Swissquote Group Holding

This research has been commissioned and paid for by the company and does therefore not constitute an inducement caught by the prohibition under MiFID II

Swissquote Group Holding ^CR	Bloomberg SQN SW
Internet banking/Fintech / Switzerland	Web Site \| Investors Relation

Suited for all market seasons

Pros

Swissquote is well positioned to leverage its high quality multi asset class trading platform at an international level and remain a market leader in its domestic market
Swissquote is progressively diversifying its revenue source not only through product offering (cryptos, staking, white-label partnerships) but also structurally (asset-based) which will benefit from the increasing rates environment
Swissquote’s strong balance sheet (a high CET1 ratio and no debt) gives it appreciated flexibility in terms of acquisition or organic growth (R&D remains key to the company’s DNA)

Cons

Swissquote’s top-line remains strongly correlated to the health of the financial markets (low level of recurring revenues)
Competition has pressured trading fees in recent years at a time when central banks’ low/negative rates have put pressure on net interest income
Swissquote is increasingly targeting less-wealthy retail clients, a segment in which it should face more competition

Updates

11/05/24	Opinion	Reduce vs Add
02/04/24	Target	The slight upward change in our target pr...
02/04/24	EPS	The 2023 EPS came slightly below our pr...
02/04/24	NAV	Our NAV upgrade reflects for the most pa...
14/03/24	Earnings	FY-23: all-weather business model contin...
02/11/23	Target	Our change in target price on Swissquote...
02/11/23	EPS	We have left our 2023 EPS estimates un...
02/11/23	NAV	Our NAV is based on a 3-year average ...
11/08/23	Earnings	H1-23: NII tailwinds persist; 2023 guidan...
16/06/23	Target	Our target price increase is mainly driven ...
16/06/23	EPS	Our EPS forecast is massively increased...
16/06/23	DCF	As described in our EPS section, the DC...
17/03/23	Earnings	Unrelenting customer growth - again
07/03/23	Other news	Swissquote’s hidden value
07/03/23	Target	Our Target Price increases materially on t...
07/03/23	NAV	Our Net asset value has been significantl...
16/01/23	Earnings	Swissquote meets 2022 expectations; on...
05/10/22	Other news	Swissquote’s own crypto trading exchang...
28/09/22	Target	We reduce our TP integrating the last fina...
28/09/22	EPS	Our EPS is reduced as we decreased our...
28/09/22	NAV	The NAV target is slightly cut as we have ...
28/09/22	DCF	We cut our DCF valuation on the back of ...
10/08/22	Earnings	Revenue decreased but client growth is p...
20/06/22	Target	Our target price is slightly reduced (with ...
20/06/22	EPS	Our EPS forecast is slightly cut following ...
20/06/22	DCF	Our DCF valuation is reduced as a conse...
25/03/22	Opinion	We raise our recommendation to Buy foll...
25/03/22	Target	Our target price increases as we update ...
25/03/22	EPS	EPS grow materially as we integrate the f...
25/03/22	DCF	In accordance with the EPS, our DCF val...
17/03/22	Earnings	A record year punctuated by diversificati...
13/01/22	Earnings	Buy the dip
09/08/21	EPS	Following Swissquote’s H1 21 earnings r...
06/08/21	Earnings	Good numbers, increase in guidance, mo...
17/06/21	Opinion	Buy vs Reduce
17/06/21	EPS	Following Swissquote's H1 21 trading up...
17/06/21	NAV	Our NAV is based on our pre-tax profit. H...
17/06/21	DCF	The DCF is based on EBITDA expectatio...
16/06/21	Latest	Incredible numbers...
23/03/21	Opinion	Add vs Reduce
23/03/21	EPS	Following FY2020 and the communicatio...
23/03/21	NAV	Our NAV is based on a three-year averag...
23/03/21	DCF	As we have (sharply) increased our pre-t...
22/03/21	Earnings	Bullish (but reachable) targets
14/01/21	DCF	Our DCF is based on earnings/cash flow ...
14/01/21	Earnings	The party is going on...
13/01/21	Opinion	We are changing our recommendation on...
13/01/21	DCF	We have long used a beta of 1 for Swissq...
12/08/20	EPS	Following the H1 20 earnings release, we...

Key Data

Next release : 13/08/2024

	12/22A	12/23A	12/24E	12/25E	12/26E
Adjusted P/E (x)	12.5	12.3	14.1	14.8	14.3
Dividend yield (%)	1.67	2.39	2.07	1.97	2.03
EV/EBITDA(R) (x)	7.62	7.95	9.46	9.66	9.13
Adjusted EPS (CHF)	10.6	14.6	20.1	19.1	19.8
Growth in EPS (%)	-18.5	38.4	37.3	-4.73	3.19
Dividend (CHF)	2.20	4.30	5.84	5.57	5.75
Sales (CHFM)	408	531	680	652	685
Pretax Results margin (%)	45.7	48.1	51.7	51.4	50.5
Attributable net profit (CHFM)	157	218	299	284	294
ROE (after tax) (%)	23.2	26.5	32.6	22.2	17.8
Gearing (%)	-30.7	-30.1	-37.0	-28.0	-34.7
Next Div. Indic CHF 5.84 payment 16/05/2025