Qatari stock report - Qatar Islamic Bank
Qatar Islamic Bank drops 3.3% August 16, 2018 12:30 AST
NEWS BITES - MIDDLE EAST & NORTH AFRICA
Qatar Islamic Bank (QE:QIBK), Qatar's 2nd largest Bank by market cap, has dropped QAR4.38 (3.3%) from its last trading session of August 15 to close at QAR126.47. Compared with the QE Index which fell 127.3 points (1.3%) in the day, the relative price change was -2.0%. The volume of 91,104 shares was close to average trading. Its MCap is QAR29.9 billion (US$8.2 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 GLOBAL RANKING
SECTION 6 SUMMARY FINANCIALS
SECTION 7 PROFILE
SECTION 1 QATAR ISLAMIC BANK BEARISH SIGNALS
Significant Downtrend: The stock dropped 3.3% on high volatility today.
+ The price tumbled 6.3% in the last week.
+ Compared with the QE Index which fell 4.4% for the week, this represented a relative price decrease for Qatar Islamic Bank's stock of 1.9% for the week.
Low Performance Indicators and rank of Qatar Islamic Bank in the Qatar market:
|Description||QIBK Value||Rank In Market|
|Price Change %||-3.3||In Bottom 6%|
|Volatility %||4.1||In Bottom 9%|
|Return on Assets [ROA] %||1.5||In Bottom Quartile|
+ Total Liabilities/EBITDA of 20.3 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ As per the Du Pont analysis, Return on Equity [ROE] is less than stellar at 2.0%; a deterioration from 2.1% last year. ROE is computed as net profit margin of 41.2% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 1.4.
YOY Deterioration in ROE and Profit Margin
|Du Pont Analysis||ROE||Profit Margin||Asset Turnover||Equity Multiplier|
1.3 Overvaluation [compared with sector average]:
+ Price/Earnings of 13.6 [11.5]. We estimate Qatar Islamic Bank stock is trading at a current year P/E of 11.2 and a forward year P/E of 10.1.
+ Return on Equity 2.0% [7.7%].
SECTION 2 QATAR ISLAMIC BANK BULLISH SIGNALS
+ In the last three months the stock has hit a new 52-week high sixteen times, pointing to a significant uptrend.
+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR1,467, comprising a capital gain of QAR397 and dividend reinvested of QAR70.
+ The present value of QAR1,000 (PV1000) invested ten years ago in Qatar Islamic Bank is QAR1,537, including a capital gain of QAR197 and dividend reinvested of QAR340.
+ 10 years Multiplier in QAR = 1.537x
+ Compound Annual Growth Rate (CAGR) in QAR = 4.4%
Present Value of USD1,000 invested 10 years ago:
+ The present value of USD1,000 (PV1000) invested ten years ago in Qatar Islamic Bank is $US1,536, including a capital gain of $US196 and dividend reinvested of $US340.
+ 10 years ago USD 1 equalled QAR 3.6377
+ 10 years Multiplier in USD = 1.536x
+ Compound Annual Growth Rate (CAGR) in USD = 4.4%
Aug 16, 2018: USD 1 equals QAR 3.64
2.2 Oversold/Bullish/Support Signals:
+ The stock is oversold according to the Williams % R indicator of -81.3, suggesting the price is close to its 14-day low of QAR124.0.
High Performance Indicators and rank of Qatar Islamic Bank in the Qatar market:
|Description||QIBK Value||Rank In Market|
|Price/MAP200||1.21||In Top 3%|
|P/E * P/NTA||3.94||In Top 7%|
+ The P/E of 13.6 multiplied by the P/NTA of 0.3 is 3.9. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
+ The relative yield of QIBK, defined by its yield of 4%, divided by average yield of dividend yielding stocks in the QE Index of 3.4% is 115.8%. This suggests Qatar Islamic Bank stock is undervalued in dividend yield terms.
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stocks by value of Q Ratio.
+ Net profit margin has averaged 43.5% in the last 3 years. This is considered superior and suggests a high margin of safety.
Annual Trend in Revenue, EPS and EBITDA:
5-years average annualized earnings growth rate of 11.4%
+ Profit growth and EBITDA growth are positive and have seen consecutive rises in recent years. [Year ended, all figures in %]
|Year||Revenue Growth||EPS Growth||EBITDA Growth|
2.4 Undervaluation [compared with sector average]:
+ Price to Book of 0.3 [0.9]. We estimate Qatar Islamic Bank stock is trading at a current year Price to Book of 0.1 and a forward year Price to Book of 0.1.
+ Year-on-Year Earnings Growth of 8.9% [6.5%].
+ Price/Earnings/Growth of 1.1 [1.8].
