OTCPK:BKQN.Y

Stock Analysis Report

Executive Summary

Bank of Queensland Limited, together with its subsidiaries, provides various financial products and services in Australia.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BKQN.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.9%

BKQN.Y

2.9%

US Banks

5.3%

US Market


1 Year Return

-53.6%

BKQN.Y

-27.8%

US Banks

-10.7%

US Market

Return vs Industry: BKQN.Y underperformed the US Banks industry which returned -27.8% over the past year.

Return vs Market: BKQN.Y underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

BKQN.YIndustryMarket
7 Day6.9%2.9%5.3%
30 Day-34.1%-26.3%-13.6%
90 Day-39.0%-39.3%-19.8%
1 Year-50.7%-53.6%-25.6%-27.8%-8.9%-10.7%
3 Year-59.0%-66.1%-17.1%-23.1%15.5%8.0%
5 Year-61.4%-71.3%10.9%-1.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is Bank of Queensland'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 Queensland undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKQN.Y ($6.2) is trading below our estimate of fair value ($8.32)

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


Price To Earnings Ratio

PE vs Industry: BKQN.Y is good value based on its PE Ratio (6.8x) compared to the Banks industry average (8.9x).

PE vs Market: BKQN.Y is good value based on its PE Ratio (6.8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BKQN.Y is poor value based on its PEG Ratio (11x)


Price to Book Ratio

PB vs Industry: BKQN.Y is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of Queensland forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKQN.Y's forecast earnings growth (0.6% per year) is below the savings rate (1.7%).

Earnings vs Market: BKQN.Y's earnings (0.6% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: BKQN.Y's revenue (1.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: BKQN.Y's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKQN.Y's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Bank of Queensland performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKQN.Y has high quality earnings.

Growing Profit Margin: BKQN.Y's current net profit margins (29.2%) are lower than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: BKQN.Y's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: BKQN.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BKQN.Y had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Banks industry average (10.9%).


Return on Equity

High ROE: BKQN.Y's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Bank of Queensland'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

Inventory Level: BKQN.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: BKQN.Y's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: BKQN.Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BKQN.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: BKQN.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: BKQN.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BKQN.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: BKQN.Y has an appropriate level of bad loans (0.43%)


Next Steps

Dividend

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

12.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKQN.Y's dividend (12.2%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: BKQN.Y's dividend (12.2%) is in the top 25% of dividend payers in the US market (5.37%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.6%), BKQN.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKQN.Y's dividends in 3 years are forecast to be covered by earnings (73.9% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

George Frazis (55yo)

0.58

Tenure

Mr. George Frazis, B Eng (Hons) MBA (AGSM) MBA (Wharton) serves as the MD, CEO & Director of Bank of Queensland Ltd. since September 5, 2019. Mr. Frazis was an Executive Officer at Westpac Banking Corporat ...


Leadership Team

NamePositionTenureCompensationOwnership
Debra Eckersley
Group Executive People & Culture1.58yrsAU$602.58kno data
Lyn McGrath
Group Executive of Retail Banking1.67yrsAU$1.38m0.011% A$157.8k
Adam McAnalen
Chief Risk Officer0.83yrAU$659.07k0.0088% A$122.3k
George Frazis
MD, CEO & Director0.58yrno data0.011% A$153.4k
Ewen Stafford
CFO & COO0.42yrno datano data
Cherie Bell
General Manager of Investor Relationsno datano datano data
James Shaw
Head of Fundingno datano datano data
Tracy Hicks
Head of Corporate Affairsno datano datano data
Natasha Kelso
Head of BOQ Broker1.83yrsno datano data
Racheal Kellaway
Deputy CFO0.42yrno datano data

0.8yrs

Average Tenure

Experienced Management: BKQN.Y's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
George Frazis
MD, CEO & Director0.58yrno data0.011% A$153.4k
Richard Andrew Haire
Non-Executive Independent Director8yrsAU$238.19k0.0037% A$50.9k
Patrick Newton Allaway
Non-Executive Independent Chairman0.50yrAU$61.14k0.030% A$411.4k
Warwick Negus
Non-Executive Independent Director3.58yrsAU$210.80k0.0064% A$89.3k
Karen Lee Penrose
Non-Executive Independent Director4.42yrsAU$245.61k0.0037% A$52.2k
John Lorimer
Non-Executive Independent Director4.25yrsAU$208.05k0.0047% A$64.8k
Michelle Tredenick
Non-Executive Independent Director9.17yrsAU$255.75k0.0044% A$60.7k
Bruce Carter
Non-Executive Independent Director6.17yrsAU$261.28k0.010% A$141.4k
Kathleen Bailey-Lord
Independent Non-Executive Director0.92yrAU$61.14k0.0016% A$22.3k

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: BKQN.Y'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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Bank of Queensland Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank of Queensland Limited
  • Ticker: BKQN.Y
  • Exchange: OTCPK
  • Founded: 1874
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: AU$2.268b
  • Listing Market Cap: AU$1.392b
  • Shares outstanding: 453.69m
  • Website: https://www.boq.com.au

Number of Employees


Location

  • Bank of Queensland Limited
  • 100 Skyring Terrace
  • Level 6
  • Newstead
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOQASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
BKQN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BXZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BOQCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BXZBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJan 1992
BKQN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008
BOQPDASX (Australian Securities Exchange)NPV PERP EQTY PRF (CPS)AUAUDDec 2012

Biography

Bank of Queensland Limited, together with its subsidiaries, provides various financial products and services in Australia. The company operates in Retail Banking, BOQ Business, and Other segments. It offers personal banking services comprises savings and term deposits, and transactional accounts; debit and credit cards; home, personal, and car loans; and travel, home, content, and car insurance; as well as investment services comprising online share trading services; and self-managed superannuation funds. The company’s business banking services include transaction accounts, and savings and investment accounts; loans and finance products; merchant and payment products; and financial market and international services. It also offers Internet and mobile banking services. As of August 31, 2019, it had 65 corporate branches and 95 owner managed branches; and 572 company branded ATMs and 1,033 other ATMs, as well as 7 transaction centers. Bank of Queensland Limited was founded in 1874 and is based in Newstead, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 09:13
End of Day Share Price2020/03/30 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.