Australia and New Zealand Banking (ANZ:AUD18.97) in its biggest weekly gain in 3 weeks 22 June 2020

NEWS BITES - AUSTRALIA

Dateline: Monday June 22, 2020

Australia and New Zealand Banking Group Limited (ASX:ANZ), Australia's 4th largest Bank by market cap, has increased 22.0c (1.2%) from its previous trading session to close at AUD18.97. Compared with the All Ordinaries Index which fell 8.9 points (0.1%) in the day, the relative price increase was 1.3%. The volume of 8.1 million shares was close to average trading. There were 7,945,211 shares worth AUD150.7 million traded today. In the past week the shares have lifted 3.0%, the biggest weekly gain since the week-ended June 05. Today the stock traded between its three-day high of AUD19.14 and seven-day low of AUD18.52.

Stock Summary (traded in AUD)

Currency1 AUD = 0.69 USD Dividend Yield4.2%
Jun 22 closeAUD18.97SectorBank
Ave Daily Volume8,147,025 sharesShares Outstanding2,836,177,422
% Held by Top 20 Shareholders58.95Market CapAUD53.8 billion [USD37 billion]
P/E9EPS Growth (FY2019 vs FY2018)-5.2%

ADR Summary (traded in USD)

Home ExchangeAustraliaRatio1 ADR equals 1 ordinary share
CodeANZBYTypeSponsored
ISINUS0525283042Jun 19 closeUSD12.69
CUSIP052528304Ave Daily Volume126,037 ADRs
*No. Held by Institutions2,713,53052-Week Range7.98 - 19.62
% of shares outstanding0.1%

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

ExchangeTickerCurrencyLastADVTVol % of TotalToday's VI
ASXANZAUD18.978,146,94899.31
New ZealandANZNZD20.445,2490.71.2
Total100.00

1 AUD [Australian Dollar]= 0.9363 NZD [New Zealand Dollar]

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

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INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

SECTION 7 Bank Metrics

Click here to view the following

SECTION 8 Dividend

SECTION 9 News Archives (Feb 2019 - Jan 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 People's News

Tue Jun 09, 2020

David Gonski's performance as Chairman of Australia and New Zealand Banking (ASX:ANZ) is ranked in the top 17% of BuySellSignals performers for the past ten years; a percentile ranking of 83.8. In the last 10 years the average annualized return to shareholders was 8.3%. The 10-year average return is ranked 6,913 out of 42,628 public companies traded globally. A two-bagger, the present value of US$1,000 (PV1000) invested 10 years ago is now worth USD2,229; a capital gain of USD164 and dividend reinvested of USD1,065.

SECTION 2 Corporate Profile

2.1 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.

2.2 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

2.3 Industry & Sector

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

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 22.3% Past Month

The past month witnessed the best 2 weeks in the past quarter. In the past quarter the week beginning Monday May 25 saw the highest weekly rise of 17.5% for a relative price increase of 12.8%. The rise was propped up by volume of 2.4 times average.

The Best 3 weeks in the past quarter:

Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
May 25-2917.54.712.82.4
Jun 01-0510.54.26.31.5
Mar 30-Apr 032.14.8-2.71.9

3.2 Rank in the top 24% by Price Performance in the Australian market

DescriptionValueRank
1-month Price Change %22.3In Top 19%
Price/MAP501.11In Top 24%

3.3 Uptrend

Beta > 1 combined with price rise. The Beta of the stock is 1.2.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 18.93 minus the 26-day EMA of 18.3 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

3.4 Undervaluation

Price/Earnings of 9 < sector avg of 11.8:

- Price/Earnings of 9 versus sector average of 11.8 and market average of 20.0.

Earnings Yield of 11.1% > Australian ave of 5% > Bond Yield of 0.9%:

- Earnings yield of 11.1% is greater than the Australian average earning yield of 5%.

- The earnings yield of 11.1% is 12.8 times the 10-year bond yield of 0.9%.

(All figures in %)

Earnings Yield11.1
Australian avg5
Dividend Yield4.2
Bond Yield0.9

Dividend Yield > Bond Yield of 0.86%:

The dividend yield of 4.22% is 4.91 times the triple-A bond yield of 0.86%. The times factor of 4.91 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield4.22
Bond Yield0.86
Spread3.36

Brand Value/Enterprise Value:

- Brandirectory have estimated Australia and New Zealand Banking brand value at AUD8.5 billion. The Brand Value represents an impressive 15.2% of the estimated Enterprise Value of AUD56 billion. Enterprise Value is defined as MCap of AUD53.8 billion plus net debt of AUD2.2 billion.

3.5 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.

