Despite a 2022 general downtrend and a sideway evolution during the first 6 months of 2023,
BRD Groupe Société Générale is a Romanian bank with headquarters in Bucharest, Romania. Founded in 1923 and listed on at Bucharest Stock Exchange on 15 January 2001, BRD stock (BVB: BRD) is now one of the top holdings in the largest Frontier and Emerging Markets ETFs (FM).
BRD – Groupe Société Générale S.A. - Research and Ratings
- Is BRD stock undervalued compared to its fair value, analyst forecasts, and price relative to the market?
- What is the analyst 12-month BRD shares price forecast?
- What are BRD’s future growth expectations?
- How has BRD stock performed over the past 5 years?
- Should you buy BRD shares or invest in ETFs with BRD representation?
Understanding BRD Stock (BSE: BRD): A brief history
BRD - GROUPE SOCIETE GENERALE S.A. (BVB: BRD) is a Romanian Bank with most of its shares owned by the French Société Générale financial group which holds a stake of 60.17%. It was rebranded after the Société Générale acquired Banca Romanian Development Bank (Română pentru Dezvoltare) from the Romanian Government in 1999.
The company’s business activities comprise retail banking, commercial banking, corporate banking, investment banking, financial markets, and bank assurance services. BRD offers daily banking, cards, loans, savings and investments, remote banking, and insurance. The company also provides bills payment, national and international transfers, overdrafts, platinum cards, employee packages, phone banking, internet banking, operational leasing, financial leasing, consumer finance, fleet management, securities, and card insurance package insurance policies. The company offers products and services to individuals, small and medium-sized enterprises, corporations, and the public sectors having operations across Romania.
BRD shares are distributed among 3 categories:
- Group SOCIETE GENERALE - 60.1683%
- Legal entities - 34.3449%
- Individuals - 5.4868%
BRD has about 2.2 million customers and it operates a network of around 870 branches, with three business lines: retail and SMEs, large corporations, and investment banking.
Its range of products and services covers, in addition to traditional financing, cash management, internal and external factoring, financial and operational leasing services, and car fleet management, through its subsidiaries BRD Sogelease and ALD Automotive.
BRD Stock - Fundamental Analysis and Financial Ratings
See the latest BRD (BVB: BRD) stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is BRD stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
- BRD is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (11.7x).
- BRD is good value based on its Price-To-Earnings Ratio (7.2x) compared to the European Banks industry average (8x)
- BRD is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.9x).
- BRD (RON15.24) is trading above simplywall.st estimate of fair value (RON14.19).
Future Growth
BRD - Groupe Société Générale's earnings is forecast to decline at an annual rate of -1,5 % and its revenue is expected to grow at 1.8% annually. EPS is expected to decline by 4% while return on equity is forecast to be 15.3% in 3 years. Analyst coverage for BRD Groupe Société Générale stock is good.
- BRD's earnings are forecast to decline over the next 3 years (-1.5% per year).
- BRD's earnings (-1.5% per year) are forecast to grow faster than the Romanian market (-3.4% per year).
- BRD's earnings are forecast to decline over the next 3 years.
- BRD's revenue (1.8% per year) is forecast to grow faster than the RO market (-1% per year).
- BRD's revenue (1.8% per year) is forecast to grow slower than 20% per year.
- BRD's Return on Equity is forecast to be low in 3 years time (15.3%).
Past Performance
How has BRD stock performed over the past 5 years?
BRD - Groupe Société Générale's earnings have been declining at an average annual rate of -2.7%, while the Banks industry saw earnings growing at 7.1% annually. Revenues have been growing at an average rate of 0.5% per year. BRD - Groupe Société Générale's return on equity is 18%, and it has net margins of 40.6%.
- BRD has high-quality earnings.
- BRD's current net profit margins (40.6%) are lower than last year (39.5%).
- BRD's earnings have declined by 2.7% per year over the past 5 years.
- BRD's earnings growth over the past year (13.7%) exceeds its 5-year average (-2.7% per year).
- BRD earnings growth over the past year (13.7%) did not outperform the Banks industry 25.9%.
