Banca Generali SpA (BGN) AI Stock Analysis

• Market Cap: €5.65B
• Dividend Yield: 4.9%
• Average Volume (3M): 205.05K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.88
• Revenue Growth: 4.46%
• EPS Growth: -0.62%
• Country: IT
• Employees: 1,265
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.00
• Shares Outstanding: 116,851,640
• 10 Day Avg. Volume: 152,172
• 30 Day Avg. Volume: 205,053
• PEG Ratio: 0.37
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 12.21
• 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: €58.16
• Price Target Upside: 4.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: €62.00 ▲(11.31% Upside)

Banca Generali SpA's overall stock score reflects strong financial performance, particularly in profitability and operational efficiency, despite some volatility in cash flows. The technical analysis indicates bullish momentum, although caution is warranted due to overbought signals. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it a compelling investment in the regional banking sector.

Positive Factors

Revenue Growth

Banca Generali's consistent revenue growth reflects its strong market position and ability to expand its client base, enhancing long-term financial stability.

Profitability Margins

Improved profitability margins indicate effective cost management and operational efficiency, supporting sustainable long-term earnings.

Financial Leverage

Prudent financial leverage management enhances financial stability and reduces risk, providing a solid foundation for future growth.

Negative Factors

Cash Flow Volatility

Volatile cash flows can challenge liquidity management and operational flexibility, potentially impacting the company's ability to invest in growth.

Equity Ratio

A lower equity ratio may limit capital efficiency, suggesting room for improvement in strengthening the company's capital structure.

Free Cash Flow Concerns

Inconsistent free cash flow generation raises concerns about the company's ability to sustain cash generation relative to net income, affecting long-term financial health.

Banca Generali SpA Business Overview & Revenue Model

Company Description

Banca Generali S.p.A. distributes financial products and services for affluent and private customers through financial advisors primarily in Italy. It operates through Wealth Management Cash-Generating Unit (CGU) and Private Banking CGU segments. The company offers asset management products, such as portfolio management, investment advisory and mutual fund management, and managed solutions consisting of funds and Sicavs, and financial and insurance wrappers; banking products and services; insurance products; and trade finance services. It operates 218 bank branches and financial advisor offices. The company was founded in 1997 and is headquartered in Trieste, Italy.

How the Company Makes Money

Banca Generali generates revenue primarily through fees and commissions associated with the management of investment funds and asset management services. The bank charges management fees on the assets it manages, which constitutes a significant portion of its income. Additionally, it earns commission from the sale of insurance products and financial instruments. The company also benefits from advisory fees for personalized financial planning services. Strategic partnerships with asset managers and insurance providers further enhance its offerings and revenue potential. Factors contributing to its earnings include the growth of managed assets, client retention rates, and the overall performance of financial markets, which can impact investment returns and client investment decisions.

Banca Generali SpA Financial Statement Overview

Summary

Banca Generali SpA shows strong income statement performance with increasing revenues and profitability margins, supported by efficient cost management and operational efficiency. The balance sheet reflects prudent financial leverage and solid returns on equity, though the equity ratio is slightly below industry norms. Cash flow statements reveal volatility in cash generation, highlighting an area of concern for maintaining operational liquidity.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.30B	1.05B	764.90M	816.01M	717.32M
Gross Profit	1.12B	1.14B	919.41M	742.66M	807.13M	711.10M
EBITDA	523.78M	569.77M	483.65M	359.05M	428.40M	380.25M
Net Income	391.82M	431.23M	326.14M	213.03M	323.10M	274.92M
Balance Sheet
Total Assets	17.58B	16.82B	15.52B	17.27B	16.19B	13.18B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.30B	618.97M	986.75M	1.83B	863.33M
Total Debt	438.00M	449.30M	1.93B	2.40B	381.85M	340.35M
Total Liabilities	16.22B	15.36B	14.30B	16.20B	15.09B	11.99B
Stockholders Equity	1.35B	1.46B	1.21B	1.07B	1.11B	1.18B
Cash Flow
Free Cash Flow	0.00	418.88M	286.72M	-611.97M	1.16B	63.69M
Operating Cash Flow	0.00	421.81M	314.29M	-592.13M	1.17B	78.97M
Investing Cash Flow	0.00	-27.73M	-27.47M	-20.50M	93.36M	-15.57M
Financing Cash Flow	0.00	-213.24M	-1.94B	-233.46M	-311.38M	-14.69M

Banca Generali SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BGN, the sentiment is Positive. The current price of 55.7 is above the 20-day moving average (MA) of 54.19, above the 50-day MA of 51.19, and above the 200-day MA of 49.68, indicating a bullish trend. The MACD of 1.23 indicates Positive momentum. The RSI at 66.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BGN.

Banca Generali SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	79 Outperform	€20.38B	11.04	12.55%	6.46%	-11.28%	-15.25%
BGN	78 Outperform	€5.65B	14.44	31.25%	4.90%	4.46%	-0.62%
BAMI	72 Outperform	€18.12B	7.56	16.45%	8.42%	2.23%	72.08%
FBK	71 Outperform	€12.36B	19.01	32.83%	3.54%	2.97%	4.64%
BMED	71 Outperform	$13.36B	11.41	26.99%	6.57%	-5.10%	26.87%
MB	70 Outperform	€13.01B	10.05	11.91%	6.95%	-0.72%	6.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%