Re: COMB.N0000 (Commercial Bank of Ceylon PLC)

[soileconomy]

Moratorium ends in September and customers will have to pay back their loans.
It will be a concern ????

[කිත්සිරි ද සිල්වාTop contributor]

Commercial Bank of Ceylon
COMB.N0000
Share Price 7 Day 1 Year

84.2       -2.7%          14.3%



Third-quarter 2021 earnings released
The company reported a strong third-quarter result with improved earnings, revenues and profit margins.
Third quarter 2021 results:

Revenue: LK₨18.3b (up 42% from 3Q 2020).
Net income: LK₨6.59b (up 78% from 3Q 2020).
Profit margin: 36% (up from 29% in 3Q 2020). 

The increase in margin was driven by higher revenue.

Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings.

[soileconomy]

Last few days crossings were done
So collection is on and price of appreciation could be expected

[කිත්සිරි ද සිල්වාTop contributor]

Commercial Bank of Ceylon
COMB.N0000

Share Price 7 Day 1 Year  
80.1        -1.8%        -7.6%  

 
Full year 2021 earnings: EPS and revenues exceed analyst expectations.

Full year 2021 results:

EPS: LK₨20.15 (up from LK₨15.32 in FY 2020).

Revenue: LK₨68.5b (up 24% from FY 2020).

Net income: LK₨24.1b (up 42% from FY 2020).

Profit margin: 35% (up from 31% in FY 2020). 

The increase in margin was driven by higher revenue.

Revenue exceeded analyst estimates by 11%.

Earnings per share (EPS) also surpassed analyst estimates by 15%.

Over the next year, revenue is forecast to grow 15%, compared to a 31% growth forecast for the banking industry in Sri Lanka.

Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings.

[කිත්සිරි ද සිල්වාTop contributor]

Commercial Bank of Ceylon
COMB.N0000

Share Price 7 Day 1 Year  
77.00  -2.3% -11.4%  

 
Upcoming dividend of LK₨4.50 per share.

Eligible shareholders must have bought the stock before 31 March 2022.
Payment date: 25 April 2022.

The payout ratio is a comfortable 22% but the company is not cash flow positive.

Trailing yield: 5.8%.

Lower than the top quartile of Sri Lankan dividend payers (6.4%).

In line with the average of industry peers (5.7%).

[කිත්සිරි ද සිල්වාTop contributor]

Commercial Bank of Ceylon
COMB.N0000

Share Price 7 Day 1 Year  
54.00         4.9%        -31.6%  

 
First-quarter 2022 earnings: EPS and revenues miss analyst expectations
First-quarter 2022 results:
EPS: LK₨9.42 (up from LK₨5.31 in 1Q 2021).
Revenue: LK₨28.3b (up 66% from 1Q 2021).
Net income: LK₨11.7b (up 73% from 1Q 2021).
Profit margin: 41% (up from 40% in 1Q 2021). The increase in margin was driven by higher revenue.
Revenue missed analyst estimates by 5.6%. Earnings per share (EPS) also missed analyst estimates by 6.3%.

Over the next year, revenue is forecast to grow 7.2%, compared to a 30% growth forecast for the industry in Sri Lanka.

Over the last 3 years on average, earnings per share have increased by 13% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging behind earnings.

[කිත්සිරි ද සිල්වාTop contributor]

COMB.N0000

Share Price 7 Day 1 Year  
50.50         -0.6% -41.7%
 
The price target decreased to LK₨82.13
Down from LK₨106, the current price target is provided by 1 analyst.
The new target price is 63% above the last closing price of LK₨50.50.
Stock is down 42% over the past year.
The company is forecast to post earnings per share of LK₨20.71 for next year compared to LK₨19.41 last year.

[කිත්සිරි ද සිල්වාTop contributor]

COMB.N0000
Share Price 7 Day 1 Year  
53.60        -1.8% -36.0%  

 
Now 21% undervalued.

Over the last 90 days, the stock is up 7.2%.

The fair value is estimated to be LK₨ 68.13, however, this is not to be taken as a buy recommendation but rather should be used as a guide only.

Revenue has grown by 10% over the last 3 years. Earnings per share have grown by 11%.

Revenue is forecast to grow by 27% in a year. Earnings are forecast to grow by 35% in the next year.

[කිත්සිරි ද සිල්වාTop contributor]

The price-to-earnings ratio (3.6x) is below the LK market (6.2x)

Pays a reliable dividend of 6.45%.

Commercial Bank of Ceylon (COMB.N0000) Risk Checks.

Fail
Do they have high-quality earnings?
High level of non-cash earnings.

Pass
Are they forecast to achieve profitability?
The company is currently profitable.

Pass
Are revenue and earnings forecast to grow?
Earnings have grown by 8.7% per year over the past 5 years

Pass
Is their dividend sustainable?
A dividend of 6.45% is sustainable.

Pass
Is their share price liquid and stable?
The share price has been stable over the past 3 months.

Pass
Have profit margins improved over the past year?
Profit margins improved and COMB.N0000 became profitable.

Pass
Do they have sufficient financial data available?
At least 3 years of financial data are available.

Pass
Are there any concerning recent events?
No concerning events were detected.

Pass
Have shareholders been diluted over the past year?
Shareholders have not been meaningfully diluted in the past year or recently listed.

Pass
Do they have meaningful levels of revenue?
Revenue is meaningful (LKR65B).

Pass
Do they have a meaningful market capitalization?
Market cap is meaningful (LKR86B).

Pass
Do they have negative shareholders' equity?
COMB.N0000 does not have negative shareholders' equity.

No data
Are they in a good financial position?
Insufficient data

No data
Has there been substantial insider selling in the past 3 months?
No 3-month insider trading information.