OTCPK:SGBL.Y

Stock Analysis Report

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Executive Summary

Standard Bank Group Limited, together with its subsidiaries, offers banking and financial products and services.

Rewards

PE ratio (6.7x) is below the US market (19.2x)

Earnings are forecast to grow 3.98% per year

Risk Analysis

No risks detected for SGBL.Y from our risk checks.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

SGBL.Y

7.1%

US Banks

-0.04%

US Market


1 Year Return

-43.6%

SGBL.Y

-14.6%

US Banks

17.1%

US Market

Return vs Industry: SGBL.Y underperformed the US Banks industry which returned -17.7% over the past year.

Return vs Market: SGBL.Y underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

SGBL.YIndustryMarket
7 Day-0.7%7.1%-0.04%
30 Day-10.6%8.7%5.1%
90 Day31.0%22.8%19.5%
1 Year-40.3%-43.6%-11.6%-14.6%19.6%17.1%
3 Year-45.6%-52.2%-7.4%-14.9%42.5%33.3%
5 Year-36.4%-48.3%18.3%3.9%75.1%56.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGBL.Y ($6.02) is trading above our estimate of fair value ($5.08)

Significantly Below Fair Value: SGBL.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGBL.Y is good value based on its PE Ratio (6.7x) compared to the US Banks industry average (10x).

PE vs Market: SGBL.Y is good value based on its PE Ratio (6.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SGBL.Y is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SGBL.Y is overvalued based on its PB Ratio (1x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Standard Bank Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGBL.Y's forecast earnings growth (4% per year) is above the savings rate (2.2%).

Earnings vs Market: SGBL.Y's earnings (4% per year) are forecast to grow slower than the US market (24% per year).

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

Revenue vs Market: SGBL.Y's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: SGBL.Y's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGBL.Y's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Standard Bank Group performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGBL.Y has high quality earnings.

Growing Profit Margin: SGBL.Y's current net profit margins (20.7%) are lower than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: SGBL.Y's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: SGBL.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: SGBL.Y had negative earnings growth (-7.3%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: SGBL.Y's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is Standard Bank 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


Financial Institutions Analysis

Asset Level: SGBL.Y's Assets to Equity ratio (10.9x) is moderate.

Allowance for Bad Loans: SGBL.Y has a low allowance for bad loans (75%).

Low Risk Liabilities: 69% of SGBL.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: SGBL.Y has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: SGBL.Y's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: SGBL.Y has a high level of bad loans (3.8%).


Next Steps

Dividend

What is Standard Bank Group current dividend yield, its reliability and sustainability?

6.01%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SGBL.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGBL.Y'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?

3.2yrs

Average management tenure


CEO

Sim Tshabalala (53 yo)

7.42yrs

Tenure

R49,196,000

Compensation

Mr. Simpiwe Kenneth Tshabalala, also known as Sim, BA, LLB, LLM, HDip Tax, AMP, has been Group Chief Executive Officer of Standard Bank Group Limited since March 7, 2013. Mr. Tshabalala serves as an Execut ...


CEO Compensation Analysis

Compensation vs Market: Sim's total compensation ($USD2.81M) is below average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Sim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simpiwe Tshabalala
Group Chief Executive & Director7.42yrsR49.20m0.029%
ZAR 2.8m
Arno Daehnke
Group Financial Director & Executive Director4.25yrsR33.21m0.016%
ZAR 1.6m
Kenny Fihla
Chief Executive of Corporate and Investment Banking (CIB)3.25yrsR37.03mno data
Margaret Nienaber
Chief Executive of Wealth3.75yrsR36.50mno data
Zweli Manyathi
Chief Executive of Personal & Business Banking Group2.33yrsR37.20mno data
Alpheus Mangale
Group Chief Information Officer3.08yrsno datano data
Sarah Rivett-Carnac
Head of Investor Relationsno datano datano data
Isabel Lawrence
Group Chief Compliance & Data Officer8.58yrsno datano data
Rene Du Preez
Group General Counsel2.17yrsno datano data
Thulani Sibeko
Group Head of Marketing & Communication1.75yrsno datano data
Alan Bedford-Shaw
Head of Corporate Developmentno datano datano data
Sharon Taylor
Group Head of Human Capital1.75yrsno datano data

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: SGBL.Y's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simpiwe Tshabalala
Group Chief Executive & Director7.42yrsR49.20m0.029%
ZAR 2.8m
Arno Daehnke
Group Financial Director & Executive Director4.25yrsR33.21m0.016%
ZAR 1.6m
John Maree
Deputy Chairman of the Board3.75yrsR4.65mno data
Myles John Denniss Ruck
Independent Non-Executive Director18.58yrsR3.19m0.0016%
ZAR 152.0k
Thulani Gcabashe
Independent Chairman of the Board5.25yrsR7.13m0.0039%
ZAR 374.7k
Kgomotso Moroka
Non-Executive Director17.08yrsR1.41mno data
André Parker
Independent Non-Executive Director6.42yrsR1.25mno data
Martin Oduor-Otieno
Independent Non-Executive Director4.58yrsR2.38mno data
Atedo Nari Peterside
Independent Non-Executive Director6yrsR2.60mno data
Xueqing Guan
Joint Deputy Chairman of the Boardno datano datano data
Gesina Maria Kennealy
Lead Independent Non-Executive Director0.17yrR1.90mno data
Geraldine Fraser-Moleketi
Independent Non-Executive Director3.75yrsR1.38mno data

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: SGBL.Y's board of directors are considered experienced (5.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Standard Bank Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Standard Bank Group Limited
  • Ticker: SGBL.Y
  • Exchange: OTCPK
  • Founded: 1862
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R169.617b
  • Listing Market Cap: R9.683b
  • Shares outstanding: 1.59b
  • Website: https://www.standardbank.co.za

Number of Employees


Location

  • Standard Bank Group Limited
  • Standard Bank Centre
  • 9th Floor
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBGO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SKC2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SNBNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1992
SBKJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
SGBL.YOTCPK (Pink Sheets LLC)SPON ADR EA REPR 1 ORDUSUSDMar 2009
SKCSDB (Deutsche Boerse AG)SPON ADR EA REPR 1 ORDDEEURMar 2009

Biography

Standard Bank Group Limited, together with its subsidiaries, offers banking and financial products and services. The company’s personal banking products include bank accounts, digital wallets, credit and p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:39
End of Day Share Price2020/08/11 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.