OTCPK:BDGS.F

Stock Analysis Report

Bank of Georgia Group

Executive Summary

Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia.

Snowflake

Fundamentals

Undervalued with adequate balance sheet and pays a dividend.

Risks

  • Bank of Georgia Group has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:BDGS.F

-1.8%

US Banks

0.2%

US Market


1 Year Return

-26.5%

OTCPK:BDGS.F

-15.3%

US Banks

-0.7%

US Market

BDGS.F underperformed the Banks industry which returned -13.6% over the past year.

BDGS.F underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

BDGS.FIndustryMarket
7 Day0%-1.8%0.2%
30 Day-20.7%-6.4%-2.7%
90 Day-15.5%-4.0%1.6%
1 Year-26.5%-26.5%-12.9%-15.3%1.6%-0.7%
3 Yearn/a41.3%31.7%40.0%30.9%
5 Yearn/a50.8%34.5%53.8%36.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of Georgia Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bank of Georgia Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bank of Georgia Group is good value based on earnings compared to the US Banks industry average.

Bank of Georgia Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of Georgia Group is good value based on expected growth next year.


Price Based on Value of Assets

Bank of Georgia Group is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Bank of Georgia Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of Georgia Group's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

Bank of Georgia Group's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Bank of Georgia Group's revenue growth is expected to exceed the United States of America market average.

Bank of Georgia Group's earnings growth is positive but not above the United States of America market average.

Bank of Georgia Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank of Georgia Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Bank of Georgia Group performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of Georgia Group's year on year earnings growth rate has been positive over the past 5 years.

Bank of Georgia Group's 1-year earnings growth exceeds its 5-year average (32.3% vs 10.1%)

Bank of Georgia Group's earnings growth has not exceeded the US Banks industry average in the past year (32.3% vs 33.2%).


Return on Equity

Whilst Bank of Georgia Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Bank of Georgia Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of Georgia Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Bank of Georgia Group'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Bank of Georgia Group has an acceptable proportion of non-loan assets held.

Bank of Georgia Group has a low allowance for bad loans.

Bank of Georgia Group's liabilities are made up of primarily low risk sources of funding.

Bank of Georgia Group's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of Georgia Group are broadly funded by customer deposits.

Bank of Georgia Group has a high level of bad loans (greater than 2%).


Next Steps

Dividend

What is Bank of Georgia Group's current dividend yield, its reliability and sustainability?

7.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of Georgia Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Bank of Georgia Group's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

It is too early to tell whether Bank of Georgia Group has stable dividend payments.

Bank of Georgia Group only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Archil Gachechiladze (39yo)

0.6yrs

Tenure

GEL1,628,094

Compensation

Mr. Archil Gachechiladze, CFA, has been Chief Executive Officer and Member of Management Board of JSC Bank of Georgia since Janauary 28, 2019. Mr. Gachechiladze has been Chief Executive Officer and Directo ...


CEO Compensation Analysis

Insufficient data for Archil to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Archil's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

45yo

Average Age

The average tenure for the Bank of Georgia Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

49.5yo

Average Age

The average tenure for the Bank of Georgia Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellGEL678,41720 Mar 19
David Tsiklauri
EntityIndividual
Shares30,000
Max PriceGEL22.62
SellGEL245,28427 Feb 19
David Tsiklauri
EntityIndividual
Shares11,000
Max PriceGEL22.33
BuyGEL260,00807 Dec 18
Kakhaber Kiknavelidze
EntityIndividual
Role
Senior Key Executive
Senior Advisor
Shares15,000
Max PriceGEL17.33
BuyGEL100,52507 Dec 18
David Tsiklauri
EntityIndividual
Shares6,000
Max PriceGEL16.79
BuyGEL68,97805 Dec 18
David Tsiklauri
EntityIndividual
Shares4,000
Max PriceGEL17.32
BuyGEL642,18503 Dec 18
Rubicon Executive Equity Compensation Trust
EntityCompany
Shares34,942
Max PriceGEL18.38

Ownership Breakdown


Management Team

  • Kaha Kiknavelidze (46yo)

    Senior Advisor

    • Tenure: 0.6yrs
    • Compensation: GEL3.14m
  • Sulkhan Gvalia (45yo)

    Deputy CEO & CFO

    • Tenure: 0.3yrs
    • Compensation: GEL1.15m
  • Mikheil Gomarteli (43yo)

    Deputy CEO of Retail Banking (Emerging and Mass Retail & Micro Business Banking)

    • Tenure: 0.0yrs
    • Compensation: GEL1.45m
  • George Chiladze (48yo)

    Deputy CEO & Chief Risk Officer

    • Tenure: 5.9yrs
  • Archil Gachechiladze (39yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: GEL1.63m
  • Ekaterina Shavgulidze

    Group Head of Investment & Business Development

    • Tenure: 2.3yrs
  • Levan Kulijanishvili

    Deputy CEO of Operations

    • Tenure: 1.9yrs
    • Compensation: GEL967.29k
  • Vakhtang Bobokhidze

    Deputy CEO & Chief Information Officer

    • Tenure: 1.4yrs
  • Rebecca Wooldridge

    General Counsel

    • Tenure: 1.2yrs
  • Natia Kalandarishvili

    Head of Investor Relations and Funding

    • Tenure: 0.0yrs

Board Members

  • Jonathan Muir

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: GEL156.10k
  • Al Breach (49yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: GEL156.95k
  • Hanna-Leena Loikkanen (50yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: GEL170.02k
  • Archil Gachechiladze (39yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: GEL1.63m
  • Neil Janin (64yo)

    Non-Executive Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: GEL313.90k
  • Tamaz Georgadze

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: GEL167.35k
  • Véronique Mccarroll

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: GEL13.09k
  • Cecil Quillen

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: GEL114.33k
  • Andreas Wolf

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: GEL20.70k

Company Information

Bank of Georgia Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Georgia Group PLC
  • Ticker: BDGS.F
  • Exchange: OTCPK
  • Founded: 2017
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£637.346m
  • Listing Market Cap: UK£774.522m
  • Shares outstanding: 47.67m
  • Website: https://bankofgeorgiagroup.com

Number of Employees


Location

  • Bank of Georgia Group PLC
  • 84 Brook Street
  • London
  • Greater London
  • W1K 5EH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGEOLSE (London Stock Exchange)YesNew Common SharesGBGBPMay 2018
BGEOLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBGBPMay 2018
BDGS.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 2018

Biography

Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia. It operates through Retail Banking, Corporate Investment Banking, BNB, and Other Banking Busi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:37
End of Day Share Price2019/07/31 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.