CAIXABANK, S A Financial Statements BME:CABK

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. Keep that in mind when comparing it to other companies. 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 company could surprise by performing better than average, in the future.

Simply Wall St’s Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis. We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CaixaBank . Has grown its earnings per share by an average of 15% per year .

Analysts update estimates

CaixaBank trades on a P/E ratio of 7.6, which is below the ES market average of 15.9. The P/E reflects market pessimism that probably arises from the lack of recent EPS growth, paired smart e-commerce personalization 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.

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. Simply Wall St has no position in the stocks mentioned.

Caixabank and Bankia Announce Board Appointments

It therefore might be upsetting for shareholders if the CEO were paid generously. You can see, below, how CEO compensation at CaixaBank has changed over time. 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. European Banking scenario is quite unstable and untrusted. If the crisis situation on the EU zone wasn’t enough add breixt to that.

CaixaBank operates by lending out its various forms of borrowings. Customers’ deposits tend to carry the smallest risk given the relatively stable interest rate and amount available. Generally, the higher level of deposits a bank retains, the less risky it is deemed to be. CaixaBank’s total deposit level of 69% of its total liabilities is within the sensible margin for for financial institutions which generally has a ratio of 50%. This indicates a prudent level of the bank’s safer form of borrowing and a prudent level of risk.

• So this free visual report on analyst forecasts could hold the key to an excellent investment decision.
• 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.
• CaixaBank trades on a P/E ratio of 7.6, which is below the ES market average of 15.9.
• 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.
• CaixaBank’s earnings per share fell by 20% in the last twelve months.

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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. So Gonzalo Gortázar Rotaeche is paid around the average of the companies we looked at.

News Flash: Analysts Just Made A Captivating Upgrade To Their CaixaBank, S.A. (BME:CABK) Forecasts

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. 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.

Note that our analysis does not factor in the latest price-sensitive company announcements. We aim to bring you long-term focused research analysis driven by fundamental data. It’s good to see that CaixaBank has rewarded shareholders with a total shareholder return of 46% in the last twelve months. Notably the five-year annualised TSR loss of 0.7% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a inflection point within the business. 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.

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.

To that end, you should be aware of the 3 warning signs we’ve spotted with CaixaBank . One flawed 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. Loans that are “bad” cannot be recovered by the bank and are written off as expenses which comes out directly from its profit.

How Many CaixaBank, S.A. (BME:CABK) Shares Do Institutions Own?

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. CaixaBank’s earnings per share fell by 20% in the last twelve months. 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. Next CAIXABANK, S.A earnings date is February 3, the estimation is 0.08 EUR. So take a peek at this free list of interesting companies.

Could help you form your own view on if that will happen. CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally. tokenexus The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-

So it won’t reflect the advantage of cash, or disadvantage of debt. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on ES exchanges. Since the stock has added €3.2b to its market cap in the past week alone, let’s see if underlying performance has been driving long-term returns.

The technical figure Triangle can be found in the daily chart of the Spanish company CaixaBank, S.A. (CABK.mc). CaixaBank, S.A., is a Spanish multinational financial services company. It is Spain’s third-largest lender by market value, after Banco Santander and BBVA. 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 .

Make Confident Investment Decisions

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. It has been clearly disadvantages of a floating exchange rate oversold up until Fibonacci retracement level 0.5. Do not expect a trend change if tomorrow’s results are better than expected.