Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Citizens Development Business Finance

COSE:CDB.X0000
Snowflake Description

Undervalued with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CDB.X0000
COSE
LKR5B
Market Cap
  1. Home
  2. LK
  3. Diversified Financials
Company description

Citizens Development Business Finance PLC provides various financial services in Sri Lanka. The last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
  • Citizens Development Business Finance has significant price volatility in the past 3 months.
CDB.X0000 Share Price and Events
7 Day Returns
0%
COSE:CDB.X0000
0%
LK Consumer Finance
0%
LK Market
1 Year Returns
-24.7%
COSE:CDB.X0000
-14.4%
LK Consumer Finance
-20.8%
LK Market
CDB.X0000 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Citizens Development Business Finance (CDB.X0000) 0% -28.8% -33.9% -24.7% -11.6% -37.7%
LK Consumer Finance - -20.7% -35.7% -14.4% -10.5% -26.5%
LK Market 0% -19% -27.4% -20.8% -30.6% -37.1%
1 Year Return vs Industry and Market
  • CDB.X0000 underperformed the Consumer Finance industry which returned -14.4% over the past year.
  • CDB.X0000 underperformed the Market in Sri Lanka which returned -20.8% over the past year.
Price Volatility
CDB.X0000
Industry
5yr Volatility vs Market

Value

 Is Citizens Development Business Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Citizens Development Business Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Citizens Development Business Finance.

COSE:CDB.X0000 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= LKR135.34 * 21.9%
LKR29.70
Book Value of Equity per Share Median Book Value from the past 5 years. LKR135.34
Discount Rate (Cost of Equity) See below 16.6%
Perpetual Growth Rate 10-Year LK Government Bond Rate 3.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for COSE:CDB.X0000
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year LK Govt Bond Rate 3.4%
Equity Risk Premium S&P Global 11.1%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.547 (1 + (1- 28%) (716.55%))
1.181
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.43% + (1.181 * 11.14%)
16.59%

Discounted Cash Flow Calculation for COSE:CDB.X0000 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Citizens Development Business Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

COSE:CDB.X0000 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (21.9% – 16.59%) * LKR135.34)
LKR7.25
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= LKR7.25 / (16.59% - 3.43%)
LKR55.14
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= LKR135.34 + LKR55.14
LKR190.48
COSE:CDB.X0000 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in COSE:CDB.X0000 represents 0.62136x of COSE:CDB.N0000
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.62136x
Value per Share
(Listing Adjusted, LKR)
= Value per Share (LKR) x Listing Adjustment Factor
= LKR 190.48 x 0.62136
LKR118.35
Value per share (LKR) From above. LKR118.35
Current discount Discount to share price of LKR44.80
= -1 x (LKR44.80 - LKR118.35) / LKR118.35
62.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Citizens Development Business Finance is available for.
Intrinsic value
>50%
Share price is LKR44.8 vs Future cash flow value of LKR118.35
Current Discount Checks
For Citizens Development Business Finance to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Citizens Development Business Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Citizens Development Business Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Citizens Development Business Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Citizens Development Business Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
COSE:CDB.X0000 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in LKR LKR27.00
COSE:CDB.N0000 Share Price ** COSE (2020-03-20) in LKR LKR72.1
Sri Lanka Consumer Finance Industry PE Ratio Median Figure of 19 Publicly-Listed Consumer Finance Companies 4.6x
Sri Lanka Market PE Ratio Median Figure of 184 Publicly-Listed Companies 7.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Citizens Development Business Finance.

COSE:CDB.X0000 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= COSE:CDB.N0000 Share Price ÷ EPS (both in LKR)

= 72.1 ÷ 27.00

2.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Citizens Development Business Finance is good value based on earnings compared to the LK Consumer Finance industry average.
  • Citizens Development Business Finance is good value based on earnings compared to the Sri Lanka market.
Price based on expected Growth
Does Citizens Development Business Finance's expected growth come at a high price?
Raw Data
COSE:CDB.X0000 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
Asia Consumer Finance Industry PEG Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 0.54x
Sri Lanka Market PEG Ratio Median Figure of 7 Publicly-Listed Companies 0.42x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Citizens Development Business Finance, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Citizens Development Business Finance's assets?
Raw Data
COSE:CDB.X0000 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in LKR LKR153.62
COSE:CDB.N0000 Share Price * COSE (2020-03-20) in LKR LKR72.1
Sri Lanka Consumer Finance Industry PB Ratio Median Figure of 24 Publicly-Listed Consumer Finance Companies 0.5x
Sri Lanka Market PB Ratio Median Figure of 255 Publicly-Listed Companies 0.53x
COSE:CDB.X0000 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= COSE:CDB.N0000 Share Price ÷ Book Value per Share (both in LKR)