SECTION 4 Ongoing Bullish Parameters

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

DescriptionValueRank
EBITDA Margin %136.6In Top 6%

4.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 10%

TSR %10 yrs20 yrs30 yrs
ANZ.ASX10.112.611.6

4.3 Present Value of AUD1000 Invested in the Past 3 Months; The Best Period with PVAUD1000 > 1,183

PVAUD1,0003 mo ago
ANZ.ASXAUD1,184
Bank sectorAUD1,195
All Ordinaries IndexAUD1,251

4.4 Increased Volume, up 6% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 5.7% to 8.1 million shares.

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

YearADVT
20208.1
20195.0
20185.0
20176.2
20167.7

4.5 Increased VWAP

In the past five years Volume Weighted Average Price (VWAP) has increased by 4.2% to AUD21.57. .

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

YearHigh PriceVWAPLow Price
202027.9121.5714.1
201928.4125.3221.63
201826.6125.2123.17
201727.7323.7318.53
201625.8520.717.31

4.6 Increased share turnover

In the past five years, average daily share turnover has increased 3.5% to AUD167.1 million. This suggests increased liquidity.

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

YearAverage Daily Turnover
2020167.1
2019128.0
2018127.4
2017148.9
2016161.5

4.7 Satisfies one criteria of Benjamin Graham

- The P/E of 9 multiplied by the P/NTA of 1 is 8.7. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 5 Today's Bearish Signals

5.1 Momentum Down 0.9% Past Week

It underperformed the All Ordinaries index in 3 out of 5 days. The price ranged between a low of 18.41 on Monday, Jun 15 and a high of 19.23 on Tuesday, Jun 16.

DayAustralia and New Zealand BankingClose price [AUD]Price change %Relative change %Comment
FridayLoses AUD936 million in MCap, steepest heavyweight fall in Bank sector18.75-1.7-2.0VI*=2.9
ThursdayFalls for a second consecutive day, a two-day fall of 0.8%19.08-0.40.9VI*=1.9
WednesdayWeakens below moving average price19.16-0.4-1.2VI*=1.3
TuesdayClimbs 4.5% on rising relative strength19.234.50.5Week-high of 19.23 Top Rise; VI*=1.6
MondayKeeps sliding, down 12.3% in 4 days18.41-2.7-0.5Week-low of 18.41 Steepest Fall; VI*=1.3

[Volume Index (VI); 1 is average]

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

DescriptionValueRank
EV/EBITDA2.2In Bottom 3%

5.3 Downtrend

Price/Moving Average Price of 0.84:

- The price to 200-day MAP ratio is 0.84, a bearish indicator. In the past 200 days this ratio has been under 0.84, 64 times suggesting further downside. The 50-day MAP of AUD17.06 is lower than the 200-day MAP of AUD22.57, another bearish indicator.

Past Quarter:

- In the last three months the stock has hit a new 52-week low once.

Trailing Relative Strength (6 months) at 36 percentile:

- The stock has a 6-month relative strength of 36 in the Australian market of 1,513 stocks and 23 units which means it has underperformed 64% of the market.

5.4 Other Bearish Signals

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

SECTION 6 Ongoing Bearish Parameters

6.1 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 1.4%

TSR %1 yr3 yrs5 yrs
ANZ.ASX-30.1-3.31.3

6.2 Present Value of AUD1000 Invested in the Past [1 Yr, 3 Yrs]; The Worst Periods with PVAUD1000 < 904

PVAUD1,0001 yr ago3 yrs ago
ANZ.ASXAUD699AUD903
Bank sectorAUD757AUD755
All Ordinaries IndexAUD900AUD1,055

6.3 The Worst Periods [1 Yr, 3 Yrs] with Price Change % < -22.5

3-Year price change of -22.6% for Australia and New Zealand Banking underperformed the change of 6.2% in the All Ordinaries index for a relative price change of -28.9%.

Price Change %Year3 Years
Australia and New Zealand Banking-32.2-22.6
Bank sector-24.3-23.5
All Ordinaries index-106.2

6.4 Moving Annual Return of -29.4% in the past year:

Moving Annual Return was -29.4% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 4.4%

ANZClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 2218.970.8(32.2)2.9(29.4)
1 Yr ago281.613.46.519.9
2 Yrs ago24.681.60.66.57.2
3 Yrs ago24.521.629.18.437.5
4 Yrs ago192.61(23.7)10.5(13.2)

Close 5 years ago AUD24.89

6.5 MCap: 5-Year Decrease of AUD36 billion

In the past 5 years Market Capitalization has decreased by AUD36.4 billion (40%) from AUD90.2 billion to AUD53.8 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)
LastAUD18.9753.837
1 Year agoAUD28.082.957.4
2 Years agoAUD24.6878.758.3
3 Years agoAUD24.5283.363.5
4 Years agoAUD19.067.849.9
5 Years agoAUD24.8990.270.4

6.6 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Improvement in current ratio from 5.3 to 6.8.

- Reduction in total shares on issue.

SECTION 7 Bank Metrics

7.1 Bank Metrics (FY2019)

DescriptionAUD B FY2019AUD B FY2018]Change
Bank Revenue18.8 20 Down 6%

Unfavourable Changes:

- Bank Revenue down 6% from AUD20b to AUD18.8b

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 (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: 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)

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

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