Commercial Bank Of Qatar(The) reports 25.5% Net Income decline
27 Jan 2016 • About Commercial Bank Of Qatar(The) (
$CBQS) • By InTwits
Commercial Bank Of Qatar(The) reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Commercial Bank Of Qatar(The) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 1.9%.
- CAPEX is quite volatile: 412 in 2015, 700 in 2014, 968 in 2013, 1,336 in 2012, 1,609 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is -1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Commercial Bank Of Qatar(The) ($CBQS) key annual financial indicators
| mln. QAR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,901 | 4,125 | 4,920 | 6,204 | 5,943 | -4.2% |
| Net Income | 1,884 | 2,012 | 1,604 | 1,880 | 1,401 | -25.5% |
Balance Sheet
|
|---|
| Cash | 2,576 | 3,448 | 6,903 | 6,941 | 5,424 | -21.9% |
| Short Term Debt | 5,838 | 13,327 | 19,945 | 23,464 | 24,530 | 4.5% |
| Long Term Debt | 11,054 | 8,706 | 9,760 | 9,545 | 8,449 | -11.5% |
Cash flow
|
|---|
| Capex | 115 | 249 | 188 | 176 | 233 | 32.3% |
Ratios
|
|---|
| Revenue growth | 5.9% | 5.7% | 19.3% | 26.1% | -4.2% | |
| Net Income Margin | 48.3% | 48.8% | 32.6% | 30.3% | 23.6% | -6.7% |
| CAPEX, % of revenue | 3.0% | 6.0% | 3.8% | 2.8% | 3.9% | 1.1% |
| ROIC | 5.4% | 5.0% | 3.0% | 3.2% | 2.4% | -0.8% |
| ROE | 14.1% | 13.8% | 11.1% | 12.1% | 8.6% | -3.5% |
Revenue and profitability
The company's Revenue decreased on 4.2% in 2015.
Net Income marign decreased on 6.7 pp from 30.3% to 23.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.9% in 2015. CAPEX/Revenue decreased on 2.1 pp from 6.0% in 2012 to 3.9% in 2015. For the last three years the average CAPEX/Revenue was 3.5%.
Return on investment
The company operates at low ROIC (2.41%) and ROE (8.61%). ROIC decreased slightly on 0.79 pp from 3.2% to 2.4% in 2015. ROE decreased on 3.5 pp from 12.1% to 8.6% in 2015.
Leverage (Debt)
Debt showed almost no change in 2015 while cash dropped on 21.9% in 2015.
Appendix 1: Peers in Financial Services
Below we provide Commercial Bank Of Qatar(The) benchmarking against other companies in Financial Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Property Group ($FPO) | | 31.4% | 13.9% | 69.7% | 2.6% |
| Afh Financial Group ($AFHP) | | | 49.9% | 39.3% | 39.5% |
| Fairpoint Group ($FRP) | -12.0% | 32.7% | -17.5% | 35.1% | |
| Hargreaves Lansdown ($HL.) | | 14.8% | 22.5% | 22.6% | 10.3% |
| Manx Financial Group ($MFX) | 28.6% | 5.6% | 33.3% | 22.0% | |
| |
|---|
| Median (30 companies) | 1.6% | 5.2% | 12.6% | 4.7% | 4.3% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | | 5.7% | 19.3% | 26.1% | -4.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | 99.3% |
| Panmure Gordon & Co ($PMR) | 93.9% | 95.2% | 95.0% | 95.3% | |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | |
| London Capital Group Hldgs ($LCG) | 64.7% | 64.2% | 70.5% | 73.6% | |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | 66.7% |
| |
|---|
| Median (16 companies) | 56.8% | 54.3% | 52.7% | 52.2% | 58.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Livermore Investments Group Ltd ($LIV) | 92.1% | 84.9% | 64.8% | 78.8% | |
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | 51.2% |
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | |
| |
|---|
| Median (27 companies) | 17.2% | 13.3% | 16.3% | 14.5% | 19.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | |
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | |
| Fulcrum Utility Services Ld ($FCRM) | | 5.4% | 5.0% | 3.7% | 0.1% |
| London Capital Group Hldgs ($LCG) | 5.7% | 1.8% | 0.2% | 3.4% | |
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | |
| |
|---|
| Median (29 companies) | 1.1% | 1.3% | 1.3% | 1.3% | 0.7% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 3.0% | 6.0% | 3.8% | 2.8% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | 87.5% |
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | 20.2% |
| S & U ($46IE) | | 17.6% | 19.1% | 19.7% | 13.9% |
| Fairpoint Group ($FRP) | -2.1% | 18.6% | 9.0% | 19.4% | |
| |
|---|
| Median (30 companies) | 5.5% | 5.5% | 6.3% | 9.2% | 11.7% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 5.4% | 5.0% | 3.0% | 3.2% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | 12.9x |
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | 12.3x |
| Livermore Investments Group Ltd ($LIV) | 4.9x | 3.8x | 4.6x | 3.4x | |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| |
|---|
| Median (27 companies) | -1.3x | -1.1x | -1.4x | -2.1x | -0.4x |
|---|
