Qatari stock report - Qatar Islamic Bank

QATAR

Qatar Islamic Bank rises for a third consecutive day, a three-day rise of 1.8% August 17, 2017 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Qatar Islamic Bank (QE:QIBK), Qatar's 3rd largest Bank by market cap, has risen 74.0 Dirham (0.8%) for a third consecutive day on Thursday. This brought its three-day rise to QAR1.67 (1.8%), compared with the QE Index which fell 85.5 points (0.9%) in the three days for a relative price increase of 2.7%. Cumulative volume in the 3 days was 0.4 times the average 3-day volume of 79,074 shares. The stock last traded at QAR95.90.

SECTION 1

QATAR ISLAMIC BANK BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 11.2 multiplied by the P/NTA of 1.2 is 13.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ The relative yield of the stock, defined by its yield of 5%, divided by average yield of dividend yielding stocks in the QE Index of 3.8% is 130.6%. This suggests the 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.

+ The company is cash rich with Cash to Market Capitalisation at 27.9%.

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 1.2 [1.5]. We estimate Qatar Islamic Bank stock is trading at a current year Price to Book of 1 and a forward year Price to Book of 0.8.

+ Dividend yield of 5% [3.5%].

1.3 Technicals:

Uptrend: The stock rose on high volatility today and expanding price range.

+ The price increased 1.1% in the last week and 0.9% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 95.52 minus the 26-day EMA of 95.37 is positive 0.15 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ The present value of QAR1,000 (PV1000) invested five years ago in Qatar Islamic Bank is QAR1,997, including a capital gain of QAR553 and dividend reinvested of QAR444.

+ 5 years Multiplier in QAR = 1.997x

+ Compound Annual Growth Rate (CAGR) in QAR = 14.8%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Qatar Islamic Bank is $US1,993, including a capital gain of $US549 and dividend reinvested of $US443.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.993x

+ Compound Annual Growth Rate (CAGR) in USD = 14.8%

Aug 17, 2017: USD 1 equals QAR 3.65

1.4 High Performance Indicators:

DescriptionValueRank In Market
Price/MAP501.02In Top Quartile
Price Change %0.8In Top Quartile
Today's TurnoverQAR4.4 million (US$1.2 million)In Top Quartile
Price/MAP2000.97In Top Quartile

SECTION 2

QATAR ISLAMIC BANK BEARISH SIGNALS

2.1 Fundamentals:

+ Total Liabilities/EBITDA of 18.9 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ As per the Du Pont analysis, Return on Equity of 10.3% is lower than sector average of 13.1%. This is computed as net profit margin of 38.5% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 7.0.

2.2 Overvaluation [compared with sector average]:

+ Return on Equity 10.3% [13.1%].

2.3 Technicals:

+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR914, comprising a capital loss of QAR127 and dividend reinvested of QAR41.

PV10001-week1-month1-year
QIBK.QE1,0111,009914
QE Index978953798

2.4 Low Performance Indicators:

DescriptionValueRank In Market
Return on Assets [ROA] %1.5In Bottom Quartile
Volatility %2.7In Bottom Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 45,714 shares worth QAR4.4 million (US$1.2 million) traded today. In the past week, volume was 0.3 times average and the shares were up 1.1%. The volume was 0.6 times the average daily trading volume of 79,074 shares.

+ Qatar Islamic Bank is at a discount of 12.7% to its 12-month high of QAR109.89 on August 18, 2016. It is also at a premium of 10.4% to the 12-month low of QAR86.90 on July 03.

