Standard Bank is far from a “quality” company, and they arguably have several structural headwinds over the next several years. Nevertheless, the company seems to be trading at a discount.
Standard bank suffered a +/- 55% reduction in their annual earnings per share from 2018 – 2020. This has resulted in the annual debt to EBITDA more than doubling from 2019 to 2020.
The price to book ratio is trading at 1.19 which is comparable to where it was at the height of the Global Financial Crisis in 2009.
Standard Bank has flagged higher earns alongside a brighter outlook for earnings growth. Standard Bank has announced that its half year earnings in 2021 was x3 that of the first half of 2020.
All things considered, it appears to be cheap with a lot of the bad news already having been priced in. The share price has yet to recover to where it was before covid struck. It looks like a good entry point into a cheap company that just needs to do the basics right.
Lets see how it pans out.
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Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.
Standard bank suffered a +/- 55% reduction in their annual earnings per share from 2018 – 2020. This has resulted in the annual debt to EBITDA more than doubling from 2019 to 2020.
The price to book ratio is trading at 1.19 which is comparable to where it was at the height of the Global Financial Crisis in 2009.
Standard Bank has flagged higher earns alongside a brighter outlook for earnings growth. Standard Bank has announced that its half year earnings in 2021 was x3 that of the first half of 2020.
All things considered, it appears to be cheap with a lot of the bad news already having been priced in. The share price has yet to recover to where it was before covid struck. It looks like a good entry point into a cheap company that just needs to do the basics right.
Lets see how it pans out.
Please like and follow. Please also share your views on the trading ideas and whether or not you find them to be of any value to you as a trader.
Please note, this idea is shared for educational and discussion purposes only and should not result in speculative investment decisions in any asset class.