Collector Bank AB (OM:COLL) April 22, 2016
Author : briana-ranney | Published Date : 2025-06-27
Description: Collector Bank AB OMCOLL April 22 2016 Investment Thesis Collector Bank B Collector is primarily a consumer lending company based in Sweden It has expanded product offering in recent years and received a bank license in 2015
Presentation Embed Code
Download Presentation
Download
Presentation The PPT/PDF document
"Collector Bank AB (OM:COLL) April 22, 2016" is the property of its rightful owner.
Permission is granted to download and print the materials on this website for personal, non-commercial use only,
and to display it on your personal computer provided you do not modify the materials and that you retain all
copyright notices contained in the materials. By downloading content from our website, you accept the terms of
this agreement.
Transcript:Collector Bank AB (OM:COLL) April 22, 2016:
Collector Bank AB (OM:COLL) April 22, 2016 Investment Thesis Collector Bank B (“Collector”) is primarily a consumer lending company based in Sweden It has expanded product offering in recent years and received a bank license in 2015 Background Collector was listed in Stockholm on June 10, 2015 It’s share price has appreciated by 124% since then, while the broader index and banking peers depreciated by 12-16% over the same period Collector’s share price appreciation since its Q3 2015 earnings release has been too optimistic (+51% since 11/2/2015) The Company showed high growth rate on its lending book and revenues, which was appreciated by the market Thesis Findings Target Valuation However, the Company invested heavily in its IT system, mobile apps and raised its depository rates in a low interest rate environment in order to generate those growth This is not a guarantee for continued future success; potential issues include rising competition and regulatory pressures Collector is trading at a level well beyond its banking, consumer finance and credit management peers even adjusted for reasonable amount of growth Even when adopting a very bullish scenario with 40% net income CAGR for 4 consecutive years, no dividend and no capital constraints, the various metrics indicate that Collector is still overpriced versus its peers The Nordic banks are trading within the 1.0x - 2͘0x Price / Tangible Book Value (“TBV”) range; Consumer Finance peers are trading in the 2͘5x - 3.5x range; and Collector is currently trading at 8.9x times 2015 TBV - The price gain since Q3 2015 is too optimistic and as the price at that time could be justified for a high growth, high RoE story - Target range set to: - Market cap of $750 - $1,000 Million - Share price of $8.03 - $10.71 - Representing a 39% - 55% discount from today’s price 2 Agenda 1 Business Overview 2 Valuation Analysis 3 Risks, Catalysts and Conclusion 4 Appendix 1 - Loan Book and Capitalization Details 5 Appendix 2 - Supporting Materials 3 Section 1 Business Overview 4 Snapshot of Collector Bank AB High Growth Business; Share Price Increased by 124% since IPO on June 10, 2015 Business Overview Key Financials 1 • Collector Bank B (“Collector”) is a financial services company engaged USD Millions 2012 2013 2014 2015 Total Income 73 86 113 147 primarily in
