December 21, 2023
Top 10 Stock ING Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View ING Buy

360 METRICS	December 21, 2023
VALUE
VALUE	52
GROWTH
GROWTH	39
SAFETY
SAFETY	59
SENTIMENT
SENTIMENT	81
360° VIEW
360° VIEW	55

ANALYSIS: With an Obermatt 360° View of 55 (better than 55% compared with alternatives), overall professional sentiment and financial characteristics for the stock ING are above average. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for ING. The consolidated Value Rank has an attractive rank of 52, which means that the share price of ING is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 52% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 59. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 81. But the consolidated Growth Rank has a low rank of 39, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 61 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 55, ING is better positioned than 55% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 52), secure financing practices (Safety Rank of 59), and positive market sentiment in the professional investor community (Sentiment Rank of 81). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 39), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of ING is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for ING very positive

SENTIMENT METRICS	December 21, 2023
ANALYST OPINION
ANALYST OPINION	65
OPINIONS CHANGE
OPINIONS CHANGE	72
PRO HOLDINGS
PRO HOLDINGS	67
MARKET PULSE
MARKET PULSE	90
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	81

ANALYSIS: With an Obermatt Sentiment Rank of 81 (better than 81% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock ING is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for ING. Analyst Opinions are at a rank of 65 (better than 65% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 72, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in ING. The Professional Investors rank is 67, which means that currently, professional investors hold more stock in this company than in 67% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 90 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 90% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 81 (more positive than 81% compared with investment alternatives), ING has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean ING stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: ING Stock Price Value better than average

VALUE METRICS	December 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	45
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	51
DIVIDEND YIELD
DIVIDEND YIELD	55
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52

ANALYSIS: With an Obermatt Value Rank of 52 (better than 52% compared with alternatives), ING shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for ING. Price-to-Sales (P/S) is 76 which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value for ING's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 51. Finally, compared with other companies in the same industry, dividend yields of ING are expected to be higher than for 55% of all competitors (a Dividend Yield rank of 55). The only low rank is for expected profits with a Price-to-Profit Rank of 45, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 52, is a buy recommendation based on ING's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. ...read more

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Growth Strategy: ING Growth Momentum low

GROWTH METRICS	December 21, 2023
REVENUE GROWTH
REVENUE GROWTH	46
PROFIT GROWTH
PROFIT GROWTH	76
CAPITAL GROWTH
CAPITAL GROWTH	23
STOCK RETURNS
STOCK RETURNS	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	39

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), ING shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for ING. While Profit Growth has a good rank of 76, as professionals currently expect the company to grow its profits more than 76% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 46, which means that currently professionals expect the company to grow less than 54% of its competitors, while Capital Growth has a rank of 23 and Stock Returns have been below market median, with a rank of 45 (55% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more

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Safety Strategy: ING Debt Financing Safety above-average

SAFETY METRICS	December 21, 2023
LEVERAGE
LEVERAGE	28
REFINANCING
REFINANCING	74
LIQUIDITY
LIQUIDITY	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company ING has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of ING is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for ING. Refinancing is at 74, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 74% of its competitors. Liquidity is also good at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 28, which means the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), ING has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and ING could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

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Combined financial peformance: ING Below-Average Financial Performance

COMBINED PERFORMANCE	December 21, 2023
VALUE
VALUE	52
GROWTH
GROWTH	39
SAFETY
SAFETY	57
COMBINED
COMBINED	33

ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), ING (Diversified Banks, Netherlands) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of ING are a good value (attractively priced) with a consolidated Value Rank of 52 (better than 52% of alternatives), are safely financed (Safety Rank of 59, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more

RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on ING's financial characteristics. As the company ING's key financial metrics exhibit good value (Obermatt Value Rank of 52) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 59), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 52% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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