Erste Group Bank AG (EBKDY) AI Stock Analysis

• Market Cap: $34.52B
• Dividend Yield: 3.88%
• Average Volume (3M): 1.93K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.56
• Revenue Growth: 9.59%
• EPS Growth: 17.05%
• Country: US
• Employees: 45,856
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 1.03
• Shares Outstanding: 821,028,750
• 10 Day Avg. Volume: 2,119
• 30 Day Avg. Volume: 1,932
• PEG Ratio: -15.02
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.83
• 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: 77 Outperform
• Price Target: ―

Erste Group Bank AG's strong financial performance and attractive valuation are key strengths, supporting a favorable stock score. The positive earnings outlook is tempered by regional challenges in Austria, and technical indicators suggest caution due to overbought conditions. Overall, the stock presents a compelling investment opportunity with some risks to monitor.

Erste Group Bank AG Business Overview & Revenue Model

Company Description

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management & Local Corporate Center, Savings Banks, and Group Corporate Center segments. It provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. The company also offers factoring and accounts receivable purchasing; investment, acquisition and leveraged, project, and commercial real estate finance; interest rate and currency hedging, letters of credit, documentary collections, and guarantees; account management, payments, digital-banking, and cash logistics services; equity interests and investments, revolving export credits lines, customer financing, and export guarantee; and loan syndication, and debt and equity capital market services. In addition, it provides cash management, trade finance, customer referral, markets execution, and custody and brokerage services. Further, the company offers corporate finance; portfolio management; trading and market; trade execution, market making, and short-term liquidity management; and asset/liability management services, as well as working capital and bridge loans. As of December 31, 2021, it operated 2,091 branches. The company was founded in 1819 and is headquartered in Vienna, Austria.

How the Company Makes Money

Erste Group Bank AG generates revenue primarily through its core banking activities. Retail banking is a significant source of income, with the bank earning interest on loans and mortgages provided to individual customers. Corporate banking also contributes substantially, with revenue coming from loans, credit services, and financial advisory for businesses. Additionally, the bank earns fees and commissions from asset management, insurance products, and transactional services. Erste Group's strategic partnerships and its regional focus further enhance its ability to capture market opportunities and drive profitability. The bank's investment banking operations, including trading and underwriting services, also play a role in its overall earnings.

Erste Group Bank AG Financial Statement Overview

Summary

Erste Group Bank AG shows a robust financial profile with strong revenue growth and profitability metrics. The balance sheet is stable with prudent leverage, and cash flows are effectively managed, though some historical volatility is noted. Continued focus on operational efficiencies and cash flow stability is recommended.

Income Statement

The company has demonstrated strong revenue growth with a TTM revenue increase from the previous year. Gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. However, the EBITDA margin is relatively low, suggesting limited operational efficiency improvements.

Balance Sheet

Erste Group Bank AG exhibits a strong balance sheet with a healthy equity ratio, suggesting stability and financial resilience. The debt-to-equity ratio is manageable, highlighting prudent leverage levels. Return on equity is robust, indicating effective use of shareholder equity to generate profits.

Cash Flow

The cash flow statement reflects a solid operating cash flow to net income ratio, showcasing effective cash generation. Free cash flow growth is positive, but historical fluctuations in cash flow suggest potential volatility. The free cash flow to net income ratio is strong, indicating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.17B	11.06B	10.29B	8.39B	7.60B	7.16B
Gross Profit	17.12B	11.06B	33.67B	8.39B	7.60B	7.16B
EBITDA	2.86B	0.00	0.00	3.57B	3.29B	1.72B
Net Income	3.08B	3.13B	3.00B	2.17B	1.92B	783.10M
Balance Sheet
Total Assets	358.00B	353.74B	337.15B	323.87B	307.43B	277.39B
Cash, Cash Equivalents and Short-Term Investments	40.97B	25.13B	31.51B	35.68B	61.92B	52.60B
Total Debt	0.00	0.00	69.75B	36.57B	32.72B	31.24B
Total Liabilities	326.18B	322.97B	308.65B	298.56B	32.72B	31.24B
Stockholders Equity	23.99B	23.14B	21.65B	19.35B	18.00B	17.34B
Cash Flow
Free Cash Flow	-1.51B	-9.78B	2.06B	-9.29B	10.86B	23.94B
Operating Cash Flow	-735.00M	-9.03B	2.59B	-8.82B	11.40B	24.49B
Investing Cash Flow	-6.23B	-850.00M	-599.00M	-233.10M	-483.40M	-351.60M
Financing Cash Flow	1.47B	-1.55B	2.66B	8.12B	-1.31B	1.13B

Erste Group Bank AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.43
• 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 EBKDY, the sentiment is Positive. The current price of 43.43 is above the 20-day moving average (MA) of 42.03, above the 50-day MA of 40.26, and above the 200-day MA of 32.75, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 87.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBKDY.

Erste Group Bank AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FITB	80 Outperform	$29.21B	13.90	11.71%	3.38%	5.75%	0.68%
HBAN	78 Outperform	$25.33B	13.41	10.30%	3.56%	7.55%	17.46%
FCNCA	78 Outperform	$27.78B	12.13	11.46%	0.37%	0.34%	-3.13%
EBKDY	77 Outperform	$34.52B	10.96	14.29%	3.88%	9.59%	17.05%
RF	76 Outperform	$22.19B	11.92	11.33%	4.05%	1.05%	12.14%
MTB	73 Outperform	$32.41B	13.53	9.39%	2.67%	1.20%	1.12%
Sector *	67 Neutral	$16.77B	11.74	9.77%	3.75%	12.07%	-8.28%