SWX:CSGN

Stock Analysis Report

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Executive Summary

Credit Suisse Group AG, through its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CSGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.5%

CSGN

8.1%

CH Capital Markets

2.8%

CH Market


1 Year Return

-14.3%

CSGN

-4.0%

CH Capital Markets

3.8%

CH Market

Return vs Industry: CSGN underperformed the Swiss Capital Markets industry which returned -4% over the past year.

Return vs Market: CSGN underperformed the Swiss Market which returned 3.8% over the past year.


Shareholder returns

CSGNIndustryMarket
7 Day7.5%8.1%2.8%
30 Day20.9%17.0%5.4%
90 Day0.02%5.6%-1.6%
1 Year-12.8%-14.3%-1.2%-4.0%7.2%3.8%
3 Year-21.7%-25.7%-13.2%-21.4%19.9%7.7%
5 Year-53.5%-62.5%-32.8%-45.9%31.1%9.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGN (CHF9.81) is trading below our estimate of fair value (CHF11)

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


Price To Earnings Ratio

PE vs Industry: CSGN is good value based on its PE Ratio (6.2x) compared to the Capital Markets industry average (20.6x).

PE vs Market: CSGN is good value based on its PE Ratio (6.2x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: CSGN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CSGN is good value based on its PB Ratio (0.5x) compared to the CH Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is Credit Suisse Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGN's forecast earnings growth (12.6% per year) is above the savings rate (-0.2%).

Earnings vs Market: CSGN's earnings (12.6% per year) are forecast to grow faster than the Swiss market (8.7% per year).

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

Revenue vs Market: CSGN's revenue (2.7% per year) is forecast to grow faster than the Swiss market (2.4% per year).

High Growth Revenue: CSGN's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSGN's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Credit Suisse Group performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGN has high quality earnings.

Growing Profit Margin: CSGN's current net profit margins (18.1%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: CSGN's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: CSGN's earnings growth over the past year (91.3%) exceeds its 5-year average (31.5% per year).

Earnings vs Industry: CSGN earnings growth over the past year (91.3%) exceeded the Capital Markets industry 15%.


Return on Equity

High ROE: CSGN's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Credit Suisse 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: CSGN's Assets to Equity ratio (17.1x) is moderate.

Allowance for Bad Loans: CSGN has a low allowance for bad loans (79%).

Low Risk Liabilities: 53% of CSGN's liabilities are made up of primarily low risk sources of funding.

Loan Level: CSGN has an appropriate level of Loans to Assets ratio (36%).

Low Risk Deposits: CSGN's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: CSGN has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

What is Credit Suisse Group's current dividend yield, its reliability and sustainability?

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSGN's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: CSGN's dividend (1.41%) is low compared to the top 25% of dividend payers in the Swiss market (3.84%).


Stability and Growth of Payments

Stable Dividend: CSGN's dividend payments have been volatile in the past 10 years.

Growing Dividend: CSGN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.7%), CSGN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSGN's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Thomas Gottstein (55yo)

0.33

Tenure

Mr. Thomas P. Gottstein serves as Director at Credit Suisse (Schweiz) AG since April 30, 2020. Mr. Gottstein serves as Chief Executive Officer of Credit Suisse Group AG and Credit Suisse AG since February  ...


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gottstein
Member of the Executive Board & CEO0.33yrno data0.0063% CHF1.5m
David Mathers
CFO & Member of the Executive Board9.67yrsno data0.0035% CHF828.6k
Lara Warner
Group Chief Risk Officer & Member of the Executive Board4.67yrsno datano data
Romeo Cerutti
General Counsel & Member of the Executive Board11.17yrsno data0.013% CHF3.2m
James Walker
COO & Member of Executive Board0.67yrno data0.0042% CHF981.6k
David Miller
CEO of Investment Banking & Capital Markets and Member of Executive Board1.42yrsno datano data
Helman Sitohang
CEO of the Asia-Pacific Division & Member of the Executive Board4.67yrsno data0.011% CHF2.6m
Brian Chin
CEO of Global Markets & Member of Executive Board3.75yrsno data0.021% CHF4.8m
Antoinette Poschung
Global Head of Human Resources & Member of Executive Board1.33yrsno data0.0051% CHF1.2m
Lydie Hudson
Chief Compliance and Regulatory Affairs Officer & Member of Executive Board1.33yrsno data0.0011% CHF256.6k

