Australia and New Zealand Banking (ANZ:$A15.23) falls for a second consecutive day, a two-day fall of 1.8% 22 May 2020

NEWS BITES - AUSTRALIA

Dateline: Friday May 22, 2020

Australia and New Zealand Banking Group Limited (ASX:ANZ), Australia's 4th largest Bank by market cap, has fallen 16.0c (1.0%) for a second consecutive day on Friday. This brought its two-day fall to 28.0c (1.8%), compared with the All Ordinaries Index which fell 71.4 points (1.3%) in the two days for a relative price change of -0.5%. Cumulative volume in the 2 days was 0.7 times the average 2-day volume of 7.3 million shares. Australia and New Zealand Banking's stock last traded at $A15.23. There were 5,446,767 shares worth $A83 million traded today.

Bullish Turning Point

Williams % R

The stock is oversold according to the Williams % R indicator of -88.5, suggesting the price is close to its 14-day low. The Williams % R was previously -77.0.

Stock Summary (traded in AUD)

Currency1 AUD = 0.66 USD Dividend Yield5.2%
May 22 close$A15.23SectorBank
Ave Daily Volume7,328,600 sharesShares Outstanding2,836,177,422
52-Week Range14.10 - 28.07Market Cap$A43.2 billion [USD28.4 billion]
P/E7.2EPS Growth (FY2019 vs FY2018)-5.2%

ADR Summary (traded in USD)

Home ExchangeAustraliaRatio1 ADR equals 1 ordinary share
Code and ISINANZBY and US0525283042May 21 closeUSD10.11
CUSIP052528304Ave Daily Volume118,505 ADRs
*No. Held by Institutions2,713,53052-Week Range7.98 - 19.65
% of shares outstanding0.1%

Primary Exchange and Other Listings: Trading Currency and Volume (Excl ADR)

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
ASXANZAUD15.237,328,53298.00.7
OTC PinkANEWFUSD10.222,7501.122.5
New ZealandANZNZD16.435,9950.91.3
Total100.00

1 AUD [Australian Dollar]= 1.5309 USD; 1 AUD [Australian Dollar]= 0.9334 NZD [New Zealand Dollar]

ADVT= Avg. Daily Volume of Trading; VI= Volume Index (1 is avg)

Click here to export Financials table in xls

INDEX

SECTION 1 Corporate Profile

SECTION 2 Today's Bearish Signals

SECTION 3 Ongoing Bearish Parameters

SECTION 4 Today's Bullish Signals

SECTION 5 Ongoing Bullish Parameters

SECTION 6 American Depositary Receipts

Click here to view the following

SECTION 7 Dividend

SECTION 8 News Archives (Feb 2019 - Jan 2020)

Glossary

SECTION 1 Corporate Profile

1.1 Activities

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. ANZ operates in Australia, New Zealand, Asia Pacific region, the UnitedKingdom and the United States. ANZ main business divisions consist of Retail, Private Banking (B&PB) business units, TransactionBanking, Loans & Specialised Finance, Markets, Commercial banking and wealth management services.

1.2 Contact Details

Websitehttp://www.anz.com.au/
Physical AddressANZ Centre Melbourne, Level 9, 833 Collins Street, DOCKLANDS, VIC, AUSTRALIA, 3008
Phone03 9273 5555
Fax+61 3 8542 5252
Emaillibby.armstrong@anz.com

1.3 Industry & Sector

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

SECTION 2 Today's Bearish Signals

2.1 Momentum Down 1.4% Past Week

It outperformed the All Ordinaries index in 3 out of 5 days. The price ranged between a low of 15.13 on Monday, May 18 and a high of 15.51 on Wednesday, May 20.

DayAustralia and New Zealand BankingClose price [AUD]Price change %Relative change %Comment
ThursdayWeakens below moving average price15.39-0.8-0.4Price/MAP50 below 1 and falling
WednesdayUp 2.5% in 2 days15.510.50.1Week-high of 15.51
TuesdayInches higher, resistance at 12-day EMA15.442.00.2Top Rise; VI*=1.5
MondayContinues significant downtrend; drops 2.0%15.13-2.0-3.2Week-low of 15.13 Steepest Fall
FridayInches higher, resistance at 12-day EMA15.441.90.5Price rise on rising relative strength

[Volume Index (VI); 1 is average]

2.2 Rank in the bottom 3% by Relative Valuation in the Australian market

DescriptionValueRank
EV/EBITDA1.8In Bottom 3%

2.3 Rank in the bottom 24% by Price Performance in the Australian market

DescriptionValueRank
Price/MAP2000.65In Bottom 24%
1-month Price Change %-4.9In Bottom 18%

2.4 Downtrend

Today's Volatility:

Since the start of trading its volatility (highest price minus lowest price/lowest price) of 2.5% was 1.1 times the average daily volatility of 2.2%, up from 2.2% on Wednesday. A fall in the price on high volatility is a bearish signal.

Price/Moving Average Price of 0.65 and negative MACD:

- The Price/MAP 200 of 0.65 for Australia and New Zealand Banking is lower than the Price/MAP 200 for the All Ordinaries Index of 0.7.

- In the past 200 days this ratio has been under 0.65, 13 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of $A16.14 is lower than the 200-day MAP of $A23.28, a bearish indicator. The 200-day MAP has decreased to $A23.28. A decrease is another bearish indicator.

- The price to 200-day MAP ratio is 0.65, a bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 15.51 minus the 26-day EMA of 15.93 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 200 days this ratio has been under 0.9 43 times suggesting further downside. The 50-day EMAP has decreased to $A17.12. A decrease is another bearish indicator.

Past Quarter:

In the last three months the stock has hit a new 52-week low ten times, pointing to a significant downtrend.

