The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Prime Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prime Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Banks industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Prime Bank's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Prime Bank's earnings growth to the Bangladesh market average as no estimate data is available.
Unable to compare Prime Bank's revenue growth to the Bangladesh market average as no estimate data is available.
Unable to determine if Prime Bank is high growth as no earnings estimate data is available.
Unable to determine if Prime Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Prime Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Rahel Ahmed has been Managing Director and Chief Executive Officer of Prime Bank Ltd. ("Prime Bank") since December 14, 2017 and is a career banker and served as Deputy Managing Director and Chief Business Officer of Prime Bank. Mr. Ahmed is an international banker of varied Wholesale Banking background having worked before with in various leadership roles with the two largest multinational Banks in Bangladesh, ANZ Grindlays Bank and Standard Chartered Bank for more than a decade. He has subsequently resided and worked in Dubai, UAE for around 7 years to work for two of the largest regional Banks, Emirates NBD Banking Group and First Gulf Bank in different senior roles including specialization in Islamic Banking. He has played a leading role over the last almost 3 years in leading the ‘Business Model Restructuring and Centralization’ for Prime Bank. He has an MBA (Major in International Business) from the Maastricht School of Business, Netherlands. He is also a certified "Credit Professional" of world reputed Omega in UK and holds Certificate of Recognition in International Trade Skill Assessment Program jointly conducted by Standard Chartered Group London and ICC. He was also awardee of Outstanding Employee and CEO’s award in Standard Chartered Bank and First Gulf Bank for his outstanding performance in different times.
Insufficient data for Rahel to compare compensation growth.
Insufficient data for Rahel to establish whether their remuneration is reasonable compared to companies of similar size in Bangladesh.
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the Prime Bank management team is about average.
MD, CEO & Director
Mohammad Rahman Chowdhury
Deputy MD & CFO
Head of Internal Control & Compliance and Senior Executive VP
Senior EVP & Head of Human Resources Division
Senior EVP & Company Secretary
Head of IT Infrastructure & Planning and Senior EVP
Prime Bank Limited, together with its subsidiaries, provides various commercial banking products and services in Bangladesh and internationally. The company offers deposit products, such as savings, current, resident foreign currency deposit, business, and special notice deposit, accounts; various deposit schemes and rates, and term deposits; and fixed deposit receipt. Its loan products include home, car, personal, collateral free, capital, working capital, seasonal, women entrepreneurs’, crop, non-crop, and other agri-purpose loans, as well as retail secured EMI loan products; and working capital, capital machinery, real estate, work order, import and trade, export, project, structured, and lease financing. The company also provides credit and debit cards; locker, Internet and SMS banking, premium and phone banking, cash management, financing, and treasury services; and Islamic banking services, such as deposits, investments, and foreign trade products. In addition, it offers NRB banking services consisting of accounts, exchange houses, wire transfer facilities, bonds, and remittance and funds transfer services; offshore banking services; and foreign remittance, FOREX and fund management, money market, primary dealer, ATM, fixed income, and asset liability management services. Further, it provides merchant banking services, including issue management, portfolio management, underwriting, corporate advisory services, etc.; stock broker/dealer services in relation to shares and securities dealings; remittance services; money lending; negotiating/discounting of documents; and advisory services for documentary credits. It operates 146 branches comprising 18 SME centers/branches and 2 booths; 5 Islamic banking branches; and 3 off-shore banking units. Prime Bank Limited was founded in 1995 and is headquartered in Dhaka, Bangladesh.
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