EFG International AG (EFGN) AI Stock Analysis

• Market Cap: $4.53B
• Dividend Yield: 3.85%
• Average Volume (3M): 275.88K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.07
• Revenue Growth: 11.14%
• EPS Growth: 7.22%
• Country: CH
• Employees: 3,114
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Diversified
• EPS (TTM): 1.01
• Shares Outstanding: 312,687,700
• 10 Day Avg. Volume: 284,974
• 30 Day Avg. Volume: 275,880
• PEG Ratio: -4.13
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.71
• 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: $14.10
• Price Target Upside: -2.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ―

EFG International AG's overall stock score reflects a solid financial performance marked by strong profitability, but weighed down by cash flow challenges. Technical indicators suggest a cautious stance with potential bearish trends in the short term. The stock's valuation is attractive with a low P/E ratio and a high dividend yield, making it appealing for value and income investors.

EFG International AG Business Overview & Revenue Model

Company Description

EFG International AG, together with its subsidiaries, provides private banking, wealth management, and asset management services. It offers investment solutions, including discretionary mandates, structured products, trading services, and Islamic solutions; wealth and trust services; credit and financing services, such as property and investment finance; and eBanking services, including mobile banking and security services. The company also provides other banking services consisting of custody, foreign exchange and treasury, and trading services, as well as accounts and cards; and supports independent asset managers to set up private label funds. It operates in Europe, Asia Pacific, the Americas, and the Middle East. EFG International AG was founded in 1995 and is headquartered in Zurich, Switzerland.

How the Company Makes Money

EFG International AG generates revenue primarily through its private banking and asset management services. The company earns money by charging fees for managing clients' assets, which include investment management fees, advisory fees, and performance-related fees. In addition, EFG International offers wealth planning and structuring services, which contribute to its revenue streams. The bank also benefits from interest income generated from its lending activities and financial products. Significant partnerships with financial institutions and a strong presence in key international markets further bolster its earnings by expanding its client base and service offerings.

EFG International AG Financial Statement Overview

Summary

EFG International AG shows strong profitability with a solid net profit margin and effective equity utilization. However, challenges in cash flow management with negative operating cash flows present liquidity risks. The balance sheet indicates a conservative leverage approach but a low equity ratio could pose financial risks.

Income Statement

EFG International AG's income statement reveals a healthy revenue of CHF 1.50 billion in 2024, with a gross profit margin of 100% due to the absence of cost of goods sold, typical for a financial institution. The net profit margin is robust at 21.5%, an improvement from the previous year. However, the revenue growth rate over the past year is moderate at 4.8%, indicating steady, but not rapid, expansion. The absence of EBIT and EBITDA figures in the latest year suggests a need for careful cost management.

Balance Sheet

The balance sheet of EFG International AG shows a strong equity ratio of 5.9%, reflecting a solid equity base relative to total assets. The debt-to-equity ratio is effectively zero due to no reported debt in 2024, suggesting a conservative leverage approach. However, the return on equity (ROE) is strong at 13.5%, showcasing effective utilization of equity to generate profits. The relatively low equity ratio may indicate a potential risk of over-reliance on liabilities to finance assets.

Cash Flow

The cash flow statement indicates challenges in cash generation, with negative operating cash flow in 2024. Free cash flow growth is negative, primarily due to substantial capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash flow mismatches. The free cash flow to net income ratio is also unfavorable, indicating potential liquidity constraints despite profitable operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.50B	1.43B	1.76B	1.63B	1.47B
	Gross Profit
1.50B	1.43B	1.76B	1.63B	1.47B
	EBIT
386.30M	411.80M	301.80M	192.90M	161.30M
	EBITDA
0.00	411.80M	0.00	0.00	229.30M
	Net Income Common Stockholders
321.60M	303.20M	202.40M	205.80M	115.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.01B	4.19B	3.64B	2.91B	3.38B
	Total Assets
40.60B	38.59B	43.54B	42.14B	40.64B
	Total Debt
0.00	239.00M	1.13B	962.30M	1.05B
	Net Debt
-8.01B	-6.42B	-2.51B	-1.94B	-2.33B
	Total Liabilities
38.22B	36.37B	41.47B	39.85B	38.88B
	Stockholders Equity
2.38B	2.22B	2.06B	2.25B	1.70B
Cash Flow		Free Cash Flow
-445.50M	-2.67B	-196.50M	132.20M	-225.90M
	Operating Cash Flow
-397.10M	-2.64B	-152.50M	175.80M	-183.60M
	Investing Cash Flow
484.00M	-1.22B	-1.28B	-1.28B	134.60M
	Financing Cash Flow
41.10M	-265.50M	2.17B	1.81B	452.40M

EFG International AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:EFGN, the sentiment is Positive. The current price of 14.46 is above the 20-day moving average (MA) of 14.13, above the 50-day MA of 12.97, and above the 200-day MA of 12.36, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:EFGN.

EFG International AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAER	66 Neutral	CHF10.41B	10.61		4.93%	7.69%	126.15%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
EFGN	64 Neutral	$4.53B	14.48	13.89%	3.85%	11.14%	7.22%
UBS		$103.49B	20.46	5.83%	2.77%	―	―
VONHF		$4.36B	14.29	12.22%	4.72%	―	―
LLBN		CHF2.51B	15.00		3.41%	―	―
SQN		CHF7.05B	24.18		1.26%	―	―

EFG International AG Corporate Events

EFG Appoints New Executive Chair to Drive Growth in Dubai

EFG International AG has announced the appointment of Soha Nashaat as the new Executive Chair of its Dubai subsidiary, EFG (Middle East) Limited, effective May 1, 2025. Nashaat will focus on driving sustainable growth and expanding the bank’s business into new markets, aligning with EFG’s strategic objectives and enhancing its market positioning in the Middle East.

EFG International Announces Leadership Changes in Monaco Subsidiary

EFG International AG’s Monaco-based subsidiary has announced leadership changes with Carlo Maturi appointed as the new Chair of the Board of Directors, succeeding Jean-Claude Gourrut. Hervé Ordioni will take over as CEO of EFG Monaco, reporting to Patrick Ramsey, indicating a strategic shift in management to strengthen their operations in the region.