ENXTAM:INGA

Stock Analysis Report

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Market Cap

€43.4b

Last Updated

2021/06/24 16:01 UTC

Data Sources

Company Financials +

Executive Summary

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has ING Groep's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: INGA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

INGA

-1.9%

NL Banks

-1.5%

NL Market


1 Year Return

79.0%

INGA

35.1%

NL Banks

31.1%

NL Market

Return vs Industry: INGA exceeded the Dutch Banks industry which returned 33.2% over the past year.

Return vs Market: INGA exceeded the Dutch Market which returned 29.8% over the past year.


Shareholder returns

INGAIndustryMarket
7 Day-0.3%-1.9%-1.5%
30 Day0.6%-1.3%1.6%
90 Day10.1%5.0%3.0%
1 Year81.4%79.0%39.3%35.1%33.2%31.1%
3 Year0.2%-9.1%-8.4%-16.3%33.5%20.9%
5 Year47.7%21.7%23.3%2.1%80.9%50.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ING Groep undervalued compared to its fair value and its price relative to the market?

9.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INGA (€11.19) is trading below our estimate of fair value (€12.28)

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


Price To Earnings Ratio

PE vs Industry: INGA is poor value based on its PE Ratio (15.5x) compared to the European Banks industry average (12.2x).

PE vs Market: INGA is good value based on its PE Ratio (15.5x) compared to the Dutch market (29.5x).


Price to Earnings Growth Ratio

PEG Ratio: INGA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: INGA is overvalued based on its PB Ratio (0.8x) compared to the XE Banks industry average (0.7x).


Future Growth

How is ING Groep forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INGA's forecast earnings growth (6.9% per year) is above the savings rate (0.1%).

Earnings vs Market: INGA's earnings (6.9% per year) are forecast to grow slower than the Dutch market (17% per year).

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

Revenue vs Market: INGA's revenue (3.1% per year) is forecast to grow slower than the Dutch market (6.7% per year).

High Growth Revenue: INGA's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INGA's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

How has ING Groep performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INGA has a large one-off loss of €1.5B impacting its March 31 2021 financial results.

Growing Profit Margin: INGA's current net profit margins (18%) are lower than last year (22.2%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: INGA had negative earnings growth (-18.4%) over the past year, making it difficult to compare to the Banks industry average (2.9%).


Return on Equity

High ROE: INGA's Return on Equity (5.2%) is considered low.


Financial Health

How is ING Groep'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: INGA's Assets to Equity ratio (17.5x) is moderate.

Allowance for Bad Loans: INGA has a low allowance for bad loans (45%).

Low Risk Liabilities: 77% of INGA's liabilities are made up of primarily low risk sources of funding.

Loan Level: INGA has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: INGA's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: INGA has an appropriate level of bad loans (2%).


Dividend

What is ING Groep current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INGA's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (1.58%).

High Dividend: INGA's dividend (1.07%) is low compared to the top 25% of dividend payers in the Dutch market (4.54%).


Stability and Growth of Payments

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

Growing Dividend: INGA has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), INGA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INGA's dividends in 3 years are forecast to be covered by earnings (64.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Steven J. van Rijswijk (50 yo)

0.92

Tenure

€1,933,100

Compensation

Mr. Steven J. A. van Rijswijk serves as the Chief Executive Officer and Chairman of the Managing Board Banking at ING Bank NV since July 1, 2020. He served as Chief Risk Officer of ING Bank N.V. since Augu...


CEO Compensation Analysis

Compensation vs Market: Steven J.'s total compensation ($USD2.30M) is about average for companies of similar size in the Dutch market ($USD3.13M).

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


Leadership Team

Experienced Management: INGA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: INGA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: INGA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ING Groep N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ING Groep N.V.
  • Ticker: INGA
  • Exchange: ENXTAM
  • Founded: 1762
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €43.445b
  • Shares outstanding: 3.90b
  • Website: https://www.ing.com

Number of Employees


Location

  • ING Groep N.V.
  • Cedar
  • Bijlmerdreef 106
  • Amsterdam
  • Noord-Holland
  • 1102 CT
  • Netherlands

Listings


Biography

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Bel...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 16:01
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.