Berner Kantonalbank AG (BEKN) AI Stock Analysis

• Market Cap: CHF2.41B
• Dividend Yield: 3.97%
• Average Volume (3M): 3.22K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.14
• Revenue Growth: -8.54%
• EPS Growth: 3.88%
• Country: CH
• Employees: 1,009
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 8.25
• Shares Outstanding: 9,320,000
• 10 Day Avg. Volume: 3,467
• 30 Day Avg. Volume: 3,222
• PEG Ratio: 3.61
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 3.86
• P/FCF Ratio: 5.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ―

Berner Kantonalbank AG has a solid financial foundation with strong revenue growth and a robust balance sheet. However, challenges in cash flow management and mixed technical signals slightly temper the overall positive outlook. The stock's valuation is attractive, offering a good balance of growth and income potential.

Berner Kantonalbank AG Business Overview & Revenue Model

Company Description

Berner Kantonalbank AG (BEKN) is a Swiss regional bank headquartered in Bern, Switzerland. It provides a comprehensive range of financial products and services, including retail banking, corporate banking, private banking, and asset management. The bank primarily serves individuals, small and medium-sized enterprises (SMEs), and institutional clients in the Canton of Bern and surrounding regions. As a kantonalbank, BEKN benefits from a cantonal guarantee, which enhances its financial stability and reliability.

How the Company Makes Money

Berner Kantonalbank AG (BEKN) generates revenue through a variety of channels typical for regional banks. Its primary revenue streams include interest income from loans and mortgages provided to individuals and businesses, which constitute a significant portion of its income. Additionally, the bank earns fee and commission income from services such as asset management, financial advisory, and transaction processing. BEKN also benefits from trading activities and investments, contributing to their financial income. The cantonal guarantee provides a safety net, allowing the bank to maintain favorable credit ratings and attract deposits, which it leverages to fund its lending activities. Partnerships with local enterprises and government bodies further enhance its business operations and customer base.

Berner Kantonalbank AG Financial Statement Overview

Summary

Berner Kantonalbank AG shows strong financial performance with consistent revenue growth and high profit margins. The balance sheet is robust with zero debt and high equity, enhancing financial stability. However, cash flow conversion and liquidity management are areas needing improvement, which slightly offset the otherwise strong financial position.

Income Statement

Berner Kantonalbank AG has shown consistent revenue growth over the years, with a notable increase from CHF 532.3 million in 2023 to CHF 562.0 million in 2024. The gross profit margin remains strong at 100% due to the nature of banking revenues. The net profit margin has also been steady, with a slight increase from 32.9% in 2023 to 32.1% in 2024. However, the EBIT margin has slightly decreased from 45.3% to 41.2%, indicating some pressure on operating costs. Overall, the income statement reflects a stable and growing financial performance.

Balance Sheet

The balance sheet is strong, characterized by a robust equity position with a consistent increase in stockholders' equity over the years, reaching CHF 2,999.3 million in 2024. The company has maintained a debt-free position since 2024, significantly improving its debt-to-equity ratio to zero. The equity ratio improved, reflecting a healthy capital structure with increasing shareholder value. The bank's financial stability is reinforced by high cash reserves, which enhance its liquidity position.

Cash Flow

Cash flow performance shows variability, with operating cash flow being negative or zero in recent years. Despite strong free cash flow in previous years, 2024 shows zero free cash flow, indicating challenges in cash generation from operations. The bank's ability to convert net income to operating cash flow has been inconsistent, highlighting potential risks in liquidity management. While capital expenditures are modest, the cash flow dynamics suggest a need for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	633.11M	561.96M	532.28M	531.30M	497.22M	494.06M
Gross Profit	555.79M	561.96M	735.03M	471.53M	440.47M	494.06M
EBITDA	228.47M	0.00	0.00	253.79M	236.89M	243.61M
Net Income	181.70M	180.67M	174.88M	159.62M	154.94M	148.38M
Balance Sheet
Total Assets	41.89B	40.50B	40.05B	39.76B	38.99B	36.42B
Cash, Cash Equivalents and Short-Term Investments	7.58B	6.73B	7.80B	8.60B	8.81B	8.08B
Total Debt	8.94B	9.99B	7.85B	7.74B	7.22B	8.75B
Total Liabilities	38.89B	37.50B	37.17B	36.99B	36.29B	33.78B
Stockholders Equity	3.00B	3.00B	2.89B	2.77B	2.71B	2.64B
Cash Flow
Free Cash Flow	389.19M	389.19M	1.70B	1.12B	-637.67M	533.02M
Operating Cash Flow	420.57M	420.57M	1.76B	1.18B	-596.39M	589.15M
Investing Cash Flow	0.00	-79.71M	-98.66M	-1.75B	-1.24B	-1.17B
Financing Cash Flow	0.00	260.21M	47.06M	738.04M	2.57B	3.46B

Berner Kantonalbank AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 262.00
• 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 CH:BEKN, the sentiment is Positive. The current price of 262 is above the 20-day moving average (MA) of 260.15, above the 50-day MA of 257.97, and above the 200-day MA of 246.95, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 86.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:BEKN.

Berner Kantonalbank AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEKN	―	CHF2.41B	13.29	7.71%	3.97%	-8.54%	3.88%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%