+ Dividend yield of 4% [3.2%].
SECTION 3 QATAR ISLAMIC BANK PRICE VOLUME DYNAMICS
+ Volume: there were 90,019 shares worth QAR11.4 million (US$3.1 million) traded today. In the past week, volume was 1.0 times average and the shares were down 6.3%. The volume of 91,104 shares was close to average trading.
+ Qatar Islamic Bank is at a discount of 7.8% to its 12-month high of QAR137.20 on August 06. It is also at a premium of 52.8% to the 12-month low of QAR82.77 on September 18, 2017.
3.2 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 8.2% (or a turnover period of 12 years 2 months). This average length of ownership of the stock at 1.2 times the average holding period of 9 years 10 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.
3.3 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in QIBK would have produced a return of 45.2%.
|QIBK||Close (QAR)||Dividends (QAR)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||90.53||4.75||(12.5)||4.6||(7.9)|
|2 Yrs ago||103.45||4.25||5.6||4.3||10.0|
|3 Yrs ago||97.92||4.25||5.5||4.6||10.1|
|4 Yrs ago||92.84||4||67.9||7.2||75.2|
Close 5 years ago QAR55.29
+ Beta: the Beta of Qatar Islamic Bank stock is 0.6. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
+ Qatar Islamic Bank (QE:QIBK), has jumped QAR32.29 (or 34.3%) year-to-date (YTD) in 2018 to close at QAR126.47 today. This means the stock has outperformed 91% of Qatar-listed stocks in 2018. Compared with the QE Index which has risen 10.7% YTD, this is a relative price increase of 23.6%.
SECTION 4 QATAR ISLAMIC BANK RELATED NEWS
+ BSS/News Bites:
Qatar Islamic Bank is placed 4/40 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 90.
+ Vanguard Total World Stock ETF 2588:
The stock was one of 2588 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 15,816 shares in the period May 31, 2018 to Jun 30, 2018 worth $US-1,882,522 at an estimated Volume Weighted Average Price (VWAP) of $US119.0265. As at Jun 30, 2018, the Vanguard Total World Stock ETF held 0 shares worth $US0 or 36,597% by value of the ETF's portfolio [Ranked 1648 out of 2588 by value and 2 out of 4 for Qatar].
SECTION 5 QATAR ISLAMIC BANK GLOBAL RANKING
Global Rank [out of 47,644 stocks] and Rank of Qatar Islamic Bank in the Middle East & Africa Region [out of 2,279 stocks]
|Description||Value||Global Rank||In MEA Region|
|Total Assets (US$)||41.3B||1,027||34|
|Net Profit (US$)||660.8M||1,513||40|
|Return on Equity %||2.0||26,398||1,332|
|Net Profit Margin %||41.2||2,551||221|
|Price to Book||0.3||2,203||115|
|PV$1000 (1Year) US$*||1,470||3,949||178|
|US$* Change (1Year) %||45.9||4,394||192|
* 1 year ago USD 1 = QAR 3.65
Aug 16, 2018: USD 1 equals QAR 3.64
SECTION 6 QATAR ISLAMIC BANK SUMMARY FINANCIALS
6.1 Dividend History
+ Trailing 12 months dividend has improved from QAR4.0 in 2014 to QAR5.0 in 2018.
6.2 Financials Summary (Past 3 years)
|Year ended||Dec 2017||Dec 2016||Dec 2015|
|Sales (USD B)||1.7||1.5||1.2|
|Pretax (USD M)||623.3||582.6||560.6|
|Net (USD M)||660.8||592.1||536.9|
+ Net profit was up 11.6% from US$592.1 million in 2016 to US$660.8 million in 2017.
+ Earnings Per Share (EPS) was up 8.9% from QAR8.55 to QAR9.31.
SECTION 7 QATAR ISLAMIC BANK PROFILE
Qatar Islamic Bank provides banking services according to Islamic Sharia principles. The Bank carries out banking services, investment and financing activities through various Islamic modes of financing, such as Sukuk, Murabaha, Mudaraba, Musharaka, Musawama, Istisnaa and Ijarah. It also offers individual and corporate banking services. The Bank operates through 18 domestic branches and representative offices.
7.2 Top Management
The chief executive officer is Bassel Gamal.
7.3 Issued Capital
Based on 236,293,200 issued shares the market capitalisation is QAR29.9 billion (US$8.2 billion).
Contact: 974 -4409409
Physical Address: Grand Hamad Ave. - Doha 559
Exchange: Qatar Stock Exchange
Economic Sector: Financials
Business Sector: Banking & Investment Services
Industry Group: Banking Services
QA:QIBK; QD:QIBK; QISB.QA