Banco BPM S.p.A. (BAMI) AI Stock Analysis

• Market Cap: €19.05B
• Dividend Yield: 8.53%
• Average Volume (3M): 7.98M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.15
• Revenue Growth: 2.23%
• EPS Growth: 72.08%
• Country: IT
• Employees: 18,964
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 1,515,182,100
• 10 Day Avg. Volume: 7,426,116
• 30 Day Avg. Volume: 7,982,693
• PEG Ratio: 0.12
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 2.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €13.57
• Price Target Upside: 9.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €14.00 ▲(12.72% Upside)

Banco BPM S.p.A. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, making it attractive to value and income investors. However, technical indicators suggest a cautious approach due to short-term bearish trends. Financial performance is solid but requires improvement in cash flow management and operational efficiency.

Positive Factors

Revenue Growth

The significant revenue growth indicates a robust market position and effective business strategies, contributing to long-term financial stability.

Profitability Improvements

Improved profitability margins suggest efficient cost management and pricing strategies, supporting sustainable earnings growth over time.

Effective Equity Utilization

Improved return on equity indicates strong management performance in capital allocation, enhancing shareholder value and long-term growth prospects.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Management Issues

Declining free cash flow may constrain the company's ability to fund operations and investments, affecting long-term financial health and growth.

Operational Efficiency Challenges

Volatile EBIT margins suggest operational inefficiencies, which could hinder profitability and require strategic adjustments to sustain growth.

Banco BPM S.p.A. Business Overview & Revenue Model

Company Description

Banco BPM S.p.A., together with its subsidiaries, provides banking and financial products and services to individual, business, and corporate customers in Italy. The company operates through Retail, Corporate, Institutional, Private, Investment Banking, Strategic Partnerships, Leases, and Corporate Centre segments. It offers current accounts; home mortgages; personal loans; credit, debit, and prepaid cards; home, personal, assets, and auto and vehicle insurance; and saving and investment products, as well as online trading services. The company also provides business financing, corporate leasing, project and real estate financing, payment and collections, trade and export finance, and digital services, as well as investment and transactional banking. As of December 31, 2021, it operated 1,508 branches. The company was formerly known as Banco Popolare Societa Cooperativa Scarl and changed its name to Banco BPM Società per Azioni in January 2017. Banco BPM S.p.A. is headquartered in Verona, Italy.

How the Company Makes Money

Banco BPM generates revenue through multiple streams primarily centered around interest income and non-interest income. The main revenue source is interest income from loans extended to individuals and businesses, which includes personal loans, mortgages, and corporate credit facilities. Additionally, the bank earns fees from various services such as account management, transaction processing, and advisory services related to investments and asset management. Non-interest income also comes from commissions on financial products, wealth management services, and insurance. Significant partnerships with other financial entities and fintech firms enhance its offering and contribute to its revenue. Furthermore, the bank's focus on digital transformation and customer acquisition strategies plays a crucial role in sustaining its profitability.

Banco BPM S.p.A. Financial Statement Overview

Summary

Banco BPM S.p.A. exhibits strong revenue growth and profitability improvements, but faces challenges with operational efficiency and cash flow management. The high leverage presents a risk, though the company effectively utilizes equity to generate returns. Overall, the financial health is solid but requires attention to cash flow stability and operational margins.

Income Statement

Banco BPM S.p.A. has demonstrated strong revenue growth with a 15.09% increase in the latest year, indicating a positive trajectory. The net profit margin has improved to 30.90%, reflecting enhanced profitability. However, the EBIT margin shows volatility, with a negative value in the latest report, suggesting potential operational challenges.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.65, which indicates significant leverage and potential risk. However, the return on equity has improved to 11.74%, showcasing effective use of equity to generate profits. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow has decreased by 22.51%, indicating potential cash management issues. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not fully supporting net income. However, the free cash flow to net income ratio is strong at 97.80%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.16B	10.34B	8.84B	5.29B	4.78B	4.50B
Gross Profit	4.16B	6.83B	5.65B	4.70B	4.37B	4.04B
EBITDA	0.00	2.89B	2.06B	1.33B	934.02M	53.33M
Net Income	1.86B	1.92B	1.26B	685.05M	569.07M	20.88M
Balance Sheet
Total Assets	210.95B	198.21B	202.10B	189.69B	200.49B	183.69B
Cash, Cash Equivalents and Short-Term Investments	12.78B	13.81B	19.87B	15.02B	39.78B	17.80B
Total Debt	30.20B	29.39B	23.95B	46.60B	61.08B	17.55B
Total Liabilities	195.63B	183.61B	188.06B	176.92B	187.39B	171.46B
Stockholders Equity	15.26B	14.60B	14.04B	13.02B	13.09B	12.23B
Cash Flow
Free Cash Flow	14.91B	5.06B	5.70B	-16.00B	19.48B	7.65B
Operating Cash Flow	15.06B	5.17B	5.89B	-15.68B	19.68B	7.80B
Investing Cash Flow	-14.11B	-2.50B	-142.84M	-250.44M	-180.49M	-211.36M
Financing Cash Flow	-621.41M	-9.04B	-379.61M	-96.34M	241.85M	354.73M

Banco BPM S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BAMI, the sentiment is Positive. The current price of 12.42 is above the 20-day moving average (MA) of 12.36, above the 50-day MA of 12.20, and above the 200-day MA of 10.34, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 41.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BAMI.

Banco BPM S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	79 Outperform	€20.29B	9.29	12.55%	6.74%	-11.28%	-15.25%
BAMI	72 Outperform	€19.05B	7.95	16.45%	8.53%	2.23%	72.08%
BMPS	71 Outperform	€23.09B	5.69	15.13%	10.55%	-5.31%	-35.03%
FBK	71 Outperform	€12.36B	19.01	32.83%	3.50%	2.97%	4.64%
BMED	71 Outperform	$13.36B	11.41	26.99%	6.67%	7.88%	27.11%
MB	70 Outperform	€13.01B	10.05	11.91%	6.88%	-0.72%	6.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%