OTCPK:CKHG.Y

Stock Analysis Report

Capitec Bank Holdings

Executive Summary

Capitec Bank Holdings Limited, through its subsidiaries, provides various retail banking products and services in South Africa.

Snowflake

Fundamentals

High growth potential with excellent balance sheet and pays a dividend.

Risks

  • Capitec Bank Holdings has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:CKHG.Y

-1.8%

US Banks

0.2%

US Market


1 Year Return

0.4%

OTCPK:CKHG.Y

-15.3%

US Banks

-0.7%

US Market

CKHG.Y outperformed the Banks industry which returned -13.6% over the past year.

CKHG.Y matched the United States of America Market (0.3%) over the past year.


Share holder returns

CKHG.YIndustryMarket
7 Day0%-1.8%0.2%
30 Day-19.2%-6.4%-2.7%
90 Day-24.7%-4.0%1.6%
1 Year1.4%0.4%-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 Capitec Bank Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Capitec Bank Holdings undervalued based on future cash flows and its price relative to the stock market?

23.98x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Capitec Bank Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Capitec Bank Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Capitec Bank Holdings is overvalued based on earnings compared to the US Banks industry average.

Capitec Bank Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Capitec Bank Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Capitec Bank Holdings is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Capitec Bank Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Capitec Bank Holdings's revenue is expected to grow significantly at over 20% yearly.

Capitec Bank Holdings's earnings are expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).

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

Capitec Bank Holdings's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Capitec Bank Holdings performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Capitec Bank Holdings's year on year earnings growth rate has been positive over the past 5 years.

Capitec Bank Holdings's 1-year earnings growth exceeds its 5-year average (18.5% vs 18.4%)

Capitec Bank Holdings's earnings growth has not exceeded the US Banks industry average in the past year (18.5% vs 33.2%).


Return on Equity

Capitec Bank Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Capitec Bank Holdings 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 Capitec Bank Holdings 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 Capitec Bank Holdings'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

Capitec Bank Holdings has an acceptable proportion of non-loan assets held.

Capitec Bank Holdings has a sufficient allowance for bad loans.

Capitec Bank Holdings's liabilities are made up of primarily low risk sources of funding.

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

Loans at Capitec Bank Holdings are broadly funded by customer deposits.

Capitec Bank Holdings has a high level of bad loans (greater than 2%).


Next Steps

Dividend

What is Capitec Bank Holdings's current dividend yield, its reliability and sustainability?

2.38%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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

Capitec Bank Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Gerrie Fourie (55yo)

5.6yrs

Tenure

SAR56,644,000

Compensation

Mr. Gerhardus Metselaar Fourie, also known as Gerrie, B Comm (Hons), MBA has been Chief Executive Officer of Capitec Bank Limited and Capitec Bank Holdings Limited since January 1, 2014. Mr. Fourie served  ...


CEO Compensation Analysis

Gerrie's remuneration is lower than average for companies of similar size in United States of America.

Gerrie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Capitec Bank Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.9yrs

Average Tenure

54.5yo

Average Age

The tenure for the Capitec Bank Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gerrie Fourie (55yo)

    CEO & Executive Director

    • Tenure: 5.6yrs
    • Compensation: SAR56.64m
  • André du Plessis (57yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
    • Compensation: SAR41.59m
  • Henk Lourens (53yo)

    Executive of Operations & Sales and Member of Executive Management Committee

    • Tenure: 5.6yrs
  • Jaco Carstens (51yo)

    Chief Credit Officer & Member of Executive Management Committee

    • Tenure: 15.6yrs
  • Jan-Hendrik de Beer

    Compliance & Anti-Money Laundering Head

    • Tenure: 0.0yrs
  • Nathan Stephen Motjuwadi (52yo)

    Executive of Human Resources & Member of Executive Management Committee

    • Tenure: 0.0yrs
  • Wim de Bruyn (48yo)

    Executive of Information Technology & Member of Executive Management Committee

    • Tenure: 0.0yrs
  • Nkosana Mashiya (43yo)

    CRO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: SAR10.66m
  • Francois Viviers (36yo)

    Executive of Marketing & Communications and Member of Executive Management Committee

    • Tenure: 3.2yrs
  • R. Swanepoel

    Acting Internal Audit Head

    • Tenure: 0.0yrs

Board Members

  • Gerrie Fourie (55yo)

    CEO & Executive Director

    • Tenure: 5.6yrs
    • Compensation: SAR56.64m
  • Chris Otto (69yo)

    Non-Executive Director

    • Tenure: 19.3yrs
    • Compensation: SAR670.00k
  • Michiel du Pré le Roux (69yo)

    Non-Executive Director

    • Tenure: 18.4yrs
    • Compensation: SAR300.00k
  • Santie Botha (54yo)

    Chairman of the Board

    • Tenure: 0.2yrs
  • André du Plessis (57yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
    • Compensation: SAR41.59m
  • Jock McKenzie (72yo)

    Lead Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: SAR670.00k
  • Piet Mouton (43yo)

    Non Executive Director

    • Tenure: 11.8yrs
    • Compensation: SAR480.00k
  • Jean Verster (38yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: SAR610.00k
  • Nkosana Mashiya (43yo)

    CRO & Executive Director

    • Tenure: 3.2yrs
    • Compensation: SAR10.66m
  • Kabelo Makwane (42yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR271.00k

Company Information

Capitec Bank Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capitec Bank Holdings Limited
  • Ticker: CKHG.Y
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: SAR126.727b
  • Listing Market Cap: SAR8.254b
  • Shares outstanding: 115.63m
  • Website: https://www.capitecbank.co.za

Number of Employees


Location

  • Capitec Bank Holdings Limited
  • 1 Quantum Street
  • Techno Park
  • Stellenbosch
  • Western Cape
  • 7600
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARFeb 2002
CPIPJSE (The Johannesburg Securities Exchange)ZAR0.01 NON CUM NON RED PREFZAZARSep 2006
CKHG.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2009

Biography

Capitec Bank Holdings Limited, through its subsidiaries, provides various retail banking products and services in South Africa. The company offers various deposits products, including transaction and savin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:32
End of Day Share Price2019/08/14 00:00
Earnings2019/02/28
Annual Earnings2019/02/28


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.