KBC Group (KBCSY) AI Stock Analysis

• Market Cap: $54.80B
• Dividend Yield: 4.02%
• Average Volume (3M): 996.00
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.66
• Revenue Growth: -5.87%
• EPS Growth: 28.80%
• Country: US
• Employees: 32,764
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.43
• Shares Outstanding: 835,088,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 996
• PEG Ratio: 1.56
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 3.52
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 18.07
• 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: 75 Outperform
• Price Target: $71.00 ▲(15.04% Upside)

KBC Group's overall stock score reflects strong technical momentum and positive earnings call guidance, which are the most significant factors. Financial performance is solid but faces challenges with declining revenue and cash flow. The valuation is reasonable, and the attractive dividend yield adds to the stock's appeal.

Positive Factors

Strong Profitability

KBC's strong profitability and efficient operations, as evidenced by healthy profit margins and return on equity, indicate a robust business model capable of sustaining growth and competitive positioning over the long term.

Technological Advancements

The introduction of Kate 2.0 enhances KBC's digital strategy, improving operational efficiency and customer service. This technological advancement supports long-term competitiveness in the financial services industry.

Solid Solvency and Liquidity

KBC's strong solvency and liquidity positions provide a stable financial foundation, ensuring the company can withstand economic fluctuations and pursue growth opportunities.

Negative Factors

Potential Regulatory Changes

Potential regulatory changes pose a risk to KBC's future earnings, as new government measures could increase costs or limit revenue growth, impacting long-term financial performance.

Declining Revenue

A decline in revenue suggests potential challenges in maintaining market share or pricing power, which could impact long-term growth and profitability if not addressed.

Cash Flow Challenges

Significant decline in free cash flow growth indicates potential liquidity issues, which could limit KBC's ability to invest in growth initiatives or manage debt effectively over time.

KBC Group Business Overview & Revenue Model

Company Description

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. The company offers demand deposits and savings accounts; home and mortgage loans; consumer finance and SME funding services; credit, investment fund and asset management, and life and non-life insurance; and cash management, payments, trade finance, lease, money market, capital market products, and stockbroking services. It also provides Internet and mobile banking services. As of December 31, 2021, it operated 439 bank branches and 310 insurance agencies in Belgium; 208 bank branches in the Czech Republic; 123 bank branches in Slovakia; 198 bank branches in Hungary; 168 bank branches in Bulgaria; and 12 bank branches in Ireland. KBC Group NV serves customers through agents, brokers, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.

How the Company Makes Money

KBC Group generates revenue through various channels, primarily from its banking and insurance operations. The bank earns interest income from loans and advances made to customers, which constitutes a significant portion of its revenue. Additionally, KBC receives fees and commissions from services such as asset management, investment advisory, and transaction services. The insurance segment contributes through premiums collected from policyholders and investment income from the management of insurance funds. Furthermore, KBC has established partnerships with various businesses and financial institutions, enhancing its ability to cross-sell products and expand its customer base, which further strengthens its revenue streams.

KBC Group Financial Statement Overview

Summary

KBC Group demonstrates strong profitability and effective cost management, as seen in its income statement. The balance sheet indicates a stable financial position with manageable leverage. However, cash flow volatility and recent revenue decline pose challenges.

Income Statement

KBC Group's income statement shows a strong gross profit margin and consistent net profit margin, indicating effective cost management and profitability. However, the recent decline in revenue growth rate is a concern, suggesting potential challenges in revenue generation. The EBIT and EBITDA margins are healthy, but the negative revenue growth rate in the latest period requires attention.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is strong, showcasing efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals volatility, with significant fluctuations in free cash flow growth. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is relatively stable, but the negative growth in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.72B	25.32B	25.47B	16.13B	9.35B	8.95B
Gross Profit	11.84B	11.15B	10.77B	10.06B	7.48B	7.15B
EBITDA	4.76B	4.40B	4.83B	4.02B	3.90B	2.43B
Net Income	3.68B	3.42B	3.40B	2.82B	2.61B	1.44B
Balance Sheet
Total Assets	383.34B	373.05B	346.92B	354.55B	340.35B	320.74B
Cash, Cash Equivalents and Short-Term Investments	28.44B	46.83B	34.53B	51.43B	40.66B	24.59B
Total Debt	26.98B	27.96B	26.21B	18.98B	20.09B	18.92B
Total Liabilities	356.32B	348.74B	322.66B	332.73B	317.27B	299.21B
Stockholders Equity	26.96B	24.31B	24.26B	21.82B	23.08B	21.53B
Cash Flow
Free Cash Flow	3.12B	8.47B	-21.55B	10.85B	13.11B	25.37B
Operating Cash Flow	4.51B	9.85B	-20.19B	11.77B	14.04B	26.37B
Investing Cash Flow	-3.73B	-86.00M	1.98B	-4.96B	822.00M	-7.25B
Financing Cash Flow	-1.12B	-1.69B	5.02B	-3.38B	-448.00M	451.00M

KBC Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.72
• 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 KBCSY, the sentiment is Positive. The current price of 61.72 is below the 20-day moving average (MA) of 62.80, above the 50-day MA of 60.98, and above the 200-day MA of 53.55, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 95.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBCSY.

KBC Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USB	76 Outperform	$84.19B	12.40	11.69%	3.77%	2.91%	33.77%
KBCSY	75 Outperform	$54.80B	13.09	15.22%	4.02%	-5.87%	28.80%
LYG	71 Outperform	$76.57B	17.39	7.85%	3.24%	-20.94%	-18.71%
PNC	71 Outperform	$82.43B	13.56	11.31%	3.14%	1.79%	30.93%
ITUB	69 Neutral	$73.28B	9.82	19.90%	9.77%	11.82%	3.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MFG	64 Neutral	$88.64B	13.45	9.14%	2.36%	-2.84%	25.48%

KBC Group Corporate Events

KBC Group Reports Strong Q3 2025 Earnings

KBC Group is a prominent financial institution operating in the banking and insurance sectors, known for its innovative digital solutions and strong presence in European markets.

KBC Group’s Earnings Call: Strong Growth and Optimism

KBC Group’s recent earnings call showcased a robust financial performance, marked by significant increases in net results, loan growth, and insurance performance. The company has expressed confidence in its operations by adjusting its guidance upward. Despite challenges such as the impact of inflation-linked bonds and potential regulatory changes, the positive aspects of the earnings call significantly outweigh the challenges, reflecting an overall optimistic sentiment.