SWX:UBSG

Stock Analysis Report

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Executive Summary

UBS Group AG, together with its subsidiaries, provides financial advice and solutions to private, institutional and corporate client worldwide.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.1%

UBSG

8.7%

CH Capital Markets

2.3%

CH Market


1 Year Return

-2.5%

UBSG

-2.1%

CH Capital Markets

3.2%

CH Market

Return vs Industry: UBSG exceeded the Swiss Capital Markets industry which returned -4.4% over the past year.

Return vs Market: UBSG underperformed the Swiss Market which returned 3.6% over the past year.


Shareholder returns

UBSGIndustryMarket
7 Day10.1%8.7%2.3%
30 Day17.9%18.7%4.9%
90 Day14.9%10.3%2.7%
1 Year1.2%-2.5%0.7%-2.1%6.6%3.2%
3 Year-16.7%-26.8%-12.4%-20.7%21.1%8.7%
5 Year-28.9%-43.8%-32.1%-45.3%32.6%10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UBSG (CHF11.34) is trading above our estimate of fair value (CHF9.81)

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


Price To Earnings Ratio

PE vs Industry: UBSG is good value based on its PE Ratio (9.1x) compared to the Capital Markets industry average (20.1x).

PE vs Market: UBSG is good value based on its PE Ratio (9.1x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: UBSG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: UBSG is good value based on its PB Ratio (0.7x) compared to the CH Capital Markets industry average (1.2x).


Next Steps

Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UBSG's forecast earnings growth (6.5% per year) is above the savings rate (-0.2%).

Earnings vs Market: UBSG's earnings (6.5% per year) are forecast to grow slower than the Swiss market (8.5% per year).

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

Revenue vs Market: UBSG's revenue (1.7% per year) is forecast to grow slower than the Swiss market (2.3% per year).

High Growth Revenue: UBSG's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UBSG's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has UBS Group performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UBSG has high quality earnings.

Growing Profit Margin: UBSG's current net profit margins (16.1%) are higher than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: UBSG's earnings have declined by -9.1% per year over the past 5 years.

Accelerating Growth: UBSG's earnings growth over the past year (16.3%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: UBSG earnings growth over the past year (16.3%) exceeded the Capital Markets industry 15%.


Return on Equity

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


Next Steps

Financial Health

How is UBS 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: UBSG's Assets to Equity ratio (18.9x) is moderate.

Allowance for Bad Loans: UBSG has a low allowance for bad loans (49%).

Low Risk Liabilities: 55% of UBSG's liabilities are made up of primarily higher risk sources of funding.

Loan Level: UBSG has an appropriate level of Loans to Assets ratio (31%).

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

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


Next Steps

Dividend

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

3.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UBSG's dividend (3.08%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: UBSG's dividend (3.08%) is low compared to the top 25% of dividend payers in the Swiss market (3.83%).


Stability and Growth of Payments

Stable Dividend: UBSG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UBSG's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), UBSG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UBSG's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Sergio Ermotti (59yo)

5.58yrs

Tenure

US$12,509,401

Compensation

Mr. Sergio P. Ermotti has been Non-Executive Independent Director at Swiss Re AG since April 17, 2020. He has been Group Chief Executive Officer of UBS Group AG since November 2014 and its Member of Group  ...


