Faysal Bank Ltd. (FABL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bank of Khyber

Faysal Bank Ltd.

Bank Al Habib Ltd.

Bank Alfalah Ltd.

Soneri Bank Ltd.

Why is Faysal Bank Ltd. ?

Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 31.80%

Flat results in Mar 25

NII(Q) Lowest at PKR 16,390.39 MM
NET SALES(Q) Lowest at PKR 42,142.49
OPERATING PROFIT(Q) Lowest at PKR 10,338.95

With ROE of 22.2, it has a very attractive valuation with a 0.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have risen by 18% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 12.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Faysal Bank Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Faysal Bank Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Faysal Bank Ltd.

33.29%

1.03

39.63%

Pakistan KSE 100 Share

60.28%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.80%

EBIT Growth (5y)

41.78%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

44.47%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.26

EV to EBIT

11.25

EV to EBITDA

9.97

EV to Capital Employed

1.06

EV to Sales

2.28

PEG Ratio

0.33

Dividend Yield

7.53%

ROCE (Latest)

9.41%

ROE (Latest)

21.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 163,327.64 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.53 %

GROSS NPA (%)

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.09%

CASH AND EQV(HY)

Highest at PKR 203,527.04 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 0

-8What is not working for the Company

NII(Q)

Lowest at PKR 16,390.39 MM

NET SALES(Q)

Lowest at PKR 42,142.49 MM

OPERATING PROFIT(Q)

Lowest at PKR 10,338.95 MM

PRE-TAX PROFIT(Q)

Lowest at PKR 11,475.94 MM

Here's what is working for Faysal Bank Ltd.

Operating Cash Flow

Highest at PKR 163,327.64 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Operating Profit Margin

Highest at 24.53 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Non Performing Loans (%)

Lowest at 6.7%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

Cash and Eqv

Highest at PKR 203,527.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at PKR 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 42.09%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Faysal Bank Ltd.

NII

Lowest at PKR 16,390.39 MM

in the last five periods

MOJO Watch

The bank's income from core business is falling

NII (PKR MM)

Net Sales

Lowest at PKR 42,142.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Net Sales

Fallen at -29.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR 10,338.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Pre-Tax Profit

Lowest at PKR 11,475.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Non Operating Income

Highest at PKR 0.09 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income