It certainly has been a disappointing year for the Bank of Queensland Limited (ASX: BOQ) share price.
Since the start of the year the regional bank's shares have risen less than 1%.
As a comparison, the S&P/ASX 200 is up almost 18% and the Westpac Banking Corp (ASX: WBC) share price is up over 16%.
Why is the Bank of Queensland share price underperforming?
It has been a turbulent year for the bank. Not only has it had a change of chief executive officer, it has seen both its chairman and chief financial officer resign.
Changes of this magnitude in the c-suite rarely go down well with the market. This is because they are often interpreted as a sign that things are not quite right behind the scenes.
Furthermore, also weighing on its shares this year has been news that ASIC has commenced proceedings against it in the Federal Court of Australia. The regulator alleged that certain terms used by the bank in contracts with small businesses are unfair.
But perhaps the biggest weight on its share price has been its performance in FY 2019. In the first half the bank reported a disappointing 8% decline in half year cash earnings. This poor performance led to Bank of Queensland cutting its interim dividend by 10.5% to 34 cents per share.
Unfortunately for shareholders, management warned that the second half wouldn't be any better.
Should you invest?
Whilst its shares do look good value at these levels, I wouldn't rush in and invest. After all, next week the bank will release its full year results.
According to a note out of Goldman Sachs, it believes Bank of Queensland's mortgage book continues to underperform. In fact, it expects the bank to report its seventh consecutive half of below system growth. The broker also has concerns over its margins after the cash rate cuts.
In light of this, Goldman has reiterated its sell rating and $8.74 price target. This implies potential downside of ~9.5% for its shares over the next 12 months. So, patient investors might be able to get in at even lower prices in the coming weeks or months.