Trailing Relative Strength (6 months) at 22 percentile:

- The stock has a 6-month relative strength of 22 in the Australian market of 1,438 stocks and 22 units indicating it is trailing 78% of the market.

2.5 Other Bearish Signals

- Return on Capital Employed of 3.1% versus sector average of 4.2% and market average of 5.7%.

SECTION 3 Ongoing Bearish Parameters

3.1 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < -2.7%

TSR %1 yr3 yrs5 yrs
ANZ.ASX-42.9-10.2-2.8

3.2 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Worst Periods with PV$A1000 < 723

PV$A1,0003 mo ago1 yr ago3 yrs ago
ANZ.ASX$A568$A571$A722
Bank sector$A610$A632$A610
All Ordinaries Index$A789$A850$A965

3.3 The Worst Periods [3 Mo, 1 Yr, 3 Yrs] with Price Change % < -38.1

3-Year price change of -38.2% for Australia and New Zealand Banking underperformed the change of -2.8% in the All Ordinaries index for a relative price change of -35.4%.

Price Change %QuarterYear3 Years
Australia and New Zealand Banking-43.2-44.6-38.2
Bank sector-38.3-36.6-38.7
All Ordinaries index-22.4-14.8-2.8

3.4 Moving Annual Return of -41.7% in the past year:

Moving Annual Return was -41.7% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 0.9%

ANZClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
May 2215.230.8(44.6)2.9(41.7)
1 Yr ago27.521.66.46.212.6
2 Yrs ago25.861.656.511.5
3 Yrs ago24.631.6207.827.8
4 Yrs ago20.522.61(16.4)10.6(5.8)

Close 5 years ago $A24.55

3.5 MCap: 5-Year Decrease of $A46 billion

In the past 5 years Market Capitalization has decreased by $A45.7 billion (51%) from $A88.9 billion to $A43.2 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 4 out of 5 years.

PriceMCap (AUD B)MCap (US$ B)
Last$A15.2343.228.4
1 Year ago$A27.5281.456
2 Years ago$A25.8682.562
3 Years ago$A24.6383.762.1
4 Years ago$A20.5273.252.9
5 Years ago$A24.5588.970

3.6 Declining Volume Past five Years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 2.6% to 7.3 million shares.

Avg. Daily Volume Traded 12 months ended May 22, million shares

YearADVT
20207.3
20195.0
20185.2
20176.2
20167.5

3.7 Declining share turnover

In the past five years, average daily share turnover has decreased 0.4% to $A157.6 million. This suggests decreased liquidity.

Past five years, 12 months ended May 22 (AUD million)

YearAverage Daily Turnover
2020157.6
2019126.7
2018131.6
2017146.5
2016158.3

3.8 Satisfies 2 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Improvement in current ratio from 5.3 to 6.8.

- Reduction in total shares on issue.

SECTION 4 Today's Bullish Signals

4.1 Rank in the top 25% by Relative Valuation in the Australian market

DescriptionValueRank
P/E * P/NTA5.58In Top 20%
Price/Earnings7.2In Top 24%
Price to Book Value0.8In Top 25%

4.2 Undervaluation

Price/Earnings of 7.2 < sector avg of 9.8:

- Price/Earnings of 7.2 versus sector average of 9.8 and market average of 17.1.

Earnings Yield of 13.8% > Australian ave of 5.9% > Bond Yield of 1.0%:

- Earnings yield of 13.8% is greater than the Australian average earning yield of 5.9%.

- The earnings yield of 13.8% is 14.2 times the 10-year bond yield of 1.0%.

(All figures in %)

Earnings Yield13.8
Australian avg5.9
Dividend Yield5.2
Bond Yield1.0

Dividend Yield > Bond Yield:

The dividend yield of 5.25% is 5.41 times the triple-A bond yield of 0.97%. The times factor of 5.41 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield5.25
Bond Yield0.97
Spread4.28

Brand Value/Enterprise Value:

- Brandirectory have estimated Australia and New Zealand Banking brand value at $A8.9 billion. The Brand Value represents an impressive 19.6% of the estimated Enterprise Value of $A45.4 billion. Enterprise Value is defined as MCap of $A43.2 billion plus net debt of $A2.2 billion.

4.3 Other Bullish Signals

- As per the Du Pont analysis, Return on Equity of 10.4% is better than sector average of 9.9%. This is computed as net profit margin of 33.6% times asset turnover [sales/assets] of 0.02 times leverage factor [total assets/shareholders' equity] of 16.1.

4.4 Oversold/Bullish Signals:

- The stock is oversold according to the Williams % R indicator of -88.5, suggesting the price is close to its 14-day low of $A15.07.

SECTION 5 Ongoing Bullish Parameters

5.1 Rank in the top 6% by Performance in the Australian market

DescriptionValueRank
EBITDA Margin %136.6In Top 6%

5.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 8.6%

TSR %10 yrs20 yrs30 yrs
ANZ.ASX8.711.610.9

5.3 Increased VWAP, up 7% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 6.9% to $A22.40. .

Past five years, 12 months ended May 22 (AUD)

YearHigh PriceVWAPLow Price
202028.0722.414.1
201928.4125.121.63
201826.6125.1223.17
201727.7323.3218.53
201625.8520.9417.31

5.4 Satisfies one criteria of Benjamin Graham

- The P/E of 7.2 multiplied by the P/NTA of 0.8 is 5.6. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 6 American Depositary Receipts

6.1 ADR Summary

SymbolANZBY
PriceUSD 10.11
% Change YTD-41.3
ISINUS0525283042
CUSIP052528304
Ratio1 ADR equals 1 ordinary share
TypeSponsored
Avg. Daily Volume118,505

Glossary

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com