ING GROEP (INGA) AI Stock Analysis

• Market Cap: €63.46B
• Dividend Yield: 5.73%
• Average Volume (3M): 7.24M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.87
• Revenue Growth: 0.47%
• EPS Growth: -2.06%
• Country: NL
• Employees: 60,000
• Sector: Financial
• Sector Strength: 65
• Industry: Banks - Diversified
• EPS (TTM): 0.56
• Shares Outstanding: 3,021,543,000
• 10 Day Avg. Volume: 7,243,286
• 30 Day Avg. Volume: 7,237,613
• 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: €22.68
• Price Target Upside: 6.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: €22.50 ▲(5.63% Upside)

ING Groep's stock is moderately attractive with a solid valuation and strong technical momentum. However, financial performance concerns, particularly cash flow issues and operational challenges, temper the overall score. The strong dividend yield and reasonable P/E ratio add to its investment appeal, but caution is advised due to potential short-term volatility suggested by overbought technical indicators.

Positive Factors

Analyst Recommendation

Analyst upgrades INGA to Overweight from Equal Weight and increases the price target to EUR24, reflecting confidence in the company's potential.

Capital Return

The group is expected to deliver a capital return yield in the top three across EU banks, significantly above the EU sector average.

Negative Factors

Cost Management

Proactive cost-saving measures are necessary to curb the sticky cost inflation.

Net Interest Income Risk

The risk of ING’s Net Interest Income inflection point being delayed is increasing.

Wholesale Banking Challenges

The drag of Wholesale Banking Rest of the World on group return on tangible equity has been significant, highlighting challenges in this area.

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	22.67B	66.41B	17.63B	33.61B	18.29B	17.82B
Gross Profit	22.04B	21.41B	17.63B	29.00M	18.29B	17.82B
EBITDA	4.99B	9.97B	10.80B	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	130.06B	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	-56.15B	-11.59B	-11.34B	-15.13B	102.89B
Operating Cash Flow	0.00	-55.82B	-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	38.65B	-4.89B	4.65B	5.39B	-36.73B

ING GROEP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.30
• 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 NL:INGA, the sentiment is Positive. The current price of 21.3 is above the 20-day moving average (MA) of 20.11, above the 50-day MA of 19.09, and above the 200-day MA of 16.55, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 74.89 is Negative, neither overbought nor oversold. The STOCH value of 95.73 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
ABN	80 Outperform	€21.58B	9.51	10.16%	4.98%	-10.84%	-10.98%
HAL	79 Outperform	€11.45B	9.47	8.50%	2.25%	-0.89%	19.71%
NN	73 Outperform	€15.67B	12.95	6.47%	5.82%	-15.54%	10.53%
ASRNL	72 Outperform	€12.70B	14.65	11.73%	4.68%	23.70%	-26.24%
Sector *	70 Neutral	€14.08B	9.36	7.13%	4.57%	36.70%	30.95%
INGA	69 Neutral	€63.46B	10.72	12.42%	5.73%	0.47%	-2.06%
AGN	64 Neutral	€10.08B	15.44	9.26%	5.41%	-5.08%	―