State Bank of India Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (6.2x coverage).

Cons

• Unable to calculate sustainability of dividends as State Bank of India has not reported any payouts.
• Unable to evaluate State Bank of India's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate State Bank of India's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• State Bank of India's earnings are expected to grow significantly at over 20% yearly.
• State Bank of India's earnings growth is expected to exceed the India market average.
• State Bank of India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• State Bank of India's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Performance (ROE) is expected to be above the current IN Banks industry average.
• An improvement in State Bank of India's performance (ROE) is expected over the next 3 years.
• State Bank of India's revenue growth is expected to exceed the India market average.

Cons

• State Bank of India's earnings are expected to decrease over the next year.
• State Bank of India's net income is expected to increase but not above the 50% threshold in 2 years time.
• State Bank of India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• State Bank of India's revenue is expected to increase but not above the 50% threshold in 2 years time.
• State Bank of India's revenue is expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).

health

Pros

• State Bank of India's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
• State Bank of India's liabilities are made up of primarily low risk sources of funding.
• State Bank of India has an acceptable proportion of non-loan assets held.
• Loans at State Bank of India are broadly funded by customer deposits.

Cons

• State Bank of India has a high level of bad loans (greater than 2%).

management

Pros

• The tenure for the State Bank of India board of directors is about average.
• The tenure for the State Bank of India management team is about average.

Cons

misc

Pros

Cons

• State Bank of India has significant price volatility in the past 3 months.

past

Pros

• State Bank of India's 1-year earnings growth exceeds its 5-year average (731.1% vs -19.6%)
• State Bank of India's earnings growth has exceeded the IN Banks industry average in the past year (731.1% vs 21%).

Cons

• State Bank of India's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• State Bank of India used its assets less efficiently than the IN Banks industry average last year based on Return on Assets.
• State Bank of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• State Bank of India is good value based on expected growth next year.
• State Bank of India is good value based on earnings compared to the IN Banks industry average.
• State Bank of India is good value based on earnings compared to the India market.

Cons

• State Bank of India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• State Bank of India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• State Bank of India is overvalued based on assets compared to the IN Banks industry average.
• SBIN underperformed the Banks industry which returned -37.5% over the past year.
• SBIN underperformed the Market in India which returned -14.5% over the past year.
• NSEI:SBIN is up 3.9% underperforming the Banks industry which returned 7.6% over the past month.
• NSEI:SBIN is up 3.9% underperforming the market in India which returned 8% over the past month.