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Banca Mediolanum SpA Unsponsored ADR (BNCDY)
:BNCDY
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Banca Mediolanum
(OTC:BNCDY)
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Rating:72Outperform
Price Target:
$45.00
â–²(13.55% Upside)
Banca Mediolanum's strong financial performance and positive earnings call outlook are the primary drivers of the score. The stock's reasonable valuation and high dividend yield further support its attractiveness. However, technical indicators suggest caution due to overbought conditions.
Banca Mediolanum (BNCDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.52B
Dividend Yield5.58%
Average Volume (3M)36.00
Price to Earnings (P/E)11.8
Beta (1Y)0.73
Revenue Growth13.04%
EPS Growth27.14%
CountryUS
Employees3,871
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
Shares Outstanding372,686,200
10 Day Avg. Volume41
30 Day Avg. Volume36
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.87
Enterprise Value/Gross Profit6.95
Enterprise Value/Ebitda11.15
Forecast
1Y Price Target
$45.00Price Target Upside13.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Banca Mediolanum Business Overview & Revenue Model
Company DescriptionBanca Mediolanum S.p.A. provides various banking products and services in Italy. The company offers current accounts and mortgages and loans. It also provides debit, credit, and prepaid cards; savings and investment products, such as equities and bonds, as well as trading services; and insurance and pension products and services. The company was founded in 1982 and is headquartered in Basiglio, Italy.
How the Company Makes MoneyBanca Mediolanum generates revenue through multiple channels, including interest income from loans and mortgages, fees from investment products, and commissions from insurance policies. The bank also earns money from asset management services, where it charges management fees on the funds it manages for clients. Additionally, Banca Mediolanum benefits from a unique distribution model that leverages a network of financial advisors, allowing the bank to reach a wide customer base while minimizing traditional branch costs. Partnerships with various financial institutions and technology providers enhance its service offerings, contributing to overall revenue growth.
Banca Mediolanum Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Banca Mediolanum's strong financial performance, with record net income and significant growth in managed assets and customer acquisition. However, concerns about regulatory impacts and increased funding costs pose challenges. Despite these lowlights, the overall outlook remains positive with strong market positioning and strategic growth initiatives.Q3-2024 Updates
Positive Updates
Record-Breaking Financial Performance
Net income reached EUR 674.3 million, exceeding last year's 9-month results by 18%. Q3 alone reported EUR 224.4 million, with a significant double-digit growth in net commission income up 13% to over EUR 874 million.
Strong Asset Under Management Growth
Managed assets achieved a notably positive trend, reaching EUR 5.44 billion, almost doubling last year's figure, and total net inflows marked a 28% increase for the 9 months.
Customer and Digital Channel Expansion
Record acquisition of 149,000 new bank customers, a 7% increase, with the digital channel Selfy contributing 21,200 new customers, a 5% increase.
Positive Market Conditions and Net Inflows
Market effects contributed to net income with positive mark-to-market and performance fees totaling EUR 51 million compared to a negligible amount last year, and total assets surged to EUR 133 billion, a 13% increase.
Strong Performance in Spain
Net income in Spain grew by 10% to EUR 54.4 million, with total assets increasing by 15% and managed assets by 22%.
Negative Updates
Potential Impact of Regulatory Changes
The implementation of Basel III regulations in 2025 is projected to reduce the CET1 ratio by around 2 percentage points, indicating a potential future challenge.
Higher Funding Costs
The higher than expected inflows due to promotional offers led to increased funding costs, impacting the net interest income growth projections.
Market Dependency and Future Uncertainties
Future performance heavily depends on market conditions, with potential competition from BTPs and rate fluctuations affecting managed asset inflows and NII projections.
