LSE:0EYG

Stock Analysis Report

Executive Summary

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0EYG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

0EYG

-1.6%

GB Banks

5.9%

GB Market


1 Year Return

-29.8%

0EYG

-33.2%

GB Banks

-22.7%

GB Market

Return vs Industry: 0EYG underperformed the UK Banks industry which returned -28% over the past year.

Return vs Market: 0EYG underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

0EYGIndustryMarket
7 Day-7.9%-1.6%5.9%
30 Day-33.1%-26.5%-23.1%
90 Day-34.9%-34.4%-28.1%
1 Year-27.0%-29.8%-28.5%-33.2%-18.6%-22.7%
3 Year-22.2%-29.4%-31.5%-40.9%-13.4%-24.7%
5 Year-14.3%-25.2%-28.8%-43.2%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

32.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0EYG (€43.76) is trading below our estimate of fair value (€64.82)

Significantly Below Fair Value: 0EYG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0EYG is poor value based on its PE Ratio (7.6x) compared to the Banks industry average (4.9x).

PE vs Market: 0EYG is good value based on its PE Ratio (7.6x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: 0EYG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0EYG is overvalued based on its PB Ratio (0.9x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is KBC Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0EYG's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: 0EYG's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: 0EYG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0EYG's revenue (2.4% per year) is forecast to grow slower than the UK market (2.7% per year).

High Growth Revenue: 0EYG's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0EYG's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has KBC Group performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0EYG has high quality earnings.

Growing Profit Margin: 0EYG's current net profit margins (32.8%) are lower than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: 0EYG's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: 0EYG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0EYG had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the Banks industry average (33.4%).


Return on Equity

High ROE: 0EYG's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is KBC 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

Inventory Level: 0EYG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0EYG's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

Asset Level: 0EYG's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0EYG has a low allowance for bad loans.

Low Risk Liabilities: 0EYG's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0EYG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0EYG's loans are broadly funded by customer deposits.

Level of Bad Loans: 0EYG has a high level of bad loans (3.76%)


Next Steps

Dividend

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

7.87%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMay 12 2020Dividend Pay DateMay 14 20202 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 0EYG's dividend (7.87%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: 0EYG's dividend (7.87%) is in the top 25% of dividend payers in the UK market (7.27%)


Stability and Growth of Payments

Stable Dividend: 0EYG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0EYG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.9%), 0EYG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0EYG's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Johan Thijs (54yo)

7.83s

Tenure

€2,298,415

Compensation

Mr. Johan Thijs has been Group Chief Executive Officer and Executive Director of KBC Group NV and KBC Bank NV since May 3, 2012 and September 1, 2009 respectively and serves as it's Managing Director. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD2.55M) is below average for companies of similar size in the UK market ($USD5.38M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johan Thijs
Group CEO7.83yrs€2.30mno data
Hendrik Scheerlinck
CFO & Executive Director2.83yrs€1.45mno data
Christine Van Rijsseghem
Chief Risk Officer & Executive Director5.83yrs€1.47mno data
Erik Marcel Luts
Chief Innovation Officer2.83yrs€1.45mno data
John Hollows
Chief Executive Officer of Czech Republic Business Unit5.83yrs€1.44mno data
Roger Popelier
Chief Executive Officer of International Markets Business Unit2.83yrs€1.46mno data
Daniel Falque
Chief Executive Officer of Belgium Business Unit7.83yrs€1.45mno data
Kurt De Baenst
General Managerno datano datano data
Viviane Huybrecht
General Manager of Corporate Communicationno datano datano data
Johan Thiers
Chief Financial Officer of Kbc Belgium B.U.no datano datano data

5.8yrs

Average Tenure

57yo

Average Age

Experienced Management: 0EYG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Johan Thijs
Group CEO7.83yrs€2.30mno data
Hendrik Scheerlinck
CFO & Executive Director2.83yrs€1.45mno data
Christine Van Rijsseghem
Chief Risk Officer & Executive Director5.83yrs€1.47mno data
Thomas Leysen
Independent Chairman of the Board8.42yrs€500.00kno data
Philippe Vlerick
Chairman19.17yrs€110.00k0.063% 11.6m
Marc Wittemans
Non-Executive Director22.17yrs€150.00kno data
Theodoros Roussis
Non-Executive Director23.17yrs€80.00kno data
Frank Donck
Non-Executive Director16.92yrs€110.00kno data
Franky Depickere
Non-Executive Director13.5yrs€251.25kno data
Alain Bostoen
Non-Executive Director9.92yrs€80.00kno data

12.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 0EYG's board of directors are seasoned and experienced ( 12 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

KBC Group NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KBC Group NV
  • Ticker: 0EYG
  • Exchange: LSE
  • Founded: 1935
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €18.528b
  • Shares outstanding: 416.36m
  • Website: https://www.kbc.com

Number of Employees


Location

  • KBC Group NV
  • Havenlaan 2
  • Brussels
  • Brussels
  • 1080
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KBCENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJan 1992
KDBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
KBCS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0EYGLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
KBCBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
KBCWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
KBC1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
KDBETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
KBCS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers deposits; offers home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; payments, and money and debt market services; brokerage and corporate finance, foreign trade finance, cash management, leasing, etc.; and other specialized financial products and services. It also provides telephone, Internet, and mobile banking services. As of December 31, 2018, it operated 585 bank branches and 374 insurance agencies in Belgium; 777 bank branches in Czech Republic, the Slovak Republic, Hungary, and Bulgaria; and 27 bank branches internationally. KBC Group NV serves customers through agents, brokers, multi-agents, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:15
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.