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UBS Group AG (UBS)UBS
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Upturn Advisory Summary
09/18/2024: UBS (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Upturns
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Profit: -9.82% | Upturn Advisory Performance 2 | Avg. Invested days: 30 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 09/18/2024 |
Type: Stock | Today’s Advisory: PASS |
Profit: -9.82% | Avg. Invested days: 30 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 96.54B USD |
Price to earnings Ratio 61.04 | 1Y Target Price 36.82 |
Dividends yield (FY) 1.18% | Basic EPS (TTM) 0.49 |
Volume (30-day avg) 1836215 | Beta 1.01 |
52 Weeks Range 22.34 - 31.95 | Updated Date 09/18/2024 |
Company Size Large-Cap Stock | Market Capitalization 96.54B USD | Price to earnings Ratio 61.04 | 1Y Target Price 36.82 |
Dividends yield (FY) 1.18% | Basic EPS (TTM) 0.49 | Volume (30-day avg) 1836215 | Beta 1.01 |
52 Weeks Range 22.34 - 31.95 | Updated Date 09/18/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.12% | Operating Margin (TTM) 22.56% |
Management Effectiveness
Return on Assets (TTM) 0.15% | Return on Equity (TTM) 2.83% |
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 61.04 | Forward PE 16.08 |
Enterprise Value 115862519808 | Price to Sales(TTM) 2.08 |
Enterprise Value to Revenue 6.91 | Enterprise Value to EBITDA - |
Shares Outstanding 3202129920 | Shares Floating 3184906858 |
Percent Insiders 0.05 | Percent Institutions 54.06 |
Trailing PE 61.04 | Forward PE 16.08 | Enterprise Value 115862519808 | Price to Sales(TTM) 2.08 |
Enterprise Value to Revenue 6.91 | Enterprise Value to EBITDA - | Shares Outstanding 3202129920 | Shares Floating 3184906858 |
Percent Insiders 0.05 | Percent Institutions 54.06 |
Analyst Ratings
Rating 4 | Target Price 33.98 | Buy - |
Strong Buy 1 | Hold 1 | Sell - |
Strong Sell - |
Rating 4 | Target Price 33.98 | Buy - | Strong Buy 1 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
UBS Group AG: A Comprehensive Overview
Company Profile
History and Background
UBS Group AG (UBS) is a global financial services firm founded in 1862 in Winterthur, Switzerland. Initially known as Bank in Winterthur, the company merged with Toggenburger Bank in 1912 to form the Union Bank of Switzerland. UBS expanded internationally throughout the 20th century, acquiring PaineWebber in 2000 and establishing a strong presence in the United States. Today, UBS operates in over 50 countries, employing over 70,000 people.
Core Business Areas
UBS's core business areas are:
- Wealth Management: Providing financial planning, investment management, and wealth transfer services to high net-worth individuals and families.
- Investment Banking: Offering advisory and financing services to corporations, governments, and institutions in areas like mergers and acquisitions, capital raising, and debt issuance.
- Global Markets: Facilitating the trading of securities, currencies, and other financial instruments for clients worldwide.
- Asset Management: Managing investment portfolios for individuals and institutions across various asset classes.
Leadership Team and Corporate Structure
The current Chairman of UBS Group AG is Axel Weber, while Ralph Hamers serves as the Group CEO. The company's executive board comprises 12 members with diverse backgrounds and expertise. UBS operates a two-tiered structure, with a Board of Directors overseeing the Group Executive Board, which manages the day-to-day operations.
Top Products and Market Share
Top Products and Offerings
- Wealth Management: UBS offers a comprehensive suite of wealth management services, including investment advisory, portfolio management, estate planning, and trust services.
- Investment Banking: Key investment banking products include M&A advisory, capital raising (equity and debt), and structured finance solutions.
- Global Markets: UBS provides access to a wide range of financial markets, including equities, fixed income, foreign exchange, and derivatives.
- Asset Management: UBS manages a diverse range of investment funds across various asset classes, including equities, fixed income, and alternative investments.
Market Share Analysis
- Wealth Management: UBS is the world's largest wealth manager, with over $3.6 trillion in assets under management. This accounts for a market share of approximately 4.8% in the global wealth management industry.
- Investment Banking: UBS ranks among the top 10 investment banks globally, with a market share of approximately 3.5% in global M&A advisory and 2.8% in global equity underwriting.
- Global Markets: UBS is a leading player in global markets, with a market share of approximately 2.5% in global FX trading and 2.2% in global equities trading.
- Asset Management: UBS Asset Management manages over $1.1 trillion in assets, representing a market share of approximately 1.2% in the global asset management industry.
Product Performance and Market Reception
UBS's products and services have generally received positive market reception. The company has been recognized for its wealth management expertise, investment banking capabilities, and global market presence. However, UBS has also faced challenges, including regulatory scrutiny and competition from other financial institutions.
Total Addressable Market
The total addressable market (TAM) for UBS Group AG consists of the global markets for wealth management, investment banking, global markets, and asset management.
- Wealth Management: The global wealth management market is estimated to be worth over $75 trillion, with high net-worth individuals and families representing the primary target segment.
- Investment Banking: The global investment banking market is estimated to be worth over $150 billion, with corporations, governments, and institutions forming the main client base.
- Global Markets: The global markets represent a vast and diverse space, with daily trading volumes exceeding trillions of dollars across various asset classes.
