CaixaBank, S A. BME:CABK Stock Price & Quote Analysis
- Full year 2020 earnings released: EPS €0.23 (vs €0.26 in FY
- Can we expect CaixaBank to keep growing?
- News Flash: Analysts Just Made A Captivating Upgrade To Their CaixaBank, S.A. (BME:CABK) Forecasts
- Dividend Growth Potential
- Third-quarter earnings released: Earnings beat expectations
- Earnings & Revenue
In summary, we’re unenthused by CaixaBank as a dividend stock. It’s not that we think it is a bad company; it simply falls short of our criteria in some key areas. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how CaixaBank will keep funding its growth projects in the future.
And if you believe that the stock is really worth €3.52, then there’s not much of an upside to gain from mispricing. What’s more, CaixaBank’s share price may be more stable over time , as indicated by its low beta. The author is an independent contributor and at the time of publication had no fxtm review 2021 position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial- 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.
Full year 2020 earnings released: EPS €0.23 (vs €0.26 in FY
EPS reaches €0.40 in the final year of forecast compared to the current €0.33 EPS today. Margins are currently sitting at 25%, which is expected to expand to 26% by 2022. If you’ve been keeping an eye on CABK, now may not be the most optimal time to buy, get backed book given it is trading around its fair value. The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.9% below my intrinsic value, which means if you buy CaixaBank today, you’d be paying a fair price for it.
- The stock seems fairly valued at the moment according to my valuation model.
- Remember, you can always get a snapshot of CaixaBank’s latest financial position, by checking our visualisation of its financial health.
- In this case, CaixaBank likely looks attractive to investors, given its 8.5% dividend yield and a payment history of over ten years.
- What’s more, CaixaBank’s share price may be more stable over time , as indicated by its low beta.
- Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years.
As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company’s net income after tax. In the last year, CaixaBank paid out 57% of its profit as dividends. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time. In this case, CaixaBank likely looks attractive to investors, given its 8.5% dividend yield and a payment history of over ten years.
Can we expect CaixaBank to keep growing?
It has been clearly oversold up until Fibonacci retracement level 0.5. Do not expect a trend change if tomorrow’s results are better than expected. We have also put together a list of global stocks with a market capitalisation above $1bn forex trader magazine and yielding more 3%. Remember, you can always get a snapshot of CaixaBank’s latest financial position, by checking our visualisation of its financial health. If the crisis situation on the EU zone wasn’t enough add breixt to that.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. 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. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. To summarise, shareholders should always check that CaixaBank’s dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past.
News Flash: Analysts Just Made A Captivating Upgrade To Their CaixaBank, S.A. (BME:CABK) Forecasts
Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. CaixaBank’s earnings over the next few years are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. If you spot an error that warrants correction, please contact the editor at editorial- This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. If a company is paying more than it earns, the dividend might have to be cut.
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… CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally.
Dividend Growth Potential
When a company’s per-share dividend falls we question if this reflects poorly on either external business conditions, or the company’s capital allocation decisions. Either way, we find it hard to get excited about a company with a declining dividend. Dig deeper into what truly matters – the fundamentals – before you make a decision on CaixaBank. You can find everything you need to know about CaixaBank in the latest infographic research report. If you are no longer interested in CaixaBank, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
Longer term expectations from the 16 analysts covering CABK’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. CaixaBank has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut on at least one occasion historically. During the past ten-year period, the first annual payment was €0.23 in 2010, compared to €0.15 last year.
Third-quarter earnings released: Earnings beat expectations
It’s important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we’ve picked out 3 warning signs for CaixaBank that investors should take into consideration. 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. Besides, CABK has been the bank who’s best performed in the short-term post-covid era, so we could expect bigger downward corrections than those in Santander or BBVA…
It would not be a surprise to discover that many investors buy it for the dividends. Remember that the recent share price drop will make CaixaBank’s yield look higher, even though recent events might have impacted the company’s prospects. Some simple analysis can reduce the risk of holding CaixaBank for its dividend, and we’ll focus on the most important aspects below. From the current net income level of €2.0b and the final forecast of €2.4b by 2022, the annual rate of growth for CABK’s earnings is 7.8%.
This works out to be a decline of approximately 4.1% per year over that time. CaixaBank’s dividend has been cut sharply at least once, so it hasn’t fallen by 4.1% every year, but this is a decent approximation of the long term change. Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.
This bank Caixabank is actually catalan bank, where and independency process is taking place. If that will take place in fact is somethong nobody know right now.