Graubuendner Kantonalbank (GRKP) AI Stock Analysis

• Market Cap: CHF1.51B
• Dividend Yield: 2.6%
• Average Volume (3M): 199.00
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CH
• Employees: 660
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 45.10
• Shares Outstanding: 750,000
• 10 Day Avg. Volume: 219
• 30 Day Avg. Volume: 199
• PEG Ratio: -52.93
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 8.20
• P/FCF Ratio: 5.37
• 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
• EPS Forecast (FY): 68.04
• Revenue Forecast (FY): CHF410.65M

• Rating: 65 Neutral
• Price Target: CHF2,172.00 ▲(25.91% Upside)

The score is anchored by solid underlying profitability and improving leverage, but is held back by the sharp 2024 revenue decline and historically volatile cash flow. Technically, the trend is positive with price above key moving averages and supportive MACD, while valuation looks only average given a 22.56 P/E and a moderate 2.59% dividend yield.

Positive Factors

High and stable net margins

Net margins near 41–44% show durable operating efficiency in core banking activities. Persistent high margins support internal funding for investment, provisioning and dividends, and provide a buffer against cyclical revenue weakness in the region over the next 2–6 months.

Improving leverage and capital base

Debt-to-equity reduction to ~2.1x signals meaningful de-risking of the balance sheet. Lower leverage enhances resilience to credit shocks, increases capacity to fund lending organically, and reduces regulatory and refinancing pressure over the medium term.

Diversified universal-banking revenue mix

A mix of interest income, fees, trading and other operating revenues reduces dependence on any single cycle. This diversification supports steadier earnings through rate and market cycles and underpins long-term client relationships in retail, private and public-sector segments.

Negative Factors

Sharp 2024 revenue decline

An 18.3% top-line drop materially weakens the bank's revenue base and limits earnings scalability. Sustained revenue weakness can reduce fee income and constrain loan growth or investment capacity, requiring management action to restore structural growth.

Volatile cash generation

Large swings in operating and free cash flow undermine predictability for dividends, provisioning and capital deployment. This volatility raises refinancing and liquidity risk in stress scenarios and complicates multi‑period planning for a regional lender.

Leverage remains elevated in absolute terms

Even after improvement, the bank's meaningful leverage leaves limited loss-absorption capacity relative to large credit shocks. Elevated leverage constrains risk-taking and may force more conservative lending or capital raises if asset quality or macro conditions deteriorate.

Graubuendner Kantonalbank Business Overview & Revenue Model

Company Description

Graubündner Kantonalbank provides various banking and products services to private individuals and companies. It offers private and savings accounts; stock deposit, foreign currency, current, and rent accounts; and business and corporate cards, maestro cards, and debit master cards. The company also provides investment advice and wealth management services; investment and provident funds; investment saving plans; investment depots; variable, fixed, money market, and eco mortgages; and construction and personal loans. In addition, it offers financial planning services; and digital banking and payment transaction services. The company operates 46 branches in Graubünden. Graubündner Kantonalbank was founded in 1870 and is headquartered in Chur, Switzerland.

How the Company Makes Money

Graubuendner Kantonalbank Financial Statement Overview

Summary

Profitability is strong and consistent (net margins ~41–44% with generally stable net income), and leverage improved in 2024 (debt-to-equity ~2.1x). However, revenue fell sharply in 2024 (-18.3%) and operating/free cash flow has been highly volatile (notably very weak in 2023), which increases risk despite solid earnings.

Income Statement

Profitability is consistently strong, with net profit margins holding around ~41–44% from 2020–2024 and net income generally stable (~CHF 173–218M). Revenue grew well in 2021–2022, was flat in 2023, and fell sharply in 2024 (-18.3%), which is the key near-term pressure point. Reported operating profitability looks mixed due to an abnormal 2024 operating margin reading (negative despite positive operating profit), so the headline trend is best read as stable earnings but weakening top-line momentum.

Balance Sheet

The balance sheet is asset-heavy as expected for a regional bank, with total assets rising to ~CHF 35.6B in 2024. Leverage remains meaningful: debt-to-equity improved to ~2.1x in 2024 from ~3.3–3.8x in 2020–2023, but is still elevated in absolute terms. Returns on equity are steady around ~6.4–7.6%, indicating consistent (but not high) profitability versus equity and a generally stable capital base.

Cash Flow

Cash generation is volatile. Operating cash flow swung from positive in 2020–2022, to sharply negative in 2023 (about -CHF 1.15B), then rebounded strongly in 2024 (~CHF 0.82B). Free cash flow shows the same pattern (deeply negative in 2020 and 2023, strong in 2024), and the reported free cash flow growth rate is extremely negative in 2024, highlighting instability rather than a smooth trajectory. A positive sign is that 2024 free cash flow nearly matches net income (about 0.98x), but the year-to-year swings elevate risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	518.60M	528.41M	525.91M	478.19M	438.72M	400.19M
Gross Profit	518.60M	510.39M	501.00M	460.49M	456.18M	400.19M
EBITDA	217.56M	0.00	268.78M	219.47M	232.62M	183.64M
Net Income	202.61M	217.46M	218.29M	197.78M	184.23M	172.82M
Balance Sheet
Total Assets	34.58B	35.60B	32.77B	33.25B	32.79B	31.42B
Cash, Cash Equivalents and Short-Term Investments	6.49B	8.02B	6.32B	7.74B	8.91B	8.18B
Total Debt	6.76B	6.21B	6.26B	9.71B	10.24B	10.39B
Total Liabilities	31.63B	32.60B	29.83B	30.38B	29.97B	28.66B
Stockholders Equity	2.91B	2.95B	2.89B	2.81B	2.78B	2.72B
Cash Flow
Free Cash Flow	0.00	807.13M	-1.17B	159.60M	247.18M	-501.41M
Operating Cash Flow	0.00	822.87M	-1.15B	221.62M	311.80M	339.84M
Investing Cash Flow	0.00	-675.53M	-1.86B	-1.58B	286.25M	-1.05B
Financing Cash Flow	0.00	1.61B	-91.47M	193.48M	133.46M	2.64B

Graubuendner Kantonalbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GRKP	65 Neutral	CHF1.51B	24.71	―	2.60%	―	―

Graubuendner Kantonalbank Corporate Events

Graubündner Kantonalbank Appoints New Management Member

Graubündner Kantonalbank has appointed Jon Fadri Pitsch as a new member of its management team, effective January 1, 2026. Pitsch, who has been leading the Markets business unit on an interim basis since August 2025, will continue to oversee this unit, which is crucial for customer advisory and service distribution across various segments. His appointment is expected to enhance the bank’s customer service and strengthen its leadership with his extensive experience in the financial industry.

Graubündner Kantonalbank Appoints New Board Member

The government of Graubünden has elected Michèle Hess to the Board of Graubündner Kantonalbank, effective April 1, 2026, succeeding Ines Pöschel. Hess brings extensive experience in banking and finance, having held significant roles at hs-consult, PricewaterhouseCoopers, and FINMA. Her election aligns with the bank’s ongoing board renewal process, adhering to FINMA and cantonal governance guidelines. This change is expected to enhance the bank’s strategic direction and compliance with regulatory requirements.