Australian stock report - ANZ Banking Group
Australia and New Zealand Banking decreases, 2 days' volume in a day September 20, 2018 16:00 AEST
NEWS BITES - AUSTRALIA
Australia and New Zealand Banking Group Limited (ASX:ANZ), Australia's 3rd largest Bank by market cap, has decreased 24.0c (0.8%) from its last trading session of September 19 to close at $A28.42. Compared with the All Ordinaries Index which fell 20.2 points (0.3%) in the day, the relative price change was -0.5%. The fall was exacerbated by robust volume of 1.6 times the average daily volume of 4.9 million shares. Its MCap is $A82.1 billion.
Highlights in today's Report:
SECTION 1 BEARISH SIGNALS
SECTION 2 BULLISH SIGNALS
SECTION 3 PRICE VOLUME DYNAMICS
SECTION 4 RELATED NEWS
SECTION 5 SUMMARY FINANCIALS
SECTION 6 PROFILE
SECTION 1 AUSTRALIA AND NEW ZEALAND BANKING BEARISH SIGNALS
Downtrend: The stock dropped on high volatility today.
+ The price sank 5.5% in the last month.
+ Compared with the All Ordinaries Index which fell 2.5% for the month, this represented a relative price decrease for Australia and New Zealand Banking's stock of 3.0% for the month.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 28.5 minus the 26-day EMA of 28.69 is negative 0.19 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.
+ Falls to Rises: in the past month the number of falls outnumbered rises 16:8 or 2:1.
+ The stock's relative price strength percentile is falling at 65 for 6 months, 61 for 3 months and 35 for 1 month.
Low Performance Indicators and rank of Australia and New Zealand Banking in the Australian market:
|Description||ANZ Value||Rank In Market|
|Total Debt to Equity||10.1||In Bottom 1%|
|Return on Assets [ROA] %||0.7||In Bottom 5%|
+ Total Liabilities/EBITDA of 87.1 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ As per the Du Pont analysis, Return on Equity [ROE] of 10.9% is lower than sector average of 11.8%. ROE is computed as net profit margin of 22.1% times asset turnover [sales/assets] of 0.03 times leverage factor [total assets/shareholders' equity] of 15.2.
1.3 Overvaluation [compared with sector average]:
+ Return on Assets 0.7% [0.8%].
+ Dividend yield of 5.6% [7.3%].
SECTION 2 AUSTRALIA AND NEW ZEALAND BANKING BULLISH SIGNALS
+ In the last three months the stock has hit a new 52-week high ten times, pointing to a significant uptrend.
+ The present value of AUD1,000 (PV1000) invested thirty years ago in Australia and New Zealand Banking is $A28,407, including a capital gain of $A9,250 and dividend reinvested of $A18,157.
+ 30 years Multiplier in AUD = 28.407x
+ Compound Annual Growth Rate (CAGR) in AUD = 11.7%
Present Value of USD1,000 invested 30 years ago:
+ The present value of USD1,000 (PV1000) invested thirty years ago in Australia and New Zealand Banking is $US25,357, including a capital gain of $US8,405 and dividend reinvested of $US15,952.
+ 30 years ago AUD 1 equalled USD 0.7896
+ 30 years Multiplier in USD = 25.357x
+ Compound Annual Growth Rate (CAGR) in USD = 11.3%
Sep 20, 2018: AUD 1 equals USD 0.72
High Performance Indicators and rank of Australia and New Zealand Banking in the Australian market:
|Description||ANZ Value||Rank In Market|
|Today's Trading Turnover||$A223.4 million||In Top 1%|
|Volatility %||1.7||In Top Quartile|
+ The P/E of 12.9 multiplied by the P/NTA of 1.6 is 20.3. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
+ The relative yield of ANZ, defined by its yield of 5.6%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 5.2% is 108.5%. This suggests Australia and New Zealand Banking stock is undervalued in dividend yield terms.
+ Net profit margin has averaged 21.9% in the last 3 years. This is considered superior and suggests a high margin of safety.
+ Brandirectory have estimated Australia and New Zealand Banking's brand value at $A8 billion. The Brand Value represents 1.3% of the estimated Enterprise Value of $A610.8 billion.
2.3 Undervaluation [compared with sector average]:
+ Price to Book of 1.6 [1.8]. We estimate Australia and New Zealand Banking stock is trading at a current year Price to Book of 1.5 and a forward year Price to Book of 1.5.
SECTION 3 AUSTRALIA AND NEW ZEALAND BANKING PRICE VOLUME DYNAMICS
+ Australia and New Zealand Banking is at a discount of 6.5% to its 12-month high of $A30.39 on August 17. It is also at a premium of 12.0% to the 12-month low of $A25.37 on April 27.
