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Banca Generali SpA (IT:BGN)
:BGN
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Banca Generali SpA (BGN) AI Stock Analysis

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IT:BGN

Banca Generali SpA

(LSE:BGN)

Rating:75Outperform
Price Target:
€54.00
▲(12.69%Upside)
Banca Generali SpA's overall score reflects strong financial performance and attractive valuation metrics, particularly its reasonable P/E ratio and high dividend yield. However, technical analysis indicates potential resistance, and cash flow volatility remains a concern.

Banca Generali SpA (BGN) vs. iShares MSCI Italy ETF (EWI)

Banca Generali SpA Business Overview & Revenue Model

Company DescriptionBanca Generali SpA (BGN) is an Italy-based financial institution that specializes in providing private banking and wealth management services. The company operates primarily in the financial services sector, offering a wide range of products including asset management, financial advisory, and insurance solutions. With a focus on high-net-worth individuals and affluent clients, Banca Generali leverages its expertise to deliver tailored financial strategies and investment opportunities.
How the Company Makes MoneyBanca Generali makes money primarily through fees and commissions derived from its wealth management and private banking services. Its core revenue streams include management fees for overseeing client assets, performance fees tied to investment outcomes, and advisory fees for financial planning and consultancy services. Additionally, the company earns commissions from distributing third-party financial products such as mutual funds and insurance policies. Strategic partnerships with asset managers and financial institutions also contribute to its earnings by broadening its product offerings and increasing its market reach.

Banca Generali SpA Financial Statement Overview

Summary
Banca Generali SpA exhibits strong financial performance with increasing revenues and profitability margins, supported by efficient cost management and operational efficiency. However, cash flow volatility poses a concern for maintaining operational liquidity.
Income Statement
85
Very Positive
Banca Generali SpA demonstrates strong profitability with a consistent increase in total revenue from €666.69M in 2019 to €982M in 2024. The net profit margin improved from 40.81% in 2019 to 43.90% in 2024, indicating enhanced efficiency in translating revenue into profit. However, the gross profit margin remained static at 100%, typical for the banking sector, reflecting the company's ability to manage costs effectively. EBIT margins have improved significantly from 50.12% in 2019 to 68.54% in 2024, showcasing strong operational efficiency.
Balance Sheet
78
Positive
The company's financial leverage is well-managed with a debt-to-equity ratio decreasing from 0.36 in 2019 to 0.24 in 2024, indicating prudent financial management. The return on equity increased from 29.65% in 2019 to 29.54% in 2024, showing effectiveness in utilizing shareholder funds despite minor fluctuations. The equity ratio remains stable at around 8.67% in 2024, reflecting a solid capital structure but slightly lower than optimal for the banking industry, which might indicate room for improvement in capital efficiency.
Cash Flow
70
Positive
Banca Generali SpA's cash flow statements show volatility, with operating cash flows fluctuating significantly, from a negative €328.63M in 2019 to zero in 2024, indicating potential challenges in maintaining consistent cash generation from operations. The free cash flow was negative in 2022 but showed a recovery in 2023 to €286.72M. The free cash flow to net income ratio is not calculable in 2024, highlighting potential concerns about sustainable cash generation relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.30B802.46M737.31M817.26M712.43M
Gross Profit998.68M781.10M737.31M817.26M712.43M
EBITDA569.77M484.60M359.15M428.67M380.59M
Net Income431.20M326.14M213.03M323.10M274.92M
Balance Sheet
Total Assets16.82B15.52B17.27B16.19B13.18B
Cash, Cash Equivalents and Short-Term Investments1.30B618.97M986.75M1.83B863.33M
Total Debt449.30M281.70M633.26M381.85M340.35M
Total Liabilities15.36B14.30B16.20B15.09B11.99B
Stockholders Equity1.46B1.21B1.07B1.11B1.18B
Cash Flow
Free Cash Flow-172.78M286.72M-611.97M1.16B63.69M
Operating Cash Flow-169.85M314.29M-592.13M1.17B78.97M
Investing Cash Flow-27.73M-27.47M-20.50M93.36M-15.57M
Financing Cash Flow-213.24M-1.94B-233.46M-311.38M-14.69M

Banca Generali SpA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price47.92
Price Trends
50DMA
48.97
Negative
100DMA
49.09
Negative
200DMA
46.30
Positive
Market Momentum
MACD
-0.24
Negative
RSI
47.91
Neutral
STOCH
70.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BGN, the sentiment is Neutral. The current price of 47.92 is above the 20-day moving average (MA) of 47.03, below the 50-day MA of 48.97, and above the 200-day MA of 46.30, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BGN.

Banca Generali SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€11.39B8.1813.24%7.49%1.64%-17.75%
75
Outperform
€5.46B13.0330.35%5.74%9.60%14.87%
71
Outperform
€11.38B17.4328.46%3.98%8.66%7.01%
70
Outperform
€15.17B11.7311.91%5.95%17.52%24.02%
65
Neutral
£5.01B10.336.93%45.34%24.07%4.38%
63
Neutral
€11.01B9.6427.96%6.36%21.55%36.51%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BGN
Banca Generali SpA
47.36
8.91
23.18%
IT:MB
Mediobanca Banca di Credito Finanziario S.p.A.
18.72
4.92
35.62%
IT:BPE
BPER Banca S.p.A.
8.02
3.05
61.35%
IT:FBK
FinecoBank SpA
18.61
3.25
21.14%
IT:BMED
Banca Mediolanum SpA
14.93
4.93
49.24%
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: Jul 25, 2025