ENXTBR:KBC

Stock Analysis Report

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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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

KBC

-4.9%

BE Banks

-3.4%

BE Market


1 Year Return

-26.6%

KBC

-35.4%

BE Banks

-25.5%

BE Market

Return vs Industry: KBC exceeded the Belgian Banks industry which returned -35.4% over the past year.

Return vs Market: KBC underperformed the Belgian Market which returned -25.5% over the past year.


Shareholder returns

KBCIndustryMarket
7 Day-0.5%-4.9%-3.4%
30 Day-11.6%-11.1%-4.6%
90 Day-14.3%-11.1%-0.9%
1 Year-25.8%-26.6%-34.8%-35.4%-24.3%-25.5%
3 Year-34.0%-39.0%-45.4%-50.7%-27.4%-31.8%
5 Year-14.8%-23.7%-36.6%-50.8%-16.4%-24.9%

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?

12.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KBC (€43.77) is trading above our estimate of fair value (€43.62)

Significantly Below Fair Value: KBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KBC is poor value based on its PE Ratio (12.4x) compared to the XE Banks industry average (9.5x).

PE vs Market: KBC is good value based on its PE Ratio (12.4x) compared to the Belgian market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: KBC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: KBC is overvalued based on its PB Ratio (0.9x) compared to the XE Banks industry average (0.5x).


Next Steps

Future Growth

How is KBC Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KBC's forecast earnings growth (20.3% per year) is above the savings rate (1.6%).

Earnings vs Market: KBC's earnings (20.3% per year) are forecast to grow slower than the Belgian market (28.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KBC's revenue (3.7% per year) is forecast to grow slower than the Belgian market (6.8% per year).

High Growth Revenue: KBC's revenue (3.7% 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 (10.2%).


Next Steps

Past Performance

How has KBC Group performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBC has high quality earnings.

Growing Profit Margin: KBC's current net profit margins (23.4%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: KBC's earnings have grown by 4.5% 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 (-39.9%) over the past year, making it difficult to compare to the Banks industry average (-9.5%).


Return on Equity

High ROE: KBC's Return on Equity (7.5%) is considered low.


Next Steps

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 (15.7x) is moderate.

Allowance for Bad Loans: KBC has a low allowance for bad loans (61%).

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 (52%).

Low Risk Deposits: KBC's Loans to Deposits ratio (72%) is appropriate.

Level of Bad Loans: KBC has a high level of bad loans (3.6%).


Next Steps

Dividend

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

5.22%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KBC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KBC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KBC's dividend payments have been 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?

6.3yrs

Average management tenure


CEO

Johan Thijs (55 yo)

8.33yrs

Tenure

€2,383,493

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. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD2.78M) is about average for companies of similar size in the Belgian market ($USD2.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johan Thijs
Group CEO8.33yrs€2.38mno data
Hendrik Scheerlinck
CFO & Executive Director3.33yrs€1.50mno data
Marc Wittemans
Executive Director22.67yrs€150.00kno data
Christine Van Rijsseghem
Chief Risk Officer & Executive Director6.33yrs€1.51mno data
Erik Marcel Luts
Chief Innovation Officer3.33yrs€1.51mno data
John Hollows
Chief Executive Officer of Czech Republic Business Unit6.33yrs€1.50mno data
Roger Popelier
Chief Executive Officer of International Markets Business Unit3.33yrs€1.50mno data
Daniel Falque
Chief Executive Officer of Belgium Business Unit8.33yrs€1.49mno data
Kurt De Baenst
General Managerno datano datano data
Viviane Huybrecht
General Manager of Corporate Communicationno datano datano data
Johan Thiers
Chief Financial Officer of Kbc Belgium B.U.no datano datano data
Johan Tyteca
Corporate Secretaryno datano datano data

6.3yrs

Average Tenure

59yo

Average Age

Experienced Management: KBC's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Johan Thijs
Group CEO8.33yrs€2.38mno data
Hendrik Scheerlinck
CFO & Executive Director3.33yrs€1.50mno data
Marc Wittemans
Executive Director22.67yrs€150.00kno data
Christine Van Rijsseghem
Chief Risk Officer & Executive Director6.33yrs€1.51mno data
Philippe Vlerick
Deputy Chairman of the Board19.67yrs€110.00k0.063%
€ 11.4m
Theodoros Roussis
Non-Executive Director23.67yrs€75.00kno data
Frank Donck
Non-Executive Director17.42yrs€110.00kno data
Franky Depickere
Non-Executive Director14yrs€251.25kno data
Sonja De Becker
Non-Executive Director4.33yrs€85.00kno data
Júlia Király
Independent Director6.92yrs€135.00kno data
Alain Bostoen
Non-Executive Director10.42yrs€80.00kno data
Vladimira Papirnik
Independent Director8.33yrs€135.00kno data

10.7yrs

Average Tenure

62yo

Average Age

Experienced Board: KBC's board of directors are seasoned and experienced ( 10.7 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: €18.225b
  • Shares outstanding: 416.37m
  • Website: https://www.kbc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KBCENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1992
KDBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
KBCS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0EYGLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
KBCBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
KBCWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
KBC1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
KBCS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

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 Analysis2020/09/28 21:01
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.