ABN AMRO Bank (AAVMY) AI Stock Analysis

• Market Cap: $28.40B
• Dividend Yield: 4.3%
• Average Volume (3M): 365.00
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.55
• Revenue Growth: -11.00%
• EPS Growth: -10.26%
• Country: US
• Employees: 21,976
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.87
• Shares Outstanding: 597,116,330
• 10 Day Avg. Volume: 1,096
• 30 Day Avg. Volume: 365
• PEG Ratio: -0.60
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -1.17
• Enterprise Value/Market Cap: 3.86
• Enterprise Value/Revenue: 7.99
• Enterprise Value/Gross Profit: 12.47
• Enterprise Value/Ebitda: 32.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ―

ABN AMRO Bank scores well due to strong financial performance, with particular strengths in profitability and revenue growth. The valuation is compelling, with a low P/E ratio and high dividend yield. Positive technical analysis supports this with upward momentum, though caution is advised due to overbought indicators. Earnings call insights further bolster the score, highlighting robust strategic execution despite some concerns over rising costs and delayed share buybacks.

Positive Factors

Profitability

Strong profitability driven by increased net interest and fee income indicates effective revenue generation and cost management, supporting long-term financial health.

Mortgage Market Strength

Significant growth in mortgage production reflects robust demand and market position, enhancing revenue streams and supporting future growth.

Capital Ratio Improvement

Improved capital ratios provide a strong buffer against financial uncertainties, ensuring stability and compliance with regulatory requirements.

Negative Factors

Rising Operating Costs

Increased operating costs may pressure profit margins and require strategic cost management to maintain financial performance.

Delay in Share Buyback

Delays in share buybacks can affect shareholder returns and signal potential challenges in capital allocation and regulatory compliance.

Economic Outlook Concerns

Economic uncertainties in key markets may affect loan demand and asset quality, posing risks to revenue growth and financial stability.

ABN AMRO Bank Business Overview & Revenue Model

Company Description

ABN AMRO Bank N.V. is a prominent Dutch financial institution headquartered in Amsterdam, Netherlands. It operates primarily in the banking sector, offering a wide range of financial products and services to individual, corporate, and institutional clients. The bank's core services include retail and commercial banking, private banking, asset management, and insurance products. With a strong presence in the Netherlands and a focus on sustainable banking practices, ABN AMRO aims to provide comprehensive financial solutions while fostering long-term client relationships.

How the Company Makes Money

ABN AMRO Bank generates revenue through various streams, primarily focusing on interest income from loans and advances to customers and businesses. The bank earns fees and commissions from its wide array of banking services, including asset management, payment processing, and advisory services. Additionally, it gains revenue from trading and investment activities, leveraging its expertise in financial markets. ABN AMRO's private banking and wealth management divisions also contribute significantly to its earnings by offering tailored financial solutions to high-net-worth individuals. Strategic partnerships and collaborations further enhance its service offerings and market reach, contributing to the bank's overall profitability.

ABN AMRO Bank Financial Statement Overview

Summary

ABN AMRO Bank showcases strong income statement performance with high profit margins and revenue growth. The balance sheet is stable but demonstrates moderate leverage, a common trait in the banking sector. The cash flow statement indicates cash management challenges, with a need for better alignment between income and cash flow generation. Overall, the company is financially secure but should focus on improving cash flow efficiency.

Income Statement

ABN AMRO Bank's income statement exhibits strong profitability and steady revenue growth. The gross profit margin for 2023 stands at 98.94%, indicating efficient cost management. The net profit margin improved to 30.73% in 2023, up from 23.98% in 2022, showcasing enhanced profitability. Revenue growth from 2022 to 2023 was 12.71%, which is a positive trend. However, the absence of EBITDA margin data limits a comprehensive margin analysis.

Balance Sheet

The balance sheet reflects a solid equity base with stockholders' equity of €24.17 billion. The debt-to-equity ratio of 2.97 indicates moderate leverage, typical for banking institutions. The return on equity (ROE) rose to 11.16% in 2023, suggesting effective utilization of equity. The equity ratio is 6.40%, reflecting a stable capital structure. Overall, the balance sheet remains robust, though leverage is a potential risk factor.

Cash Flow

The cash flow statement reveals a challenging cash flow scenario with negative operating cash flow of -€9.03 billion and free cash flow of -€9.32 billion in 2023. The operating cash flow to net income ratio is -3.35, highlighting inefficiencies in converting income to cash. The free cash flow to net income ratio is -3.46, indicating potential cash management concerns. Improvement in cash flow management is necessary for sustained financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.72B	19.50B	8.78B	10.15B	7.64B	5.61B
Gross Profit	8.79B	8.94B	8.59B	7.64B	7.64B	5.61B
EBITDA	3.35B	3.58B	0.00	2.55B	2.03B	0.00
Net Income	2.31B	2.40B	2.70B	1.87B	1.23B	-45.00M
Balance Sheet
Total Assets	413.92B	385.05B	377.91B	379.58B	399.11B	395.62B
Cash, Cash Equivalents and Short-Term Investments	49.39B	45.80B	55.05B	62.84B	68.25B	62.15B
Total Debt	83.60B	81.54B	54.44B	63.96B	67.72B	75.34B
Total Liabilities	386.44B	358.94B	353.74B	356.77B	377.11B	374.63B
Stockholders Equity	27.48B	26.11B	24.17B	22.81B	21.99B	20.99B
Cash Flow
Free Cash Flow	0.00	-11.25B	-9.32B	-8.33B	9.40B	45.09B
Operating Cash Flow	0.00	-10.79B	-7.82B	-8.14B	9.60B	45.31B
Investing Cash Flow	0.00	-4.81B	-1.72B	-239.00M	3.86B	-2.48B
Financing Cash Flow	0.00	6.16B	2.01B	2.95B	-7.38B	-9.84B

ABN AMRO Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAVMY, the sentiment is Positive. The current price of 33.86 is above the 20-day moving average (MA) of 32.79, above the 50-day MA of 31.35, and above the 200-day MA of 26.58, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 68.47 is Neutral, neither overbought nor oversold. The STOCH value of 82.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAVMY.

ABN AMRO Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	82 Outperform	$2.02B	9.05	20.99%	3.81%	-0.09%	18.47%
NWG	81 Outperform	$66.05B	9.57	14.58%	3.95%	7.43%	30.31%
AAVMY	81 Outperform	$28.40B	11.78	9.54%	4.30%	-11.00%	-10.26%
BCS	77 Outperform	$80.65B	10.66	9.44%	1.88%	17.50%	49.25%
BBVA	73 Outperform	$126.70B	11.01	18.00%	3.46%	7.52%	10.40%
ING	72 Outperform	$78.34B	11.93	11.71%	4.39%	2.20%	-0.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%