2.6yrs

Average Tenure

54yo

Average Age

Experienced Management: CSGN's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rainer Gut
Honorary Chairman20.42yrsno datano data
Urs Rohner
Independent Chairman of the Board9.17yrsCHF4.72m0.012% CHF2.9m
Kaikhushru Shiavax Nargolwala
Independent Director7.17yrsCHF675.00k0.014% CHF3.2m
Richard Meddings
Non-Executive Director0.17yrno datano data
John Tiner
Independent Director11.17yrsCHF955.00k0.012% CHF2.7m
Severin Schwan
Vice Chair & Lead Independent Director3.42yrsCHF400.00k0.0061% CHF1.4m
Seraina Macia
Independent Director5.17yrsCHF350.00k0.0026% CHF621.4k
Iris Bohnet
Independent Director8.17yrsCHF350.00k0.0031% CHF734.4k
Andreas Gottschling
Independent Director3.17yrsCHF450.00k0.0021% CHF503.7k
Joaquin Ribeiro
Independent Director4.17yrsCHF400.00k0.0022% CHF522.6k

6.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CSGN's board of directors are considered experienced (6.2 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

Credit Suisse Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Credit Suisse Group AG
  • Ticker: CSGN
  • Exchange: SWX
  • Founded: 1856
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: CHF23.539b
  • Shares outstanding: 2.40b
  • Website: https://www.credit-suisse.com

Number of Employees


Location

  • Credit Suisse Group AG
  • Paradeplatz 8
  • Zurich
  • Zurich
  • 8001
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSGK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
CSXDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
CSGNSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
0QP5LSE (London Stock Exchange)YesCommon SharesGBCHFJan 1992
CSXXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
CSNYSE (New York Stock Exchange)SPON ADR-REP 1 ORD CHF0.40(REGD)USUSDMay 1993
CS NBMV (Bolsa Mexicana de Valores)SPON ADR-REP 1 ORD CHF0.40(REGD)MXMXNMay 1993
CSX1DB (Deutsche Boerse AG)SPON ADR-REP 1 ORD CHF0.40(REGD)DEEURMay 1993
CSX1XTRA (XETRA Trading Platform)SPON ADR-REP 1 ORD CHF0.40(REGD)DEEURMay 1993
0I4PLSE (London Stock Exchange)SPON ADR-REP 1 ORD CHF0.40(REGD)GBUSDMay 1993
CSGNESWX (SIX Swiss Exchange)CHF0.04 (2ND BUYBACK LINE)CHCHFJan 2019

Biography

Credit Suisse Group AG, through its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific. It operates through Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, and Investment Banking & Capital Markets segments. The company offers private banking and wealth management solutions, including advisory, investment, financial planning, succession planning, and trust services; and financing and lending, and multi-shore platform solutions. It also provides traditional and structured lending, payment, foreign exchange, capital goods leasing, merger and acquisition, syndication, structured finance, commodity trade finance, trade finance, structured trade finance, export finance, factoring, fund management and administration, fund design, custody, ship and aviation finance, securities, cash, and treasury services. In addition, the company offers asset management products; equity and debt underwriting, and advisory services; cash equities, equity derivatives, and convertibles, as well as prime services; and fixed income products, such as credit, securitized, macro, emerging markets, financing, structured credit, and other products. Further, it provides HOLT, a framework for assessing the performance of approximately 20,000 companies; and equity and fixed income research services. The company serves private and institutional clients; ultra-high-net-worth individuals, high-net-worth individuals, and affluent and retail clients; corporate clients, small and medium-sized enterprises, external asset managers, financial institutions, and commodity traders; and pension funds, governments, foundations and endowments, corporations, entrepreneurs, private individuals, financial sponsors, and sovereign clients. As of December 31, 2019, it operated through a network of 344 offices and branches. The company was founded in 1856 and is based in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 09:14
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.