Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Assuming nothing else has changed, a lower share price makes a stock more attractive to potential buyers. This begs the question – does CaixaBank understand the risks it has taken on? P/E ratios primarily reflect market expectations around earnings growth rates. That means unless the share price increases, the P/E will reduce in a few years.
The bank has poorly anticipated the factors contributing to higher bad loan levels if it writes off more than 100% of the bad debt it provisioned for. The dividends paid by the company have thusly boosted the total shareholder return. During three years of share price growth, CaixaBank achieved compound earnings per share growth of 12% per year. This EPS growth is lower than the 15% average annual increase in the share price. This suggests that, equiti broker as the business progressed over the last few years, it gained the confidence of market participants. That’s not necessarily surprising considering the three-year track record of earnings growth.
Loans that are “bad” cannot be recovered by the bank and are written off as expenses which comes out directly from its profit. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €1.3m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.5m. There nordfx minimum deposit aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure. CaixaBank’s understanding of its risk level can be estimated by its ability to forecast and provision for its bad loans.
- Loans that are “bad” cannot be recovered by the bank and are written off as expenses which comes out directly from its profit.
- CaixaBank has 5,397 branches to serve its 15.8 million customers, and has the most extensive… The company’s earnings per share is depicted in the image below .
- P/E ratios primarily reflect market expectations around earnings growth rates.
- Assuming nothing else has changed, a lower share price makes a stock more attractive to potential buyers.
This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. JP Morgan and Wells Fargo saw sharp declines on profits (-51% and -71% respectively) yesterday and I expect Spanish banks will be unable to avoid them too. Earnings per share came out at 8 cents for the quarter and 18 cents for the half year. ICInsider.com forecasts earnings of 70 cents per share for the current year and $1.50 per share for 2023. The stock traded at $5.62 on the Jamaica Stock Exchange Junior Market on Wednesday with a PE ratio of 8 times, current earnings well below the average of 14.5 currently for the Junior Market.
Dolla & OneonOne added to Stocks to Watch Caribbean Producers gained 11 percent in the past week and slipped to the number 3… Is licensed and regulated by the Monetary Authority of Singapore (Licence No. CMS100917). Is regulated by the Central Bank of Ireland , registered with the Companies Registration Office , and is a member of the Irish Investor Compensation Scheme .
As value investor Benjamin Graham famously said, ‘In the short run, the market is a voting machine but in the long run, it is a weighing machine. So this free visual report on analyst forecasts could hold the key to an excellent investment decision. A bad debt ratio of 6.12% is extremely high, considering most banks fortfs review exhibit ratios lower than the appropriate threshold of 3%. This means CaixaBank shows poor bad debt management and is very much exposed to a higher chance of default. If you spot an error that warrants correction, please contact the editor at editorial- This article by Simply Wall St is general in nature.
New Stock Added to F&O Ban List Today, 3 Exit: Total Count Drops to 5
The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed Income can be substantial. CaixaBank has net debt worth a very significant 205% of its market capitalization. This is a relatively high level of debt, so the stock probably deserves a relatively low P/E ratio. Its P/E ratio suggests that CaixaBank shareholders think that in the future it will perform about the same as other companies in its industry classification. The technical figure Triangle can be found in the daily chart of the Spanish company CaixaBank, S.A.
This availability information regarding shortable stocks is indicative only and is subject to change. IB does not accept short sale orders for US stocks that are not eligible for DTC continuous net settlement and all short sale orders are subject to approval by IB. CaixaBank trades on a P/E ratio of 7.6, which is below the ES market average of 15.9.
Gross cash flow generated $75 million for the six months, but growth in working capital drove it down to a negative $119 million versus negative $190 million in 2020. At the end of the quarter, Current assets ended with $1.79 billion, including cash of $95 million, inventories https://traderevolution.net/ of $944 million and receivables of $745 million. Current Liabilities amounts to $1.24 billion and includes Payables of $741 million and short term loans of $486 million. Shareholders’ equity stands at $1.05 million, with long term borrowings at just $284 million.
CAIXABANK, S.A CABK
As you can see below CaixaBank has a P/E ratio that is fairly close for the average for the banks industry, which is 7.5. Remuneration for Gonzalo Gortázar Rotaeche is close enough to the median pay for a CEO of a large company . Since shareholders would have lost about 19% What is A-Markets over three years, some CaixaBank, S.A. Shareholders would surely be feeling negative emotions. The period’s gross profit percentage rose to 25 percent compared to 23 percent in 2020 for the six months and from 24 percent in 2020 to 25 percent for the September quarter.
Rose 0.2% on the quarter, data released Friday showed, a gain of 1.0% on an annual basis. This represents a sharp slowdown from growth of 0.5% and 4.2%, respectively, in the previous quarter. The company pointed out that Europe was likely to be its hardest-hit region this holiday season, with Germany and Britain its biggest markets after the United States. So Gonzalo Gortázar Rotaeche is paid around the average of the companies we looked at.
Is worth €16b, and total annual CEO compensation was reported as €3.5m for the year to December 2018. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.
This gauge displays a real-time technical analysis overview for your selected timeframe. The summary of CAIXABANK, S.A is based on the most popular technical indicators, such as Moving Averages, Oscillators and Pivots.
This stock is a must for Xmas buy list
The P/E reflects market pessimism that probably arises from the lack of recent EPS growth, paired with significant leverage. For those who prefer to invest with the flow of momentum, that might be a bad sign, but for deep value investors this stock might justify some research. Administrative expenses jumped 80 percent from $63 million in the 2020 second quarter to $112 million and surged 55 percent from $113 million in 2020 to $175 million for the six months. Depreciation charge moved 90 percent from $7 million for the September 2020 quarter to $13 million in 2021 and rose 45 percent for the half year from $14 million to $20 million. Profit after taxation surged 455 percent to $21.5 million for the second quarter to September from a loss of $6 million in 2020 at Medical Disposables. For the year to date, profit after tax spiked 458 percent to $47 million, up from a loss of $13 million in 2020.
CABK technical analysis
And as that P/E ratio drops, the company will look cheap, unless its share price increases. Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. It therefore might be upsetting for shareholders if the CEO were paid generously. While growth expenditure doesn’t always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores. CABK exceeded the Spanish Banks industry which returned -8.2% over the past year.