4 quick ways to assess the BEN share price

Core Viewpoint - Bendigo & Adelaide Bank Ltd (BEN) operates primarily in the retail banking sector with a focus on community branches, and its financial performance is assessed through key metrics such as net interest margin (NIM), return on equity (ROE), and common equity tier one (CET1) ratio, which are critical for evaluating its profitability and stability [2][5][9]. Financial Performance Metrics - The net interest margin (NIM) for Bendigo & Adelaide Bank Ltd is 1.9%, which is above the ASX major bank average of 1.78%, indicating a better-than-average return from lending activities [6][7]. - The return on equity (ROE) for the bank is 7.9%, which is below the sector average of 9.35%, suggesting room for improvement in profitability relative to shareholder equity [8]. - The common equity tier one (CET1) ratio stands at 11.3%, which is also below the sector average, highlighting potential concerns regarding the bank's capital buffer [9]. Dividend Valuation - The total dividend for the last full year was $0.63, with projections for future growth rates between 2% and 4%. Using a dividend discount model (DDM), the estimated average valuation of BEN shares is $13.32, with an adjusted valuation based on expected future dividends rising to $13.75 [11][12]. - When considering gross dividend payments, which include franking credits, the fair value estimate for BEN shares increases to $19.64, indicating that the current share price of $12.84 may appear undervalued [12][13]. Workplace Culture - The overall workplace culture rating for Bendigo & Adelaide Bank is 2.9/5, which is below the sector average of 3.1, suggesting potential challenges in employee satisfaction and retention [4]. Summary - Bendigo & Adelaide Bank Ltd shows strong lending performance through its NIM but faces challenges in ROE and CET1 ratios compared to sector averages. The bank's dividend valuation indicates potential undervaluation when considering franking credits, while workplace culture may impact long-term employee retention and performance [6][8][12].