OTCPK:MBNK.F

Stock Analysis Report

Executive Summary

Metro Bank PLC, together with its subsidiaries, provides retail and commercial banking services in the United Kingdom.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

MBNK.F

-0.3%

US Banks

0.06%

US Market


1 Year Return

-86.0%

MBNK.F

11.1%

US Banks

19.3%

US Market

Return vs Industry: MBNK.F underperformed the US Banks industry which returned 11.1% over the past year.

Return vs Market: MBNK.F underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

MBNK.FIndustryMarket
7 Day-4.3%-0.3%0.06%
30 Day-2.4%-0.5%1.7%
90 Day1.0%0.6%9.0%
1 Year-86.0%-86.0%14.4%11.1%21.8%19.3%
3 Year-94.0%-94.0%24.7%15.7%49.5%39.9%
5 Yearn/a74.9%55.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Metro Bank undervalued compared to its fair value and its price relative to the market?

17.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MBNK.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MBNK.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MBNK.F is poor value based on its PE Ratio (17.2x) compared to the Banks industry average (12.6x).

PE vs Market: MBNK.F is good value based on its PE Ratio (17.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MBNK.F is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MBNK.F is good value based on its PB Ratio (0.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Metro Bank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

65.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBNK.F's forecast earnings growth (65.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MBNK.F's earnings (65.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MBNK.F's revenue (9.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MBNK.F's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MBNK.F's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Metro Bank performed over the past 5 years?

84.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBNK.F has high quality earnings.

Growing Profit Margin: MBNK.F's current net profit margins (3.1%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: MBNK.F has become profitable over the past 5 years, growing earnings by 84% per year.

Accelerating Growth: MBNK.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: MBNK.F had negative earnings growth (-42.4%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: MBNK.F's Return on Equity (0.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Metro Bank'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: MBNK.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: MBNK.F's debt is covered by short term assets (assets are 2.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MBNK.F is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: MBNK.F is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

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

Allowance for Bad Loans: MBNK.F has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: MBNK.F has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MBNK.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MBNK.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MBNK.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MBNK.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MBNK.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Dan Frumkin (55yo)

0.08yrs

Tenure

0

Mr. Daniel Frumkin, also known as Dan, serves as Interim Chief Executive Officer at Metro Bank Plc since 1 January 2020 and served as Director. He joined Metro Bank Plc in September 2019. He served as its  ...


Leadership Team

NamePositionTenureCompensationOwnership
David Arden
CFO, Company Secretary & Executive Director1.9yrsUK£1.18m0.011% £48.8k
Daniel Frumkin
Interim CEO & Director0.08yrsno datano data
Aisling Kane
Chief Operating Officer0yrsno datano data
Cheryl Newton
Chief Information Officer0.6yrsno datano data
Mark Price
Chief Credit Officer7.1yrsno datano data
Aileen Gillan
Chief Risk Officer6.9yrsno datano data
Ian Walters
Managing Director of Retail & Business Banking4.5yrsno datano data
Julie Barnsley
Head of Private Banking Services4.4yrsno datano data
Mark Stokes
Managing Director of Commercial Banking4.2yrsno datano data
Paul Riseborough
Chief Commercial Officer0yrsno datano data

4.3yrs

Average Tenure

50yo

Average Age

Experienced Management: MBNK.F's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Arden
CFO, Company Secretary & Executive Director1.9yrsUK£1.18m0.011% £48.8k
Daniel Frumkin
Interim CEO & Director0.08yrsno datano data
Roger Farah
Independent Non-Executive Director6yrsUK£70.82k0.40% £1.8m
H. Lockhart
Non-Executive Director9.9yrsUK£99.19k0.026% £119.3k
Stuart D. Bernau
Non-Executive Director9.9yrsUK£90.63k0.030% £135.7k
Amit Bhatia
Member of Advisory Board0yrsno datano data
Anna Melis
Interim Senior Independent Director0.2yrsUK£58.96k0.00098% £4.5k
James Reuben
Member of Advisory Board0yrsno datano data
Michael Snyder
Interim Chairman & Senior Independent Director0.3yrsUK£70.63k0.028% £128.1k
John Roddan
Member of Advisory Board0yrsno datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: MBNK.F's board of directors are considered experienced (4 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 been diluted in the past year, with total shares outstanding growing by 24.2%.


Top Shareholders

Company Information

Metro Bank PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Metro Bank PLC
  • Ticker: MBNK.F
  • Exchange: OTCPK
  • Founded: 2007
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: UK£355.186m
  • Listing Market Cap: UK£457.302m
  • Shares outstanding: 172.42m
  • Website: https://www.metrobankonline.co.uk

Number of Employees


Location

  • Metro Bank PLC
  • One Southampton Row
  • London
  • Greater London
  • WC1B 5HA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTROLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2016
6MBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2016
MTROLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2016
MBNK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2016

Biography

Metro Bank PLC, together with its subsidiaries, provides retail and commercial banking services in the United Kingdom. The company offers personal banking products and services, including current and savings accounts; residential mortgages; credit cards and personal loans; and safe deposit box services. It also provides business banking products and services comprising business bank, commercial and community current, foreign currency, and insolvency practitioner accounts; deposit accounts, including business and community instant access deposit and fixed term deposit, client premium and flexible client term deposit, and business notice accounts; business and commercial loans and overdrafts, business credit cards, asset financing, invoice financing, and enterprise finance guarantee scheme. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:22
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
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.