Yapi Ve Kredi Bankasi As reports 22.9% Net Income decline in 2019 while 7.0% Revenue growth
04 Feb 2020 • About Yapi Ve Kredi Bankasi As (
$YKBD) • By InTwits
Yapi Ve Kredi Bankasi As reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- Yapi Ve Kredi Bankasi As is a fast growth stock: 2019 revenue growth was 7.0%, 5 year revenue CAGR was 23.3% at 2019 ROIC 2.9%
- Yapi Ve Kredi Bankasi As has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with 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 potentially unprofitable business model: ROIC is 2.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x 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
Yapi Ve Kredi Bankasi As's Revenue increased on 7.0%.
Net Income margin decreased on 3.1 pp from 11.0% to 7.9% in 2019. During the last 5 years Net Income margin topped in 2017 at 13.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.3% in 2019. Yapi Ve Kredi Bankasi As's CAPEX/Revenue showed almost no change from 2016 to 2019. For the last three years the average CAPEX/Revenue was 1.4%. CAPEX as a % of Revenue followed a declining trend at -0.29 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (2.9%) and ROE (9.0%). ROIC decreased slightly on 1.2 pp from 4.1% to 2.9% in 2019. ROE decreased on 4.5 pp from 13.5% to 9.0% in 2019. During 2015-2019 ROIC topped in 2018 at 4.1%. During the last 5 years ROE topped in 2018 at 13.5%.
Leverage (Debt)
Debt increased on 5.7% while cash dropped on 23.5%.
Yapi Ve Kredi Bankasi As has no short term refinancing risk: cash is higher than short term debt (137.3%).
Management team
Yapi Ve Kredi Bankasi As's CEO Gokhan Erun is a founder and has spent 2 years with the company.
Financial and operational results
FY ended 31 Dec 2019
Yapi Ve Kredi Bankasi As ($YKBD) key annual financial indicators| mln. TRY | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 19,921 | 23,467 | 27,878 | 42,328 | 45,294 | 7.0% |
| Net Income | 1,909 | 2,933 | 3,614 | 4,667 | 3,600 | -22.9% |
Balance Sheet
|
|---|
| Cash | 27,389 | 33,083 | 42,452 | 56,831 | 43,486 | -23.5% |
| Short Term Debt | 13,499 | 16,218 | 20,548 | 30,228 | 31,684 | 4.8% |
| Long Term Debt | 44,134 | 52,542 | 70,861 | 65,771 | 69,785 | 6.1% |
Cash flow
|
|---|
| Capex | 500 | 395 | 420 | 555 | 572 | 3.0% |
| Dividends | | | | 0 | | |
Ratios
|
|---|
| Revenue growth | 25.3% | 17.8% | 18.8% | 51.8% | 7.0% | |
|
|---|
| Net Income Margin | 9.6% | 12.5% | 13.0% | 11.0% | 7.9% | -3.1% |
| CAPEX, % of revenue | 2.5% | 1.7% | 1.5% | 1.3% | 1.3% | -0.0% |
|
|---|
| ROIC | 2.9% | 3.6% | 3.7% | 4.1% | 2.9% | -1.2% |
| ROE | 8.8% | 11.9% | 12.9% | 13.5% | 9.0% | -4.5% |
People
|
|---|
| Employees | | | | 17,577 | | |
| Revenue/Employee, th. TRY | | | | 2,408 | | |
Peers in Banks
Below you can find Yapi Ve Kredi 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| 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 ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| Turkiye Is Bankasi ($TIBD) | 15.8% | 16.8% | 18.1% | 34.0% | |
| |
|---|
| Median (19 companies) | 3.7% | 3.4% | 4.5% | 12.2% | 7.9% |
|---|
| Yapi Ve Kredi Bankasi As ($YKBD) | | 17.8% | 18.8% | 51.8% | 7.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Banco Santander Sa ($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 ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% |
| |
|---|
| Median (16 companies) | 2.6% | 2.5% | 1.9% | 1.3% | 1.3% |
|---|
| Yapi Ve Kredi Bankasi As ($YKBD) | 2.5% | 1.7% | 1.5% | 1.3% | 1.3% |
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% | 24.1% |
| 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% |
| |
|---|
| Median (34 companies) | 3.5% | 4.6% | 4.6% | 4.5% | 4.6% |
|---|
| Yapi Ve Kredi Bankasi As ($YKBD) | 2.9% | 3.6% | 3.7% | 4.1% | 2.9% |
