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

• Market Cap: €19.05B
• Dividend Yield: 7.94%
• 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: €13.45
• Price Target Upside: 6.75% 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 ▲(11.11% 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.

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

Company Description

Banco BPM S.p.A. (BAMI) is one of Italy's leading banking institutions, formed through the merger of Banco Popolare and Banca Popolare di Milano. The bank operates primarily in the retail and corporate banking sectors, offering a wide range of financial products and services including personal and business loans, mortgages, savings accounts, investment services, and insurance products. With a strong focus on customer service and innovation, Banco BPM serves both individual and institutional clients across Italy and internationally.

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	4.17B	5.45B	8.84B	3.76B	3.30B	2.59B
Gross Profit	4.17B	5.45B	5.65B	4.70B	4.37B	2.59B
EBITDA	1.41B	2.77B	2.01B	1.33B	934.02M	-316.83M
Net Income	1.96B	1.92B	1.26B	685.05M	569.07M	20.88M
Balance Sheet
Total Assets	210.95B	198.21B	202.13B	189.69B	200.49B	183.69B
Cash, Cash Equivalents and Short-Term Investments	12.78B	12.12B	18.30B	15.02B	39.78B	17.25B
Total Debt	30.20B	24.04B	42.16B	46.60B	61.08B	51.16B
Total Liabilities	195.63B	183.61B	188.09B	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: 12.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12.6 is above the 20-day moving average (MA) of 12.41, above the 50-day MA of 12.45, and above the 200-day MA of 10.38, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.94 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	14.64%	5.82%	-0.56%	2.54%
BAMI	72 Outperform	€19.05B	7.95	16.45%	7.94%	2.23%	72.08%
BMPS	71 Outperform	€23.09B	5.69	15.13%	11.09%	-5.31%	-35.03%
FBK	71 Outperform	€12.36B	19.01	32.83%	3.49%	2.97%	4.64%
BMED	71 Outperform	$13.05B	11.38	26.99%	5.27%	2.34%	53.62%
MB	70 Outperform	€13.01B	10.05	11.91%	6.85%	-0.72%	6.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%