+ The present value of $A1,000 (PV1000) invested one year ago in Australia and New Zealand Banking is $A1,058, comprising a capital gain of 46c and dividend reinvested of $A58.
|All Ordinaries Index||1,007||972||1,088|
3.2 Aggregate Volumes and Prices:
[Volume Index or VI in brackets; 1 is average]
+ ASX: ANZ.ASX 7,860,581 [VI of 1.6] volume 99.8% of aggregate. Price: $A28.42.
+ New Zealand: ANZ.NZSX 15,451 [VI of 1.0] volume 0.2% of aggregate. Price: $NZ31.0. Using the current exchange rate of NZD1 equals 0.9163AUD, The shares are at a 0.1% discount to the close price on ASX.
+ Aggregate volume: there were 7.9 million shares of Australia and New Zealand Banking worth $A223.8 million traded today. The aggregate volume was 1.6 times average trading of 4.9 million shares.
The turnover rate in the 12 months to date was 43.5% (or a turnover period of 2 years 3 months). This average length of ownership of the stock at 1.2 times the average holding period of 1 year 10 months for stocks in the All Ordinaries Index suggests a larger number of core investors, making a long-term investment safer.
+ Beta: the Beta of Australia and New Zealand Banking stock is 1.3. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
+ Australia and New Zealand Banking Group Limited (ASX:ANZ), strengthened 49.68c (or 1.8%) year-to-date (YTD) in 2018 to close at $A28.42 today. This percentage price increase equalled the gain in the All Ordinaries Index Index of 1.8%.
SECTION 4 AUSTRALIA AND NEW ZEALAND BANKING RELATED NEWS
4.1 American Depository Receipts
+ Australia & New Zealand Banking ADR shares post best quarter in a year
Australia & New Zealand Banking Group (OT:ANZBY), the International Depository Receipt (IDR) market's 11th largest Bank by market cap, has increased 73.50c (or 3.7%) in the past quarter to close at $US20.77. Compared with the Bank of New York Mellon Composite ADR Index which fell 2.7 points (or 1.8%) in the past quarter, this represented a relative price increase of 5.5%. The volume for the past quarter was 0.9 times average trading per quarter of 2.7 million shares. In the past quarter the market cap has jumped $US661.6 million to $US59.8 billion. The shares had their best quarter in a year since the quarter ended September 20, 2017.
4.2 Other News
+ BSS/News Bites:
Australia and New Zealand Banking Group Limited is placed 724/1299 in BSS News Bites' ranking of Australian performers in the past year, a percentile ranking of 45.
+ Vanguard Total World Stock ETF 7587:
The stock was one of 7587 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 1,728 shares in the period Jun 30, 2018 to Jul 31, 2018 worth $US-49,933 at an estimated Volume Weighted Average Price (VWAP) of $US28.8967. As at Jul 31, 2018, the Vanguard Total World Stock ETF held 928,874 shares worth $US19,910,704 or 0.12% by value of the ETF's portfolio [Ranked 133 out of 7587 by value and 5 out of 250 for Australia].
SECTION 5 AUSTRALIA AND NEW ZEALAND BANKING SUMMARY FINANCIALS
5.1 Dividend History
+ Trailing 12 months dividend has deteriorated from $A1.74 in 2014 to $A1.60 in 2018.
5.2 Financials Summary (Past 3 years)
|Year ended||Sep 2017||Sep 2016||Sep 2015|
|Sales (USD B)||21.1||21.7||25|
|Pretax (USD B)||7||5.9||7.6|
|Net (USD B)||4.6||4.1||5.4|
+ Net profit was up 12.2% from US$4.1 billion in 2016 to US$4.6 billion in 2017.
+ Earnings Per Share (EPS) was up 11.7% from $A1.97 to $A2.20.
SECTION 6 AUSTRALIA AND NEW ZEALAND BANKING PROFILE
Australia and New Zealand Banking Group Limited is an international bank with activities in general banking, mortgage and installment lending, life insurance, leasing, hire purchase and general finance. ANZ also provides international and investment banking, investment and portfolio management and advisory services, nominee and custodian services, stock broking and executor and trustee services.
6.2 Top Management
The chairman is David Gonski and the chief executive officer is Shayne Elliott.
6.3 Issued Capital
Based on 2,887,173,749 issued shares the market capitalisation is $A82.1 billion.
Contact: (03) 9273 6141
Physical Address: ANZ Centre Melbourne, Level 9, 833 Collins Street, Docklands, VIC, Australia, 3008
Exchange: Australian Securities Exchange
Business Sector: Banking & Investment Services
Industry Group: Banking Services
Economic Sector: Financials
AU:ANZ; ASX:ANZ; AX:ANZ; ANZ.AX
Australia & New Zealand Banking Group Ltd, Australia And New Zealand Banking Group Limited, Australia And New Zealand Banking Group Ltd