Commercial Intl Bank(Egypt)S.A.E revenue jumped on 28.9%
04 Feb 2019 • About Commercial Intl Bank(Egypt)S.A.E (
$CBKD) • By InTwits
Commercial Intl Bank(Egypt)S.A.E reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Commercial Intl Bank(Egypt)S.A.E is a fast growth stock: 2018 revenue growth was 28.9%, 5 year revenue CAGR was 29.3% at 2018 ROIC 25.4%
- Commercial Intl Bank(Egypt)S.A.E spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.3%. Average EBITDA Margin for the same period was 0.0%. In 2018 SBC/Revenue was even higher: 1.0%
- Commercial Intl Bank(Egypt)S.A.E has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.8%
- CAPEX is quite volatile: 875 EGPm in 2018, 745 EGPm in 2017, 561 EGPm in 2016, 304 EGPm in 2015, 243 EGPm in 2014
- The company has highly profitable business model: ROIC is 25.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.0x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 28.9%. During the last 5 years Revenue growth topped in 2017 at 46.4%.
Net Income margin showed almost no change in 2018. Net Income margin declined at -1.2 pp per annum in 2014-2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 2.1%. The company's CAPEX/Revenue showed almost no change from 2015 to 2018. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at high and attractive ROIC (25.4%) and ROE (27.0%). ROIC showed almost no change in 2018. ROE showed almost no change in 2018. ROIC stuck to a declining trend at -1.4 pp per annum in 2014-2018.
Leverage (Debt)
Debt surged on 97.8% while cash jumped on 36.8%.
Commercial Intl Bank(Egypt)S.A.E has no short term refinancing risk: cash is higher than short term debt (276.3%).
The company paid 22.4% of Net Income as dividends in 2018.
Management team
The company's CEO is Hussein Majed Abaza. Hussein Majed Abaza has 2 years tenure with the company.
At the end of financial year the company had 6,759 employees. Average revenue per employee in 2018 was 6,261,788 EGP.
Financial and operational results
FY ended 31 Dec 2018
Commercial Intl Bank(Egypt)S.A.E ($CBKD) key annual financial indicators| mln. EGP | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 13,934 | 17,667 | 22,434 | 32,840 | 42,323 | 28.9% |
| Net Income | 3,741 | 4,729 | 6,009 | 7,516 | 9,582 | 27.5% |
| Stock Based Compensation | | | | | 408 | |
Balance Sheet
|
|---|
| Cash | 7,502 | 9,849 | 10,522 | 14,663 | 20,059 | 36.8% |
| Short Term Debt | 1,131 | 1,601 | 3,009 | 1,878 | 7,260 | 286.6% |
| Long Term Debt | 243 | 131 | 160 | 3,675 | 3,722 | 1.3% |
Cash flow
|
|---|
| Capex | 243 | 304 | 561 | 745 | 875 | 17.4% |
| Dividends | | | | | 2,143 | |
Ratios
|
|---|
| Revenue growth | 18.9% | 26.8% | 27.0% | 46.4% | 28.9% | |
|
|---|
| SBC, % of revenue | | | | | 1.0% |
| Net Income Margin | 26.9% | 26.8% | 26.8% | 22.9% | 22.6% | -0.2% |
| CAPEX, % of revenue | 1.7% | 1.7% | 2.5% | 2.3% | 2.1% | -0.2% |
|
|---|
| ROIC | 30.1% | 30.3% | 28.0% | 25.3% | 25.4% | 0.1% |
| ROE | 28.0% | 30.2% | 27.8% | 26.8% | 27.0% | 0.2% |
People
|
|---|
| Employees | | | | | 6,759 | |
| Revenue/Employee, th. EGP | | | | | 6,262 | |
Peers in Banks
Below you can find Commercial Intl Bank(Egypt)S.A.E benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| European Islamic Investment Bank ($EIIB) | 42.3% | -4.1% | -63.9% | 232.5% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 16.3% | 19.5% | 16.4% | 59.5% | |
| Zenith Bank ($ZENB) | | 6.8% | 17.9% | 46.7% | |
| TCS Group Holding ($TCS) | 11.5% | 10.6% | 34.0% | 33.7% | |
| Kazkommertsbank JSC ($KKB) | 16.3% | 41.4% | -1.4% | 31.8% | |
| |
|---|
| Median (43 companies) | 11.1% | 3.5% | 3.4% | 4.5% | 12.2% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 26.8% | 27.0% | 46.4% | 28.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lloyds Banking Group ($LLPC) | 13.1% | 13.6% | 14.5% | 14.5% | |
| Banco Santander Sa ($BNC) | 8.9% | 10.2% | 9.1% | 10.0% | 14.7% |
| Bcb Hldgs Ltd ($BCBW) | 5.4% | 2.5% | 3.0% | 7.3% | 5.9% |
| Royal Bank Of Scotland Group ($RBS) | 4.1% | 4.6% | 5.6% | 7.1% | |
| Diamond Bank ($DBPA) | 6.0% | 6.7% | 6.2% | 7.0% | |
| |
|---|
| Median (39 companies) | 2.1% | 2.6% | 2.0% | 1.8% | 1.3% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 1.7% | 1.7% | 2.5% | 2.3% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TCS Group Holding ($TCS) | 6.7% | 3.4% | 22.5% | 31.8% | |
| Guaranty Trust Bank ($GRTB) | 17.8% | 16.0% | 17.4% | 18.3% | |
| Sberbank Of Russia ($SBER) | 4.8% | 4.0% | 9.4% | 13.0% | |
| Zenith Bank ($ZENB) | 15.0% | 11.2% | 11.1% | 11.4% | |
| Otp Bank ($OTPD) | -3.9% | 1.7% | 7.4% | 10.3% | |
| |
|---|
| Median (43 companies) | 4.4% | 3.4% | 4.5% | 4.4% | 4.5% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.1% | 30.3% | 28.0% | 25.3% | 25.4% |
