DB:E2S

Stock Analysis Report

Executive Summary

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


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: E2S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

E2S

-1.0%

DE Capital Markets

-0.2%

DE Market


1 Year Return

-10.4%

E2S

32.8%

DE Capital Markets

13.7%

DE Market

Return vs Industry: E2S underperformed the German Capital Markets industry which returned 18.1% over the past year.

Return vs Market: E2S underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

E2SIndustryMarket
7 Day0%-1.0%-0.2%
30 Day0%13.3%0.3%
90 Day1.5%24.2%3.7%
1 Year-6.8%-10.4%35.6%32.8%17.2%13.7%
3 Year56.9%40.4%5.6%-7.0%15.4%5.3%
5 Year-11.8%-25.8%-19.0%-31.6%21.3%4.7%

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

No news available

Valuation

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

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: E2S (€6) is trading below our estimate of fair value (€7.23)

Significantly Below Fair Value: E2S is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: E2S is poor value based on its PE Ratio (31.6x) compared to the Capital Markets industry average (26x).

PE vs Market: E2S is poor value based on its PE Ratio (31.6x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: E2S is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: E2S is good value based on its PB Ratio (1.1x) compared to the DE Capital Markets industry average (1.8x).


Next Steps

Future Growth

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

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E2S's forecast earnings growth (36.2% per year) is above the savings rate (0.2%).

Earnings vs Market: E2S's earnings (36.2% per year) are forecast to grow faster than the German market (13.2% per year).

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

Revenue vs Market: E2S's revenue (6% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: E2S's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: E2S's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has EFG International performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E2S has high quality earnings.

Growing Profit Margin: E2S became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: E2S's earnings have declined by -9.7% per year over the past 5 years.

Accelerating Growth: E2S has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: E2S has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (-2.7%).


Return on Equity

High ROE: E2S's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: E2S has a low level of unsold assets or inventory.

Debt Coverage by Assets: E2S's debt is covered by short term assets (assets are 11.5x debt).


Financial Institutions Analysis

Asset Level: E2S's level of assets compared to its equity is very high.

Allowance for Bad Loans: E2S has a low allowance for bad loans.

Low Risk Liabilities: E2S's liabilities are made up of primarily low risk sources of funding.

Loan Level: E2S has an acceptable proportion of non-loan assets held.

Low Risk Deposits: E2S's loans are broadly funded by customer deposits.

Level of Bad Loans: E2S has a high level of bad loans (2.26%)


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.3%markettop25%3.7%industryaverage1.6%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: E2S's dividend (4.95%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: E2S's dividend (4.95%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: E2S's dividend payments have been volatile in the past 10 years.

Growing Dividend: E2S's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (156.5%), E2S's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: E2S's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Giorgio Pradelli (52yo)

1.7yrs

Tenure

CHF2,820,416

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 ($USD2.86M) is above average for companies of similar size in the German market ($USD1.50M).

Compensation vs Earnings: Insufficient data to compare Giorgio's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Piergiorgio Pradelli
Chief Executive Officer1.7yrsCHF2.82m0.032% CHF523.1k
Dimitris Politis
Chief Financial Officer1.7yrsno datano data
Christian Flemming
Chief Operating Officer1.7yrsno datano data
Mark Bagnall
Chief Technology Officer1.7yrsno datano data
Jens Brueckner
Head of Investor Relations0yrsno datano data
Yves Aeschlimann
Group Head of Legal & Compliance0.5yrsno datano data
Daniela Haesler
Head of Marketing & Communication0yrsno datano data
Daniel Lüscher
Global Head of Human Resources0.8yrsno datano data
Silvio Ammann
Deputy Chief Risk Officer0yrsno datano data
William Ramsay
Chief Economist0yrsno datano data

1.7yrs

Average Tenure

52yo

Average Age

Experienced Management: E2S's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


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: E2S
  • Exchange: DB
  • Founded: 1995
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CHF1.755b
  • Listing Market Cap: CHF1.615b
  • Shares outstanding: 289.67m
  • 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. The company operates through Switzerland and Italy; Continental Europe; Americas; United Kingdom; Asia; Investment Solutions; Global Markets & Treasury; and Other segments. It offers investment solutions, including asset management mandate, advisory, investment fund, third party-fund selection, structured product, alternative investment, and trading services; wealth solutions, such as fund service, wealth planning, pension products, and art advisory; credit and financing services comprising property and investment finance; eBanking and security services; and other banking services consisting of accounts and cards, as well as custody, foreign exchange and treasury, and client reporting. The company also provides investment advisory research services; training services for external asset managers; and commercial banking services. In addition, it engages in the trade of securities, derivatives, foreign exchange, money market papers, and precious metals on behalf of its clients. The company was founded in 1995 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 Analysis2019/09/25 21:06
End of Day Share Price2019/06/28 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.