Berner Kantonalbank (SWX:BEKN) - Share price, News & Analysis

BEKN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	5/6

BEKN Stock Overview

Berner Kantonalbank AG, a cantonal bank, offers various banking products and financial services to private individuals and corporate customers in Switzerland.

Rewards

Price-To-Earnings ratio (12.7x) is below the Swiss market (16.8x)

Earnings have grown 3.3% per year over the past 5 years

Pays a high and reliable dividend of 4.32%

Risk Analysis

No risks detected for BEKN from our risk checks.

Berner Kantonalbank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Berner Kantonalbank
Historical stock prices
Current Share Price	CHF213.00
52 Week High	CHF227.00
52 Week Low	CHF198.00
Beta	0.45
1 Month Change	1.43%
3 Month Change	-4.27%
1 Year Change	3.40%
3 Year Change	-8.39%
5 Year Change	16.14%
Change since IPO	58.96%

Recent News & Updates

Mar 15

Here's Why We Think Berner Kantonalbank (VTX:BEKN) Is Well Worth Watching

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	BEKN	CH Banks	CH Market
7D	1.4%	-0.006%	3.4%
1Y	3.4%	-0.8%	-12.4%

Return vs Industry: BEKN exceeded the Swiss Banks industry which returned -0.1% over the past year.

Return vs Market: BEKN exceeded the Swiss Market which returned -15% over the past year.

Price Volatility

Is BEKN's price volatile compared to industry and market?
BEKN volatility
BEKN Average Weekly Movement	2.1%
Banks Industry Average Movement	2.5%
Market Average Movement	4.5%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: BEKN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BEKN's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1834	1,014	Armin Brun	https://www.bekb.ch

Berner Kantonalbank AG, a cantonal bank, offers various banking products and financial services to private individuals and corporate customers in Switzerland. It offers investment, shareholder, youth, education, and SME savings accounts; deposit, current, rental, payment, pension, and client funds accounts; investment products; bank cards and credit cards; and pension products. The company also provides mortgages and financing products; business, investment, and real estate financing services; safeguards and guarantees; and asset management services, including strategy consulting, portfolio optimization and simulation, investment advisory, investment funds, and securities accounting services, as well as trades in stocks, bonds, derivatives, currencies, and money market instruments.

Berner Kantonalbank Fundamentals Summary

How do Berner Kantonalbank's earnings and revenue compare to its market cap?
BEKN fundamental statistics
Market Cap	CHF1.97b
Earnings (TTM)	CHF154.94m
Revenue (TTM)	CHF463.51m

12.7x

P/E Ratio

0.7x

P/B Ratio

Is BEKN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEKN income statement (TTM)
Revenue	CHF463.51m
Cost of Revenue	CHF0
Gross Profit	CHF463.51m
Other Expenses	CHF308.57m
Earnings	CHF154.94m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	16.77
Gross Margin	100.00%
Net Profit Margin	33.43%
Debt/Equity Ratio	355.1%

How did BEKN perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

55%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BEKN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BEKN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BEKN. This is calculated by dividing BEKN's market cap by their current preferred multiple.
What is BEKN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF1.97b

BEKN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does BEKN's PE Ratio compare to its peers?

BEKN PE Ratio vs Peers

The above table shows the PE ratio for BEKN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.4x

Forward PE

Price-To-Earnings vs Peers: BEKN is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (19.4x).

Price to Earnings Ratio vs Industry

How does BEKN's PE Ratio compare vs other companies in the Banks Industry?

Price-To-Earnings vs Industry: BEKN is good value based on its Price-To-Earnings Ratio (12.7x) compared to the Swiss Banks industry average (15.6x)

Price to Earnings Ratio vs Fair Ratio

What is BEKN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BEKN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BEKN's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BEKN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BEKN (CHF213) is trading above our estimate of fair value (CHF194.15)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BEKN's PEG Ratio to determine if it is good value.

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Future Growth

How is Berner Kantonalbank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.6%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Berner Kantonalbank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Berner Kantonalbank's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Berner Kantonalbank competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Berner Kantonalbank performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BEKN has high quality earnings.

Growing Profit Margin: BEKN's current net profit margins (33.4%) are lower than last year (35.9%).

Past Earnings Growth Analysis

Earnings Trend: BEKN's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: BEKN's earnings growth over the past year (4.4%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: BEKN earnings growth over the past year (4.4%) underperformed the Banks industry 7.2%.

Return on Equity

High ROE: BEKN's Return on Equity (5.7%) is considered low.

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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BEKN's Assets to Equity ratio (14.4x) is moderate.

Allowance for Bad Loans: BEKN has a sufficient allowance for bad loans (3053%).

Low Risk Liabilities: 72% of BEKN's liabilities are made up of primarily low risk sources of funding.

Loan Level: BEKN has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: BEKN's Loans to Deposits ratio (100%) is appropriate.

Level of Bad Loans: BEKN has an appropriate level of bad loans (0%).

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Dividend

What is Berner Kantonalbank current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BEKN's dividend (4.32%) is higher than the bottom 25% of dividend payers in the Swiss market (2.06%).

High Dividend: BEKN's dividend (4.32%) is in the top 25% of dividend payers in the Swiss market (4.14%)

Stability and Growth of Payments

Stable Dividend: BEKN's dividends per share have been stable in the past 10 years.

Growing Dividend: BEKN's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.8%), BEKN's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

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Management

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

3.4yrs

Average management tenure

CEO

Armin Brun (56 yo)

5.42yrs

Tenure

CHF898,000

Compensation

Mr. Armin Brun serves as Chief Executive Officer, Head of Department Investment Clients and Corporate Clients and Member of Management Board at Berner Kantonalbank AG since July 1, 2019. He served as Head...

CEO Compensation Analysis

Compensation vs Market: Armin's total compensation ($USD940.64K) is below average for companies of similar size in the Swiss market ($USD1.35M).

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

Leadership Team

Experienced Management: BEKN's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: BEKN's board of directors are considered experienced (3.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31