- Asset Management: The global asset management industry is estimated to be worth over $100 trillion, with institutional investors and individual savers constituting the primary client groups.
Financial Performance
Revenue and Profitability
In 2022, UBS Group AG reported total revenue of $34.5 billion and net income of $7.5 billion. The company's profit margin stood at 21.7%, and earnings per share (EPS) were $1.78. Compared to the previous year, revenue increased by 5.2%, net income grew by 3.4%, and EPS rose by 3.9%.
Cash Flow and Balance Sheet
UBS's cash flow from operations in 2022 was $9.5 billion, while its total assets amounted to $1.1 trillion. The company's debt-to-equity ratio was 0.32, indicating a relatively low level of financial leverage.
Dividends and Shareholder Returns
UBS has a history of paying dividends to shareholders. In 2022, the company paid out a total dividend of $0.78 per share, representing a dividend yield of 3.5%. Over the past five years, UBS's total shareholder return (TSR) has been 51.2%.
Growth Trajectory
Historical Growth
Over the past five years, UBS Group AG has experienced steady revenue growth, with a compound annual growth rate (CAGR) of 4.8%. The company's net income has also grown at a CAGR of 6.2% during the same period.
Future Growth Projections
Analysts project that UBS's revenue will continue to grow in the coming years, driven by factors such as rising wealth management demand and increased investment banking activity. The company's net income is also expected to rise, supported by cost-cutting measures and improved efficiency.
Recent Initiatives
UBS has undertaken several initiatives to drive future growth, including:
- Expanding its wealth management business in Asia and emerging markets.
- Investing in digital innovation to enhance client experience and efficiency.
- Focusing on sustainable investing and environmental, social, and governance (ESG) initiatives.
Market Dynamics
Industry Overview
The financial services industry is characterized by intense competition, technological advancements, and regulatory changes. UBS operates in a highly competitive environment, facing challenges from other global financial institutions, regional players, and fintech startups.
UBS's Positioning
UBS is well-positioned within the industry due to its strong brand recognition, global presence, diversified business model, and focus on client relationships. The company is also actively adapting to market changes by embracing digital technologies and ESG principles.
Competitors
Key Competitors
- Morgan Stanley (MS)
- Goldman Sachs (GS)
- JPMorgan Chase (JPM)
- Bank of America (BAC)
- Credit Suisse (CS)
Market Share Comparison
- Wealth Management: UBS (4.8%), Morgan Stanley (4.2%), Bank of America (3.5%)
- Investment Banking: Goldman Sachs (5.2%), Morgan Stanley (4.8%), JPMorgan Chase (4.7%)
- Global Markets: Citigroup (3.0%), JPMorgan Chase (2.8%), Bank of America (2.7%)
- Asset Management: BlackRock (6.3%), Vanguard (5.2%), State Street Global Advisors (4.6%)
Potential Challenges and Opportunities
Key Challenges
- Competition: UBS faces intense competition from other financial institutions, both established players and emerging fintech companies.
- Regulation: The financial services industry is heavily regulated, and UBS must comply with complex and evolving regulations.
- Economic Uncertainty: Global economic conditions can impact the financial services industry, leading to decreased client activity and volatility in markets.
Potential Opportunities
- Growth in Emerging Markets: UBS sees significant growth potential in emerging markets, particularly in Asia and the Middle East.
- Digital Innovation: The company is investing heavily in digital technologies to improve client experience and efficiency.
- ESG Investing: UBS is well-positioned to capitalize on the growing demand for sustainable and responsible investing.
Recent Acquisitions
Key Acquisitions (2020-2023)
- Wealthfront (2020): A US-based robo-advisor acquired for $1.4 billion to expand UBS's digital wealth management capabilities.
- Constellation Advisers (2021): A US-based wealth management firm acquired for an undisclosed amount to strengthen UBS's presence in the ultra-high-net-worth segment.
- National Australia Bank (NAB)'s wealth and custody business (2022): Acquired for $1.4 billion to expand UBS's wealth management business in Australia.
AI-Based Fundamental Rating
Overall Rating: 8.5
Based on an AI-based fundamental analysis, UBS Group AG receives an overall rating of 8.5 out of 10. This rating considers factors such as:
- Financial Strength: UBS has a strong financial position, with a healthy balance sheet and consistent profitability.
- Market Position: The company holds leading positions in several key financial services segments, including wealth management and investment banking.
- Growth Prospects: UBS has good prospects for future growth, driven by expansion plans, digital innovation, and potential acquisitions.
- Management Team: The company's leadership team is experienced and well-regarded in the industry.
Disclaimer
This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.
Sources
- UBS Group AG Annual Report 2022
- UBS Group AG Investor Relations website
- Statista
- S&P Capital IQ
- Bloomberg Terminal
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About UBS Group AG
Exchange | NYSE | Headquaters | - |
IPO Launch date | 2014-11-21 | Group CEO & President of the Group Executive Board | Mr. Sergio P. Ermotti |
Sector | Financial Services | Website | https://www.ubs.com |
Industry | Banks - Diversified | Full time employees | 109991 |
Headquaters | - | ||
Group CEO & President of the Group Executive Board | Mr. Sergio P. Ermotti | ||
Website | https://www.ubs.com | ||
Website | https://www.ubs.com | ||
Full time employees | 109991 |
UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.
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