Commercial Bank Of Qatar(The) reports 177% Net Income growth in 2018 and 17.8% Revenue growth
05 Feb 2019 • About Commercial Bank Of Qatar(The) (
$CBQS) • By InTwits
Commercial Bank Of Qatar(The) reported 2018 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 3.1%. At the same time it's a lot of higher than industry average of 1.9%.
- CAPEX is quite volatile: 226 TRYm in 2018, 164 TRYm in 2017, 180 TRYm in 2016, 240 TRYm in 2015, 717 TRYm in 2014
- The company has potentially unprofitable business model: ROIC is 2.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.0x while industry average is -1.7x
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 jumped on 17.8%. During 2014-2018 Revenue growth bottomed in 2015 at -4.2% and was accelerating since that time.
Net Income margin surged on 12.7 pp from 9.4% to 22.2% in 2018. During 2014-2018 Net Income margin bottomed in 2016 at 8.3% and was growing since that time. The efficient tax rate was 0.4% in 2018.
Investments (CAPEX, working capital and M&A)
Commercial Bank Of Qatar(The)'s CAPEX/Revenue was 3.8% in 2018. CAPEX/Revenue showed almost no change from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low ROIC (2.5%) and ROE (8.7%). ROIC increased slightly on 1.7 pp from 0.79% to 2.5% in 2018. ROE increased on 6.5 pp from 2.3% to 8.7% in 2018. During the last 5 years ROIC bottomed in 2017 at 0.79%. During 2014-2018 ROE bottomed in 2017 at 2.3%.
Leverage (Debt)
Debt jumped on 11.6% while cash decreased on 8.7%.
Commercial Bank Of Qatar(The) has short term refinancing risk: cash is only 48.2% of short term debt.
The company paid 24.2% of Net Income as dividends in 2018.
Management team
Commercial Bank Of Qatar(The)'s CEO Joseph Abraham has spent 3 years with the company. Rehan Khan is a the company's CFO. Rehan Khan has spent 7 years at the company.
Financial and operational results
FY ended 31 Dec 2018
Commercial Bank Of Qatar(The) ($CBQS) key annual financial indicators| mln. QAR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 6,204 | 5,943 | 6,044 | 6,412 | 7,556 | 17.8% |
| Tax | | | | | 7 | |
| Net Income | 1,880 | 1,401 | 501 | 604 | 1,674 | 177.3% |
Balance Sheet
|
|---|
| Cash | 6,941 | 5,424 | 6,421 | 7,374 | 6,730 | -8.7% |
| Short Term Debt | 23,464 | 24,530 | 23,352 | 13,516 | 13,950 | 3.2% |
| Long Term Debt | 9,545 | 8,449 | 10,777 | 20,908 | 24,451 | 16.9% |
Cash flow
|
|---|
| Capex | 176 | 233 | 200 | 113 | 286 | 152.7% |
| Dividends | | | | | 405 | |
Ratios
|
|---|
| Revenue growth | 26.1% | -4.2% | 1.7% | 6.1% | 17.8% | |
|
|---|
| Net Income Margin | 30.3% | 23.6% | 8.3% | 9.4% | 22.2% | 12.7% |
| CAPEX, % of revenue | 2.8% | 3.9% | 3.3% | 1.8% | 3.8% | 2.0% |
|
|---|
| ROIC | 3.2% | 2.4% | 1.0% | 0.8% | 2.5% | 1.7% |
| ROE | 12.1% | 8.6% | 3.3% | 2.3% | 8.7% | 6.5% |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Starvest ($SVE) | | -52.9% | -4.8% | 346.6% | |
| Henderson Group ($HGG) | | 13.0% | -1.0% | 90.7% | 22.5% |
| Arden Partners ($ARDN) | | -31.0% | 6.8% | 78.9% | -29.7% |
| Impax Asset Management Group ($IPX) | | -3.1% | 6.8% | 55.2% | 100.9% |
| Afh Financial Group ($AFHP) | | 39.5% | 15.0% | 39.4% | 50.6% |
| |
|---|
| Median (33 companies) | -2.3% | 2.9% | 6.8% | 12.9% | 16.3% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | | -4.2% | 1.7% | 6.1% | 17.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Record ($REC) | 99.6% | 99.3% | 99.0% | 98.8% | 98.7% |
| London Capital Group Hldgs ($LCG) | 73.6% | 67.9% | 84.2% | 86.4% | |
| Schroders ($SDRC) | 77.7% | 78.3% | 79.9% | 80.0% | |
| First Property Group ($FPO) | 67.9% | 83.0% | 80.6% | 78.6% | 76.3% |
| Walker Crips Group ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | 67.2% |
| |
|---|
| Median (14 companies) | 51.3% | 52.5% | 59.3% | 51.4% | 54.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 77.0% | 80.3% | 79.3% | 79.5% | 81.8% |
| Hargreaves Lansdown ($HL.) | 58.7% | 51.2% | 57.5% | 69.3% | 66.8% |
| Plus500 Ltd ($PLUS) | 63.5% | 48.2% | 46.0% | 59.3% | |
| First Property Group ($FPO) | 40.2% | 42.9% | 52.2% | 57.4% | 52.9% |
| Livermore Investments Group Ltd ($LIV) | 78.8% | 83.5% | 71.9% | 56.8% | |
| |
|---|
| Median (31 companies) | 14.5% | 17.5% | 17.8% | 22.1% | 22.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 15.0% | 6.5% | 15.1% | 11.2% | |
| First Property Group ($FPO) | 0.3% | 0.1% | 6.4% | 8.5% | 9.4% |
| Schroders ($SDRC) | 1.5% | 1.9% | 3.0% | 6.9% | |
| Leeds Group ($LDSG) | 0.6% | 0.9% | 11.5% | 5.6% | 1.0% |
| Record ($REC) | 0.1% | 0.6% | 0.1% | 3.8% | 1.0% |
| |
|---|
| Median (30 companies) | 0.7% | 0.8% | 0.8% | 1.0% | 1.0% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 2.8% | 3.9% | 3.3% | 1.8% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plus500 Ltd ($PLUS) | 164.3% | 116.5% | 118.9% | 143.2% | |
| Fulcrum Utility Services Ld ($FCRM) | | | 347.2% | 103.4% | 29.9% |
| Hargreaves Lansdown ($HL.) | 101.0% | 87.5% | 90.0% | 93.3% | 82.4% |
| Guinness Peat Group ($GPG) | 10.0% | 13.7% | 23.8% | 28.8% | |
| Lighthouse Group ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| |
|---|
| Median (35 companies) | 8.9% | 7.8% | 8.1% | 9.9% | 6.7% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 3.2% | 2.4% | 1.0% | 0.8% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 10.7x | 8.0x | 13.4x | 12.7x | |
| First Property Group ($FPO) | 5.6x | 12.3x | 9.4x | 7.6x | 7.7x |
| Leeds Group ($LDSG) | -0.5x | -0.3x | 1.4x | 2.6x | 2.5x |
| S & U ($46IE) | 1.7x | 3.1x | 0.5x | 1.8x | 3.2x |
| Guinness Peat Group ($GPG) | -2.1x | -1.6x | -0.4x | 1.2x | |
| |
|---|
| Median (27 companies) | -2.1x | -1.1x | -1.2x | -1.5x | -0.9x |
|---|
