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

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IT:BAMI

Banco BPM S.p.A.

(LSE:BAMI)

Rating:79Outperform
Price Target:
€13.50
▲(17.39% Upside)
Banco BPM S.p.A. is rated highly due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest it is undervalued. The technical analysis supports a positive outlook with strong market momentum. Financial performance is solid, though operational efficiency and cash flow management require attention. The absence of earnings call data and corporate events does not affect the score.

Banco BPM S.p.A. (BAMI) vs. iShares MSCI Italy ETF (EWI)

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

Company DescriptionBanco 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 MoneyBanco 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. shows strong revenue growth and improved profitability, with a net profit margin of 30.90%. However, operational challenges are indicated by a volatile EBIT margin and decreased free cash flow, coupled with high leverage risk.
Income Statement
78
Positive
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
72
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.91B5.45B4.59B3.76B3.30B2.59B
Gross Profit1.71B5.45B4.59B3.76B3.30B2.59B
EBITDA1.17B2.77B2.01B1.19B720.71M-316.83M
Net Income1.30B1.92B1.26B685.05M569.07M20.88M
Balance Sheet
Total Assets205.53B198.21B202.13B189.69B200.49B183.69B
Cash, Cash Equivalents and Short-Term Investments0.0012.12B18.30B15.02B39.78B17.25B
Total Debt31.20B24.04B42.16B46.60B16.12B51.16B
Total Liabilities190.67B183.61B188.09B176.92B187.39B171.46B
Stockholders Equity14.87B14.60B14.04B13.02B13.09B12.23B
Cash Flow
Free Cash Flow5.06B5.06B5.70B-16.00B19.48B7.65B
Operating Cash Flow5.17B5.17B5.89B-15.68B19.68B7.80B
Investing Cash Flow-2.50B-2.50B-142.84M-250.44M-180.49M-211.36M
Financing Cash Flow-9.04B-9.04B-379.61M-96.34M241.85M354.73M

Banco BPM S.p.A. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.50
Price Trends
50DMA
10.99
Positive
100DMA
10.34
Positive
200DMA
9.19
Positive
Market Momentum
MACD
0.17
Positive
RSI
50.14
Neutral
STOCH
24.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BAMI, the sentiment is Neutral. The current price of 11.5 is below the 20-day moving average (MA) of 11.79, above the 50-day MA of 10.99, and above the 200-day MA of 9.19, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BAMI.

Banco BPM S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€17.38B7.2516.45%8.70%2.23%72.08%
68
Neutral
$17.81B11.8710.24%3.74%9.75%1.30%
€9.24B5.4615.13%
€16.86B7.7814.64%
€11.30B17.3732.83%
€15.21B11.7911.90%
$14.88B12.0328.26%7.36%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BAMI
Banco BPM S.p.A.
11.50
6.21
117.63%
GB:0RK6
Banca Monte dei Paschi di Siena SPA
7.30
2.90
65.91%
GB:0MU6
BPER Banca S.p.A.
8.67
4.19
93.53%
GB:0QVF
FinecoBank SpA
18.48
3.61
24.28%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
19.38
5.17
36.38%
BNMDF
Banca Mediolanum SpA
20.52
9.28
82.56%
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.Date of analysis: Aug 29, 2025