Commercial Bank Of Qatar(The) reports 20.7% Net Income growth in 2019 and 12.4% Revenue growth
29 Jan 2020 • About Commercial Bank Of Qatar(The) (
$CBQS) • By InTwits
Commercial Bank Of Qatar(The) reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- Commercial Bank Of Qatar(The) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: $1,157m in 2019, $653m in 2018, $560m in 2017, $494m in 2016, $412m in 2015
- The company has potentially unprofitable business model: ROIC is 3.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.6x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Commercial Bank Of Qatar(The)'s Revenue surged on 12.4%. Revenue decline was slowing down on average by 4.9 pp per annum in 2015-2019.
Net Income margin increased slightly on 1.6 pp from 22.2% to 23.8% in 2019. During the last 5 years Net Income margin bottomed in 2016 at 8.3% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2019 the company had CAPEX/Revenue of 1.9%. The company's CAPEX/Revenue decreased slightly on 1.5 pp from 3.3% in 2016 to 1.9% in 2019. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at low ROIC (3.1%) and ROE (10.6%). ROIC increased slightly on 0.65 pp from 2.5% to 3.1% in 2019. ROE increased slightly on 1.9 pp from 8.7% to 10.6% in 2019. During the last 5 years ROIC bottomed in 2017 at 0.79% and was growing since that time. During the last 5 years ROE bottomed in 2017 at 2.3% and was growing since that time.
Leverage (Debt)
Debt surged on 15.2% while cash decreased on 9.7%.
Commercial Bank Of Qatar(The) has short term refinancing risk: cash is only 26.9% of short term debt.
Management team
The company's CEO Joseph Abraham is a founder and has spent 3 years with the company. Rehan Khan is a the company's CFO. Rehan Khan has spent 7 years at the company.
Financial and operational results
FY ended 31 Dec 2019
Commercial Bank Of Qatar(The) ($CBQS) key annual financial indicators| mln. QAR | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 5,943 | 6,044 | 6,412 | 7,556 | 8,494 | 12.4% |
| Tax | | | | 7 | | |
| Net Income | 1,401 | 501 | 604 | 1,674 | 2,021 | 20.7% |
Balance Sheet
|
|---|
| Cash | 5,424 | 6,421 | 7,374 | 6,730 | 6,075 | -9.7% |
| Short Term Debt | 24,530 | 23,352 | 13,516 | 13,950 | 22,557 | 61.7% |
| Long Term Debt | 8,449 | 10,777 | 20,908 | 24,451 | 21,675 | -11.4% |
Cash flow
|
|---|
| Capex | 233 | 200 | 113 | 286 | 157 | -45.1% |
| Dividends | | | | 405 | | |
Ratios
|
|---|
| Revenue growth | -4.2% | 1.7% | 6.1% | 17.8% | 12.4% | |
|
|---|
| Net Income Margin | 23.6% | 8.3% | 9.4% | 22.2% | 23.8% | 1.6% |
| CAPEX, % of revenue | 3.9% | 3.3% | 1.8% | 3.8% | 1.9% | -1.9% |
|
|---|
| ROIC | 2.4% | 1.0% | 0.8% | 2.5% | 3.1% | 0.7% |
| ROE | 8.6% | 3.3% | 2.3% | 8.7% | 10.6% | 1.9% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Polo Resources Ltd ($POL) | | | -93.4% | 308.5% | -44.4% |
| Impax Asset Management Group ($IPX) | | 6.8% | 55.2% | 100.9% | 12.2% |
| Plus500 Ltd ($PLUS) | 20.4% | 19.0% | 33.3% | 64.8% | |
| Afh Financial Group ($AFHP) | | 15.0% | 39.4% | 50.6% | 46.7% |
| S & U ($46IE) | -40.6% | 25.2% | 33.9% | 31.8% | |
| |
|---|
| Median (18 companies) | 2.8% | 6.8% | 12.9% | 17.6% | 24.2% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | | 1.7% | 6.1% | 17.8% | 12.4% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Record ($REC) | 99.3% | 99.0% | 98.8% | 98.7% | |
| First Property Group ($FPO) | 83.0% | 80.6% | 78.6% | 76.3% | |
| Walker Crips Group ($WCW) | 66.7% | 67.7% | 69.8% | 67.2% | |
| Afh Financial Group ($AFHP) | 52.3% | 55.4% | 53.4% | 54.4% | 53.4% |
| S & U ($46IE) | 65.3% | 63.3% | 58.6% | 53.8% | |
| |
|---|
| Median (8 companies) | 52.5% | 59.3% | 51.4% | 54.1% | 53.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 80.3% | 79.3% | 79.5% | 81.8% | |
| Plus500 Ltd ($PLUS) | 48.2% | 46.0% | 59.3% | 70.2% | |
| Hargreaves Lansdown ($HL.) | 51.2% | 57.5% | 69.3% | 66.8% | |
| First Property Group ($FPO) | 42.9% | 52.2% | 57.4% | 52.9% | |
| S & U ($46IE) | 47.2% | 48.0% | 44.8% | 41.7% | |
| |
|---|
| Median (17 companies) | 17.5% | 17.8% | 22.1% | 24.0% | 26.3% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 0.1% | 6.4% | 8.5% | 9.4% | |
| Walker Crips Group ($WCW) | 2.5% | 0.9% | 1.7% | 5.4% | |
| Mxc Capital ($MXCP) | 0.5% | 4.9% | 0.0% | 4.7% | 0.2% |
| Impax Asset Management Group ($IPX) | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% |
| Hargreaves Lansdown ($HL.) | 0.7% | 0.7% | 1.2% | 1.5% | |
| |
|---|
| Median (17 companies) | 0.8% | 0.8% | 1.0% | 1.0% | 0.5% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 3.9% | 3.3% | 1.8% | 3.8% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Plus500 Ltd ($PLUS) | 116.5% | 118.9% | 143.2% | 196.2% | |
| Hargreaves Lansdown ($HL.) | 87.5% | 90.0% | 93.3% | 82.4% | |
| Impax Asset Management Group ($IPX) | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% |
| Fulcrum Utility Services Ld ($FCRM) | | 347.2% | 103.4% | 29.9% | |
| Record ($REC) | 20.2% | 18.5% | 20.7% | 22.0% | |
| |
|---|
| Median (24 companies) | 7.8% | 8.1% | 9.9% | 7.4% | 8.3% |
|---|
| Commercial Bank Of Qatar(The) ($CBQS) | 2.4% | 1.0% | 0.8% | 2.5% | 3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 12.3x | 9.4x | 7.6x | 7.7x | |
| S & U ($46IE) | 3.1x | 0.5x | 1.8x | 3.2x | |
| Leeds Group ($LDSG) | -0.3x | 1.4x | 2.6x | 2.5x | |
| Impax Asset Management Group ($IPX) | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x |
| Hargreaves Lansdown ($HL.) | -1.1x | -0.9x | -0.3x | -0.4x | |
| |
|---|
| Median (14 companies) | -1.1x | -1.2x | -1.5x | -0.7x | -1.4x |
|---|
