4 quick ways to assess the BOQ share price

Core Viewpoint - Bank of Queensland Limited (BOQ) is a significant regional bank in Australia, primarily focused on mortgage lending, with a unique structure where many branches are operated by owner-managers, which differentiates it from larger banks [1][4]. Financial Performance - BOQ's net interest margin (NIM) is 1.56%, which is below the ASX major bank average of 1.78%, indicating lower profitability from lending compared to peers [5][6]. - The bank earned 93% of its total income from lending last year, emphasizing the importance of NIM as a key profitability measure [6]. - Return on equity (ROE) for BOQ was 4.7%, significantly lower than the sector average of 9.35%, suggesting less efficient use of shareholder equity [7]. - The common equity tier one (CET1) ratio for BOQ was 10.7%, which is also below the sector average, indicating a weaker capital buffer [8]. Valuation Insights - A dividend discount model (DDM) estimates BOQ's share price at an average of $7.19, with an adjusted valuation based on expected future dividends rising to $7.40, compared to the current share price of $7.09 [11][12]. - Considering fully franked dividends, the 'fair value' estimate of BOQ shares increases to $10.57, suggesting potential undervaluation based on dividend benefits [11][12].