Company Guidance
During Banca Mediolanum's Q3 2024 earnings call, the company provided guidance on several key financial metrics, highlighting a strong performance and positive outlook. Net income reached EUR 674.3 million, marking an 18% increase compared to the same period last year, with Q3 alone contributing EUR 224.4 million. Net interest income remained robust at over EUR 630 million, despite initial ECB rate cuts, and is projected to grow by 8% in 2024. The bank's net commission income experienced a significant 13% rise, totaling over EUR 874 million, with recurring fees hitting a record EUR 1.13 billion, up 14.5%. The operating margin soared to EUR 848 million, a 16% increase, while the cost/income ratio improved to 38.3%. Total net inflows over the first nine months were EUR 7.16 billion, a 28% increase, with managed assets contributing EUR 5.44 billion. The company's CET1 ratio stood strong at 23.4%, and an interim dividend of EUR 0.37 per share was announced. With a positive market outlook and strategic promotional efforts, Banca Mediolanum anticipates maintaining strong inflows and leveraging higher commission income to offset potential net interest income reductions in 2025.Banca Mediolanum Financial Statement Overview
Summary
Banca Mediolanum shows strong revenue growth and profitability with improved leverage, but faces challenges in operational efficiency and cash flow conversion.Income Statement
Banca Mediolanum has shown strong revenue growth of 9.3% in the latest year, with a solid gross profit margin of 80.4% and a net profit margin of 37.2%. However, the EBIT margin has slightly decreased from the previous year, indicating potential cost management issues. Overall, the income statement reflects robust profitability and growth, but with some room for improvement in operational efficiency.75
Positive
Balance Sheet
The company has significantly reduced its debt-to-equity ratio from 2.41 to 0.10, indicating improved financial stability. The return on equity is strong at 27.8%, suggesting effective use of equity to generate profits. However, the equity ratio is relatively low, which could pose risks if asset values fluctuate. Overall, the balance sheet shows improved leverage and strong returns, but with potential risks due to low equity coverage.68
Positive
Cash Flow
Banca Mediolanum's free cash flow has grown significantly, with a free cash flow to net income ratio of 95.1%, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash. Overall, the cash flow statement reflects strong free cash flow growth, but with some concerns regarding operating cash flow conversion.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.89B | 3.01B | 2.42B | 1.49B | 6.45B | 3.18B |
| Gross Profit | 2.44B | 2.42B | 1.92B | 1.41B | 6.40B | 3.11B |
| EBITDA | 1.52B | 1.51B | -19.41M | 741.41M | 890.47M | 531.42M |
| Net Income | 1.14B | 1.12B | 821.87M | 506.83M | 713.05M | 434.46M |
Balance Sheet | ||||||
| Total Assets | 86.14B | 86.15B | 77.83B | 73.60B | 73.52B | 59.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.28B | 188.13M | 2.75B | 5.32B | 664.61M |
| Total Debt | 319.47M | 396.88M | 8.32B | 372.29M | 68.01M | 74.38M |
| Total Liabilities | 81.78B | 82.13B | 74.38B | 70.66B | 70.64B | 56.29B |
| Stockholders Equity | 4.36B | 4.03B | 3.45B | 2.94B | 2.88B | 2.74B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.10B | -1.81B | 2.24B | 848.49M | -49.76M |
| Operating Cash Flow | 0.00 | 1.15B | -1.75B | 2.30B | 909.30M | -7.00M |
| Investing Cash Flow | 0.00 | -15.52M | -23.93M | -34.06M | -38.14M | -38.16M |
| Financing Cash Flow | 0.00 | -640.36M | -385.65M | -431.51M | -737.97M | 4.92M |
Banca Mediolanum Technical Analysis
Neutral
39.63
Price Trends
37.88
Positive
35.30
Positive
30.93
Positive
Market Momentum
0.61
Positive
50.90
Neutral
52.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNCDY, the sentiment is Neutral. The current price of 39.63 is below the 20-day moving average (MA) of 40.27, above the 50-day MA of 37.88, and above the 200-day MA of 30.93, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BNCDY.
Banca Mediolanum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 13.78B | 14.63 | 14.39% | 12.58% | -8.82% | 4.87% | |
76 Outperform | 12.25B | 10.99 | 16.23% | 5.13% | 12.43% | 56.30% | |
73 Outperform | 15.11B | 11.86 | 19.19% | 7.06% | -13.16% | -8.10% | |
73 Outperform | 22.13B | 12.77 | 16.02% | 5.00% | 5.16% | 27.77% | |
72 Outperform | $14.52B | 11.76 | 28.26% | 5.58% | 13.04% | 27.14% | |
63 Neutral | 2.73B | 7.04 | 8.04% | 1.76% | -57.78% | -67.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
BNCDY
Banca Mediolanum
39.63
16.00
67.71%
BCH
Banco De Chile
29.30
5.94
25.43%
BSBR
Banco Santander Brasil
5.56
0.25
4.71%
BSAC
Banco Santander Chile
25.93
6.46
33.18%
CIB
Bancolombia
51.56
23.91
86.47%
WF
Woori Finance Holdings Co
56.78
20.16
55.05%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.