Banco di Desio e Della Brianza SPA (BDB) AI Stock Analysis

• Market Cap: €1.05B
• Dividend Yield: 5.88%
• Average Volume (3M): 122.11K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.91
• Revenue Growth: -6.81%
• EPS Growth: -4.79%
• Country: IT
• Employees: 2,535
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 134,363,050
• 10 Day Avg. Volume: 158,983
• 30 Day Avg. Volume: 122,115
• PEG Ratio: -0.15
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.63
• P/FCF Ratio: -1.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: €8.00 ▲(6.52% Upside)

The overall stock score reflects a challenging financial performance with significant risks due to high leverage and cash flow issues. However, the technical analysis indicates a neutral to slightly positive trend, and the valuation suggests the stock may be undervalued with an attractive dividend yield. These factors combined result in a moderate overall score.

Banco di Desio e Della Brianza SPA Business Overview & Revenue Model

Company Description

Banco di Desio e della Brianza S.p.A. provides banking products and services to individuals and enterprises in Italy. The company offers deposits and loans. It also provides financial, banking, payment, documentary credit, leasing, factoring, insurance, and asset management products and services, as well as debit and credit cards. The company was incorporated in 1909 and is based in Desio, Italy.

How the Company Makes Money

Banco di Desio e Della Brianza SPA generates revenue through several key streams, primarily from interest income earned on loans and mortgages provided to customers. The bank charges interest rates on these products, which contributes significantly to its overall earnings. Additionally, BDB earns fee-based income from various banking services, including account maintenance fees, transaction fees, and commissions from wealth management and insurance products. The bank also engages in investment activities, which can yield returns and capital gains. Strategic partnerships with other financial institutions and companies enhance its product offerings and market reach, further contributing to its revenue generation.

Banco di Desio e Della Brianza SPA Financial Statement Overview

Summary

Banco di Desio e Della Brianza SPA faces significant challenges with declining revenue and profitability, high leverage, and cash flow issues. While the gross profit margin remains strong, the overall financial health is weakened by reduced net income and operational inefficiencies. The high debt levels and negative cash flow trends pose risks that need to be addressed to improve financial stability.

Income Statement

The income statement reveals a significant decline in revenue growth rate at -28.45% for the latest year, indicating a challenging environment. The gross profit margin remains strong at 100%, but net profit margin has decreased to 22.62% from 48.26% the previous year, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.45, indicating significant leverage, which could pose risks in a volatile market. Return on equity has decreased to 8.67% from 17.75%, reflecting reduced efficiency in generating returns for shareholders. The equity ratio stands at 7.77%, indicating a relatively low proportion of equity financing.

Cash Flow

The cash flow statement highlights a concerning negative free cash flow growth rate and negative operating cash flow, indicating potential liquidity issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is just covering net income, but the negative operating cash flow to net income ratio indicates operational cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	761.10M	555.08M	502.72M	413.18M	354.36M	323.57M
Gross Profit	587.57M	644.63M	498.07M	413.18M	354.36M	323.57M
EBITDA	208.15M	211.54M	227.47M	129.60M	79.88M	51.59M
Net Income	117.84M	125.54M	240.36M	81.46M	54.90M	23.69M
Balance Sheet
Total Assets	18.60B	18.63B	18.56B	17.54B	17.80B	15.66B
Cash, Cash Equivalents and Short-Term Investments	846.68M	1.02B	1.66B	879.59M	2.04B	928.94M
Total Debt	3.90B	5.00B	5.62B	5.66B	1.69B	4.21B
Total Liabilities	17.15B	17.19B	17.20B	16.42B	16.72B	14.67B
Stockholders Equity	1.45B	1.45B	1.35B	1.12B	1.09B	995.07M
Cash Flow
Free Cash Flow	0.00	-576.34M	705.57M	814.51M	-30.82M	-7.51M
Operating Cash Flow	0.00	-562.78M	747.13M	822.33M	-25.20M	-2.63M
Investing Cash Flow	0.00	-35.22M	51.75M	-11.98M	-5.59M	-5.03B
Financing Cash Flow	0.00	-41.02M	-26.46M	-18.34M	-8.36M	1.43B

Banco di Desio e Della Brianza SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.51
• 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:BDB, the sentiment is Positive. The current price of 7.51 is below the 20-day moving average (MA) of 7.69, below the 50-day MA of 7.59, and above the 200-day MA of 7.47, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 68.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BDB.

Banco di Desio e Della Brianza SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IF	―	€1.33B	7.50	8.85%	9.50%	-3.63%	-5.12%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CE	―	€4.53B	6.79	15.88%	7.10%	-3.34%	13.60%
PRO	―	€105.31M	22.36	3.00%	7.93%	-1.37%	-43.31%
BDB	―	€1.05B	8.82	8.29%	5.88%	-6.81%	-4.79%
ILTY	―	―	―	―	―	―	―
DOV	―	€514.15M	-14.97	-13.55%	―	15.53%	-35.02%

Banco di Desio e Della Brianza SPA Corporate Events

Banco Desio’s Successful 300 Million Euro Bond Issuance

Banco di Desio e della Brianza S.p.A. has successfully completed its first Senior Preferred Bond issuance, raising 300 million euros with significant demand from institutional investors, particularly from foreign markets. The bond, part of a 3 billion euro program listed on the Dublin Stock Exchange, received orders totaling 1.8 billion euros, demonstrating strong investor confidence and enhancing Banco Desio’s international market presence.

The most recent analyst rating on (IT:BDB) stock is a Hold with a EUR7.50 price target. To see the full list of analyst forecasts on Banco di Desio e Della Brianza SPA stock, see the IT:BDB Stock Forecast page.

Banco Desio Receives Updated MREL Requirements from Banca d’Italia

Banco di Desio e della Brianza S.p.A. has received a notification from Banca d’Italia regarding its MREL requirements, which are slightly adjusted to 17.81% for TREA and 5.34% for LRE. Despite the adjustments, Banco Desio’s current MREL coefficients significantly exceed the minimum requirements, indicating a strong capital position that will be integrated into its strategic and funding plans.

The most recent analyst rating on (IT:BDB) stock is a Hold with a EUR7.50 price target. To see the full list of analyst forecasts on Banco di Desio e Della Brianza SPA stock, see the IT:BDB Stock Forecast page.

Banco di Desio Reports Strong Capital Ratios Amid Profit Decline

Banco di Desio e della Brianza S.p.A. reported a consolidated net profit of 70.4 million euros for the first half of 2025, a decrease of 9.9% compared to the same period in 2024. Despite the decline in profit, the bank showed strong capital ratios and improved liquidity, with a CET 1 ratio of 18.5% and a TCR of 19.6%. The bank also demonstrated growth in personal loans and wealth management, aligning with its strategic objectives. Additionally, the bank’s sustainability efforts were highlighted by the successful placement of green bonds and a strong corporate rating.