Commercial Bank Of Qatar(The) reports 64.3% Net Income decline
22 Feb 2017 • About Commercial Bank Of Qatar(The) (
$CBQS) • By InTwits
Commercial Bank Of Qatar(The) reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Commercial Bank Of Qatar(The) doesn't have a profitable business model yet: 2016 ROIC is 1.1%
- Commercial Bank Of Qatar(The) has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: 494 in 2016, 412 in 2015, 700 in 2014, 968 in 2013, 1,336 in 2012
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is -4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Commercial Bank Of Qatar(The) ($CBQS) key annual financial indicators
| mln. QAR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,125 | 4,920 | 6,204 | 5,943 | 6,044 | 1.7% |
| Net Income | 2,012 | 1,604 | 1,880 | 1,401 | 501 | -64.3% |
Balance Sheet
|
|---|
| Cash | 3,448 | 6,903 | 6,941 | 5,424 | 6,421 | 18.4% |
| Short Term Debt | 13,327 | 19,945 | 23,464 | 24,530 | 22,412 | -8.6% |
| Long Term Debt | 8,706 | 9,760 | 9,545 | 8,449 | 11,717 | 38.7% |
Cash flow
|
|---|
| Capex | 249 | 188 | 176 | 233 | 200 | -14.4% |
Ratios
|
|---|
| Revenue growth | 5.7% | 19.3% | 26.1% | -4.2% | 1.7% | |
| Net Income Margin | 48.8% | 32.6% | 30.3% | 23.6% | 8.3% | -15.3% |
| CAPEX, % of revenue | 6.0% | 3.8% | 2.8% | 3.9% | 3.3% | -0.6% |
| ROIC | 5.0% | 3.0% | 3.2% | 2.4% | 1.1% | -1.3% |
| ROE | 13.8% | 11.1% | 12.1% | 8.6% | 1.9% | -6.7% |
Revenue and profitability
The company's Revenue increased slightly on 1.7% in 2016.
Net Income marign dropped on 15.3 pp from 23.6% to 8.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Commercial Bank Of Qatar(The) had CAPEX/Revenue of 3.3%. The company's CAPEX/Revenue decreased slightly on 0.51 pp from 3.8% in 2013 to 3.3% in 2016. For the last three years the average CAPEX/Revenue was 3.4%.
Return on investment
The company operates at low ROIC (1.09%) and ROE (1.87%). ROIC decreased slightly on 1.3 pp from 2.4% to 1.1% in 2016. ROE decreased on 6.7 pp from 8.6% to 1.9% in 2016.
Leverage (Debt)
Debt increased on 3.5% in 2016 while cash surged on 18.4% in 2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | 15.0% |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.6% | 12.6% | 4.7% | 2.9% | 3.2% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | | 19.3% | 26.1% | -4.2% | 1.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | 99.0% |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (16 companies) | 54.3% | 52.7% | 52.2% | 52.5% | 55.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | 57.5% |
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% |
| |
|---|
| Median (29 companies) | 13.3% | 16.3% | 14.5% | 16.3% | 18.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | 15.1% |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | 1.8% |
| Volvere ($VLE) | 1.8% | 2.1% | 2.0% | 3.4% | |
| |
|---|
| Median (29 companies) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | 90.0% |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | 18.5% |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | 25.7% |
| |
|---|
| Median (30 companies) | 5.5% | 6.3% | 9.2% | 7.7% | 11.3% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 5.0% | 3.0% | 3.2% | 2.4% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | 10.6x |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | 13.4x |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (26 companies) | -1.1x | -1.4x | -2.1x | -0.8x | -0.6x |
|---|
