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Julius Baer Group (JBAXY)
OTHER OTC:JBAXY
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Julius Baer Group
(OTC:JBAXY)
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Rating:69Neutral
Price Target:
$19.00
â–²(16.35% Upside)
The score is led by improving 2024 profitability and strong cash-flow rebound, but is held back by volatility across years and a sharp increase in leverage. Technicals are supportive with a clear trend above key moving averages, and valuation is reasonable with a mid-teens P/E and a ~4% dividend yield.
Positive Factors
Financial Health
The absence of debt enhances financial stability, allowing Julius Baer to allocate resources efficiently and invest in growth opportunities without the burden of interest obligations.
Revenue Growth
Strong revenue growth reflects the company's ability to expand its market presence and increase client engagement, supporting long-term business sustainability and competitive positioning.
Cost Savings
Exceeding cost-saving targets enhances operational efficiency, allowing Julius Baer to improve margins and reinvest in strategic initiatives, strengthening its competitive edge.
Negative Factors
High Cost-Income Ratio
A high cost-income ratio indicates ongoing challenges in cost management, potentially affecting profitability and limiting the ability to invest in growth and innovation.
Decline in Net Interest Income
A significant decline in net interest income can impact overall profitability, as it reduces a key revenue stream, necessitating strategic adjustments to maintain financial performance.
Limited Re-leveraging
Limited re-leveraging affects growth expectations, as it constrains the company's ability to capitalize on potential client investment activities, impacting future revenue potential.
Julius Baer Group (JBAXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.93B
Dividend Yield4.07%
Average Volume (3M)5.32K
Price to Earnings (P/E)18.0
Beta (1Y)0.86
Revenue Growth3.42%
EPS Growth137.78%
CountryUS
Employees7,595
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.56
Shares Outstanding1,030,008,900
10 Day Avg. Volume0
30 Day Avg. Volume5,321
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.76
Price to Sales (P/S)3.08
P/FCF Ratio6.42
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue2.91
Enterprise Value/Gross Profit2.94
Enterprise Value/Ebitda157.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Julius Baer Group Business Overview & Revenue Model
Company DescriptionJulius Bär Gruppe AG provides wealth management solutions in Switzerland, Europe, Americas, Asia, and internationally. Its solutions include discretionary mandates, investment advisory mandates, securities execution and advisory, foreign exchange and precious metals, family office services, Lombard lending, structured products, global custody, real estate advisory and financing, and wealth planning. It also operates an open product and service platform. Julius Bär Gruppe AG was founded in 1890 and is headquartered in Zurich, Switzerland.
How the Company Makes MoneyJulius Baer Group makes money primarily through its wealth management services, earning revenue from advisory fees, transaction fees, and asset management fees. The bank charges fees for managing clients' investment portfolios and providing financial advisory services. Additionally, Julius Baer earns interest income from lending services and investments. The group also benefits from trading operations and foreign exchange services, which contribute to its overall revenue. Strategic partnerships and acquisitions have expanded its market presence and client base, further enhancing its revenue-generating capabilities. Its business model relies significantly on maintaining strong client relationships and delivering tailored financial solutions to meet the diverse needs of its clientele.
Julius Baer Group Earnings Call Summary
Earnings Call Date:Feb 03, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance for Julius Bär in 2024. While the company achieved record assets under management and exceeded cost-saving targets, it struggled with a high cost-income ratio and a significant decline in net interest income. The lack of client re-leveraging poses challenges for future growth. Despite some positive developments, ongoing operational challenges suggest a cautious outlook.Q4-2024 Updates
Positive Updates
Record Assets Under Management
Julius Bär reported record assets under management of nearly CHF 497 billion, driven by CHF 14.2 billion in net inflows, boosted by strong equity markets and currency tailwinds.
Strong Profit and Capital Ratios
The company achieved an adjusted profit before tax of CHF 1.1 billion and a return on CET1 capital of 32%, exceeding their target of 30%. The CET1 capital ratio stood at 17.8%.
Cost Savings Exceeded Targets
The cost reduction program exceeded its initial target, delivering CHF 140 million in gross cost savings. An extension aims to deliver an additional CHF 110 million by the end of 2025.
Negative Updates
High Cost-Income Ratio
The cost-income ratio remains at 70.9%, which is above the target of below 64% set for 2025, indicating ongoing challenges in cost management.
Decline in Net Interest Income
Net interest income declined by 55% to just under CHF 0.4 billion due to a rise in the cost of deposits, despite a 20% increase in interest income on the treasury portfolio.
Limited Re-leveraging
The anticipated re-leveraging of client positions has not yet materialized, impacting growth expectations, with net new money growth expected to be closer to 3% in 2025.
