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 HQBroker Forex Broker Review 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.

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 umarkets review 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.

bme cabk

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.

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.

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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.

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 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.

CAIXABANK, S.A CABK

While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we’ve spotted with CaixaBank . One flawed interactive brokers review but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share with the share price. CaixaBank is seen as engaging in imprudent risky lending practices if bad loans make up more than 3% of its total loans.

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.

bme cabk

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.

Third quarter earnings released

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 .

  • CaixaBank has net debt worth a very significant 205% of its market capitalization.
  • It therefore might be upsetting for shareholders if the CEO were paid generously.
  • Investors have an opportunity when market expectations about a stock are wrong.
  • CPJ jumps to top ICTOP10 Main Market In a week when markets closed lower, there were two changes to the IC top…

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% 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.

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.

CaixaBank’s (BME:CABK) three-year earnings growth trails the 17% YoY shareholder returns

While the market sentiment towards a stock is very changeable, in the long run, the share price will tend to move in the same direction as earnings per share. So, on certain occasions, long term focussed investors try to take advantage of pessimistic expectations to buy shares at a better aspyr media glassdoor price. Perhaps the simplest way to get a read on investors’ expectations of a business is to look at its Price to Earnings Ratio .

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for CaixaBank the TSR over the last 3 years was 59%, which is better than the share price return mentioned above. It could be important to check this free visual depiction of what analysts expect for the future. Investors have an opportunity when market expectations about a stock are wrong.