Bankinter
🇪🇸 BKT.MC · Madrid · ES0113679I37
Bank
EUR 13.64 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 13.64 ÷ 1.21 = 11.2
TTM period through: 2025-12-31
Forward P/E (estimated): 10.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.7
Yield (Fwd)
5.35%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.38%
Net Debt/EBITDA (TTM)
-2.8x
Latest quarter: -11.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): -11.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
60.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 47.4%
FCF Coverage (TTM): -19.26x
ROE
17.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Bankinter is a highly profitable Spanish commercial bank demonstrating exceptional capital efficiency with an ROE exceeding 17% and expanding alternative investment operations. Trading at €13.64, below our blended fair value estimate of €16-19 (17-39% undervalued), it is worth considering for new positions. The well-covered 4.4% dividend yield provides reliable income while investors wait for the market to fully price in its recent strategic acquisitions and ambitious Iberian growth plans.
Sector Context
Bankinter is a leading Spanish commercial bank providing retail banking, wealth management, corporate banking, and insurance services across the Iberian peninsula. In the banking sector, metrics like high Debt/Equity ratios and negative Free Cash Flow are normal structural features (deposits are liabilities and growing loan books consume cash); investors should instead focus on Bankinter's exceptional ROE (17.7%) and well-managed payout ratio (51.8%), which indicate a highly efficient and well-capitalized institution.
Temporary Opportunity Identified
Broader market volatility and inflation fears driven by geopolitical tensions have caused short-term price fluctuations, obscuring the bank's record profits and robust fundamentals.
📊 Strategy Analysis
- • Attractive valuation with a P/E of 11.25, sitting comfortably within the ideal 8-15x sweet spot and suggesting potential undervaluation relative to its high returns.
- • Exceptional capital efficiency evidenced by a robust Return on Equity (ROE) of 17.7%, significantly outperforming typical European banking sector averages.
- • Sustainable dividend yield of 4.38% (forward 5.35%) supported by a conservative 51.8% payout ratio, leaving ample room for the recently announced 'historic' dividend distributions.
- • Strategic growth initiatives, including ambitious market share targets in Portugal and the integration of alternative investment managers to reach €14B in committed capital, providing new revenue streams.
⚠ What to Watch
- • The 5-year EPS CAGR of -4.0% indicates some historical margin pressures, requiring monitoring despite strong recent profitability.
- • Recent revenue trajectory has shown some softness over the last 8 quarters, which could impact net interest margins as European rate cycles normalize.
- • Geopolitical tensions and persistent inflation concerns could impact broader macroeconomic stability and loan demand across its core Iberian markets.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.