Erste Group Bank AG
Erste Group Bank AG Fundamental Analysis
Erste Group Bank AG (EBKOF) shows moderate financial fundamentals with a PE ratio of 12.81, profit margin of 20.93%, and ROE of 15.72%. The company generates $14.3B in annual revenue with weak year-over-year growth of -10.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EBKOF's fundamental strength across five key dimensions:
Efficiency Score
WeakEBKOF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEBKOF trades at attractive valuation levels.
Growth Score
ModerateEBKOF shows steady but slowing expansion.
Financial Health Score
ModerateEBKOF shows balanced financial health with some risks.
Profitability Score
ExcellentEBKOF achieves industry-leading margins.
Key Financial Metrics
Is EBKOF Expensive or Cheap?
P/E Ratio
EBKOF trades at 12.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EBKOF's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Erste Group Bank AG at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.83 times EBITDA. This is generally considered low.
How Well Does EBKOF Make Money?
Net Profit Margin
For every $100 in sales, Erste Group Bank AG keeps $20.93 as profit after all expenses.
Operating Margin
Core operations generate 33.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.72 in profit for every $100 of shareholder equity.
ROA
Erste Group Bank AG generates $0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Erste Group Bank AG generates strong operating cash flow of $13.99B, reflecting robust business health.
Free Cash Flow
Erste Group Bank AG generates strong free cash flow of $13.34B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $34.34 in free cash annually.
FCF Yield
EBKOF converts 42.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How EBKOF Stacks Against Its Sector Peers
| Metric | EBKOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.81 | 18.85 | Better (Cheaper) |
| ROE | 15.72% | 820.00% | Weak |
| Net Margin | 20.93% | 1999.00% | Weak |
| Debt/Equity | 4.15 | 1.01 | Weak (High Leverage) |
| Current Ratio | 1.39 | 673.75 | Neutral |
| ROA | 0.81% | -23583.00% (disorted) | Weak |
EBKOF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Erste Group Bank AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
132.47%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
365.48%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-78.65%
Industry Style: Value, Dividend, Cyclical
Declining