EFG International (EFGXY) AI Stock Analysis

• Market Cap: $7.84B
• Dividend Yield: 3.05%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.76
• Revenue Growth: 2.09%
• EPS Growth: 24.41%
• Country: US
• Employees: 3,114
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.83
• Shares Outstanding: 307,100,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.77
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 2.93
• P/FCF Ratio: -9.85
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: 1.23K
• 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: 69 Neutral
• Price Target: $26.00 ▲(4.75% Upside)

The score is primarily supported by solid profitability and a strengthening, low-leverage balance sheet, alongside a positive technical trend. It is tempered by pronounced cash-flow volatility (including negative operating/free cash flow in 2024) and only moderate valuation support (P/E ~17 with a ~3% yield).

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective client acquisition strategies, supporting long-term business expansion.

Profit Margins

High profit margins reflect operational efficiency and pricing power, providing a buffer against economic fluctuations and supporting profitability.

Balance Sheet Health

A debt-free balance sheet enhances financial stability, reducing risk and providing flexibility for strategic investments and growth opportunities.

Negative Factors

Cash Flow Challenges

Negative cash flow ratios suggest difficulties in converting profits into cash, which could hinder reinvestment and operational flexibility.

Free Cash Flow Decline

Declining free cash flow limits the company's ability to fund new projects, pay dividends, or reduce debt, impacting long-term financial health.

EBIT Concerns

A drop in EBIT to zero indicates potential inefficiencies or increased costs, which may affect profitability and require strategic adjustments.

EFG International 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 makes money primarily through its wealth management and asset management services. The company's revenue model is based on fees and commissions earned from managing client assets and providing investment advice. Key revenue streams include management fees charged on assets under management (AUM), transaction fees for executing trades on behalf of clients, and advisory fees for personalized financial planning and investment strategies. EFG International also benefits from interest income generated through its banking operations. Strategic partnerships with other financial institutions and a focus on high-net-worth clients contribute significantly to its earnings.

EFG International Financial Statement Overview

Summary

Strong recent revenue growth (2024 +39.7% YoY), solid profitability (~21% net margin in 2023–2024), and a conservatively levered balance sheet with healthy, stable ROE (~13.5%). The score is held back by highly volatile cash flows, including negative operating and free cash flow in 2024, and inconsistencies in operating profit/EBIT margin comparability.

Income Statement

Revenue growth re-accelerated strongly in 2024 (39.7% YoY) after more modest trends in 2021–2023, while profitability remains solid with net profit margin holding around ~21% in 2023–2024 (up from ~10% in 2020). Net income has also trended higher versus 2019–2020. Offsetting this, the operating profit line is inconsistent (EBIT margin shown as negative across years despite positive EBIT values), which reduces confidence in operating profitability quality and comparability across periods.

Balance Sheet

The balance sheet looks conservatively levered, with debt-to-equity improving to 0.19 in 2024 from ~0.35 in 2019–2020, and equity building steadily to ~$2.38B. Returns on equity are healthy and stable (~13.5% in 2023–2024 versus ~5%–7% in 2019–2020). A watch item is asset growth outpacing equity at times (assets ~40–44B range), which can pressure capital flexibility if profitability or funding conditions weaken.

Cash Flow

Cash generation is volatile: operating cash flow swung from very strong in 2022 (~$3.10B) to negative in 2024 (~-$0.40B), with free cash flow also turning negative in 2024 (~-$0.45B) after being positive in 2023. This inconsistency, including multiple negative years (2020, 2021, 2024), raises questions about the durability and timing of cash conversion even though reported net income remains solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	1.50B	1.43B	1.56B	1.26B	1.12B
Gross Profit	1.55B	1.50B	1.44B	1.27B	1.25B	1.12B
EBITDA	5.60M	0.00	0.00	319.80M	327.70M	0.00
Net Income	461.40M	321.60M	303.20M	202.40M	205.80M	115.30M
Balance Sheet
Total Assets	37.60B	40.60B	38.59B	43.54B	42.14B	40.64B
Cash, Cash Equivalents and Short-Term Investments	7.31B	8.01B	6.66B	11.23B	12.08B	11.30B
Total Debt	909.60M	440.00M	239.00M	243.70M	475.20M	602.00M
Total Liabilities	35.27B	38.22B	36.37B	41.47B	39.85B	38.88B
Stockholders Equity	2.33B	2.38B	2.22B	2.06B	2.25B	1.70B
Cash Flow
Free Cash Flow	-4.22B	-445.50M	479.50M	3.06B	-597.90M	-974.80M
Operating Cash Flow	-4.17B	-397.10M	480.00M	3.10B	-590.10M	-961.40M
Investing Cash Flow	1.28B	484.00M	-1.22B	-1.93B	-659.80M	337.60M
Financing Cash Flow	487.10M	41.10M	-3.39B	-432.70M	1.95B	1.03B

EFG International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EFGXY, the sentiment is Positive. The current price of 24.82 is below the 20-day moving average (MA) of 25.07, above the 50-day MA of 23.75, and above the 200-day MA of 20.02, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFGXY.

EFG International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	82 Outperform	$2.11B	9.47	20.99%	3.70%	-0.09%	18.47%
NWG	81 Outperform	$73.51B	10.60	14.58%	3.67%	7.43%	30.31%
EWBC	80 Outperform	$15.60B	11.91	15.94%	2.08%	3.87%	14.61%
BCS	77 Outperform	$93.31B	12.46	9.44%	1.71%	17.50%	49.25%
ING	72 Outperform	$84.25B	13.48	11.71%	4.14%	2.20%	-0.17%
EFGXY	69 Neutral	$7.84B	18.59	19.05%	3.05%	2.09%	24.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%