Commercial Intl Bank(Egypt)S.A.E Net Income jumped on 23.2% and Revenue jumped on 11.6%
03 Feb 2020 • About Commercial Intl Bank(Egypt)S.A.E (
$CBKD) • By InTwits
Commercial Intl Bank(Egypt)S.A.E reported 2019 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: 2019 revenue growth was 11.6%, 5 year revenue CAGR was 27.7% at 2019 ROIC 24.1%
- Commercial Intl Bank(Egypt)S.A.E motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2015-2019 was 0.3% while average EBITDA Margin was 0.0% for the sames years
- Commercial Intl Bank(Egypt)S.A.E has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: 1,303 EGPm in 2019, 875 EGPm in 2018, 745 EGPm in 2017, 561 EGPm in 2016, 304 EGPm in 2015
- The company has highly profitable business model: ROIC is 24.1%
- 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
Commercial Intl Bank(Egypt)S.A.E's Revenue jumped on 11.6%. During the last 5 years Revenue growth topped in 2017 at 46.4% and was decelerating since that time.
Net Income margin increased on 2.3 pp from 22.6% to 25.0% in 2019.
Investments (CAPEX, working capital and M&A)
In 2019 the company had CAPEX/Revenue of 2.8%. The company showed almost no change in CAPEX/Revenue from 2016 to 2019. It's average level of CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at high and attractive ROIC (24.1%) and ROE (24.3%). ROIC decreased slightly on 1.3 pp from 25.4% to 24.1% in 2019. ROE decreased on 2.7 pp from 27.0% to 24.3% in 2019. ROIC stuck to a declining trend at -1.5 pp per annum in the last 5 years. ROE declined at -1.3 pp per annum in the last 5 years.
Leverage (Debt)
Debt surged on 37.4% while cash surged on 41.0%.
Commercial Intl Bank(Egypt)S.A.E has no short term refinancing risk: cash is higher than short term debt (239.4%).
Management team
The company's CEO Hussein Majed Abaza is a founder and has spent 2 years with the company.
Financial and operational results
FY ended 31 Dec 2019
Commercial Intl Bank(Egypt)S.A.E ($CBKD) key annual financial indicators| mln. EGP | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 17,667 | 22,434 | 32,840 | 42,323 | 47,245 | 11.6% |
| Net Income | 4,729 | 6,009 | 7,516 | 9,582 | 11,801 | 23.2% |
| Stock Based Compensation | | | | 408 | | |
Balance Sheet
|
|---|
| Cash | 9,849 | 10,522 | 14,663 | 20,059 | 28,274 | 41.0% |
| Short Term Debt | 1,601 | 3,009 | 1,878 | 7,260 | 11,811 | 62.7% |
| Long Term Debt | 131 | 160 | 3,675 | 3,722 | 3,273 | -12.1% |
Cash flow
|
|---|
| Capex | 304 | 561 | 745 | 875 | 1,303 | 49.0% |
| Dividends | | | | 2,143 | | |
Ratios
|
|---|
| Revenue growth | 26.8% | 27.0% | 46.4% | 28.9% | 11.6% | |
|
|---|
| SBC, % of revenue | | | | 1.0% | |
| Net Income Margin | 26.8% | 26.8% | 22.9% | 22.6% | 25.0% | 2.3% |
| CAPEX, % of revenue | 1.7% | 2.5% | 2.3% | 2.1% | 2.8% | 0.7% |
|
|---|
| ROIC | 30.3% | 28.0% | 25.3% | 25.4% | 24.1% | -1.3% |
| ROE | 30.2% | 27.8% | 26.8% | 27.0% | 24.3% | -2.7% |
People
|
|---|
| Employees | | | | 6,759 | | |
| Revenue/Employee, th. EGP | | | | 6,262 | | |
Peers in Banks
Below we provide Commercial Intl Bank(Egypt)S.A.E benchmarking against other companies in Banks 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 |
|---|
| 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% | |
| Turkiye Garanti Bankasi ($39IS) | | 20.4% | 18.6% | 50.6% | 7.9% |
| Finansbank ($FBKD) | | 16.8% | 19.0% | 50.1% | 13.9% |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| |
|---|
| Median (19 companies) | 4.0% | 3.4% | 4.5% | 12.2% | 6.2% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 27.0% | 46.4% | 28.9% | 11.6% |
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% | |
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% |
| |
|---|
| Median (16 companies) | 2.6% | 2.0% | 1.8% | 1.3% | 1.2% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 1.7% | 2.5% | 2.3% | 2.1% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | 6.3% |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | 4.7% |
| Bank Muscat ($BKM) | 5.0% | 4.8% | 6.5% | 5.4% | 4.6% |
| |
|---|
| Median (34 companies) | 3.4% | 4.5% | 4.4% | 4.1% | 4.4% |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | 24.1% |
