CS

Credit Suisse Group AG

Finance/Real Estate


Presented:08/07/2019
Price:$11.43
Cap:$28.66B
Current Price:$0.89
Cap:$3.50B

Presented

Date08/07/2019
Price$11.43
Market Cap$28.66B
Ent Value$210.16B
P/E Ratio12.14x
Book Value$17.86
Div Yield2.25%
Shares O/S2,507.77M
Ave Daily Vol2,438,404
Short IntN/A

Current

Price$0.89
Market Cap$3.50B
Credit Suisse Group AG engages in the provision of financial services. It operates through the following segments: Swiss Universal Bank; International Wealth Management; Asia Pacific; Global Markets; Investment Banking and Capital Markets; and Strategic Resolution Unit. The Swiss Universal Bank segment offers comprehensive advice and financial solutions to private, corporate, and institutional clients in Switzerland. The International Wealth Management segment gives advisory services, and tailored investment and financing solutions to wealthy private clients and external asset managers in Europe, the Middle East, Africa, and Latin America. The Asia Pacific segment comprises of wealth management, financing, and underwriting activities. The Global Market segment delivers securities sales, trading and execution, prime brokerage, and comprehensive investment research. The Investment Banking and Capital Markets segment covers investment banking services to corporations, financial institutions, and financial sponsors. The Strategic Resolution Unit segment includes non-controlling interest-related revenues and expenses resulting from the consolidation of certain private equity funds and other entities. The company was founded by Alfred Escher on July 5, 1856 and is headquartered in Zurich, Switzerland.

Publicly traded companies mentioned herein: Credit Suisse Group AG (CS), Prudential plc (PRU LN)

Highlights

The presenter is long shares of Credit Suisse (CS) as the company has been able to establish a reputable wealth management business, successfully completed a restructuring period, and has an excellent management team led by CEO Tidjane Thiam. The presenter views it as a deep value investment with CS currently trading at 5.5x FY 2021 earnings (For context, the five year average NTM earnings multiple is 11x - 12x). Additionally, Street estimates look overly bearish and the multiple is very depressed. Using an 11x multiple on his FY2021 earnings estimate of $2.05, the stock would trade ~$22.50 per share, for 100% upside over the next 18 months. 

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Idea Discussion

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