= 72.1 ÷ 153.62

0.47x

* Primary Listing of Citizens Development Business Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Citizens Development Business Finance is good value based on assets compared to the LK Consumer Finance industry average.
X
Value checks
We assess Citizens Development Business Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Citizens Development Business Finance has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Citizens Development Business Finance expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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 Citizens Development Business Finance 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 growth 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 it right!
Annual Growth Rate
18.5%
Expected Consumer Finance industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Citizens Development Business Finance expected to grow at an attractive rate?
  • Unable to compare Citizens Development Business Finance's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Citizens Development Business Finance's earnings growth to the Sri Lanka market average as no estimate data is available.
  • Unable to compare Citizens Development Business Finance's revenue growth to the Sri Lanka market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
COSE:CDB.X0000 Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
Asia Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 17.7%
Sri Lanka Market Earnings Growth Rate Market Cap Weighted Average 19.4%
Sri Lanka Market Revenue Growth Rate Market Cap Weighted Average 15.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
COSE:CDB.X0000 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in LKR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
COSE:CDB.X0000 Future Estimates Data
Date (Data in LKR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31
2020-04-04
2020-03-31
COSE:CDB.X0000 Past Financials Data
Date (Data in LKR Millions) Revenue Cash Flow Net Income *
2019-12-31 6,176 -7,100 1,791
2019-09-30 6,192 -1,568 1,780
2019-06-30 5,675 -1,169 1,758
2019-03-31 5,600 -2,015 1,798
2018-12-31 4,778 2,355 1,823
2018-09-30 4,371 -2,122 1,891
2018-06-30 4,291 -881 1,661
2018-03-31 3,877 675 1,449
2017-12-31 3,561 1,605 1,117
2017-09-30 3,308 1,359 826
2017-06-30 3,152 777 930
2017-03-31 3,153 -217 1,023

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Citizens Development Business Finance is high growth as no earnings estimate data is available.
  • Unable to determine if Citizens Development Business Finance 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.
Raw Data
COSE:CDB.X0000 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Citizens Development Business Finance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

COSE:CDB.X0000 Future Estimates Data
Date (Data in LKR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-04-04
2020-03-31
COSE:CDB.X0000 Past Financials Data
Date (Data in LKR Millions) EPS *
2019-12-31 27.00
2019-09-30 28.35
2019-06-30 29.70
2019-03-31 32.24
2018-12-31 32.69
2018-09-30 33.91
2018-06-30 29.75
2018-03-31 25.97
2017-12-31 20.02
2017-09-30 14.80
2017-06-30 16.70
2017-03-31 18.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Citizens Development Business Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Citizens Development Business Finance is trading at Citizens Development Business Finance'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Citizens Development Business Finance's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Diversified Financials companies here
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Citizens Development Business Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Citizens Development Business Finance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Citizens Development Business Finance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Citizens Development Business Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Citizens Development Business Finance has delivered over 20% year on year earnings growth in the past 5 years.
  • Citizens Development Business Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Citizens Development Business Finance's 1-year earnings growth is negative, it can't be compared to the LK Consumer Finance industry average.
Earnings and Revenue History
Citizens Development Business Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Citizens Development Business Finance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

COSE:CDB.X0000 Past Revenue, Cash Flow and Net Income Data
Date (Data in LKR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 6,176.17 1,790.51 3,865.47
2019-09-30 6,192.26 1,779.71 3,826.23
2019-06-30 5,675.44 1,757.87 3,683.52
2019-03-31 5,600.30 1,798.21 3,610.28
2018-12-31 4,777.85 1,823.22 3,286.57
2018-09-30 4,370.77 1,890.69 3,078.05
2018-06-30 4,290.67 1,660.53 2,893.59
2018-03-31 3,877.07 1,448.88 2,725.38
2017-12-31 3,561.05 1,116.77 2,565.94
2017-09-30 3,308.49 826.17 2,452.50
2017-06-30 3,152.21 930.19 2,326.88
2017-03-31 3,152.58 1,022.77 2,220.46
2016-12-31 3,054.47 952.82 2,207.55
2016-09-30 3,147.12 1,043.22 2,103.26
2016-06-30 3,228.63 1,019.99 2,017.00
2016-03-31 3,311.07 1,018.62 1,960.17
2015-12-31 3,265.63 936.33 1,669.81
2015-09-30 3,197.05 801.26 1,627.33
2015-06-30 3,140.37 768.84 1,564.45
2015-03-31 3,076.10 709.45 1,503.71
2014-12-31 3,241.84 599.57 1,427.84
2014-09-30 3,001.37 620.99 1,331.91
2014-06-30 2,745.20 583.63 1,253.15
2014-03-31 2,508.98 561.11 1,165.47
2013-12-31 2,010.81 534.54 1,133.55
2013-09-30 1,939.84 521.28 1,036.31
2013-06-30 1,844.81 520.32 953.09

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Citizens Development Business Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Citizens Development Business Finance used its assets more efficiently than the LK Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Citizens Development Business Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Citizens Development Business Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Citizens Development Business Finance has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Citizens Development Business Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Citizens Development Business Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Citizens Development Business Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Citizens Development Business Finance's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Citizens Development Business Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Citizens Development Business Finance Company Filings, last reported 3 months ago.

