ING Groep (ING) AI Stock Analysis

• Market Cap: $73.96B
• Dividend Yield: 4.67%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.72
• Revenue Growth: 1.13%
• EPS Growth: -1.14%
• Country: US
• Employees: 60,000
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Diversified
• EPS (TTM): 0.64
• Shares Outstanding: 3,021,543,000
• 10 Day Avg. Volume: 2,717,720
• 30 Day Avg. Volume: 2,596,897
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 8.81
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 40.05
• 1Y Price Target: $27.00
• Price Target Upside: 8.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $27.00 ▲(8.17% Upside)

ING's strong earnings call and bullish technical indicators drive the stock score. The company's financial performance is mixed, with high leverage and cash flow challenges, but valuation remains attractive. Continued growth in mortgages and fee income supports a positive outlook.

ING Groep Business Overview & Revenue Model

Company Description

ING Groep N.V., a financial institution, provides various banking products and services in the Netherlands, Belgium, Germany, Poland, Rest of Europe, North America, Latin America, Asia, and Australia. It operates in six segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, Wholesale Banking, and Corporate Line Banking. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides debt capital market, working capital, export finance, daily banking, treasury and risk, and corporate finance solutions; and specialized lending, equity market, finance, payments and cash management, and trade services and solutions, as well as savings, investment, insurance, mortgage, and digital banking services. The company serves customers, corporate clients, and financial institutions, including small and medium-sized, and mid-corporates. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

ING Groep generates revenue primarily through interest income from its lending activities, which includes personal loans, mortgages, and corporate financing. The bank also earns substantial fees from its retail and wholesale banking services, such as account maintenance fees, transaction fees, and advisory services. Additionally, ING benefits from investment income generated through its asset management division. The company maintains strategic partnerships with fintech firms and technology providers, enhancing its digital offerings and expanding its customer base. Furthermore, ING's focus on cost management and operational efficiency contributes to its profitability, alongside its efforts in sustainable finance, catering to the growing demand for environmentally responsible investment solutions.

ING Groep Financial Statement Overview

Summary

ING Groep shows strong revenue growth but faces challenges with profitability margins and cash flow. The balance sheet is robust in terms of assets but has high leverage. Improving cash generation and managing leverage are crucial for financial stability.

Income Statement

ING Groep has shown a mixed performance in terms of revenue and profit growth. The recent annual report indicates a significant jump in total revenue to 66.4 billion, which implies strong revenue growth. However, the net profit margin stands at approximately 9.6%, which is moderate for the industry. The gross profit margin has decreased to approximately 34.1% from previous years, indicating potential cost management issues. Despite this, the company maintains a healthy EBIT margin of around 14%.

Balance Sheet

The balance sheet reveals a robust equity base with a stockholders' equity of 50.3 billion and a total assets base exceeding 1 trillion. However, the debt-to-equity ratio is relatively high at approximately 3.4, indicating significant leverage. The equity ratio is moderate at around 4.9%, reflecting a stable but not overly strong equity position relative to total assets. Return on equity is around 12.7%, which is healthy but leaves room for improvement.

Cash Flow

Cash flow analysis shows significant negative free cash flow, primarily due to substantial negative operating cash flow. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, suggesting that the company might be struggling to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.67B	66.41B	22.41B	33.61B	18.29B	17.82B
Gross Profit	21.70B	21.41B	22.58B	29.00M	18.29B	17.82B
EBITDA	4.99B	9.97B	11.17B	6.12B	7.47B	4.57B
Net Income	6.27B	6.39B	4.14B	3.67B	4.78B	2.48B
Balance Sheet
Total Assets	1.08T	1.02T	975.58B	967.82B	951.29B	937.38B
Cash, Cash Equivalents and Short-Term Investments	207.27B	115.13B	49.68B	118.60B	137.80B	147.07B
Total Debt	168.32B	171.33B	150.00B	119.50B	116.01B	78.95B
Total Liabilities	1.03T	969.24B	923.40B	917.41B	116.64B	79.55B
Stockholders Equity	51.67B	50.31B	51.24B	49.91B	53.92B	47.67B
Cash Flow
Free Cash Flow	0.00	-22.88B	-11.59B	-11.34B	-15.13B	102.89B
Operating Cash Flow	0.00	-22.54B	-11.34B	-11.11B	-14.94B	103.18B
Investing Cash Flow	0.00	-6.03B	-8.54B	-5.31B	6.22B	-8.49B
Financing Cash Flow	0.00	5.37B	-4.89B	4.65B	5.39B	-36.73B

ING Groep Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ING, the sentiment is Positive. The current price of 24.96 is above the 20-day moving average (MA) of 23.38, above the 50-day MA of 22.19, and above the 200-day MA of 18.30, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 75.17 is Negative, neither overbought nor oversold. The STOCH value of 99.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ING.

ING Groep Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	80 Outperform	$224.34B	13.04	10.69%	4.99%	-2.96%	-13.66%
SAN	78 Outperform	$139.47B	9.75	12.85%	2.42%	-14.74%	17.03%
BBVA	78 Outperform	$109.49B	9.67	18.32%	4.11%	25.64%	17.13%
BCS	78 Outperform	$71.41B	9.44	9.83%	2.09%	16.06%	64.31%
NWG	77 Outperform	$58.84B	9.41	13.80%	4.25%	10.03%	29.51%
ING	75 Outperform	$73.96B	11.51	12.08%	4.67%	1.13%	-1.14%
Sector *	62 Neutral	C$15.64B	6.67	13.72%	5.97%	22.38%	-10.22%