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UBS Group AG UBSG

Morningstar Rating
$26.55 −0.30 (1.12%)
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Company Report

UBS and Credit Suisse Integration Comes With Risk and Opportunities

The Credit Suisse integration is UBS' main focus for the foreseeable future. After the 2008 global financial crisis, UBS was in a similar position to Credit Suisse before its collapse. UBS' capital allocation was utterly lopsided, with 70% of its capital allocated to volatile, unprofitable investment banking activities. Over the next 15 years, UBS reduced the capital allocated to investment banking to 30% and shut down investment banking operations that did not support its core wealth management business. UBS halved its asset base and lopped 30% of its cost base while growing revenue. The consequent capital adequacy and profitability improvement allowed it to buy back 20% of its shares over the past five years. Now UBS will have to do this all over again.

Price vs Fair Value

UBSG is trading within a range we consider fairly valued.
Price
CHF 26.55
Fair Value
CHF 91.10
Uncertainty
High
1-Star Price
CHF 95.52
5-Star Price
CHF 39.50
Economic Moat
Vfsbn
Capital Allocation
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Bulls Say, Bears Say

Bulls

historically, UBS has been one of the most profitable wealth managers globally with a dominant position in the lucrative ultra-high-net-worth segment. The takeover of Credit Suisse will further entrench its competitive advantages.

Bears

There has been a substantial increase in competition, with expansion into wealth management a part of the strategy of most banks and insurers.

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News

Trading Information

Previous Close Price
$26.85
Day Range
$25.9626.60
52-Week Range
$18.6128.78
Bid/Ask
$0.00 / $0.00
Market Cap
$85.13 Bil
Volume/Avg
5.4 Mil / 5.9 Mil

Key Statistics

Price/Earnings (Normalized)
12.45
Price/Sales
2.34
Dividend Yield (Trailing)
2.40%
Dividend Yield (Forward)
2.40%
Total Yield
3.98%

Company Profile

The core of UBS is its global wealth management business focusing on high and ultra-high-net-worth individuals. UBS is also a conventional retail and commercial bank in its Swiss home market. Its investment bank and asset management businesses support its wealth management operations, but also leverage its strength in wealth management to serve third-party clients.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
112,842

Competitors

Valuation

Metric
UBSG
GS
MS
Price/Earnings (Normalized)
12.4518.0316.87
Price/Book Value
1.111.521.83
Price/Sales
2.343.303.14
Price/Cash Flow
12.5110.0910.68
Price/Earnings
UBSG
GS
MS

Financial Strength

Metric
UBSG
GS
MS
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
UBSG
GS
MS
Return on Assets (Normalized)
0.35%0.80%1.02%
Return on Equity (Normalized)
6.82%12.72%13.37%
Return on Invested Capital (Normalized)
Return on Assets
UBSG
GS
MS
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Banks - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPMorgan Chase & Co
JPM
SjbjbbqkMly$593.5 Bil
Bank of America Corp
BAC
NkzctywgFgkg$328.0 Bil
Wells Fargo & Co
WFC
LyqrrwkKzmm$202.3 Bil
HSBC Holdings PLC ADR
HSBC
VhgcxkbwmBtkr$158.3 Bil
Royal Bank of Canada
RY
TbygcdsnyPghvt$156.2 Bil
Mitsubishi UFJ Financial Group Inc ADR
MUFG
SglcddyqYgt$130.5 Bil
Citigroup Inc
C
KcxtkbcHpgh$121.5 Bil
The Toronto-Dominion Bank
TD
CfkdkrclmKsrp$101.3 Bil
UBS Group AG
UBS
MxnndgxywNpvfzzg$96.6 Bil
Banco Santander SA ADR
SAN
TvsdHmwmzx$79.1 Bil

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