KBC Groep NV
🇧🇪 KBC.BR · Brussels · BE0003565737
Bank
EUR 108.70 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.1
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: 108.70 ÷ 8.99 = 12.1
TTM period through: 2025-12-31
Forward P/E (estimated): 11.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 12.5
Yield (Fwd)
4.69%
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): 4.64%
Net Debt/EBITDA (TTM)
-1.3x
Latest quarter: -4.8x
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): -4.8x
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)
56.7%
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)
ROE
13.7%
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
KBC Groep is a premier European bancassurance provider with a highly profitable model, dominant market positioning, and an excellent 13.6% ROE. While the 4.6% dividend yield is highly secure and backed by a conservative 47% payout ratio, the current valuation around €108 (P/E 12) represents a premium to regional peers and offers limited upside. Existing shareholders should maintain positions given the strong fundamentals, but new investors may want to wait for a more compelling entry point.
Sector Context
KBC Groep operates a highly integrated bancassurance business model, providing a mix of retail banking, corporate banking, insurance, and wealth management services across Belgium and Central Eastern Europe. In the banking sector, standard debt-to-EBITDA metrics are not applicable as deposits are classified as liabilities; instead, investors should focus on capital adequacy and profitability metrics like KBC's strong ROE, which demonstrates efficient capital allocation.
📊 Strategy Analysis
- • Integrated bancassurance model creates sticky customer relationships and cross-selling advantages, driving a strong ROE of 13.65%.
- • The 4.64% dividend yield is highly secure, supported by a conservative TTM payout ratio of 47.7% that leaves ample room for organic capital generation.
- • The current P/E of 12.09 sits comfortably within the strategy's target range, reflecting fair valuation for a high-quality regional franchise.
- • Debt-to-Equity ratio of 0.98 is very healthy for the banking sector, indicating a well-capitalized balance sheet.
⚠ What to Watch
- • Valuation multiples represent a premium compared to broader European banking peers, limiting the margin of safety for new capital deployment.
- • Recent 8-quarter trajectory shows declining top-line revenues, which requires monitoring even as bottom-line earnings continue to grow.
- • Ongoing EU regulatory scrutiny regarding market dominance and broader macroeconomic uncertainty (inflation, geopolitical tensions) could introduce near-term volatility.
📊 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.