Turk Ekonomi Bankasi As reports 44.8% revenue growth in 2018
06 Feb 2019 • About Turk Ekonomi Bankasi As (
$TURA) • By InTwits
Turk Ekonomi Bankasi As reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Turk Ekonomi Bankasi As is a fast growth stock: 2018 revenue growth was 44.8%, 5 year revenue CAGR was 19.8% at 2018 ROIC 4.6%
- Turk Ekonomi Bankasi As has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is 4.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Turk Ekonomi Bankasi As's Revenue surged on 44.8%.
Net Income margin decreased on 4.0 pp from 11.9% to 8.0% in 2018.
Investments (CAPEX, working capital and M&A)
Turk Ekonomi Bankasi As's CAPEX/Revenue was 0.76% in 2018. The company showed almost no change in CAPEX/Revenue from 2015 to 2018. It's average level of CAPEX/Revenue for the last three years was 0.89%.
Return on investment
The company operates at low ROIC (4.6%) and ROE (11.1%). ROIC showed almost no change in 2018. ROE decreased slightly on 1.7 pp from 12.8% to 11.1% in 2018. During 2014-2018 ROE topped in 2017 at 12.8%.
Leverage (Debt)
Debt decreased on 9.1% while cash surged on 42.7%.
Turk Ekonomi Bankasi As has no short term refinancing risk: cash is higher than short term debt (161.2%).
Financial and operational results
FY ended 31 Dec 2018
Turk Ekonomi Bankasi As ($TURA) key annual financial indicators| mln. TRY | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 6,588 | 7,550 | 8,913 | 9,142 | 13,238 | 44.8% |
| Net Income | 642 | 726 | 944 | 1,088 | 1,053 | -3.3% |
Balance Sheet
|
|---|
| Cash | 8,467 | 9,916 | 11,667 | 10,976 | 15,661 | 42.7% |
| Short Term Debt | 12,130 | 10,370 | 12,045 | 12,388 | 9,717 | -21.6% |
| Long Term Debt | 2,424 | 4,719 | 5,578 | 6,148 | 7,126 | 15.9% |
Cash flow
|
|---|
| Capex | 82 | 63 | 56 | 116 | 101 | -13.0% |
Ratios
|
|---|
| Revenue growth | 23.0% | 14.6% | 18.1% | 2.6% | 44.8% | |
|
|---|
| Net Income Margin | 9.7% | 9.6% | 10.6% | 11.9% | 8.0% | -4.0% |
| CAPEX, % of revenue | 1.2% | 0.8% | 0.6% | 1.3% | 0.8% | -0.5% |
|
|---|
| ROIC | 3.9% | 3.3% | 4.5% | 4.7% | 4.6% | -0.1% |
| ROE | 10.9% | 11.0% | 12.7% | 12.8% | 11.1% | -1.7% |
Peers in Banks
Below you can find Turk Ekonomi Bankasi As 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 ($ZENB) | | 6.8% | 17.9% | 46.7% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 26.8% | 27.0% | 46.4% | 28.9% |
| TCS Group Holding ($TCS) | 11.5% | 10.6% | 34.0% | 33.7% | |
| |
|---|
| Median (43 companies) | 10.7% | 3.5% | 3.4% | 4.5% | 13.6% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | | 14.6% | 18.1% | 2.6% | 44.8% |
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 ($DBPA) | 6.0% | 6.7% | 6.2% | 7.0% | |
| |
|---|
| Median (39 companies) | 2.1% | 2.6% | 2.5% | 1.9% | 1.4% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 1.2% | 0.8% | 0.6% | 1.3% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TCS Group Holding ($TCS) | 6.7% | 3.4% | 22.5% | 31.8% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.1% | 30.3% | 28.0% | 25.3% | 25.4% |
| 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 ($ZENB) | 15.0% | 11.2% | 11.1% | 11.4% | |
| |
|---|
| Median (43 companies) | 4.4% | 3.5% | 4.6% | 4.4% | 4.5% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 3.9% | 3.3% | 4.5% | 4.7% | 4.6% |
