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Market Cap

€28.5b

Last Updated

2021/05/15 17:59 UTC

Data Sources

Company Financials +

Executive Summary

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. More Details

Rewards

Trading at 4.3% below our estimate of its fair value

Earnings are forecast to grow 7.28% per year

Risk Analysis

No risks detected for KBC from our risk checks.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has KBC Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KBC is not significantly more volatile than the rest of Belgian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KBC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

KBC

1.4%

BE Banks

0.8%

BE Market


1 Year Return

63.4%

KBC

55.5%

BE Banks

38.6%

BE Market

Return vs Industry: KBC exceeded the Belgian Banks industry which returned 55.5% over the past year.

Return vs Market: KBC exceeded the Belgian Market which returned 38.6% over the past year.


Shareholder returns

KBCIndustryMarket
7 Day3.2%1.4%0.8%
30 Day11.7%5.9%5.0%
90 Day15.6%14.4%7.9%
1 Year63.4%63.4%59.6%55.5%40.8%38.6%
3 Year1.7%-3.2%-13.5%-21.6%1.4%-3.5%
5 Year52.8%36.9%17.7%-5.4%-0.2%-9.4%

Long-Term Price Volatility Vs. Market

How volatile is KBC Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KBC Group undervalued compared to its fair value and its price relative to the market?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KBC (€68.46) is trading below our estimate of fair value (€71.54)

Significantly Below Fair Value: KBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KBC is poor value based on its PE Ratio (14.6x) compared to the European Banks industry average (13x).

PE vs Market: KBC is good value based on its PE Ratio (14.6x) compared to the Belgian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: KBC is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: KBC is overvalued based on its PB Ratio (1.3x) compared to the XE Banks industry average (0.7x).


Future Growth

How is KBC Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KBC's forecast earnings growth (7.3% per year) is above the savings rate (1.2%).

Earnings vs Market: KBC's earnings (7.3% per year) are forecast to grow slower than the Belgian market (14.3% per year).

High Growth Earnings: KBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: KBC's revenue (2.4% per year) is forecast to grow slower than the Belgian market (4.6% per year).

High Growth Revenue: KBC's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KBC's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has KBC Group performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBC has high quality earnings.

Growing Profit Margin: KBC's current net profit margins (28.8%) are lower than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: KBC's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: KBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KBC had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Banks industry average (-6.1%).


Return on Equity

High ROE: KBC's Return on Equity (9%) is considered low.


Financial Health

How is KBC Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: KBC's Assets to Equity ratio (15.8x) is moderate.

Allowance for Bad Loans: KBC has a low allowance for bad loans (63%).

Low Risk Liabilities: 77% of KBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: KBC has an appropriate level of Loans to Assets ratio (47%).

Low Risk Deposits: KBC's Loans to Deposits ratio (66%) is appropriate.

Level of Bad Loans: KBC has a high level of bad loans (3.5%).


Dividend

What is KBC Group current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KBC's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the Belgian market (1.73%).

High Dividend: KBC's dividend (0.64%) is low compared to the top 25% of dividend payers in the Belgian market (4.44%).


Stability and Growth of Payments

Stable Dividend: KBC is not paying a notable dividend for the Belgian market, therefore no need to check if payments are stable.

Growing Dividend: KBC is not paying a notable dividend for the Belgian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KBC is not paying a notable dividend for the Belgian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KBC's dividend in 3 years as they are not forecast to pay a notable one for the Belgian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Johan Thijs (55 yo)

9yrs

Tenure

€2,245,544

Compensation

Mr. Johan Thijs has been Group Chief Executive Officer and Executive Director of KBC Group NV and KBC Bank NV since May 3, 2012 and September 1, 2009 respectively and serves as it's Managing Director. He s...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD2.73M) is about average for companies of similar size in the Belgian market ($USD2.14M).

Compensation vs Earnings: Johan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KBC's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: KBC's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KBC Group NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KBC Group NV
  • Ticker: KBC
  • Exchange: ENXTBR
  • Founded: 1935
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €28.525b
  • Shares outstanding: 416.67m
  • Website: https://www.kbc.com

Number of Employees


Location

  • KBC Group NV
  • Havenlaan 2
  • Brussels
  • Brussels
  • 1080
  • Belgium

Listings


Biography

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 17:59
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.