Bendigo and Adelaide Bank Limited (BXRBF)
Fair ValueFundamental
43
Price
$10.04
Market Cap
$5.92B
Part 1 · What the company is worth
Overview
Bendigo and Adelaide Bank is an Australian retail and business bank built around a network of Community Bank branches — locally owned franchises that share profits with the towns they serve — plus Up, a separate digital-only bank aimed at younger customers. It takes deposits and makes home, business and agricultural loans across Australia, with the country's second-largest regional branch network and the only ASX100 head office based outside a state capital.
How it makes money
The bank earns net interest income on the spread between what it pays depositors and charges borrowers, plus fees from banking services; net interest margin was 1.88% in the 2025 financial year. Around three-quarters of its loan book is home mortgages, funded mostly by customer deposits rather than wholesale borrowing, which keeps funding costs relatively low but leaves earnings sensitive to how central bank rate cuts squeeze the gap between deposit and lending rates.
Competitive moat
Brand · NarrowThe Community Bank model — local franchises that return a share of profit to their town rather than to shareholders alone — has built unusually high customer trust: Bendigo's Net Promoter Score sits about 36 points above the industry average, and its funding is 77% customer deposits versus lower shares at the major banks. That loyalty is real, but the underlying banking products are still substitutable.
What drives demand
Moderately cyclicalLoan growth and credit quality follow the health of the Australian economy — unemployment, house prices and interest rates all move Bendigo's arrears and lending volumes — but a retail deposit-funded bank is more insulated from sudden shocks than a wholesale-funded lender. Residential mortgage arrears rose to 0.82% in the 2025 financial year, still low but trending up from a 2022 trough.
The case for
Buyers argue that the Community Bank model gives Bendigo unusually loyal, low-cost deposit funding and a trust score well above the major banks, and that the Up digital brand is finally approaching profitability after six years of fast customer growth, giving the bank two distinct paths to growth.
The case against
Sellers fear that a $539.5 million goodwill impairment and rising operating expenses pushed the bank to a statutory loss in the 2025 financial year, and that margin pressure from falling interest rates will keep outpacing the cost savings management is promising for years to come.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
The closest listed peer: a similarly sized Australian regional bank chasing the same retail mortgage, deposit and small-business customers through a branch-plus-broker network outside the big four.
Australia's largest home lender and deposit taker, competing for the same retail and small-business customers nationwide with far greater scale and technology spending.
A big-four bank competing head-on for Australian residential mortgages, household deposits and agribusiness lending, including in the regional areas Bendigo has traditionally served.
Competes for the same business and agribusiness borrowers in regional Victoria, Queensland and South Australia, as well as for mainstream home loans and transaction accounts.
Its Australian banking arm has grown into a top-five mortgage and deposit player through brokers and digital channels, taking share in exactly the segments Bendigo relies on.
A smaller listed regional banking group (MyState Bank and Auswide Bank) selling home loans and deposits to the same regional and broker-sourced customers on Australia's eastern seaboard.
Balance Sheet & Liquidity
Revenue
$1.70B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$337M
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
-
Total Equity
$6.73B
Total Liabilities
$10.73B
Current Ratio
-
Interest Coverage
-
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$8.39
Current Price
$10.04
Margin of Safety
-19.7%
Fair Value Range
$6.55 - $10.24
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
17.42
ROE
5.6%
P/B Ratio
0.87
P/FCF
-
Gross Margin
0.0%
ROIC
2.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
2.2%
WACC
3.4%
ROIC − WACC
-1.2 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (6)
- P/B Ratio 0.87
- Debt/Equity ratio
- Operating Margin 37.3%
- Price below Graham Number
- Revenue Growth 5Y 5.1%
- Net Margin Trend 18.3% vs -5.0%
Failed (9)
- Price CAGR -2.04%
- ROIC 2.2%
- Gross Margin 0.0%
- DCF valuation (Unknown)
- ROE 5.6%
- Analyst Consensus 11% Buy
- Earnings Surprise avg -4.7%
- Earnings Quality (OCF/NI) -3.32
- Piotroski F-Score 0/9
Unavailable (12)
- EPS data insufficient
- P/FCF NaN
- Dividend Payout NaN%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- PEG Ratio (need PE > 0 and growth > 0)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Richard Allan Fennell BEc, CA, MAICD | CEO, MD & Director | 56 |
| Mr. Andrew Robert Morgan B.Com., FCPA | Chief Financial Officer | - |
| Mr. Bruce Speirs BCom, CA, GAICD, MBA | Chief Operating Officer | - |
| Mr. Kieran O'Meara B.Sc. | Chief Technology Officer | - |
| Mr. Adam Rowse M.B.A. | Chief Customer Officer of Bus & Agribus and Interim Chief Customer Officer, Consumer Banking | - |
| Ms. Kerrie Noonan B.Com. | Chief Risk Officer | - |
| Ms. Samantha Miller | General Manager of Investor Relations & ESG | - |
| Mr. Steven J Blackburn B.A., J.D., L.L.B. | Chief Compliance, Financial Crime & Regulatory Affairs Officer | - |
| James Frost | Head of Public Relations | - |
| Ms. Sarah Bateson | Chief Marketing Officer | - |
Audit Risk
2
Board Risk
1
Compensation Risk
3
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for BXRBF, sourced from Markets Gazette.