CaixaBank SA (CAIXY) AI Stock Analysis

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CaixaBank SA

(OTC:CAIXY)

84Outperform

CaixaBank SA's strong financial performance, attractive valuation, and positive technical indicators contribute to a high overall stock score. The low P/E ratio and high dividend yield enhance its appeal, while technical indicators show strong momentum. Despite some concerns regarding leverage and revenue growth, the overall outlook remains positive.

CaixaBank SA (CAIXY) vs. S&P 500 (SPY)

Market Cap

$55.38B

Dividend Yield5.33%

Average Volume (3M)20.24K

Price to Earnings (P/E)9.4

Beta (1Y)0.43

Revenue Growth12.54%

EPS Growth23.91%

CountryUS

Employees45,727

SectorFinancial

Sector Strength77

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.29

Shares Outstanding21,525,030,000

10 Day Avg. Volume60,726

30 Day Avg. Volume20,242

Financial Highlights & Ratios

PEG Ratio0.39

Price to Book (P/B)N/A

Price to Sales (P/S)2.03

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

CaixaBank SA Business Overview & Revenue Model

Company DescriptionCaixaBank SA (CAIXY) is a leading Spanish banking group, headquartered in Valencia and Barcelona, which operates primarily in the financial services sector. The bank provides a comprehensive range of banking and financial products and services, including retail, corporate, and investment banking, insurance, and asset management. CaixaBank serves millions of customers through an extensive network of branches and digital platforms, focusing on innovation and customer satisfaction.

How the Company Makes MoneyCaixaBank SA generates revenue primarily through interest income from its lending activities, where it extends loans to individuals, businesses, and institutions, and earns interest on these loans. The company also makes money from fees and commissions charged for various banking services such as account maintenance, payment transactions, advisory services, and asset management. Additionally, CaixaBank earns income through its insurance operations, providing life, health, and general insurance products. Investment activities, including trading and investment portfolio management, also contribute to the bank's earnings. Strategic partnerships and a strong focus on digital transformation further enhance its ability to capture market opportunities and drive growth in its revenue streams.

CaixaBank SA Financial Statement Overview

Summary

CaixaBank SA shows robust financial performance with strong profitability, efficient operational margins, and improving cash flows. The balance sheet is stable with moderate leverage, while returns on equity are impressive. Attention should be paid to revenue growth stabilization and maintaining leverage at manageable levels.

Income Statement

Very Positive

CaixaBank SA demonstrates strong profitability with a notable gross profit margin of 118.41% and a net profit margin of 37.27% in 2023. The revenue growth rate shows a slight decline of 0.90% from 2022, indicating stable revenue performance. EBIT and EBITDA margins are robust at 61.40% and 57.11%, respectively, showcasing operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a healthy equity position with an equity ratio of 5.98%. The debt-to-equity ratio is 1.56, indicating moderate leverage. Return on Equity (ROE) is strong at 13.27%, reflecting efficient use of equity capital. Overall, the balance sheet is stable, but leverage could be a concern if it increases further.

Cash Flow

Positive

There is a significant positive shift in free cash flow from negative in 2022 to strong positive in 2023, yielding a free cash flow growth rate of 284.98%. The operating cash flow to net income ratio is 3.27, indicating good cash generation relative to net income, while the free cash flow to net income ratio is 3.10, highlighting strong cash conversion.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
12.02B	12.92B	13.04B	11.36B	9.12B	9.24B
	Gross Profit
12.02B	15.29B	13.04B	11.36B	9.12B	9.24B
	EBIT
3.47B	7.93B	4.32B	5.31B	1.60B	2.07B
	EBITDA
0.00	7.38B	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
2.65B	4.82B	3.13B	5.23B	1.38B	1.44B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.86B	37.86B	20.52B	104.28B	51.62B	15.12B
	Total Assets
607.17B	607.17B	592.23B	680.04B	451.52B	391.41B
	Total Debt
56.76B	56.76B	50.09B	50.74B	34.58B	33.56B
	Net Debt
18.89B	-37.86B	29.57B	-53.54B	-17.04B	18.45B
	Total Liabilities
56.76B	570.83B	557.97B	644.61B	426.24B	366.26B
	Stockholders Equity
36.31B	36.31B	34.23B	35.39B	25.25B	25.12B
Cash Flow		Free Cash Flow
0.00	14.94B	-80.79B	37.95B	36.87B	-7.21B
	Operating Cash Flow
0.00	15.74B	-79.88B	38.63B	37.56B	-6.45B
	Investing Cash Flow
0.00	203.00M	164.00M	13.89B	484.00M	-117.00M
	Financing Cash Flow
0.00	1.39B	-3.98B	88.00M	-1.54B	2.52B

