ABN AMRO Group N.V. (ABN) AI Stock Analysis

• Market Cap: €22.00B
• Dividend Yield: 4.39%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.78
• Revenue Growth: -12.70%
• EPS Growth: -12.34%
• Country: NL
• Employees: 21,976
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.67
• Shares Outstanding: 833,048,600
• 10 Day Avg. Volume: 2,575,831
• 30 Day Avg. Volume: 2,524,845
• PEG Ratio: -0.58
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -1.00
• 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: €32.81
• Price Target Upside: 11.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €32.00 ▲(8.99% Upside)

ABN AMRO Group N.V. benefits from strong technical momentum and reasonable valuation, which are the most significant factors in its overall score. While financial performance is solid, challenges in profitability and cash flow efficiency slightly temper the outlook. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability and competitive positioning.

Improved Debt-to-Equity Ratio

A zero debt-to-equity ratio reduces financial risk and enhances financial stability, providing the company with greater flexibility in capital management.

Solid Equity Position

A strong equity position reflects stability in the financial structure, which can support growth initiatives and absorb economic shocks.

Negative Factors

Decline in Net Profit Margin

A declining net profit margin suggests pressure on profitability, which could impact future earnings and shareholder returns if not addressed.

Volatile Cash Flows

Volatile cash flows can hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term sustainability.

Decreased Return on Equity

A decrease in return on equity indicates less efficient use of equity capital to generate profits, which may affect investor confidence and capital allocation.

ABN AMRO Group N.V. Business Overview & Revenue Model

Company Description

ABN AMRO Bank N.V. provides various banking products and services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; labelled residential mortgage products under the Florius brands; and consumer loans under the Alpha Credit Nederland, Credivance, Defam, Moneyou, and ABN AMRO brands. It also issues, promotes, manages, and processes credit cards; provides revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. ABN AMRO Bank N.V. was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

ABN AMRO generates revenue through various streams, primarily from interest income, fees, and commissions. Interest income is earned from lending activities, where the bank provides loans to individuals and businesses, charging interest on these loans. Additionally, ABN AMRO collects fees and commissions for services such as asset management, investment banking, and transaction processing. The bank also engages in trading and investment activities, which contribute to its earnings. Significant partnerships with other financial institutions and businesses enhance its service offerings and expand its client base. Furthermore, ABN AMRO's focus on sustainable finance and green banking initiatives is expected to attract new clients and create additional revenue opportunities.

ABN AMRO Group N.V. Financial Statement Overview

Summary

ABN AMRO Group N.V. shows solid revenue growth and effective cost management, leading to a strong gross profit margin. The balance sheet is stable with reduced financial leverage. However, challenges are present in the form of declining net profit margin, return on equity, and volatile negative cash flows, which could impact profitability and cash flow efficiency.

Income Statement

ABN AMRO Group N.V. has demonstrated a healthy revenue growth trend over the years, with a noticeable increase from 2020 to 2024. The gross profit margin is strong at approximately 99.4% in 2024, indicating effective management of cost relative to revenue. However, the net profit margin decreased from 30.7% in 2023 to 26.9% in 2024, suggesting some pressure on net profitability despite revenue growth.

Balance Sheet

The company maintains a solid equity position, with an equity ratio of 6.8% in 2024, reflecting stability in its financial structure. The debt-to-equity ratio has improved significantly, reaching zero in 2024, which reduces financial risk. However, the return on equity decreased from 11.2% in 2023 to 9.2% in 2024, indicating a decline in how efficiently equity is being utilized to generate profit.

Cash Flow

Cash flow from operating activities has shown significant volatility, with a negative operating cash flow of -12.16 billion in 2024. Free cash flow has also been negative, which may impact the company's flexibility in capital allocation. The free cash flow to net income ratio is concerning, highlighting potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.97B	19.50B	8.78B	7.80B	7.64B	5.61B
Gross Profit	8.81B	8.88B	8.59B	7.80B	7.64B	5.61B
EBITDA	3.35B	3.58B	3.64B	2.55B	2.03B	655.00M
Net Income	2.31B	2.40B	2.70B	1.87B	1.23B	-45.00M
Balance Sheet
Total Assets	413.92B	385.05B	377.91B	379.58B	399.11B	395.62B
Cash, Cash Equivalents and Short-Term Investments	49.39B	45.63B	71.62B	62.60B	67.60B	61.67B
Total Debt	110.25B	97.17B	89.88B	91.41B	48.93B	54.19B
Total Liabilities	386.44B	358.94B	353.74B	356.77B	377.11B	374.63B
Stockholders Equity	27.48B	26.11B	24.17B	22.81B	21.99B	20.99B
Cash Flow
Free Cash Flow	0.00	-12.47B	-9.32B	-8.33B	9.40B	3.16B
Operating Cash Flow	0.00	-12.16B	-9.03B	-8.14B	9.60B	3.38B
Investing Cash Flow	0.00	-4.81B	-1.72B	-239.00M	3.86B	-2.48B
Financing Cash Flow	0.00	7.53B	3.22B	2.95B	-7.38B	-5.91B

ABN AMRO Group N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.36
• 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 NL:ABN, the sentiment is Positive. The current price of 29.36 is above the 20-day moving average (MA) of 28.13, above the 50-day MA of 26.95, and above the 200-day MA of 23.12, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 80.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:ABN.

ABN AMRO Group N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABN	74 Outperform	€22.00B	9.70	9.85%	4.39%	-12.70%	-12.34%
NN	68 Neutral	€15.46B	12.78	6.47%	5.66%	-15.54%	10.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRNL	66 Neutral	€11.94B	10.97	12.65%	5.58%	16.35%	67.44%
AGN	63 Neutral	€10.35B	7.89	14.93%	5.62%	-6.64%	―
VLK	63 Neutral	€2.14B	16.92	10.57%	8.07%	24.42%	―
INGA	61 Neutral	€66.47B	11.31	12.05%	5.39%	0.12%	-2.71%