- BRD's Return on Equity (18%) is considered low.
Financial Health
What is BRD's financial position?
BRD - Groupe Société Générale has total assets of RON77.0B and total equity of RON8.3B. Total deposits are RON59.6B, and total loans are RON39.6B.
- BRD's Assets to Equity ratio (9.3x) is low.
- BRD has a sufficient allowance for bad loans (170%).
- 87% of BRD's liabilities are made up of primarily low-risk sources of funding.
- BRD has an appropriate level of Loans to Assets ratio (51%).
- BRD's Loans to Deposits ratio (66%) is appropriate.
- BRD has a high level of bad loans (2.7%).
Dividend
BRD Groupe Societe Generale SA does not currently pay a dividend.
BRD Stock Price Forecast
What is the analyst 12-month BRD stock price forecast, and do we have any statistical confidence in the consensus price target from analysts?
Source: simplywall.st
According to simplywall.st, the BRD 12-month target price is less than 20% higher than the current share price.
Investing.com analysts' 12-Month Price High Target is 17.00 RON, while the Average and Low Price targets are 15.40, respectively 13.77.
According to Trading Economics global macro models projections and analysts' expectations BRD shares are forecasted to be priced at 14.91 RON by the end of this quarter and at 13.97 RON in one year.
There are no 5-year BRD shares price forecasts and price predictions.
Important: When considering BRD's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
BRD Stock (BVB: BRD) - Technical Analysis
Technically, BRD shares price recently broke above the range resistance at 15.00 and a new short-term uptrend movement seems to have started. An upside continuation would first target the 16.40 area and above 17.60.
However, this could also be a short-term correction for the 2022 downtrend. If price fails to make higher highs, the upside movement may become vulnerable.
How to Invest in BRD Stock
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual BRD shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
Individual Societe Generale SA (EPA: GLE) shares
Société Générale is a French banking group, one of the three big in France.
The company has broadly diversified activities in retail banking, in France and throughout Europe, including Eastern Europe, in corporate banking and investment banking, asset management, securities services, specialized financing, and insurance.
Société Générale's three pillars, at the heart of the development of its relationship banking model, are:
- Retail Banking in France (Société Générale, Crédit du Nord and Boursorama)
- International Banking and Financial Services (IBFS)
- Corporate and Investment Banking (SG CIB), with investment banking and fixed income, structured financing, debt, and forex activities on the one side, and equity and consulting activities on the other.
The development of these three pillars is backed by two other core activities, namely:
- Specialized Financial Services & Insurance
- Private Banking, Global Investment Management & Services
With CAPEX.com you can trade CFDs on Société Générale shares with low spread and zero commission.
ETFs with BRD holdings
BRD stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with BRD representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 9 companies listed on the Bucharest Stock Exchange:
Banca Transilvania (BSE: TLV)
OMV Petrom (BSE: SNP)
Romgaz (BSE: SNG)
Transgaz (BSE: TGN)
Electrica (BSE: EL)
Teraplast (BSE: TRP)
MedLife (BSE: M)
Nuclearelectrica (BSE: SNN)
One United Properties (BSE: ONE)
Why invest in BRD Shares via FM?
With net assets of almost $1B, The iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents
- One-click access to a virtually untapped investment portfolio with a Bucharest Stock Exchange and BET index exposure.
- Use to seek long-term growth and diversification.
How to Get Started with CAPEX.com
Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
- Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account.
- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
- Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies.
- Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.
When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.
However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership.
Free resources
Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader.
Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
Sources:
BRD.ro | Shareholder Structure | Investors & Shareholders
BRD Groupe Societe Generale SA (ROBRD) Stock Forecast & Price Target - Investing.com
BVB - Actiuni BRD BRD - GROUPE SOCIETE GENERALE S.A.
BRD - Groupe Société Générale (BVB:BRD) - Stock Price, News & Analysis - Simply Wall St
BRD - Stock Price | Live Quote | Historical Chart (tradingeconomics.com)
BRD Groupe Societe Generale SA Share Price - BSE:BRD Stock Research | Stockopedia