Qatari stock report - Qatar Islamic Bank

QATAR

Qatar Islamic Bank decreases January 21, 2018 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Qatar Islamic Bank (QE:QIBK), Qatar's 3rd largest Bank by market cap, has decreased 69.0 Dirham (0.7%) from its last trading session of January 18 to close at QAR97.60. Compared with the QE Index which fell 19.6 points (0.2%) in the day, the relative price change was -0.5%. The volume was 0.5 times the average daily trading volume of 70,230 shares.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Low Performance Indicators, A negative finish to 2017

SECTION 2 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 QATAR ISLAMIC BANK BEARISH SIGNALS

1.1 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 12.1%. 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.

1.2 Overvaluation [compared with sector average]:

+ Return on Equity 10.3% [12.1%].

1.3 Technicals:

+ The price decreased 1.2% in the last week. The fall has been exacerbated by robust volume of 1.6 times average for the week.

+ Compared with the QE Index which fell 0.2% for the week, this represented a relative price decrease for Qatar Islamic Bank stock of 0.9% for the week.

1.4 Low Performance Indicators:

DescriptionValueRank In Market
% Prem to Vol Wtd Price0.1In Bottom 1%
Return on Assets [ROA] %1.5In Bottom Quartile

1.5 A negative finish to 2017

The stock has decreased 37.45 Dirham (or 0.4%) in FY 2017 to close at QAR99.0. The average daily volume of 66,859 shares in FY 2017 was 0.6 times the average daily volume in FY 2016.

SECTION 2 QATAR ISLAMIC BANK BULLISH SIGNALS

2.1 Fundamentals:

+ The P/E of 11.4 multiplied by the P/NTA of 1.2 is 13.5. 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 4.9%, divided by average yield of dividend yielding stocks in the QE Index of 3.7% is 132.3%. 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 27.4%.

2.2 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 4.9% [3.5%].

2.3 Technicals:

+ The present value of QAR1,000 (PV1000) invested ten years ago in Qatar Islamic Bank is QAR1,443, including a capital gain of QAR122 and dividend reinvested of QAR321.

+ 10 years Multiplier in QAR = 1.443x

+ Compound Annual Growth Rate (CAGR) in QAR = 3.7%

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 $US1,442, including a capital gain of $US121 and dividend reinvested of $US321.

+ 10 years ago USD 1 equalled QAR 3.6377

+ 10 years Multiplier in USD = 1.442x

+ Compound Annual Growth Rate (CAGR) in USD = 3.7%

Jan 21, 2018: USD 1 equals QAR 3.64

2.4 High Performance Indicator:

DescriptionValueRank In Market
Cash to MCap %27.4In Top Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 38,267 shares worth QAR3.7 million (US$1 million) traded today. In the past week, volume was 1.6 times average and the shares were down 1.2%.

+ Qatar Islamic Bank is at a discount of 7.6% to its 12-month high of QAR105.59 on January 25, 2017. It is also at a premium of 12.3% to the 12-month low of QAR86.90 on July 03, 2017.

+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR972, comprising a capital loss of QAR71 and dividend reinvested of QAR43.

PV10001-week1-month1-year
QIBK.QE9881,049972
QE Index9981,077842

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 3 out of 5 years.

QIBKClose (QAR)Dividends (QAR)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 2197.64.75(7.1)4.5(2.6)
1 Yr ago105.114.2548.6654.6
2 Yrs ago70.724.25(24.8)4.5(20.3)
3 Yrs ago94.07452.76.559.2
4 Yrs ago61.623.751.76.27.9

Close 5 years ago QAR60.57

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 10.04% (or a turnover period of 9 years 11 months). This average length of ownership of the stock at 1.2 times the average holding period of 8 years 6 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 47,401 stocks] and Rank in the Middle East & Africa Region [out of 2,278 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)6.3B2,31062
Total Assets (US$)38.4B1,08432
Revenue (US$)1.5B5,178139
Net Profit (US$)592.1M1,53347
Return on Equity %10.312,762740
Net Profit Margin %38.52,732260
Price to Book1.212,562831
Price/Earnings11.55,567536
Yield %4.84,590538
PV$1000 (1Year) US$*97427,5971,076
US$* Change (1Year) %-6.328,7011,124

* 1 year ago USD 1 = QAR 3.65

Jan 21, 2018: USD 1 equals QAR 3.64

4.2 Independent Ratings

+ Brand Finance 500:

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.

+ Forbes 2000:

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

+ BSS/News Bites:

It is placed 10/37 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 74.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 15,816 shares worth $US409,593 by value of the ETF's portfolio [Ranked 3566 out of 7457 by value and 6 out of 22 for Qatar].

SECTION 5 QATAR ISLAMIC BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD)1.5B1.2B-
Pretax (USD M)582.6560.6469.1
Net (USD M)592.1536.9440
EPS (QAR)8.558.066.78

Net profit was up 10.3% from US$536.9 million in 2015 to US$592.1 million in 2016. Earnings Per Share (EPS) was up 6.1% from QAR8.06 to QAR8.55.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (QAR)
21 Jan 20184.75
21 Jan 20174.25
21 Jan 20164.25
21 Jan 20154
21 Jan 20143.75

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
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials

6.3 Top Management

The chief executive officer is Bassel Gamal.

6.4 Issued Capital

Based on 236,293,200 issued shares the market capitalisation is QAR23.1 billion (US$6.3 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

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January 18: QATAR ISLAMIC BANK DISCLOSES ITS FINANCIAL STATEMENTS FOR THE YEAR 2017

Qatar Islamic Bank disclosed its financial statements for the period ended on 31.12.2017. The statements shows that the net profit QR 2.4 Billion Compared to net profit amounting to QR 2.1 Billion For the same period of the previous year.

January 01: QIB the first bank in Qatar to implement Face ID for mobile app

Qatar Islamic Bank (QIB), has introduced facial recognition capabilities, Face ID, in its iOS and Android Mobile App, making it the first Bank in Qatar to allow the facial recognition technology feature on all smartphone devices.

Instead of customers logging into their accounts with their username and password each time they open the QIB Mobile App, they can now use their Face ID to login in a simple and secured manner.

December 31 2017: QATAR ISLAMIC BANK BOARD MEETS ON 17/1/2018 TO DISCUSS THE FINANCIAL STATEMENTS ENDED 31/12/2017

Qatar Islamic Bank announced that its board of directors will meet on Wednesday, 17 January 2018 to discuss the Bank's 2017 financial results and discuss the profit distribution.

December 18 2017: QIB recognised at 'Arab Best' Awards 2017

Qatar Islamic Bank (QIB), Qatar's leading Islamic Bank, announced that it has received two awards from the "Arab Best" Awards.

The Bank was recognised as the "Best Management team in Banking and Financial Services in the Arab world for 2017" while Bassel Gamal, QIB's Group CEO, was ranked seven amongst the best 100 Arabian CEOs and number one across the banking sector according to the published ranking.

December 18 2017: QIB recognised at 'Arab Best Award 2017'

Qatar Islamic Bank (QIB) has received two awards from the 'Arab Best Award 2017' in a ceremony held recently in Morocco, according to a statement.

QIB was recognised as 'Best Management Team in Banking and Financial Services in the Arab World for 2017', while QIB Group CEO Bassel Gamal was ranked seven amongst the 'Best 100 Arabian CEOs' and number No 1 across the banking sector, according to the published ranking.

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