ENXTAM:INGA

Stock Analysis Report

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.


Snowflake Analysis

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

-6.7%

INGA

-1.6%

NL Banks

-1.1%

NL Market


1 Year Return

-8.2%

INGA

3.6%

NL Banks

9.1%

NL Market

Return vs Industry: INGA underperformed the Dutch Banks industry which returned 3.6% over the past year.

Return vs Market: INGA underperformed the Dutch Market which returned 9.1% over the past year.


Shareholder returns

INGAIndustryMarket
7 Day-6.7%-1.6%-1.1%
30 Day-3.6%1.4%0.4%
90 Day-4.4%3.4%3.6%
1 Year-2.1%-8.2%9.1%3.6%13.6%9.1%
3 Year-11.0%-23.9%5.9%-7.0%35.0%20.2%
5 Year-3.6%-24.3%-4.0%-27.8%49.7%20.2%

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?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INGA (€10.05) is trading below our estimate of fair value (€12.01)

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 good value based on its PE Ratio (8.2x) compared to the Banks industry average (9.5x).

PE vs Market: INGA is good value based on its PE Ratio (8.2x) compared to the Dutch market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: INGA is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

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


Next Steps

Future Growth

How is ING Groep forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INGA's forecast earnings growth (1.7% per year) is above the savings rate (-0.2%).

Earnings vs Market: INGA's earnings (1.7% per year) are forecast to grow slower than the Dutch market (12.2% per year).

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

Revenue vs Market: INGA's revenue (3.6% per year) is forecast to grow slower than the Dutch market (6.8% per year).

High Growth Revenue: INGA's revenue (3.6% 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 (8.7%).


Next Steps

Past Performance

How has ING Groep performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INGA has high quality earnings.

Growing Profit Margin: INGA's current net profit margins (27.8%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: INGA's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: INGA's earnings growth over the past year (0.4%) is below its 5-year average (7.7% per year).

Earnings vs Industry: INGA earnings growth over the past year (0.4%) underperformed the Banks industry 7.8%.


Return on Equity

High ROE: INGA's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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

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

Debt Coverage by Assets: INGA's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: INGA has an appropriate level of bad loans (1.56%)


Next Steps

Dividend

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

6.86%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateApr 30 2020Dividend Pay DateMay 11 202011 days from Ex DividendBuy in the next 68 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: INGA's dividend (6.86%) is higher than the bottom 25% of dividend payers in the Dutch market (2%).

High Dividend: INGA's dividend (6.86%) is in the top 25% of dividend payers in the Dutch market (5.52%)


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's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), INGA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INGA's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Ralph A. J. Hamers (53yo)

6.3yrs

Tenure

€2,311,000

Compensation

Mr. Ralph A. J. G. Hamers has been has been the Chairman of Executive Board and Group Chief Executive Officer at ING Groep N.V. since October 1, 2013 and Member of Executive Board since May 13, 2013. Mr. H ...


CEO Compensation Analysis

Compensation vs Market: Ralph A. J.'s total compensation ($USD2.49M) is below average for companies of similar size in the Dutch market ($USD4.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ralph A. J. Hamers
Chairman of the Executive Board & CEO6.3yrs€2.31m0.0024% 941.4k
Steven J. van Rijswijk
Chief Risk Officer2.8yrs€1.57m0.0018% 695.3k
Tanate Phutrakul
CFO & Member of Executive Board1yrsno data0.00024% 93.8k
Roel M. Louwhoff
COO, Chief Transformation Officer & Member of Mgmt. Board Banking5.8yrsno datano data
Aris Bogdaneris
Head of Challengers & Growth Markets and Member Management Board of Banking4.7yrsno datano data
M. Isabel Niemann
Global Head of Wholesale Banking & Member of the Management Board Banking3.4yrsno datano data
Pinar Abay
Member of the Management Board Banking & Head of Market Leaders0.08yrsno datano data
Rob Veldhuizen
Head of Corporate Finance Benelux0yrsno datano data
Mark Milders
Head of Investor Relations0yrsno datano data
Cornelis Blokbergen
Head of Legal Department0yrsno datano data

3.4yrs

Average Tenure

53yo

Average Age

Experienced Management: INGA's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nick Jue
Chairman of ING Netherlands and Chief Executive Officer of ING Germany0yrsno datano data
Rodney Martin
Chairman of ING US and Chief Executive of ING US0yrsno datano data
Hermann-Josef Lamberti
Vice Chairman of the Supervisory Board5.1yrs€139.00k0.00015% 58.6k
Eric F. C. B. de la Giroday
Member of the Supervisory Board5.8yrs€108.00k0.0012% 476.6k
Gheorghe Wijers
Chairman of Supervisory Board1.8yrs€185.00kno data
Mariana Gheorghe
Member of the Supervisory Board4.8yrs€105.00kno data
Alun Michael Rees
Member of Supervisory Board0.8yrsno datano data
Hendrika W. P. M. Verhagen
Member of Supervisory Board0.3yrsno datano data
Margarete Haase
Member of the Supervisory Board1.8yrs€63.00k0.000020% 7.8k
Jan Balkenende
Member of the Supervisory Board2.4yrs€99.00kno data

2.1yrs

Average Tenure

63yo

Average Age

Experienced Board: INGA's board of directors are not considered experienced ( 2.1 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: Insufficient data to determine if insiders have bought more shares than they have sold 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: 1991
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €39.063b
  • Shares outstanding: 3.90b
  • Website: https://www.ing.com

Number of Employees


Location

  • ING Groep N.V.
  • Amsterdamse Poort
  • Bijlmerplein 888
  • Amsterdam
  • Noord-Holland
  • 1102 MG
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INGAABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 1991
INGAENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURMar 1991
INGASWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMar 1991
INN1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMar 1991
INGV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1991
INGAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMar 1991
0RICLSE (London Stock Exchange)CERTIFICAAT VAN AANDEEL EUR0.24GBEURJan 1992
INGABIT (Borsa Italiana)CERTIFICAAT VAN AANDEEL EUR0.24ITEURJan 1992
INGNYSE (New York Stock Exchange)SPONSORED ADRUSUSDSep 1995
ING NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNSep 1995
INNADB (Deutsche Boerse AG)SPONSORED ADRDEEURSep 1995
INNAXTRA (XETRA Trading Platform)SPONSORED ADRDEEURSep 1995

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 Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

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