Company Guidance
In the Julius Bär 2024 earnings call, the company provided guidance with a focus on achieving sustainable growth and margin resiliency. The bank reported record assets under management of nearly CHF 0.5 trillion, driven by CHF 14.2 billion in net inflows and strong market conditions. They achieved an adjusted profit before tax of CHF 1.1 billion and a net profit of CHF 1 billion, benefiting from tax impacts. The cost-income ratio stood at 70.9%, indicating room for improvement towards the target of below 64% by 2025. The Chief Executive Officer, Stefan Bollinger, emphasized priorities such as client focus, disciplined entrepreneurship, and streamlining operations. The company announced an extension of their 2023 to 2025 cost program, targeting an additional CHF 110 million in cost savings by 2025. The CET1 capital ratio was reported at 17.8%, with a pro forma impact under Basel III final of 14.2%. The Board proposed a stable dividend of CHF 2.60 per share. Looking ahead, the company plans to maintain momentum in high-quality net new money generation and address operational efficiencies.Julius Baer Group Financial Statement Overview
Summary
2024 shows strong improvement (revenue +23.5%, net margin ~26% and net income more than doubled), supported by a rebound in operating cash flow ($2.13B) and free cash flow ($1.87B). Offsetting this, results have been uneven across years (negative cash flow in 2023) and leverage rose sharply (debt-to-equity ~3.02x in 2024), reducing overall quality and stability of the trend.Income Statement
Revenue growth is strong in 2024 (+23.5%) after a dip in 2023 (-0.3%). Profitability improved materially, with net profit margin rising to ~26% in 2024 from ~14% in 2023, and net income more than doubling ($1.02B vs. $0.45B). However, operating-profitability indicators are inconsistent across years (with some reported operating margin figures turning negative despite positive earnings), which reduces confidence in underlying operating trend quality.74
Positive
Balance Sheet
The firm maintains a sizable equity base (~$6.83B in 2024) and produced solid shareholder returns in 2024 (return on equity ~15%). The main concern is leverage volatility: debt-to-equity increased sharply to ~3.02x in 2024 (from ~0.98x in 2023), indicating a meaningfully more levered balance sheet and higher sensitivity to market and funding conditions.56
Neutral
Cash Flow
Cash generation rebounded strongly in 2024, with operating cash flow at $2.13B and free cash flow at $1.87B, and free cash flow covering a large share of earnings (free cash flow to net income ~0.88x). That said, cash-flow performance has been volatile: 2023 showed negative operating and free cash flow, and 2024 free cash flow declined ~20% year over year, highlighting variability in cash conversion.62
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.76B | 3.90B | 3.24B | 4.30B | 4.00B | 3.58B |
| Gross Profit | 3.73B | 3.90B | 813.40M | 3.85B | 3.87B | 3.58B |
| EBITDA | 69.30M | 0.00 | 758.60M | 1.39B | 1.51B | 0.00 |
| Net Income | 865.40M | 1.02B | 454.00M | 949.60M | 1.08B | 698.00M |
Balance Sheet | ||||||
| Total Assets | 104.72B | 105.07B | 96.79B | 105.64B | 116.31B | 109.14B |
| Cash, Cash Equivalents and Short-Term Investments | 13.20B | 13.78B | 16.22B | 18.91B | 25.80B | 23.06B |
| Total Debt | 3.92B | 20.60B | 6.05B | 14.05B | 16.87B | 14.50B |
| Total Liabilities | 97.98B | 98.24B | 90.62B | 99.35B | 109.56B | 102.70B |
| Stockholders Equity | 6.74B | 6.83B | 6.16B | 6.29B | 6.73B | 6.43B |
Cash Flow | ||||||
| Free Cash Flow | 4.15B | 1.87B | -1.17B | 1.72B | 123.80M | -1.83B |
| Operating Cash Flow | 4.39B | 2.13B | -929.10M | 1.91B | 320.60M | -1.64B |
| Investing Cash Flow | 3.02B | 2.86B | -1.69B | -5.37B | 764.60M | 743.40M |
| Financing Cash Flow | -129.20M | -409.40M | 79.30M | -3.48B | 370.10M | 5.25B |
Julius Baer Group Technical Analysis
Positive
16.33
Price Trends
15.52
Positive
14.67
Positive
14.07
Positive
Market Momentum
0.45
Positive
56.62
Neutral
68.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBAXY, the sentiment is Positive. The current price of 16.33 is below the 20-day moving average (MA) of 16.58, above the 50-day MA of 15.52, and above the 200-day MA of 14.07, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBAXY.
Julius Baer Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $46.30B | 13.67 | 59.59% | 1.26% | 5.76% | 39.77% | |
78 Outperform | $81.81B | 16.06 | 12.96% | 1.71% | 4.22% | 51.01% | |
73 Outperform | $35.62B | 13.58 | 11.07% | 2.43% | 5.62% | 49.49% | |
70 Outperform | $181.03B | 42.56 | 35.17% | 3.02% | 33.12% | 19.86% | |
70 Outperform | $48.83B | 63.64 | 18.64% | 2.65% | 50.70% | 7.32% | |
69 Neutral | $17.93B | 18.01 | 13.00% | 4.07% | 3.42% | 137.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
JBAXY
Julius Baer Group
16.71
2.95
21.40%
AMP
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499.67
-68.19
-12.01%
BK
Bank of New York Mellon
118.90
34.63
41.10%
STT
State Street
128.02
30.10
30.74%
BX
Blackstone Group
146.79
-33.04
-18.37%
ARES
Ares Management
149.80
-38.42
-20.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.