Turkiye Garanti Bankasi revenue increased on 7.9%
30 Jan 2020 • About Turkiye Garanti Bankasi (
$39IS) • By InTwits
Turkiye Garanti Bankasi reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- Turkiye Garanti Bankasi is a fast growth stock: 2019 revenue growth was 7.9%, 5 year revenue CAGR was 20.7% at 2019 ROIC 6.3%
- Turkiye Garanti Bankasi has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: 607 TRYm in 2019, 1,794 TRYm in 2018, 819 TRYm in 2017, 1,021 TRYm in 2016, 561 TRYm in 2015
- The company has potentially unprofitable business model: ROIC is 6.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x 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
Turkiye Garanti Bankasi's Revenue increased on 7.9%.
Net Income margin decreased slightly on 1.8 pp from 13.1% to 11.3% in 2019. During 2015-2019 Net Income margin topped in 2017 at 18.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2019 the company had CAPEX/Revenue of 1.1%. The company showed decline in CAPEX/Revenue of 2.5 pp from 3.6% in 2016 to 1.1% in 2019. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROE (12.3%) while ROIC is low (6.3%). ROIC showed almost no change in 2019. ROE decreased on 2.8 pp from 15.1% to 12.3% in 2019. During the last 5 years ROIC topped in 2018 at 6.5%. During 2015-2019 ROE topped in 2017 at 16.5% and was declining since that time.
Leverage (Debt)
Debt dropped on 22.0% while cash increased slightly on 0.57%.
Turkiye Garanti Bankasi has no short term refinancing risk: cash is higher than short term debt (307.8%).
Management team
Recep Bastug is a the company's CEO. Recep Bastug is a founder and has spent 0 years with the company.
Financial and operational results
FY ended 31 Dec 2019
Turkiye Garanti Bankasi ($39IS) key annual financial indicators| mln. TRY | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 23,527 | 28,321 | 33,578 | 50,570 | 54,571 | 7.9% |
| Net Income | 3,581 | 5,105 | 6,332 | 6,642 | 6,165 | -7.2% |
Balance Sheet
|
|---|
| Cash | 25,287 | 23,951 | 33,604 | 41,621 | 41,856 | 0.6% |
| Short Term Debt | 13,015 | 15,666 | 28,978 | 15,935 | 13,600 | -14.7% |
| Long Term Debt | 49,404 | 56,566 | 60,288 | 57,089 | 43,369 | -24.0% |
Cash flow
|
|---|
| Capex | 561 | 1,021 | 819 | 1,794 | 607 | -66.2% |
| Dividends | | | | 1,932 | | |
Ratios
|
|---|
| Revenue growth | 10.3% | 20.4% | 18.6% | 50.6% | 7.9% | |
|
|---|
| Net Income Margin | 15.2% | 18.0% | 18.9% | 13.1% | 11.3% | -1.8% |
| CAPEX, % of revenue | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% | -2.4% |
|
|---|
| ROIC | 4.3% | 5.5% | 6.5% | 6.5% | 6.3% | -0.2% |
| ROE | 12.5% | 15.4% | 16.5% | 15.1% | 12.3% | -2.8% |
People
|
|---|
| Employees | | | | 18,337 | | |
| Revenue/Employee, th. TRY | | | | 2,758 | | |
Peers in Banks
Below you can find Turkiye Garanti Bankasi benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| Yapi Ve Kredi Bankasi As ($YKBD) | 25.3% | 17.8% | 18.8% | 51.8% | |
| Finansbank ($FBKD) | | 16.8% | 19.0% | 50.1% | 13.9% |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| Turkiye Is Bankasi ($TIBD) | 15.8% | 16.8% | 18.1% | 34.0% | |
| |
|---|
| Median (19 companies) | 4.8% | 3.4% | 4.5% | 12.2% | 6.4% |
|---|
| Turkiye Garanti Bankasi ($39IS) | | 20.4% | 18.6% | 50.6% | 7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Banco Santander Sa ($BNC) | 10.2% | 9.1% | 10.0% | 14.7% | |
| Bcb Hldgs Ltd ($BCBW) | 2.5% | 3.0% | 7.3% | 5.9% | |
| Barclays ($BARC) | 7.1% | 6.3% | 5.4% | 4.9% | |
| Royal Bank Of Scotland Group ($RBS) | 4.6% | 5.6% | 7.1% | 3.7% | |
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 6.0% | 3.3% | 1.9% | 2.5% | |
| |
|---|
| Median (16 companies) | 2.6% | 2.0% | 1.8% | 1.3% | 1.2% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | 4.7% |
| Bank Muscat ($BKM) | 5.0% | 4.8% | 6.5% | 5.4% | 4.6% |
| |
|---|
| Median (34 companies) | 3.4% | 4.5% | 4.4% | 4.1% | 4.4% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | 6.3% |
