earnings	2020/12/31
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data