Tanzanian stock report - National Microfinace Bank

TANZA

National Microfinace Bank closes at 5.2% above VWP August 29, 2017 14:00 EAT

NEWS BITES - AFRICA

National Microfinace Bank PLC (DSE:NMB), Tanzania's largest Bank by market cap, was unchanged to close at TZS2,750.0. Compared with the Tanzania Share Index which rose 52.0 points (1.4%) in the day, the relative price change was -1.4%. The volume was 0.01 times the average daily trading volume of 111,125 shares. The price is at a premium of 5.2% to the 1-month volume weighted average price of TZS2,613.33.

SECTION 1

NATIONAL MICROFINACE BANK BEARISH SIGNALS

1.1 Technicals:

+ In the last three months the stock has hit a new 52-week low ten times, pointing to a significant downtrend.

+ The present value of TZS1,000 (PV1000) invested three years ago in National Microfinace Bank is TZS661, for a capital loss of TZS339.

+ 3 years Multiplier in TZS = 0.661x

+ Compound Annual Growth Rate (CAGR) in TZS = -12.8%

Present Value of USD1,000 invested 3 years ago:

+ The present value of USD1,000 (PV1000) invested three years ago in National Microfinace Bank is $US441, for a capital loss of $US559.

+ 3 years ago USD 1 equalled TZS 1,666.6667

+ 3 years Multiplier in USD = 0.441x

+ Compound Annual Growth Rate (CAGR) in USD = -23.7%

Aug 29, 2017: USD 1 equals TZS 2,500

1.2 Low Performance Indicator:

DescriptionValueRank In Market
Volatility %17.5In Bottom 8%

SECTION 2

PRICE VOLUME DYNAMICS

2.1 Technicals:

+ Volume: there were 750 shares worth TZS2 million (US$784) traded today. The volume was 0.01 times the average daily trading volume of 111,125 shares.

+ The National Microfinace Bank is at a premium of 17.5% to its 12-month low of TZS2,340.0 traded on August 29.

+ The present value of Sh1,000 (PV1000) invested one year ago in National Microfinace Bank is unchanged.

PV10001-week1-month1-year
NMB.DSE1,0001,0001,000
Tanzania Share Index1,0141,063965

2.2 Performance Indicator:

DescriptionValueRank In Market
Today's TurnoverTZS2 million (US$784)In 2nd Quartile

2.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 6.6% (or a turnover period of 15 years 40 days).

2.4 Month-on-Month Comparison (Trailing Month - ended 24th)

24 Aug24 Jul22 Jun24 May24 Apr24 Mar
Price 24 Aug (TZS)2,7502,7502,7502,7502,7502,750
Avg Daily Volume222,280194,094206,340214,027234,198247,861
VWP (TZS)2,613.332,613.332,613.332,613.332,613.382,619.42
Price Range (TZS)2,340 - 2,7502,340 - 2,7502,340 - 2,7502,340 - 2,7502,340 - 2,7502,340 - 2,750
Relative Price Change %-2.7-5.2-3.76-0.1-4.2
Volatility %17.517.517.517.517.517.5

SECTION 3

PEER GROUP ANALYSIS & RANKING

3.1 Global Peer Group Analysis (all figures in USD)

NameRelative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
First Foundation58557.1M1,345.4104M23.3M4B
Carolina Financial73551.5M1,608.960.9M17.6M1.7B
Banco ABC Brasil Preference Shares53550.8M1,570.5438M162.5M8.1B
Barclays Bank Kenya85550.1M1,314.650.9B(1.6B)2,260.4B
National Microfinace Bank56550M800.077.3M1.9B
Akita Bank50543.3M1,067.2433.1M43.3M27.2B
United Arab Bank38541.9M644.4552.6M(142.1M)5.8B
Peapack-Gladstone Financial50539.8M1,543.9146M26.5M3.9B
Pacific Continental44538.6M1,462.289.9M19.8M2.5B

Global Peer Group Analysis (continued)

CodeCountryLast PriceP/EP/BookTurnover Rate (%)% Disc to 52-w HiRetention Ratio*
FFWMUS$US16.7119.72.062.18.0
CAROUS$US34.1524.13.966.42.089.4
ABCB4BRR$17.898.074.08.751.4
BARCKEKES10.553.012.1
NMBTZTZS2,750.06.61.8
8343JPJPY329.023.215.5
UABAEAED1.4535.8
PGCUS$US30.7019.21.764.08.887.5
PCBKUS$US23.6519.34.011.564.2

*Retention Ratio: The retention ratio is an opposite of payout ratio and refers to the percentage of net income that is retained to grow the business.

3.2 Global Rank [out of 47,622 stocks] and Rank in the Middle East & Africa Region [out of 2,286 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)550M11,972409
Total Assets (US$)1.9B6,826286
Net Profit (US$)77.3M5,733227
Return on Equity %27.22,138117
Price to Book1.415,4341,066
Price/Earnings5.21,526171
PV$1000 (1Year) US$*80031,5541,466
US$* Change (1Year) %-20.331,3041,436

* 1 year ago USD 1 = TZS 2,000

Aug 29, 2017: USD 1 equals TZS 2,500

3.3 Rank in the Total Tanzanian Market [out of 10 stocks]

DescriptionValueIn Total Tanzanian Market
Return on Equity %27.23
Price to Book1.43
Price/Earnings5.22
PV1000 (1Year)1,0002

SECTION 4

NATIONAL MICROFINACE BANK PROFILE

4.1 Activities

National Microfinance Bank (NMB), is a commercial bank in Tanzania. It is one of the commercial banks licensed by the Bank of Tanzania, the national banking regulator.

4.2 Industry & Sector

Classification LevelName of Sector
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials
Business SectorBanking & Investment Services

4.3 Top Management

The chief executive officer is Mark Wiessing.

4.4 Issued Capital

Based on 500,000,000 issued shares the market capitalisation is TZS1,375 billion (US$550 million).

Contact: +255 (0) 22 2161000

Physical Address: NMB House, Azikiwe/Jamhuri Streets

State/Province/Country: Tanzania

Exchange: Dar es Salaam Stock Exchange

ISIN: TZ1996100222

TZ:NMB; NMB.TZ

PermID: 4298064841

Source: www.BuySellSignals.com