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SBU

Stanbic Uganda HoldingsUGSE:SBU Stock Report

Market Cap

USh1.3t

7D

0%

1Y

8.3%

Updated

17 Oct, 2021

Data

Company Financials +
SBU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends4/6

SBU Overview

Stanbic Uganda Holdings Limited provides various banking products and services to individual customers, and small and medium sized enterprises in Uganda.

Price History & Performance

Summary of all time highs, changes and price drops for Stanbic Uganda Holdings
Historical stock prices
Current Share PriceUSh26.00
52 Week HighUSh22.00
52 Week LowUSh28.00
Beta0.086
1 Month Change-0.73%
3 Month Change-3.70%
1 Year Change8.33%
3 Year Change-20.00%
5 Year Change4.00%
Change since IPO-7.14%

Recent News & Updates

Shareholder Returns

SBUUG BanksUG Market
7D0%0.8%0.6%
1Y8.3%29.5%-0.09%

Return vs Industry: SBU underperformed the UG Banks industry which returned 29.1% over the past year.

Return vs Market: SBU exceeded the UG Market which returned -0.1% over the past year.

Price Volatility

Is SBU's price volatile compared to industry and market?
SBU volatility
SBU Beta0.086
Industry Beta0.68
Market Beta1

Stable Share Price: SBU is not significantly more volatile than the rest of UG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SBU's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19061,532Andrew Mashandahttps://www.stanbic.co.ug

Stanbic Uganda Holdings Limited provides various banking products and services to individual customers, and small and medium sized enterprises in Uganda. The company operates through Personal and Business Banking, Corporate and Investment Banking, and Treasury and Capital Management segments. It offers current, trader, student, fixed deposit, NGO, and SACCO accounts; unsecured personal, home, building, equity release, import/export, and term loans; letters of credit, avalisation, invoice discounting, bills for collection, custody, fiscal and facility agency, equity and debt capital market, advisory, vehicle and asset finance, and syndication products and services; and bid, advance payment, and performance guarantee products.

Stanbic Uganda Holdings Fundamentals Summary

How do Stanbic Uganda Holdings's earnings and revenue compare to its market cap?
SBU fundamental statistics
Market CapUSh1.33t
Earnings (TTM)USh269.09b
Revenue (TTM)USh794.40b

4.9x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SBU income statement (TTM)
RevenueUSh794.40b
Cost of RevenueUSh0
Gross ProfitUSh794.40b
ExpensesUSh525.31b
EarningsUSh269.09b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.26
Gross Margin100.00%
Net Profit Margin33.87%
Debt/Equity Ratio25.0%

How did SBU perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Stanbic Uganda Holdings undervalued compared to its fair value and its price relative to the market?

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBU (UGX26) is trading below our estimate of fair value (UGX27.8)

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


Price To Earnings Ratio

PE vs Industry: SBU is good value based on its PE Ratio (4.9x) compared to the African Banks industry average (6.5x).

PE vs Market: SBU's PE Ratio (4.9x) is in line with the UG market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SBU's PB Ratio (0.9x) is in line with the XF Banks industry average.


Future Growth

How is Stanbic Uganda Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SBU's forecast earnings growth is above the savings rate (9.1%).

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

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

Revenue vs Market: SBU's revenue (15.5% per year) is forecast to grow faster than the UG market (6.9% per year).

High Growth Revenue: SBU's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBU's Return on Equity is forecast to be high in 3 years time (22.2%)


Past Performance

How has Stanbic Uganda Holdings performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBU has high quality earnings.

Growing Profit Margin: SBU's current net profit margins (33.9%) are higher than last year (33.1%).


Past Earnings Growth Analysis

Earnings Trend: SBU's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: SBU's earnings growth over the past year (6.6%) is below its 5-year average (8.2% per year).

Earnings vs Industry: SBU earnings growth over the past year (6.6%) underperformed the Banks industry 11%.


Return on Equity

High ROE: SBU's Return on Equity (18.9%) is considered low.


Financial Health

How is Stanbic Uganda Holdings'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: SBU's Assets to Equity ratio (6.2x) is low.

Allowance for Bad Loans: SBU has a low allowance for bad loans (93%).

Low Risk Liabilities: 84% of SBU's liabilities are made up of primarily low risk sources of funding.

Loan Level: SBU has an appropriate level of Loans to Assets ratio (55%).

Low Risk Deposits: SBU's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: SBU has a high level of bad loans (4.6%).


Dividend

What is Stanbic Uganda Holdings's current dividend yield, its reliability and sustainability?

7.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBU's dividend (7.15%) is higher than the bottom 25% of dividend payers in the UG market (4.53%).

High Dividend: SBU's dividend (7.15%) is low compared to the top 25% of dividend payers in the UG market (7.92%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), SBU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBU's dividends in 3 years are forecast to be covered by earnings (52.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andrew Mashanda (50 yo)

0.92

Tenure

Mr. Andrew Mashanda is CEO & Executive Director of Stanbic Uganda Holdings Limited from November 01, 2020. He joined the Stanbic Uganda Holdings Limited in 2020. He joined Standard Bank Group in 2006 and h...


Leadership Team

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


Board Members

Experienced Board: SBU's board of directors are not considered experienced ( 1.8 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

Stanbic Uganda Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Stanbic Uganda Holdings Limited
  • Ticker: SBU
  • Exchange: UGSE
  • Founded: 1906
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: USh1.331t
  • Shares outstanding: 51.19b
  • Website: https://www.stanbic.co.ug

Number of Employees


Location

  • Stanbic Uganda Holdings Limited
  • Crested Towers
  • Short Tower
  • Kampala
  • Uganda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 16:01
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
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.