Qatari stock report - Qatar Islamic Bank

QATAR

Qatar Islamic Bank inches higher, resistance at 12-day EMA June 22, 2017 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Qatar Islamic Bank (QE:QIBK), Qatar's 3rd largest Bank by market cap, has lifted 3.0% but fell short of the 12-day Exponential Moving Average [EMA] of QAR93.28. Compared with the QE Index which rose 236.1 points (2.7%) in the day, the relative price increase was 0.3%. The volume was 0.5 times the average daily trading volume of 100,188 shares. The stock last traded at QAR92.70.

SECTION 1

QATAR ISLAMIC BANK BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 10.8 multiplied by the P/NTA of 1.1 is 12.1. 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 5.1%, divided by average yield of dividend yielding stocks in the QE Index of 3.6% is 142.2%. 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 28.9%.

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 1.1 [1.5]. We estimate Qatar Islamic Bank stock is trading at a current year Price to Book of 0.9 and a forward year Price to Book of 0.8.

+ Dividend yield of 5.1% [3.6%].

1.3 Technicals:

+ The present value of QAR1,000 (PV1000) invested five years ago in Qatar Islamic Bank is QAR1,326, including a capital gain of QAR267 and dividend reinvested of QAR59.

+ 5 years Multiplier in QAR = 1.326x

+ Compound Annual Growth Rate (CAGR) in QAR = 5.8%

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 $US1,313, including a capital gain of $US254 and dividend reinvested of $US58.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.313x

+ Compound Annual Growth Rate (CAGR) in USD = 5.6%

Jun 22, 2017: USD 1 equals QAR 3.68

1.4 Oversold/Bullish/Support Signals:

+ The Relative Strength Index (RSI) of 29.0 has breached the oversold line of 30, suggesting the price decrease of 6.4% in the last 14 days is unusually high.

+ The Stochastic indicator of 17.5 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.

1.5 High Performance Indicators:

DescriptionValueRank In Market
Volatility %0.9In Top 8%
Cash to MCap %28.9In Top Quartile
Price/MAP2000.93In 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 3.5% premium to 12-month low of QAR89.53 against the 17.1% discount to high of QAR111.80 suggests the stock continues to push for new lows.

2.4 Low Performance Indicator:

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

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 49,318 shares worth QAR4.6 million (US$1.2 million) traded today. In the past week, volume was 0.5 times average and the shares were down 0.3%.

+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR1,059, comprising a capital gain of QAR12 and dividend reinvested of QAR47.

PV10001-week1-month1-year
QIBK.QE9979121,059
QE Index978911909

3.2 Performance Indicator:

DescriptionValueRank In Market
Today's TurnoverQAR4.6 million (US$1.2 million)In 2nd Quartile

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 12.4% (or a turnover period of 8 years 29 days). This average length of ownership of the stock at 1.1 times the average holding period of 7 years 7 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 47,400 stocks] and Rank in the Middle East & Africa Region [out of 2,287 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)6B2,21758
Total Assets (US$)38B99529
Revenue (US$)1.5B5,002130
Net Profit (US$)586.2M1,45143
Return on Equity %10.312,163772
Net Profit Margin %38.52,662242
Price to Book1.112,105814
Price/Earnings10.55,286505
Yield %5.33,556377
PV$1000 (1Year) US$*1,04824,414883
US$* Change (1Year) %-3.026,024966

* 1 year ago USD 1 = QAR 3.64

Jun 22, 2017: USD 1 equals QAR 3.68

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 9/40 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 78.

SECTION 5

QATAR ISLAMIC BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD)1.5B1.2B-
Pretax (USD M)579.2557.3466.3
Net (USD M)588.6533.7437.4
EPS (QAR)8.558.066.78

5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-

Qatar Islamic Bank EPS Growth slows to 6.1%

Qatar Islamic Bank (QA:QIBK), announced EPS of QAR8.55 ($US2.35) for the year-ended 31 December 2016, up 6.1% from QAR8.06 ($US2.21) in the previous year-ended 31 December 2015. EPS growth from the year-ended 31 December 2014 to the year-ended 31 December 2015 was 18.9%.

Favourable Changes:

+ Net profit up 10.3% from QAR2.0b ($US536.6m) to QAR2.2b ($US591.9m)

+ Total income up 21.7% from QAR4.5b ($US1.2b) to QAR5.5b ($US1.5b).

+ EPS up 6.1% from QAR8.06 ($US2.21) to QAR8.55 ($US2.35).

+ Retained earnings to total assets up 40.2% to 1.4%.

+ Net tangible assets per share up 16.7% from QAR70.95 ($US19.5) to QAR82.81 ($US22.7).

Unfavourable Changes:

+ Operating Cash Flow is negative.

+ EBIT to total assets down 5.4

+ Return on Equity down from 12.3% to 10.3%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (QAR)
22 Jun 20174.75

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 QAR21.9 billion (US$6 billion).

SECTION 7

STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

May 31: QIB highlights treasury products and services to SMEs

May 24: QIB OPENS NEW BRANCH AT DOHA FESTIVAL CITY

May 22: QIB successfully prices $750 million 3.251 per cent five-year Sukuk

May 19: QATAR ISLAMIC BANK SUCCESSFULLY PRICES US$ 750 MILLION 3.251% 5-YEAR SUKUK

May 15: QIB NAMED 6 BANKS TO ARRANGE FOR USD SUKUK ISSUANCE

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