OTCPK:BMBZ.F

Stock Analysis Report

Executive Summary

BLOM Bank SAL, together with its subsidiaries, provides various retail, commercial, investment, and private banking services in Lebanon, Europe, the Middle East, and North Africa.

Snowflake

Fundamentals

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

BMBZ.F

1.4%

US Banks

1.0%

US Market


1 Year Return

n/a

BMBZ.F

0.2%

US Banks

6.7%

US Market


Share holder returns

BMBZ.FIndustryMarket
7 Day0%1.4%1.0%
30 Day0%-2.6%-1.8%
90 Dayn/a0.8%-1.8%
1 Yearn/a3.1%0.2%9.1%6.7%
3 Yearn/a52.0%41.5%46.1%36.6%
5 Yearn/a69.7%51.2%66.9%48.6%

Price Volatility Vs. Market

How volatile is BLOM Bank SAL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BLOM Bank SAL 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

Undervalued: BMBZ.F ($8.61) is trading below our estimate of fair value ($17.8)

Significantly Undervalued: BMBZ.F is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: BMBZ.F is good value based on its PE Ratio (3.3x) compared to the Banks industry average (12.5x).

PE vs Market: BMBZ.F is good value based on its PE Ratio (3.3x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: BMBZ.F is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is BLOM Bank SAL expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BMBZ.F's earnings are forecast to decline over the next 3 years (-3.9% per year).

Earnings vs Market: BMBZ.F's earnings are forecast to decline over the next 3 years (-3.9% per year).

High Growth Earnings: BMBZ.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if BMBZ.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if BMBZ.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has BLOM Bank SAL performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BMBZ.F's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: BMBZ.F's earnings growth over the past year (5.4%) is below its 5-year average (9.9% per year).

Earnings vs Industry: BMBZ.F earnings growth over the past year (5.4%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: BMBZ.F's Return on Equity (15.7%) is considered low.


Return on Assets

ROA vs Industry: BMBZ.F has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BMBZ.F's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is BLOM Bank SAL'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

Asset Level: BMBZ.F's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BMBZ.F has a low allowance for bad loans.

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

Loan Level: BMBZ.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BMBZ.F's loans are broadly funded by customer deposits.

Level of Bad Loans: BMBZ.F has a high level of bad loans (4.46%)


Next Steps

Dividend

What is BLOM Bank SAL's current dividend yield, its reliability and sustainability?

15.83%

Expected Dividend Yield


Dividend Yield vs Market

company14.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years15.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BMBZ.F's dividend (14.62%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BMBZ.F's dividend (14.62%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, BMBZ.F has been paying a dividend for less than 10 years.

Growing Dividend: BMBZ.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), BMBZ.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BMBZ.F's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Saad Azhari (57yo)

12.3yrs

Tenure

0

Mr. Saad Nomaan Azhari has been the Chairman and General Manager of Blom Bank Sal and its subsidiary Blominvest Bank S.A.L. since 2007. Mr. Azhari serves as Chairman & General Manager of Blom Bank Lebanon. ...


Management Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BMBZ.F's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: BMBZ.F's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Antoine Lawandos (55yo)

    Chief Information Officer

    • Tenure: 13.3yrs
  • Talal Baba (51yo)

    Deputy GM

    • Tenure: 2.1yrs
  • Saad Azhari (57yo)

    Chairman & GM

    • Tenure: 12.3yrs
  • Elias Aractingi (59yo)

    General Manager

    • Tenure: 6.3yrs
  • Amr Azhari (48yo)

    GM & Director

    • Tenure: 4.1yrs
  • Malek Costa

    Head of Group Compliance

    • Tenure: 0yrs
  • Isabelle Naoum

    Head of Communication

    • Tenure: 0yrs
  • Mohamad Khaled

    Head of Administration

    • Tenure: 2.8yrs
  • Amine Awad (67yo)

    General Manager

    • Tenure: 2.1yrs
  • Alexandre Mouradian

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Nicolas Saade (68yo)

    Independent Director

    • Tenure: 29.3yrs
  • Saad Azhari (57yo)

    Chairman & GM

    • Tenure: 12.3yrs
  • Naaman Azhari (90yo)

    Chairman & GM of Blom Bank Group

    • Tenure: 12.3yrs
  • Marwan Jaroudi (59yo)

    Lead Director

    • Tenure: 3.3yrs
  • Amr Azhari (48yo)

    GM & Director

    • Tenure: 4.1yrs
  • Fadi Osseiran (62yo)

    Executive Director

    • Tenure: 11.3yrs
  • Saeb A. K. Zein (60yo)

    Independent Director

    • Tenure: 5.1yrs
  • Antoine Merheb (79yo)

    Independent Director

    • Tenure: 5.1yrs
  • Ahmad Shaker (54yo)

    Independent Director

    • Tenure: 2.1yrs
  • Mohamad Yassine Rabah (42yo)

    Independent Director

    • Tenure: 2.1yrs

Company Information

BLOM Bank SAL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BLOM Bank SAL
  • Ticker: BMBZ.F
  • Exchange: OTCPK
  • Founded: 1951
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$1.587b
  • Shares outstanding: 206.15m
  • Website: https://www.blom.com.lb/english/home

Number of Employees


Location

  • BLOM Bank SAL
  • BLOM BANK Building
  • Verdun
  • Beirut
  • Lebanon

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMBZ.FOTCPK (Pink Sheets LLC)YesSPON GDR REP BUSUSDJul 1998
BLOBKBDL (Bourse de Luxembourg)YesSPON GDR REP BLUUSDJul 1998
BLBDBDB (Bourse de Beyrouth)YesSPON GDR REP BLBUSDJul 1998
BLBDLSE (London Stock Exchange)YesSPON GDR REP BGBUSDJul 1998
BLBDLBATS-CHIXE (BATS 'Chi-X Europe')YesSPON GDR REP BGBUSDJul 1998
BLOMBDB (Bourse de Beyrouth)Common SharesLBUSDSep 2006

Biography

BLOM Bank SAL, together with its subsidiaries, provides various retail, commercial, investment, and private banking services in Lebanon, Europe, the Middle East, and North Africa. The company’s Retail Bank ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/25 23:33
End of Day Share Price2019/02/25 00:00
Earnings2018/12/31
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.

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