OTCPK:TBCC.F

Stock Analysis Report

Executive Summary

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

TBCC.F

4.1%

US Banks

1.0%

US Market


1 Year Return

n/a

TBCC.F

7.2%

US Banks

8.0%

US Market

Return vs Industry: Insufficient data to determine how TBCC.F performed against the US Banks industry.

Return vs Market: Insufficient data to determine how TBCC.F performed against the US Market.


Shareholder returns

TBCC.FIndustryMarket
7 Day0%4.1%1.0%
30 Day0%2.8%-0.07%
90 Dayn/a2.9%-1.0%
1 Yearn/a10.3%7.2%10.4%8.0%
3 Yearn/a53.9%43.3%46.2%36.7%
5 Yearn/a71.9%53.1%64.3%46.2%

Price Volatility Vs. Market

How volatile is TBC 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 TBC Bank Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TBCC.F ($15.5) is trading below our estimate of fair value ($41.05)

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


Price To Earnings Ratio

PE vs Industry: TBCC.F is good value based on its PE Ratio (5.5x) compared to the Banks industry average (12.6x).

PE vs Market: TBCC.F is good value based on its PE Ratio (5.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TBCC.F is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TBCC.F is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is TBC Bank Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBCC.F's forecast earnings growth (9.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TBCC.F's earnings (9.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TBCC.F's revenue (12.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TBCC.F's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TBCC.F's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

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

23.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TBCC.F's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: TBCC.F's earnings growth over the past year (29.2%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: TBCC.F earnings growth over the past year (29.2%) underperformed the Banks industry 30.1%.


Return on Equity

High ROE: Whilst TBCC.F's Return on Equity (20.73%) is high, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is TBC 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

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

Debt Coverage by Assets: TBCC.F's debt is covered by short term assets (assets are 1.052500x debt).


Financial Institutions Analysis

Asset Level: TBCC.F's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: TBCC.F has a high level of bad loans (3.05%)


Next Steps

Dividend

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

4.02%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years7.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TBCC.F's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TBCC.F's dividend (4.02%) is in the top 25% of dividend payers in the US market (3.68%)

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

Growing Dividend: TBCC.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 low payout ratio (22%), TBCC.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TBCC.F's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Vakhtang Butskhrikidze 0

3.4yrs

Tenure

GEL3,356,000

Compensation

Mr. Vakhtang Butskhrikidze serves as the Chief Executive Officer of TBC Bank Group PLC since May 2016. Mr. Butskhrikidze serves as Chief Executive Officer of JSC TBC Bank. Mr. Butskhrikidze has been Chairm ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Vakhtang's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: TBCC.F's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

0.7yrs

Average Tenure

61yo

Average Age

Experienced Board: TBCC.F's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TBCC.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellGEL230,60827 Aug 19
Giorgi Shagidze
EntityIndividual
Role
Member of the Board of Directors
CFO, Deputy CEO & Executive Director
Shares15,000
Max PriceGEL15.37

Ownership Breakdown


Management Team

  • Vakhtang Butskhrikidze

    CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: GEL3.36m
  • Nino Kacheishvili

    Head of the Retail Loans Department

    • Tenure: 6.8yrs
  • Giorgi Shagidze

    CFO, Deputy CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: GEL1.72m
  • Anna Romelashvili

    Head of Investor Relations

    • Tenure: 0yrs
  • David Japaridze

    Head of Customer Experience

    • Tenure: 0yrs
  • Tamar Chkhaidze

    Head of Customer Experience Management group

    • Tenure: 7.6yrs
  • Alexander Iskonyan

    Deputy Head of Business Analysis and Quality Assurance

    • Tenure: 6.8yrs
  • Victor Kukhalashvili

    Head of Software Development Department

    • Tenure: 7.1yrs
  • Avtandil Tabatadze

    Head of Business Analysis and Quality Assurance Department

    • Tenure: 0yrs
  • Otar Nadaraia

    Chief Economist

    • Tenure: 1.8yrs

Board Members

  • Nikoloz Enukidze

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: GEL166.00k
  • Eric Rajendra

    Independent Non-Executive Director

    • Tenure: 0.08yrs
    • Compensation: GEL154.00k
  • Vakhtang Butskhrikidze

    CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: GEL3.36m
  • Arne Berggren (61yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Nicholas Haag (61yo)

    Senior Independent Director

    • Tenure: 0.2yrs
    • Compensation: GEL135.00k
  • Giorgi Shagidze

    CFO, Deputy CEO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: GEL1.72m
  • Maria Cicognani (55yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: GEL38.00k
  • Tsira Kemularia

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: GEL33.00k

Company Information

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


Key Information

  • Name: TBC Bank Group PLC
  • Ticker: TBCC.F
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£703.789m
  • Listing Market Cap: UK£913.443m
  • Shares outstanding: 55.16m
  • Website: https://www.tbcbankgroup.com

Number of Employees


Location

  • TBC Bank Group PLC
  • 7 Marjanishvili Street
  • Tbilisi
  • 179
  • Georgia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TBCGLSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 2016
TBCGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPAug 2016
TBCC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2016

Biography

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia. The company operates through Retail; Corpo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:36
End of Day Share Price2019/09/17 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.