Bank of Georgia Group (OTCPK:BDGS.F) - Share price, News & Analysis

BDGS.F fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

BDGS.F Stock Overview

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

Rewards

Trading at 85.3% below our estimate of its fair value

Earnings are forecast to grow 7.42% per year

Earnings grew by 55.3% over the past year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Bank of Georgia Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bank of Georgia Group
Historical stock prices
Current Share Price	UK£20.00
52 Week High	UK£23.80
52 Week Low	UK£18.77
Beta	1.37
1 Month Change	n/a
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	2.56%
5 Year Change	n/a
Change since IPO	-24.24%

Shareholder Returns

	BDGS.F	US Banks	US Market
7D	0%	3.7%	6.6%
1Y	n/a	-17.7%	-18.5%

Return vs Industry: Insufficient data to determine how BDGS.F performed against the US Banks industry.

Return vs Market: Insufficient data to determine how BDGS.F performed against the US Market.

Price Volatility

Is BDGS.F's price volatile compared to industry and market?
BDGS.F volatility
BDGS.F Average Weekly Movement	n/a
Banks Industry Average Movement	3.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

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

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

About the Company

Founded	Employees	CEO	Website
2017	7,908	Archil Gachechiladze	https://www.bankofgeorgiagroup.com

Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia. It operates through three segments: Retail Banking, Corporate and Investment Banking, and BNB. The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and customers’ deposits for individuals and legal entities under the Express, Bank of Georgia, MSME, and SOLO brands.

Bank of Georgia Group Fundamentals Summary

How do Bank of Georgia Group's earnings and revenue compare to its market cap?
BDGS.F fundamental statistics
Market Cap	GEL2.48b
Earnings (TTM)	GEL825.31m
Revenue (TTM)	GEL1.53b

3.0x

P/E Ratio

0.8x

P/B Ratio

Is BDGS.F overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDGS.F income statement (TTM)
Revenue	GEL1.53b
Cost of Revenue	GEL40.26m
Gross Profit	GEL1.49b
Other Expenses	GEL666.00m
Earnings	GEL825.31m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	17.52
Gross Margin	97.37%
Net Profit Margin	53.89%
Debt/Equity Ratio	186.1%

How did BDGS.F perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

22%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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 BDGS.F?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BDGS.F. This is calculated by dividing BDGS.F's market cap by their current preferred multiple.
What is BDGS.F's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	GEL2.48b

BDGS.F 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	0.4x

Price to Earnings Ratio vs Peers

How does BDGS.F's PE Ratio compare to its peers?

BDGS.F PE Ratio vs Peers

The above table shows the PE ratio for BDGS.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.3x

Forward PE

Price-To-Earnings vs Peers: BDGS.F is good value based on its Price-To-Earnings Ratio (3x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

How does BDGS.F's PE Ratio compare vs other companies in the U.S. Banks Industry?

Price-To-Earnings vs Industry: BDGS.F is good value based on its Price-To-Earnings Ratio (3x) compared to the US Banks industry average (9.5x)

Price to Earnings Ratio vs Fair Ratio

What is BDGS.F'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.

BDGS.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BDGS.F's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: BDGS.F ($20) is trading below our estimate of fair value ($135.68)

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

Price to Earnings Growth Ratio

PEG Ratio: BDGS.F is good value based on its PEG Ratio (0.4x)

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Future Growth

How is Bank of Georgia Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDGS.F's forecast earnings growth (7.4% per year) is above the savings rate (1.9%).

Earnings vs Market: BDGS.F's earnings (7.4% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: BDGS.F's revenue (12.3% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: BDGS.F's revenue (12.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BDGS.F's Return on Equity is forecast to be high in 3 years time (22%)

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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

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

17.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDGS.F has high quality earnings.

Growing Profit Margin: BDGS.F's current net profit margins (53.9%) are higher than last year (51.1%).

Past Earnings Growth Analysis

Earnings Trend: BDGS.F's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: BDGS.F's earnings growth over the past year (55.3%) exceeds its 5-year average (17.3% per year).

Earnings vs Industry: BDGS.F earnings growth over the past year (55.3%) exceeded the Banks industry 20.7%.

Return on Equity

High ROE: Whilst BDGS.F's Return on Equity (25.31%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Bank of Georgia Group'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: BDGS.F's Assets to Equity ratio (7.4x) is low.

Allowance for Bad Loans: BDGS.F has a sufficient allowance for bad loans (104%).

Low Risk Liabilities: 69% of BDGS.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: BDGS.F has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: BDGS.F's Loans to Deposits ratio (112%) is appropriate.

Level of Bad Loans: BDGS.F has a high level of bad loans (2.6%).

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

8.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BDGS.F's dividend (8.86%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BDGS.F's dividend (8.86%) is in the top 25% of dividend payers in the US market (4.34%)

Stability and Growth of Payments

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

Growing Dividend: BDGS.F's dividend payments have increased, but the company has only paid a dividend for 4 years.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.9%), BDGS.F's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BDGS.F's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).

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Management

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

3.3yrs

Average management tenure

CEO

Archil Gachechiladze (41 yo)

3.42yrs

Tenure

GEL12,040,154

Compensation

Mr. Archil Gachechiladze, CFA, has been Chief Executive Officer and Executive Director of JSC Bank of Georgia since January 28, 2019. He serves as CEO of Bank of Georgia at Georgia Capital PLC. Mr. Gachech...

CEO Compensation Analysis

Compensation vs Market: Archil's total compensation ($USD4.10M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: Archil's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BDGS.F's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: BDGS.F's board of directors are considered experienced (4.3 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/05/31 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31