ING GROEP (INGA) AI Stock Analysis

• Market Cap: €65.65B
• Dividend Yield: 5.5%
• Average Volume (3M): 7.88M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.84
• Revenue Growth: 0.12%
• EPS Growth: -2.71%
• Country: NL
• Employees: 60,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.60
• Shares Outstanding: 3,021,543,000
• 10 Day Avg. Volume: 7,561,458
• 30 Day Avg. Volume: 7,883,815
• PEG Ratio: -2.24
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -0.87
• 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: €24.75
• Price Target Upside: 11.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €22.00 ▼(-0.90% Downside)

ING Groep's overall stock score reflects strong valuation metrics and stable financial performance, despite operational and cash flow challenges. Technical indicators suggest a neutral to slightly bearish short-term outlook, but the attractive P/E ratio and high dividend yield provide a solid foundation for long-term investors.

Positive Factors

Revenue Growth

Strong revenue growth highlights ING's ability to expand its market presence and enhance its financial performance, supporting long-term stability.

Market Position

A broad geographic footprint and diverse customer base provide ING with a competitive edge and resilience against regional economic fluctuations.

Digital Banking Focus

Investments in digital banking and fintech partnerships position ING to capture growth in the evolving financial services landscape, ensuring future competitiveness.

Negative Factors

Cash Flow Challenges

Negative cash flow growth indicates potential liquidity issues, which could hinder ING's ability to invest in growth opportunities and maintain financial flexibility.

Operational Challenges

Negative EBIT margin suggests inefficiencies in operations, which could impact profitability and require strategic adjustments to improve cost management.

Declining ROE

A declining ROE indicates challenges in effectively utilizing equity to generate profits, potentially affecting investor confidence and long-term growth prospects.

ING GROEP Business Overview & Revenue Model

Company Description

ING Groep N.V. (INGA) is a multinational banking and financial services corporation headquartered in Amsterdam, Netherlands. It operates primarily in the banking sector, providing a wide range of financial products and services, including retail banking, wholesale banking, investment management, and insurance. ING serves millions of customers across Europe, North America, Asia, and Australia, focusing on digital banking solutions and customer-centric services.

How the Company Makes Money

ING makes money through various revenue streams, primarily from interest income, fees, and commissions. The bank earns a significant portion of its revenue from interest on loans it provides to individuals and businesses, which is often higher than the interest it pays on customer deposits. Additionally, ING generates income through fees for services such as account management, transaction processing, and investment products. The bank also engages in wholesale banking activities, including lending to corporations and financial institutions, which contributes to its earnings. Strategic partnerships with fintech companies enhance its digital offerings and attract new customers, further boosting revenue. Furthermore, ING's focus on cost management and efficiency supports its profitability.

ING GROEP Financial Statement Overview

Summary

ING Groep demonstrates strong revenue growth and net profitability, but faces significant operational and cash flow challenges. A stable balance sheet with moderate leverage is overshadowed by declining ROE and negative cash flow metrics, which are concerns that need addressing.

Income Statement

ING Groep's revenue growth from 2023 to 2024 was 13.7%, indicating a positive trajectory. However, the EBIT margin has turned negative, signaling potential operational challenges. The net profit margin remains healthy at 31.9%, showcasing profitability despite operational issues.

Balance Sheet

The debt-to-equity ratio is moderate at 3.18, indicating a balanced leverage position for a bank. The equity ratio stands at 4.93%, suggesting a typical banking structure. However, ROE has decreased to 12.7%, reflecting reduced efficiency in generating returns on equity.

Cash Flow

Free cash flow has significantly deteriorated, with a growth rate of -384.5% from 2023 to 2024, posing a liquidity risk. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.21B	66.41B	17.63B	33.61B	25.78B	17.82B
Gross Profit	40.30B	21.41B	17.63B	17.06B	19.51B	14.61B
EBITDA	8.93B	9.97B	11.17B	6.21B	7.62B	4.57B
Net Income	6.17B	6.39B	7.29B	3.67B	4.78B	2.48B
Balance Sheet
Total Assets	1.09T	1.02T	975.58B	967.82B	951.29B	937.38B
Cash, Cash Equivalents and Short-Term Investments	123.94B	115.13B	130.06B	118.60B	137.80B	147.07B
Total Debt	167.58B	227.63B	173.26B	119.50B	116.01B	183.84B
Total Liabilities	1.04T	969.24B	923.40B	917.41B	896.63B	881.62B
Stockholders Equity	49.12B	50.31B	51.24B	49.91B	53.92B	54.64B
Cash Flow
Free Cash Flow	0.00	-56.15B	4.83B	-11.34B	-15.13B	12.14B
Operating Cash Flow	0.00	-55.82B	5.07B	-11.11B	-14.94B	12.42B
Investing Cash Flow	0.00	-6.03B	-1.67B	-5.31B	6.22B	-2.45B
Financing Cash Flow	0.00	38.65B	-4.89B	4.65B	5.39B	47.99B

ING GROEP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.20
• 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:INGA, the sentiment is Positive. The current price of 22.2 is above the 20-day moving average (MA) of 21.16, above the 50-day MA of 21.31, and above the 200-day MA of 18.66, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:INGA.

ING GROEP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAL	81 Outperform	€12.27B	7.12	11.85%	2.13%	2.01%	79.48%
NN	68 Neutral	€15.46B	12.78	6.47%	5.87%	-15.54%	10.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ABN	67 Neutral	€22.00B	9.70	10.16%	4.84%	-10.84%	-10.98%
ASRNL	66 Neutral	€12.01B	11.12	12.65%	5.60%	16.35%	67.44%
INGA	63 Neutral	€65.65B	11.00	12.05%	5.50%	0.12%	-2.71%
AGN	63 Neutral	€10.35B	7.89	14.93%	5.74%	-6.64%	―