COSE:CDB.X0000 Past Debt and Equity Data
Date (Data in LKR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 10,777.99 33,197.18 6,768.82
2019-09-30 10,363.79 32,309.70 6,389.17
2019-06-30 10,183.04 30,240.38 6,266.84
2019-03-31 8,870.27 31,363.52 6,111.59
2018-12-31 8,036.76 29,852.04 8,341.22
2018-09-30 7,674.83 24,316.78 4,338.69
2018-06-30 7,594.38 22,137.85 4,750.84
2018-03-31 7,259.74 20,718.81 6,034.37
2017-12-31 6,974.56 13,484.23 1,817.19
2017-09-30 6,515.89 13,208.41 2,154.27
2017-06-30 6,528.41 12,551.03 1,166.23
2017-03-31 6,314.92 13,404.01 1,325.73
2016-12-31 5,528.81 13,265.47 805.08
2016-09-30 5,290.84 12,484.66 901.63
2016-06-30 5,282.35 12,338.69 2,666.83
2016-03-31 5,105.67 13,214.98 3,830.88
2015-12-31 4,673.06 10,308.84 622.17
2015-09-30 4,398.48 7,820.68 636.70
2015-06-30 4,297.27 6,622.76 629.49
2015-03-31 4,339.37 5,130.05 692.28
2014-12-31 3,890.87 4,742.70 401.32
2014-09-30 3,686.83 3,899.42 1,250.10
2014-06-30 3,541.46 3,752.18 617.77
2014-03-31 3,576.71 4,577.81 693.89
2013-12-31 3,475.22 4,683.14 321.76
2013-09-30 3,269.07 3,305.62 375.94
2013-06-30 3,074.24 3,019.01 370.35
  • Citizens Development Business Finance's level of debt (308%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (121.8% vs 308% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Citizens Development Business Finance's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Citizens Development Business Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Citizens Development Business Finance has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Citizens Development Business Finance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.38%
Current annual income from Citizens Development Business Finance dividends.
If you bought LKR2,000 of Citizens Development Business Finance shares you are expected to receive LKR68 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Citizens Development Business Finance's pays a higher dividend yield than the bottom 25% of dividend payers in Sri Lanka (2.85%).
  • Citizens Development Business Finance's dividend is below the markets top 25% of dividend payers in Sri Lanka (7.65%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
COSE:CDB.X0000 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Sri Lanka Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 6%
Sri Lanka Market Average Dividend Yield Market Cap Weighted Average of 149 Stocks 5.7%
Sri Lanka Minimum Threshold Dividend Yield 10th Percentile 1.7%
Sri Lanka Bottom 25% Dividend Yield 25th Percentile 2.8%
Sri Lanka Top 25% Dividend Yield 75th Percentile 7.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

COSE:CDB.X0000 Future Dividends Estimate Data
Date (Data in LKR) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-04-04
2020-03-31
COSE:CDB.X0000 Past Annualized Dividends Data
Date (Data in LKR) Dividend per share (annual) Avg. Yield (%)
2019-08-02 2.434 2.846
2019-05-21 2.434 3.074
2018-06-06 4.868 6.140
2017-06-01 3.407 4.984
2016-06-08 3.407 4.854
2015-06-08 3.407 3.765
2015-05-28 3.407 3.384
2014-06-02 2.921 3.585
2013-06-06 2.677 6.086
2013-05-31 2.677 5.397
2012-06-07 0.974 2.516
2012-05-29 0.974 3.046
2011-06-10 1.947 3.511
2010-10-27 0.487 0.757

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Citizens Development Business Finance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Citizens Development Business Finance only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Citizens Development Business Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Citizens Development Business Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Citizens Development Business Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Citizens Development Business Finance has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Citizens Development Business Finance's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Weligama Palliyaguruge Claud Nanayakkara
AGE 50
TENURE AS CEO 16.3 years
CEO Bio

Mr. Weligama Palliyaguruge Claud Mahesh Nanayakkara, B.Sc. (Mgt.), FCMA (UK), MBA (Sri J), CGMA has been the Chief Executive Officer of Citizens Development Business Finance Plc since 2004 and has been its Managing Director since April 2011. Mr. Nanayakkara served as General Manager at Citizens Development Business Finance Ltd. He counts over many years of experience in the Banking and Financial Services industry. Having started his career at a leading merchant bank in the country where he gained extensive experience in multiple areas, he joined CDB in early 2001. Mr. Nanayakkara has been an Executive Director of Citizens Development Business Finance Ltd since December 2005. He is a Member of the Chartered Institute of Management Accountants (UK). Mr. Nanayakkara holds a Bachelor of Science (B.Sc.) degree in Business Administration from the University of Sri Jayawardenapura and a Master's Degree in Business Administration (MBA) from the Post Graduate Institute of Management (PIM), University of Sri Jayawardenapura.