3.2 Moving Annual Return

QIBKClose (QAR)Dividends (QAR)Capital Gain / (Loss) %% YieldAnnual Return %
August 1795.94.75(12.7)4.3(8.3)
1 Yr ago109.794.257.54.211.7
2 Yrs ago102.14.254.64.49.0
3 Yrs ago97.59467.96.974.8
4 Yrs ago58.123.75(5.9)6.10.2

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 11.1% (or a turnover period of 9 years 15 days). This average length of ownership of the stock at 1.2 times the average holding period of 7 years 9 months for stocks in the QE Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 4

RANKING

4.1 Global Rank [out of 47,596 stocks] and Rank in the Middle East & Africa Region [out of 2,284 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)6.2B2,16163
Total Assets (US$)38.3B1,05331
Revenue (US$)1.5B5,047131
Net Profit (US$)590.7M1,49045
Return on Equity %10.312,294761
Net Profit Margin %38.52,727253
Price to Book1.113,032905
Price/Earnings11.15,330550
Yield %5.04,356495
PV$1000 (1Year) US$*91427,2131,166
US$* Change (1Year) %-12.528,1491,213

* 1 year ago USD 1 = QAR 3.65

Aug 17, 2017: USD 1 equals QAR 3.65

4.2 Independent Ratings

Qatar Islamic Bank was ranked 321 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 466 in 2014. Brand Finance valued the brand at US$317 million.

It is the 1936th largest by revenue in the Forbes Global 2000.

It is placed 9/38 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 77.

SECTION 5

QATAR ISLAMIC BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD)1.5B1.2B-
Pretax (USD M)577.9556.1465.3
Net (USD M)587.3532.6436.4
EPS (QAR)8.558.066.78

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (QAR)
17 Aug 20174.75
17 Aug 20164.25
17 Aug 20154.25
17 Aug 20144
17 Aug 20133.75

SECTION 6

QATAR ISLAMIC BANK PROFILE

6.1 Activities

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.

6.2 Industry & Sector

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

6.3 Top Management

The chairman is Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Ai Thani, the chief executive officer is Bassel Gamal and the chief financial officer is Gourang Hemani.

6.4 Issued Capital

Based on 236,293,200 issued shares the market capitalisation is QAR22.7 billion (US$6.2 billion).

SECTION 7

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

August 07: Qatar Islamic Bank issues second series of deposit certificates

Qatar Islamic Bank (QIB), Qatar's leading Islamic Bank, has launched its second series of Certificates of Deposit. The new Certificates of Deposit will be available for individuals and corporate customers in Qatari Riyal and US Dollar for different terms of one and two years. Certificates of Deposit are developed to encourage customers to make long term saving and get attractive annual profit based on the certificate's maturity and selected currency.

August 06: QIB LAUNCHES SECOND SERIES OF CERTIFICATE OF DEPOSIT

Qatar Islamic Bank (QIB), has announced the launch of its second series of Certificates of Deposit. The new Certificates of Deposit will be available for individuals and corporate customers in Qatari Riyal and US Dollar for different tenors of one and two years.

Certificates of Deposit are developed to encourage customers to make long term saving and get attractive annual profit based on the certificate's maturity and selected currency.

July 19: QATAR ISLAMIC BANK DISCLOSES ITS FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2017

Qatar Islamic Bank disclosed its reviewed financial statement for the period ended June 30, 2017. The statements shows that the net profit is QR 1,165 Million compared to net profit amounting to QR 1,055 Million for the same period of the previous year. The Earnings per Share (EPS) amounted to QR 4.50 for the period ended June 30, 2017 compared to EPS amounted to QR 4.25 for same period of the previous year.

July 19: QIB reports 10% increase in H1 profit to QR1.17bn

Riding on the strength of its core earnings, Qatar Islamic Bank (QIB), the country's largest Shariah-principled lender, has reported a 10% increase year-on-year in net profit to QR1.17bn in the first six months of this year.

Total assets of the bank expanded 9.2% to QR147bn, mainly driven by growth in the financing activities.

July 02: QIB DISCLOSES THE SEMI-ANNUAL FINANCIALS ON 18 JULY, 2017

Qatar Islamic Bank (QIB) has announced its intent to disclose the reviewed financial reports for the period ending June 30, 2017 on Tuesday 18/7/2017.

Contact: 974 -4409409

Physical Address: Grand Hamad Ave. - Doha 559

State/Province/Country: Qatar

Exchange: Qatar Stock Exchange

ISIN: QA0006929853

QA:QIBK; QD:QIBK; QISB.QA

PermID: 4295886959

Source: www.BuySellSignals.com