Qatari stock report - Qatar Islamic Bank

QATAR

Qatar Islamic Bank hits year-high 6th time in one month April 22, 2018 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Qatar Islamic Bank (QE:QIBK), Qatar's 3rd largest Bank by market cap, hit a 52-week high of QAR108.50 during the day. In the last one month the stock has hit a new 52-week high six times and in the last three months nine times, pointing to a significant uptrend. The stock price has increased 77.0 Dirham (0.7%) from its last trading session of April 19 to close at QAR107.89. Compared with the QE Index which fell 20.4 points (0.2%) in the day, the relative price increase was 0.9%. The volume was 0.4 times the average daily trading volume of 66,894 shares.

THE PAST FOUR YEARS

Qatar Islamic Bank rises for a fourth consecutive year, a four-year rise of 45%

Qatar Islamic Bank (QE:QIBK), extended its rise from 2.9% three years ago to 4.8% two years ago to 12.7% a year ago. In the past four years it has risen QAR33.52 (45.1%), compared with the QE Index which fell 3,783.7 points (29.2%) in the four years for a relative price increase of 74.3%.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

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

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Momentum, Moving Annual Return, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 QATAR ISLAMIC BANK BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 11.6 multiplied by the P/NTA of 0.2 is 2.8. 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 4.6%, divided by average yield of dividend yielding stocks in the QE Index of 3.6% is 130.1%. 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.

+ Net profit margin has averaged 43.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

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 %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Dec 17138.97.1
Dec 1624.56.13.4

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 0.2 [0.8].

+ Year-on-Year Earnings Growth of 8.9% [6.5%].

+ Price/Earnings/Growth of 0.9 [1.6].

+ Dividend yield of 4.6% [3.5%].

1.3 Technicals:

+ The price lifted 3.7% in the last week and jumped 7.5% in the last month.

+ Compared with the QE Index which rose 3.1% for the week and 4.0% for the month, this represented a relative price increase for Qatar Islamic Bank stock of 0.8% for the week and 3.6% for the month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 104.44 minus the 26-day EMA of 101.98 is positive 2.46 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 14:8 or 1.8:1.

+ In the last three months the stock has hit a new 52-week high nine times, pointing to a significant uptrend.

+ The stock's relative price strength percentile is rising at 76 for 6 months, 80 for 3 months and 83 for 1 month.

+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR1,185, comprising a capital gain of QAR127 and dividend reinvested of QAR58.

PV10001-week1-month1-year
QIBK.QE1,0371,0751,185
QE Index1,0311,062894

+ The present value of QAR1,000 (PV1000) invested ten years ago in Qatar Islamic Bank is QAR1,627, including a capital gain of QAR189 and dividend reinvested of QAR439.

+ 10 years Multiplier in QAR = 1.627x

+ Compound Annual Growth Rate (CAGR) in QAR = 5.0%

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 $US1,625, including a capital gain of $US187 and dividend reinvested of $US438.

+ 10 years ago USD 1 equalled QAR 3.6364

+ 10 years Multiplier in USD = 1.625x

+ Compound Annual Growth Rate (CAGR) in USD = 5.0%

Apr 22, 2018: USD 1 equals QAR 3.64

1.4 High Performance Indicators:

DescriptionValueRank In Market
P/E * P/NTA2.78In Top 9%
Price/MAP501.09In Top Quartile
Price/MAP2001.17In Top Quartile
Volatility %0.8In Top Quartile

SECTION 2 QATAR ISLAMIC BANK BEARISH SIGNALS

2.1 Fundamentals:

+ 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 is less than stellar at 2.0%. This 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. Also, this has deteriorated from 2.1% last year.

Du Pont AnalysisROEProfit MarginAsset TurnoverEquity Multiplier
Current Year2.041.20.041.4
Previous Year2.144.40.041.4

2.2 Overvaluation [compared with sector average]:

+ Return on Equity 2.0% [7.7%].

2.3 Technicals:

+ The 0.6% discount to 12-month high of QAR108.50 against the 30.5% premium to 12-month low of QAR82.67 suggests the climb might be peaking.

2.4 Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 82.5 has penetrated the overbought line of 70, suggesting the price gain of 9.1% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -5.8, suggesting the price is close to its 14-day high of QAR108.50.

+ The Money Flow Index [MFI] is 92.5 suggesting an overbought 14-day trend, being above 80. The Money Ratio of 12.3 suggests positive money flow was 12.3 times negative money flow.

2.5 Low Performance Indicator:

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

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 25,229 shares worth QAR2.7 million (US$747,790) traded today. In the past week, volume was 1.3 times average and the shares were up 3.7%.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 7%.

