SWX:EFGN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services to individual and business clients. More Details


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has EFG International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-0.5%

EFGN

0.6%

CH Capital Markets

-0.8%

CH Market


1 Year Return

-4.4%

EFGN

2.5%

CH Capital Markets

-0.02%

CH Market

Return vs Industry: EFGN underperformed the Swiss Capital Markets industry which returned 3.3% over the past year.

Return vs Market: EFGN underperformed the Swiss Market which returned 1% over the past year.


Shareholder returns

EFGNIndustryMarket
7 Day-0.5%0.6%-0.8%
30 Day17.1%13.2%4.0%
90 Day-6.4%10.8%2.3%
1 Year-1.9%-4.4%5.8%2.5%3.5%-0.02%
3 Year-33.5%-39.6%-6.3%-14.9%19.0%4.3%
5 Year-29.7%-41.2%-6.5%-23.0%35.8%13.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EFG International undervalued compared to its fair value and its price relative to the market?

17.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EFGN (CHF5.88) is trading above our estimate of fair value (CHF5.54)

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


Price To Earnings Ratio

PE vs Industry: EFGN is poor value based on its PE Ratio (17.7x) compared to the CH Capital Markets industry average (17.5x).

PE vs Market: EFGN is good value based on its PE Ratio (17.7x) compared to the Swiss market (22.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EFGN's PB Ratio (1x) is in line with the CH Capital Markets industry average.


Next Steps

Future Growth

How is EFG International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFGN's forecast earnings growth (27.8% per year) is above the savings rate (-0.2%).

Earnings vs Market: EFGN's earnings (27.8% per year) are forecast to grow faster than the Swiss market (12.9% per year).

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

Revenue vs Market: EFGN's revenue (4.8% per year) is forecast to grow faster than the Swiss market (4.7% per year).

High Growth Revenue: EFGN's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFGN's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has EFG International performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFGN has a large one-off loss of CHF49.3M impacting its June 30 2020 financial results.

Growing Profit Margin: EFGN's current net profit margins (8.4%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: EFGN's earnings have declined by 10.5% per year over the past 5 years.

Accelerating Growth: EFGN's earnings growth over the past year (75.5%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: EFGN earnings growth over the past year (75.5%) exceeded the Capital Markets industry 13.8%.


Return on Equity

High ROE: EFGN's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is EFG International'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: EFGN's Assets to Equity ratio (25x) is very high.

Allowance for Bad Loans: EFGN has a low allowance for bad loans (23%).

Low Risk Liabilities: 79% of EFGN's liabilities are made up of primarily low risk sources of funding.

Loan Level: EFGN has an appropriate level of Loans to Assets ratio (44%).

Low Risk Deposits: EFGN's Loans to Deposits ratio (59%) is appropriate.

Level of Bad Loans: EFGN has a high level of bad loans (2.4%).


Next Steps

Dividend

What is EFG International current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: EFGN's dividend (2.55%) is higher than the bottom 25% of dividend payers in the Swiss market (1.88%).

High Dividend: EFGN's dividend (2.55%) is low compared to the top 25% of dividend payers in the Swiss market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), EFGN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EFGN's dividends in 3 years are forecast to be covered by earnings (65.4% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Giorgio Pradelli (53 yo)

2.83yrs

Tenure

CHF2,665,306

Compensation

Mr. Piergiorgio Pradelli, also known as Giorgio, has been Chief Executive Officer of EFG International AG since January 1, 2018. He served as Deputy Chief Executive Officer at EFG International AG from Jan...


CEO Compensation Analysis

Compensation vs Market: Giorgio's total compensation ($USD2.92M) is above average for companies of similar size in the Swiss market ($USD1.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Piergiorgio Pradelli
Chief Executive Officer2.83yrsCHF2.67m0.086%
CHF 1.5m
Dimitris Politis
Chief Financial Officer2.83yrsno datano data
Martin Freiermuth
Chief Operating Officer0.25yrno datano data
Mark Bagnall
Chief Technology Officer2.83yrsno datano data
Jens Brueckner
Head of Investor Relationsno datano datano data
Yves Aeschlimann
Group Head of Legal & Compliance1.67yrsno datano data
Daniela Haesler
Head of Marketing & Communicationno datano datano data
Daniel Lüscher
Global Head of Human Resources2yrsno datano data
Silvio Ammann
Deputy Chief Risk Officerno datano datano data
William Ramsay
Chief Economistno datano datano data
Albert Chiu
Head of Asia Pacific Region10.42yrsno datano data
Gerhard Mueller
Head of European Private Banking Business9.33yrsno datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: EFGN's management team is considered experienced (2.8 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

EFG International AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EFG International AG
  • Ticker: EFGN
  • Exchange: SWX
  • Founded: 1995
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CHF1.728b
  • Shares outstanding: 291.95m
  • Website: https://www.efginternational.com

Number of Employees


Location

  • EFG International AG
  • Bleicherweg 8
  • PO Box 6012
  • Zurich
  • Zurich
  • 8022
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFGNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFOct 2005
E2SDB (Deutsche Boerse AG)YesRegistered SharesDEEUROct 2005
EFGI.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDOct 2005
0QJXLSE (London Stock Exchange)YesRegistered SharesGBCHFOct 2005
EFGX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDAug 2009

Biography

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services to individual and business clients. It offers investment solutions, includin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 21:02
End of Day Share Price2020/11/20 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.