Turk Ekonomi Bankasi As revenue increased on 7.3%
05 Feb 2020 • About Turk Ekonomi Bankasi As (
$TURA) • By InTwits
Turk Ekonomi Bankasi As reported 2019 financial results today. Here are the key drivers of the company's long term financial model:
- Turk Ekonomi Bankasi As is a fast growth stock: 2019 revenue growth was 7.3%, 5 year revenue CAGR was 16.6% at 2019 ROIC 4.9%
- Turk Ekonomi Bankasi As has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 280 TRYm in 2019, 101 TRYm in 2018, 116 TRYm in 2017, 56 TRYm in 2016, 63 TRYm in 2015
- The company has potentially unprofitable business model: ROIC is 4.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Turk Ekonomi Bankasi As's Revenue increased on 7.3%.
Net Income margin showed almost no change in 2019. During 2015-2019 Net Income margin topped in 2017 at 11.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In 2019 Turk Ekonomi Bankasi As had CAPEX/Revenue of 2.0%. Turk Ekonomi Bankasi As showed small growth in CAPEX/Revenue of 1.3 pp from 0.63% in 2016 to 2.0% in 2019. It's average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (4.9%) and ROE (11.4%). ROIC showed almost no change in 2019. ROE showed almost no change in 2019.
Leverage (Debt)
Debt showed almost no change in 2019 while cash dropped on 23.7%.
Turk Ekonomi Bankasi As has no short term refinancing risk: cash is higher than short term debt (127.5%).
Financial and operational results
FY ended 31 Dec 2019
Turk Ekonomi Bankasi As ($TURA) key annual financial indicators| mln. TRY | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 7,550 | 8,913 | 9,142 | 13,238 | 14,199 | 7.3% |
| Net Income | 726 | 944 | 1,088 | 1,053 | 1,125 | 6.9% |
Balance Sheet
|
|---|
| Cash | 9,916 | 11,667 | 10,976 | 15,661 | 11,944 | -23.7% |
| Short Term Debt | 10,370 | 12,045 | 12,388 | 9,717 | 9,371 | -3.6% |
| Long Term Debt | 4,719 | 5,578 | 6,148 | 7,126 | 7,392 | 3.7% |
Cash flow
|
|---|
| Capex | 63 | 56 | 116 | 101 | 280 | 177.6% |
Ratios
|
|---|
| Revenue growth | 14.6% | 18.1% | 2.6% | 44.8% | 7.3% | |
|
|---|
| Net Income Margin | 9.6% | 10.6% | 11.9% | 8.0% | 7.9% | -0.0% |
| CAPEX, % of revenue | 0.8% | 0.6% | 1.3% | 0.8% | 2.0% | 1.2% |
|
|---|
| ROIC | 3.3% | 4.5% | 4.7% | 4.6% | 4.9% | 0.3% |
| ROE | 11.0% | 12.7% | 12.8% | 11.1% | 11.4% | 0.3% |
Peers in Banks
Below we provide Turk Ekonomi Bankasi As 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) | | 17.8% | 18.8% | 51.8% | 7.0% |
| Turkiye Garanti Bankasi ($39IS) | | 20.4% | 18.6% | 50.6% | 7.9% |
| Finansbank ($FBKD) | | 16.8% | 19.0% | 50.1% | 13.9% |
| Turkiye Is Bankasi ($TIBD) | 15.8% | 16.8% | 18.1% | 34.0% | |
| |
|---|
| Median (19 companies) | 3.1% | 3.4% | 4.5% | 12.2% | 7.5% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | | 18.1% | 2.6% | 44.8% | 7.3% |
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 ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% |
| |
|---|
| Median (16 companies) | 2.6% | 2.5% | 1.9% | 1.4% | 1.3% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 0.8% | 0.6% | 1.3% | 0.8% | 2.0% |
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% | 4.4% | 4.1% | 4.4% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 3.3% | 4.5% | 4.7% | 4.6% | 4.9% |