QIBKClose (QAR)Dividends (QAR)Capital Gain %% YieldAnnual Return %
Apr 22107.89512.75.218.0
1 Yr ago95.714.755.35.210.5
2 Yrs ago90.94.253.14.87.9
3 Yrs ago88.174.2525.86.131.8
4 Yrs ago70.11427.97.335.2

Close 5 years ago QAR54.81

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 6.6% (or a turnover period of 15 years 2 months). This average length of ownership of the stock at 1.6 times the average holding period of 9 years 6 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 4 RANKING

4.1 Global Rank [out of 47,669 stocks] and Rank in the Middle East & Africa Region [out of 2,307 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)7B2,07658
Total Assets (US$)41.3B1,03733
Revenue (US$)1.7B4,844123
Net Profit (US$)660.8M1,50143
Return on Equity %2.025,8391,336
Net Profit Margin %41.22,518236
Price to Book0.21,44046
Price/Earnings10.65,138443
Yield %5.14,615533
PV$1000 (1Year) US$*1,18815,169682
US$* Change (1Year) %3.021,462902

* 1 year ago USD 1 = QAR 3.65

Apr 22, 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 3/39 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 92.

+ Vanguard Total World Stock ETF 7517:

The stock was one of 7517 global stocks selected by Vanguard Total World Stock ETF (VT). As at Jan 31, 2018, the Vanguard Total World Stock ETF held 15,816 shares worth $US428,927 by value of the ETF's portfolio [Ranked 3718 out of 7517 by value and 7 out of 21 for Qatar].

SECTION 5 QATAR ISLAMIC BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2017Dec 2016Dec 2015
Sales (USD B)1.71.51.2
Pretax (USD M)623.3582.6560.6
Net (USD M)660.8592.1536.9
EPS (QAR)9.318.558.06

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.

5.2 Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-

Favourable Changes:

+ Net profit up 11.6% from QAR2.2b ($US591.9m) to QAR2.4b ($US660.8m)

+ Total income up 13% from QAR5.6b ($US1.5b) to QAR6.3b ($US1.7b).

+ EPS up 8.9% from QAR8.55 ($US2.35) to QAR9.31 ($US2.56).

+ Retained earnings to total assets up 35.3% to 1.8%.

Unfavourable Changes:

+ Operating Cash Flow is negative.

+ Return on Equity down from 2.1% to 2%.

Note:

+ EBIT to total assets steady at 1.5%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (QAR)
22 Apr 20185
22 Apr 20174.75
22 Apr 20164.25
22 Apr 20154.25
22 Apr 20144

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
Economic SectorFinancials
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks

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 QAR25.5 billion (US$7 billion).

SECTION 7 STOCK BUZZ

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April 18: CAPITAL INTELLIGENCE AFFIRMS QIB RATING AT 'A'

CapitalIntelligence (CI), the international credit rating agency, has affirmed QatarIslamic Bank's (QIB) Financial Strength Rating (FSR) at 'A' with a stableoutlook, Long- and Short-Term Foreign Currency Ratings (FCRs) are affirmed at'A+' and 'A2', respectively.

April 18: QATAR ISLAMIC BANK DISCLOSES ITS FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2018.

Qatar Islamic Bank disclosed the interim financial statement for the three months' period ended March 31, 2018. The financial statements revealed a net profit of QR 625.2 Million in comparison to net profit QR 555.3 Million for the same period of the previous year. The Earnings per Share (EPS) per share amounted to QR 2.65 As of March 31, 2018 versus EPS per share QR 2.35 of the same period in 2017.

April 12: FITCH AFFIRMS QATAR ISLAMIC BANK (QIB) AT 'A'

Fitch Ratings has affirmed Qatar Islamic Bank's (QIB), Long Term Issuer Default Rating (IDR) at 'A'.

The rating of QIB reflects its strong and well-established franchise in Qatar, with a market share of about 10% of total banking system assets at end-2017. It also factors in adequate profitability, sound asset-quality metrics, satisfactory capital ratios and sufficient liquid assets.

April 06: S&P AFFIRMS QIB'S ISSUER CREDIT RATING AT A-

International credit rating agency, Standard & Poor's (S&P) has affirmed Qatar Islamic Bank (QIB), Qatar's leading Islamic Bank, the coveted 'A-' issuer credit rating.

March 27: QIB TO DISCLOSE ITS 2018 FIRST QUARTER FINANCIAL RESULTS ON SUNDAY, APRIL 15.

Qatar Islamic Bank (QIB) announces its intent to disclose its 2018 First Quarter Financial Statements Results on Sunday, 15 April 2018.

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

RIC: QISB.QA

Source: www.BuySellSignals.com