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

• Market Cap: €1.04B
• Dividend Yield: 5.72%
• Average Volume (3M): 88.84K
• 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: 99,421
• 30 Day Avg. Volume: 88,837
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €7.50
• Price Target Upside: -1.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: €7.50 ▼(-1.06% Downside)

The overall stock score reflects significant financial challenges, including declining revenue and profitability, high leverage, and cash flow issues. Despite these challenges, the stock's valuation appears attractive with a low P/E ratio and high dividend yield, which could appeal to value investors. Technical analysis shows mixed signals, with potential medium-term support but short-term weakness.

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	714.88M	555.08M	498.07M	486.05M	483.28M	432.07M
Gross Profit	440.36M	555.08M	581.26M	486.05M	483.28M	432.07M
EBITDA	208.81M	211.54M	226.25M	129.60M	79.88M	51.59M
Net Income	123.39M	125.54M	240.36M	81.46M	54.90M	23.69M
Balance Sheet
Total Assets	18.33B	18.63B	18.56B	17.54B	17.80B	15.66B
Cash, Cash Equivalents and Short-Term Investments	743.97M	1.02B	1.66B	879.59M	2.04B	928.94M
Total Debt	2.75B	5.00B	4.46B	1.54B	1.69B	1.73B
Total Liabilities	16.85B	17.19B	17.20B	1.54B	16.72B	14.67B
Stockholders Equity	1.48B	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	-4.87M
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: 7.58
• 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 7.58 is above the 20-day moving average (MA) of 7.47, above the 50-day MA of 7.37, and above the 200-day MA of 7.26, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 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	70 Outperform	1.40B	7.87	9.33%	9.19%	-3.63%	-5.12%
CE	67 Neutral	4.55B	6.83	0.00%	7.09%	-3.34%	13.60%
PRO	64 Neutral	105.31M	22.36	5.77%	7.98%	-1.37%	-43.31%
ILTY	59 Neutral	339.24M	-1.88	0.00%	―	-5.68%	-340.08%
DOV	59 Neutral	606.29M	-16.96	-8.92%	―	15.53%	-35.02%
BDB	54 Neutral	€1.04B	8.81	8.29%	5.72%	-6.81%	-4.79%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Banco di Desio e Della Brianza SPA Corporate Events

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.

Banco Desio Gains Approval for Advanced Risk System

Banco di Desio e della Brianza has received authorization from the Bank of Italy to use the A-IRB internal credit risk measurement system, marking a significant advancement in its credit risk management capabilities. This development is expected to enhance the bank’s competitiveness and strengthen its capital solidity, benefiting its operations and stakeholders.