CEO Compensation
  • Insufficient data for Weligama Palliyaguruge Claud to compare compensation growth.
  • Insufficient data for Weligama Palliyaguruge Claud to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Citizens Development Business Finance management team in years:

9
Average Tenure
49
Average Age
  • The average tenure for the Citizens Development Business Finance management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Weligama Palliyaguruge Claud Nanayakkara

TITLE
MD, CEO & Executive Director
AGE
50
TENURE
16.3 yrs

Tennakoon Mudiyanselage Damith Tennakoon

TITLE
Deputy CEO
AGE
53
TENURE
9 yrs

Dave De Silva

TITLE
Executive Director of Business Operations & Executive Director
AGE
49

Roshan Abeygoonewardena

TITLE
Director of Corporate Finance & Executive Director
AGE
49

Nayanthi Kodagoda

TITLE
General Manager of HR & Administration
AGE
43
TENURE
2.3 yrs

Ranjith Gunasinghe

TITLE
Senior Deputy General Manager of Risk & Compliance
AGE
47

Laavanya Paheerathan

TITLE
Manager of Legal

Sasindra Munasinghe

TITLE
Director of Sales & Business Development and Executive Director
AGE
49

Darshana Jayasinghe

TITLE
Deputy General Manager of Marketing

Elangovan Karthik

TITLE
CEO & Director of Unisons Capital Leasing Ltd
AGE
38
Board of Directors Tenure

Average tenure and age of the Citizens Development Business Finance board of directors in years:

8.8
Average Tenure
50.5
Average Age
  • The tenure for the Citizens Development Business Finance board of directors is about average.
Board of Directors

S. Abeynayake

TITLE
Chairman of the Board
AGE
51
TENURE
1.3 yrs

Weligama Palliyaguruge Claud Nanayakkara

TITLE
MD, CEO & Executive Director
AGE
50
TENURE
14.3 yrs

Tennakoon Mudiyanselage Damith Tennakoon

TITLE
Deputy CEO
AGE
53
TENURE
9 yrs

Dave De Silva

TITLE
Executive Director of Business Operations & Executive Director
AGE
49
TENURE
8.3 yrs

Roshan Abeygoonewardena

TITLE
Director of Corporate Finance & Executive Director
AGE
49
TENURE
9 yrs

Sasindra Munasinghe

TITLE
Director of Sales & Business Development and Executive Director
AGE
49
TENURE
9 yrs

Elangovan Karthik

TITLE
CEO & Director of Unisons Capital Leasing Ltd
AGE
38

Joe Jayawardena

TITLE
Non-Executive Director
AGE
58
TENURE
8.5 yrs

Razik Mohamed

TITLE
Non-Executive Independent Director
AGE
68
TENURE
7.8 yrs

Ajantha Dharmasiri

TITLE
Senior Independent Non Executive Director
AGE
51
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (LKR) Value (LKR)
X
Management checks
We assess Citizens Development Business Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Citizens Development Business Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Citizens Development Business Finance PLC provides various financial services in Sri Lanka. It operates through Leasing and Stock Out on Hire, Loans and Advances, and Others segments. The company accepts term, savings, and fixed deposits; and offers auto, personal, gold, home, and business loans. It also provides debit and credit cards; and margin trading, corporate finance, money exchange, Islamic finance, money transferring, leasing, hire purchase, foreign exchange and remittance, pawning, and other financial services. The company was founded in 1995 and is headquartered in Colombo, Sri Lanka.

Details
Name: Citizens Development Business Finance PLC
CDB.X0000
Exchange: COSE
Founded: 1995
LKR4,749,674,994
69,792,748
Website: http://www.cdb.lk
Address: Citizens Development Business Finance PLC
No. 123, Orabipasha Mawatha,
Colombo,
10,
Sri Lanka
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
COSE CDB.N0000 Ordinary Voting Shares Colombo Stock Exchange LK LKR 12. Oct 2010
COSE CDB.X0000 Ordinary Non-Voting Shares Colombo Stock Exchange LK LKR 12. Sep 2011
Number of employees
Current staff
Staff numbers
0
Citizens Development Business Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 17:11
End of day share price update: 2020/03/20 00:00
Last estimates confirmation: 2019/12/13
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.