OTCPK:BWAG.F

Stock Analysis Report

Executive Summary

BAWAG Group AG operates as a holding company for BAWAG P.S.K.

Rewards

Trading at 26.6% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -2.7% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BWAG.F

2.7%

US Banks

1.1%

US Market


1 Year Return

7.3%

BWAG.F

22.7%

US Banks

17.8%

US Market

Return vs Industry: BWAG.F underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: BWAG.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BWAG.FIndustryMarket
7 Day0%2.7%1.1%
30 Day0%0.9%1.4%
90 Dayn/a10.0%3.9%
1 Year7.3%7.3%26.3%22.7%20.3%17.8%
3 Yearn/a31.8%22.6%44.8%35.4%
5 Yearn/a80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is BAWAG Group undervalued compared to its fair value and its price relative to the market?

26.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWAG.F ($43.37) is trading below our estimate of fair value ($59.11)

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


Price To Earnings Ratio

PE vs Industry: BWAG.F is good value based on its PE Ratio (8.4x) compared to the Banks industry average (12.7x).

PE vs Market: BWAG.F is good value based on its PE Ratio (8.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BWAG.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BWAG.F is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is BAWAG Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWAG.F's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: BWAG.F's earnings are forecast to decline over the next 3 years (-2.7% per year).

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

Revenue vs Market: BWAG.F's revenue (1.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BWAG.F's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWAG.F's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has BAWAG Group performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWAG.F has high quality earnings.

Growing Profit Margin: BWAG.F's current net profit margins (40.3%) are lower than last year (49.5%).


Past Earnings Growth Analysis

Earnings Trend: BWAG.F's earnings have grown by 4.6% per year over the past 5 years.

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

Earnings vs Industry: BWAG.F had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: BWAG.F's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BAWAG 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

Inventory Level: BWAG.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: BWAG.F's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: BWAG.F has a high level of bad loans (3.1%)


Next Steps

Dividend

What is BAWAG Group's current dividend yield, its reliability and sustainability?

5.79%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years6.8%

Current dividend yield vs market & industry

Notable Dividend: BWAG.F's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BWAG.F's dividend (5.79%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

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

Growing Dividend: BWAG.F's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.4%), BWAG.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWAG.F's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Anas Abuzaakouk (42yo)

0yrs

Tenure

€5,247,000

Compensation

Mr. Anas Abuzaakouk serves as Chief Executive Officer at BAWAG Group AG and also has been its Chairman of the Managing Board since 19 August 2017. Mr. Abuzaakouk is Chairman of the Supervisory Board at eas ...


CEO Compensation Analysis

Compensation vs Market: Anas's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Insufficient data to compare Anas's compensation with company performance.


Management Age and Tenure

2.3yrs

Average Tenure

42yo

Average Age

Experienced Management: BWAG.F's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: BWAG.F's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

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


Management Team

  • Anas Abuzaakouk (42yo)

    Chairman of the Managing Board & CEO

    • Tenure: 0yrs
    • Compensation: €5.25m
  • Stefan Barth (42yo)

    Chief Risk Officer & Member of Managing Board

    • Tenure: 2.3yrs
    • Compensation: €1.91m
  • Sat Shah (41yo)

    Member of Management Board

    • Tenure: 2.3yrs
    • Compensation: €4.35m
  • David O'Leary (44yo)

    Head of BAWAG P.S.K. Retail & Member of the Managing Board

    • Tenure: 2.3yrs
    • Compensation: €2.78m
  • Andrew Wise (48yo)

    Chief Investment Officer

    • Tenure: 2.7yrs
    • Compensation: €3.46m
  • Enver Sirucic (37yo)

    CFO & Member of Management Board

    • Tenure: 0yrs
    • Compensation: €1.18m
  • Jutta Wimmer

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Kim Fennebresque (69yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
  • Pieter Korteweg (78yo)

    Supervisory Board Chairman

    • Tenure: 2.3yrs
  • Ingrid Streibel -Zarfl (60yo)

    Supervisory Board Member of Works Council Delegate

    • Tenure: 2.2yrs
  • Rainer Wimmer

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Anton Wais

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Heinz Sundt

    Member of Economic Advisory Board

    • Tenure: 0yrs
  • Fred Haddad (71yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
  • Chris Brody (51yo)

    1st Deputy Chairman of Supervisory Board

    • Tenure: 2.3yrs
  • Egbert Fleischer (62yo)

    2nd Deputy Chairman of the Supervisory Board

    • Tenure: 2.3yrs
  • Adam Rosmarin (56yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs

Company Information

BAWAG Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BAWAG Group AG
  • Ticker: BWAG.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €3.359b
  • Listing Market Cap: €3.727b
  • Shares outstanding: 89.14m
  • Website: https://www.bawaggroup.com

Number of Employees


Location

  • BAWAG Group AG
  • Wiedner Gürtel 11
  • Vienna
  • Vienna
  • 1100
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGWBAG (Wiener Boerse AG)YesOrdinary SharesATEUROct 2017
0B2DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2017
BGVBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2017
0B2BST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2017
0RVELSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2017
BWAG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2017

Biography

BAWAG Group AG operates as a holding company for BAWAG P.S.K. that provides various banking products and services in Western Europe, Central and Eastern Europe, North America, and internationally. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:15
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
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.