CaixaBank SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.50

Price Trends

50DMA

2.43

Positive

100DMA

2.15

Positive

200DMA

2.04

Positive

Market Momentum

MACD

0.01

Negative

RSI

53.78

Neutral

STOCH

95.76

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAIXY, the sentiment is Positive. The current price of 2.5 is below the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.43, and above the 200-day MA of 2.04, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 95.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAIXY.

CaixaBank SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAIXY	84 Outperform	$55.38B	9.40	16.00%	5.33%	12.54%	23.91%
BCS	81 Outperform	$48.30B	7.57	9.14%	2.90%	8.58%	35.39%
BBVA	78 Outperform	$78.40B	7.39	18.77%	4.41%	30.24%	28.90%
SAN	76 Outperform	$102.20B	8.07	13.16%	2.23%	6.56%	19.02%
ING	75 Outperform	$55.88B	8.51	12.75%	5.45%	4.07%	9.97%
Sector *	62 Neutral	$11.85B	9.13	8.11%	79.54%	12.80%	-5.24%

* Financial Sector Average

Performance Comparison

CAIXY

CaixaBank SA

2.58

0.85

49.13%

BBVA

Banco Bilbao

13.39

2.60

24.10%

BCS

Barclays

15.23

5.81

61.68%

ING

ING Groep

18.56

2.99

19.20%

SAN

Banco Santander SA

6.94

2.10

43.39%

CaixaBank SA Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: 21.95% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Positive

The earnings call reflects a generally strong performance with significant growth in customer funds, net income, and asset quality. However, challenges such as decreased NII, pressure on fees, and the banking tax impact present areas of concern. Overall, the positive aspects, especially in growth and profitability, outweigh the lowlights.

Highlights

Strong Customer Funds and Loan Growth

Customer funds increased by 11.7%, with a particular 8.7% rise in deposits and wealth management. Performing loans grew by 2.2%, with new lending revenues close to 10% on NII and 4.6% from services.

Solid Net Income and Profitability

Net income increased by 20%, return on tangible equity reached 18%, and the cost to income ratio was below 40%.

Economic Resilience in Spain

Spanish economy showed strong growth at 3.2% in 2024, exceeding expectations of 2.8%, with positive indicators in investment recovery and employment.

Asset Quality and Liquidity

NPL ratio remained low at 2.61%, and the liquidity coverage ratio was strong at 207%, highlighting a robust financial position.

Successful Wealth Management and Insurance

Wealth management market share stood at 29.5%, with significant inflows and positive market impact. Protection insurance grew by 11.7%.

Lowlights

Decreased Net Interest Income (NII)

NII for the fourth quarter was down 1.9%, impacted by lower loan index resets and deposit costs.

Pressure on Maintenance Fees

Maintenance fees faced ongoing pressure, with a recorded €300 million in 2024 and expectations of further decline in 2025.

Banking Tax Impact

An expected banking tax of around €600 million for 2025 posed a potential challenge.

Company Guidance

During the fourth quarter and full year 2024 results presentation, CaixaBank provided several key metrics reflecting strong performance and strategic guidance for 2025. The bank reported a 20% increase in net income, with a return on tangible equity of 18% and a cost-to-income ratio below 40%. Customer funds grew by 11.7%, despite a 7% decline in deposits, while performing loans increased by 2.2%, driven by a 27% surge in new lending, particularly in residential mortgages. The net interest income (NII) rose close to 10%, and service revenues grew by 4.6%, both exceeding expectations. Capital remained robust, with a CET1 ratio above 12% after announcing a sixth share buyback program of €500 million. The dividend payout ratio was 53.5%, aligning with their €12 billion capital target over three years. Looking ahead, CaixaBank forecasted NII to decline by mid-single digits in 2025, while service revenues are expected to increase by low to mid-single digits, with a cost of risk under 30 basis points and return on tangible equity around 16%. The bank's strategic focus remains on organic growth within Spain and Portugal, with a capital management target between 11.5% and 12.25% CET1, and potential for further capital distributions aligned with this threshold.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.