CEO Compensation Analysis

Compensation vs Market: Sergio's total compensation ($USD13.08M) is above average for companies of similar size in the Swiss market ($USD6.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sergio Ermotti
Group CEO & Chairman of Executive Board5.58yrsUS$12.51m0.11% $45.5m
Kirt Gardner
Group CFO & Member of Executive Board4.42yrsno data0.018% $7.5m
Piero Novelli
Co-President of Investment Bank & Member of Executive Board1.67yrsno data0.029% $11.7m
Markus Ronner
Group Chief Compliance & Governance Officer and Member of Group Executive Board1.58yrsno data0.0079% $3.2m
Thomas Naratil
Co-President of Global Wealth Management9yrsno data0.053% $21.7m
Markus Diethelm
Group General Counsel & Member of the Group Executive Board11.75yrsno data0.032% $13.1m
Axel Lehmann
President of Personal & Corp Banking4.42yrsno data0.022% $9.1m
Kian Chew Koh
President of UBS Asia Pacific & Member of Executive Board1.42yrsno data0.016% $6.4m
Sabine Keller-Busse
Group COO4.42yrsno data0.021% $8.4m
Robert Karofsky
Co-President of Investment Bank & Member of Executive Board1.67yrsno data0.030% $12.1m

4.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: UBSG's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juan Monte
Chairman of Spainno datano datano data
Daniel Villanueva
CEO of Spain Operations10.75yrsno datano data
Alain Robert Tissot
Chairman of the UBS Culture Foundation and Vice Chairman of Wealth Management & Swiss Bank10.42yrsno datano data
Julie Richardson
Independent Non-Executive Director3.08yrsUS$925.00k0.0013% $524.3k
Reto Francioni
Independent Non-Executive Director5.58yrsUS$625.00k0.0035% $1.4m
Axel Weber
Chairman of the Board5.58yrsUS$5.24m0.026% $10.6m
Dieter Wemmer
Independent Non-Executive Director4.08yrsUS$625.00k0.0017% $682.8k
Mark Hughes
Non-Executive Director0.17yrno datano data
Beatrice di Mauro
Independent Non-Executive Director5.58yrsUS$575.00k0.0048% $2.0m
Jeremy David Anderson
Independent Non-Executive Director2.08yrsUS$775.00k0.00088% $357.7k

5.6yrs

Average Tenure

61yo

Average Age

Experienced Board: UBSG's board of directors are considered experienced (5.6 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

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


Key Information

  • Name: UBS Group AG
  • Ticker: UBSG
  • Exchange: SWX
  • Founded: 1862
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: CHF40.644b
  • Shares outstanding: 3.58b
  • Website: https://www.ubs.com

Number of Employees


Location

  • UBS Group AG
  • Bahnhofstrasse 45
  • PO Box
  • Zurich
  • Zurich
  • 8001
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UBSGSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 1998
UBSNYSE (New York Stock Exchange)YesRegistered SharesUSUSDJun 1998
0R3TLSE (London Stock Exchange)YesRegistered SharesGBCHFJun 1998
0UBXTRA (XETRA Trading Platform)YesRegistered SharesDEEURJun 1998
0UBDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 1998
UBS NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJun 1998
SMMPRSWX (SIX Swiss Exchange)NTS PERP CHF1CHCHFApr 2011
UBSG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHS CHF0.10BRBRLSep 2016
UBSGESWX (SIX Swiss Exchange)CHF0.10CHCHFMar 2018

Biography

UBS Group AG, together with its subsidiaries, provides financial advice and solutions to private, institutional and corporate client worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. The Global Wealth Management division offers investment advisory and solutions to private clients, and high and ultra high net worth clients. This segment provides corporate and banking, lending, wealth planning, investing, lending, asset protection, and philanthropy services, as well as family office services. The Personal & Corporate Banking division provides financial products and services to private, corporate, and institutional clients. The Asset Management division offers investment products and services comprising equities, fixed income products, hedge funds, real estate and private markets, indexed and alternative beta strategies, and asset allocation and currency investment strategies; customized multi-asset, advisory, and fiduciary services; multi-manager hedge fund solutions and advisory services; and fund corporate governance and white-labeling services. The Investment Bank division provides advisory, debt and equity capital market, and financing solutions; and market lending services for global wealth management, personal and corporate banking, and asset management businesses serving the corporate, institutional, and wealth management clients. This division also offers cash, derivatives, and financing; foreign exchange, precious metals, rates, and credit; and securities research services. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:04
End of Day Share Price2020/06/05 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.