Graubuendner Kantonalbank (GRKP) AI Stock Analysis

• Market Cap: CHF1.70B
• Dividend Yield: 2.6%
• Average Volume (3M): 199.00
• Price to Earnings (P/E): 21.1
• Beta (1Y): -0.07
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CH
• Employees: 660
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: CHF2,204.00 ▲(27.77% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

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

Consistent profitability

GKB has delivered persistently high net margins (~41–44%) and stable net income across 2020–2024. This indicates a resilient core earnings engine from lending and fees, supporting long-term internal capital generation and underwriting capacity despite cyclical pressures.

Improving leverage

Leverage has meaningfully improved versus prior years, lowering balance-sheet risk and increasing financial flexibility. A D/E reduction to ~2.1x enhances the bank's ability to absorb shocks and supports steadier capital management and funding options going forward.

Stable regional franchise & fee mix

As a cantonal regional bank focused on mortgages, retail deposits and wealth/fee services, GKB benefits from a stable local deposit base and diversified noninterest fees. This business mix tends to produce predictable net interest and recurring fee income over the medium term.

Negative Factors

Sharp revenue decline

A near-term 18.3% revenue drop in 2024 signals weakening top-line momentum that can erode economies of scale and pressure operating leverage. Sustained revenue compression would limit reinvestment, constrain fee growth and make profitability more dependent on cost cuts or rate tailwinds.

Volatile cash generation

Operating and free cash flow have been highly volatile, with large negative swings in 2023 and a rebound in 2024. Such variability complicates capital planning, dividend predictability and provisioning, and increases the risk that one adverse cycle could impair liquidity or force defensive capital actions.

Remaining leverage and modest ROE

Although leverage improved, absolute debt levels remain material and ROE is moderate. This combination limits the bank’s buffer to absorb credit losses or fund growth without raising capital, keeping sensitivity to economic or credit-cycle shocks higher than peers with lower leverage or stronger ROE.

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 makes money mainly through a traditional universal-banking model built around interest income and fee-based services. 1) Net interest income (core earnings driver): The bank collects interest on loans—especially mortgage lending and other credit to households and businesses—and pays interest on funding sources such as customer deposits and wholesale funding. The spread between interest earned and interest paid (net interest margin), together with loan volumes and credit quality (loan-loss provisions), is a primary contributor to earnings. 2) Fee and commission income: The bank earns fees from asset and wealth management (portfolio management, advisory mandates), securities trading and custody, and investment product distribution. It also generates commissions from payment transactions and other service charges tied to accounts and everyday banking services. 3) Trading and investment income: The bank may earn revenue from financial market activities such as client-driven foreign exchange and securities transactions and from results on its own financial investments. If specific disclosure for the size or breakdown of this stream is not available, it is captured here at a high level. 4) Other operating income: Additional earnings can come from miscellaneous banking services and ancillary income streams; if detailed components are not available, this remains aggregated. Key factors influencing profitability include the level of Swiss interest rates (affecting margins), mortgage and loan growth in its core region, cost discipline, credit losses, and the performance of assets under management (affecting recurring fee income). Information on specific revenue-sharing partnerships is null.

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	CHF1.70B	21.12	―	2.60%	―	―

Graubuendner Kantonalbank Corporate Events

Graubündner Kantonalbank Delivers Solid 2025 Profit and Confirms Strategic Strength

Graubündner Kantonalbank reported a solid 2025 financial year, posting a group profit of CHF 224.6 million, just 2.1% below the prior year, despite persistent pressure from a low interest rate environment. The bank’s two-pillar model, combining interest income with a growing investment and pension business, continued to underpin earnings quality and regional value creation while supporting an unchanged dividend of CHF 47.50 per participation certificate.

Operating income declined by 2.9% mainly due to higher risk provisions, even as net interest income before provisions rose 1.3% and commission and service income gained 1.9% on stronger markets and new investment volumes. Operating expenses increased 4.1% as GKB invested in digitalisation and holistic advisory services, but productivity remained high with a cost/income ratio of 48.0%, underscoring the bank’s focus on efficiency alongside strategic spending.

The balance sheet expanded with business volume up 3.5% to CHF 78.8 billion and customer loans rising 1.5%, driven largely by mortgage and traditional lending to private and SME clients in the home market. Client assets under management grew 4.5%, though outflows from some larger institutional clients led to net new money of minus CHF 0.7 billion, partly offset by solid inflows of CHF 0.3 billion from private and corporate customers.

GKB’s capitalisation remains a key strength, with eligible equity of CHF 2.8 billion and a high risk-weighted capital ratio of 20.0%, reflecting a strategy oriented towards crisis resilience and stability. The bank’s profit distribution will see CHF 118.8 million flow to the Canton of Graubünden and participation certificate holders, including CHF 103.6 million to the canton when state guarantee compensation is factored in, highlighting its fiscal importance for the region.

A new study by BAK Economics and the University of Applied Sciences of Graubünden confirms GKB’s broader economic role, estimating annual value creation of CHF 415 million through direct and indirect effects. Management emphasised that the bank’s influence extends beyond pure banking, as it supports companies, strengthens regional development and assumes social responsibility within Graubünden.

Under the 2026–2030 strategy shaped by new chairman Heinz Huber, GKB plans to build on its established model while adapting to technological and societal shifts, prioritising first-class advisory services, further income diversification and continued operational stability. In a still-challenging low interest rate environment but with supportive equity markets, the bank expects group profit in 2026 to come in just below the prior-year level, signalling cautious optimism and sustained discipline in its growth ambitions.

The most recent analyst rating on (CH:GRKP) stock is a Hold with a CHF2204.00 price target. To see the full list of analyst forecasts on Graubuendner Kantonalbank stock, see the CH:GRKP Stock Forecast page.