tiprankstipranks
Trending News
More News >
Banca Generali SpA (IT:BGN)
:BGN

Banca Generali SpA (BGN) AI Stock Analysis

Compare
18 Followers

Top Page

IT

Banca Generali SpA

(LSE:BGN)

Rating:76Outperform
Price Target:
Banca Generali SpA presents a robust financial performance with strong profitability and effective cost management, though cash flow volatility is a concern. The stock's technical indicators show mixed signals, with some short-term bullishness but lacking strong momentum. In terms of valuation, the stock appears fairly valued with an attractive dividend yield, offering a balanced investment opportunity. Overall, the company is well-positioned within the banking sector, offering growth potential despite some challenges in cash flow consistency.

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

Banca Generali SpA Business Overview & Revenue Model

Company DescriptionBanca 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 MoneyBanca Generali makes money primarily through management fees and commissions earned on the assets under management (AUM) of its clients. The company charges fees for its financial advisory and wealth management services, which can be based on a percentage of the assets managed or through flat fees for specific services. Additionally, Banca Generali earns revenue from the distribution of insurance and investment products, where it receives commissions from third-party providers. The bank also generates interest income from its traditional banking operations, including lending activities. Strategic partnerships with asset managers, insurance companies, and other financial institutions enhance its product offerings and contribute to its revenue streams.

Banca Generali SpA Financial Statement Overview

Summary
Overall, Banca Generali SpA exhibits 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, although the equity ratio is slightly below industry norms, indicating some room for improvement in capital utilization. Cash flow statements reveal volatility in cash generation, highlighting an area of concern for maintaining operational liquidity. Despite these challenges, the company's financial health appears robust, with strategic opportunities for growth and improvement.
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 Revenue982.00M802.46M737.31M817.26M712.43M
Gross Profit982.00M781.10M737.31M817.26M712.43M
EBITDA0.00484.60M359.15M428.67M380.59M
Net Income431.20M326.14M213.03M323.10M274.92M
Balance Sheet
Total Assets16.82B15.52B17.27B16.19B13.18B
Cash, Cash Equivalents and Short-Term Investments0.00618.97M986.75M1.83B863.33M
Total Debt356.40M281.70M633.26M381.85M340.35M
Total Liabilities15.36B14.30B16.20B15.09B11.99B
Stockholders Equity1.46B1.21B1.07B1.11B1.18B
Cash Flow
Free Cash Flow653.77M286.72M-611.97M1.16B63.69M
Operating Cash Flow678.11M314.29M-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
Negative
Last Price46.44
Price Trends
50DMA
50.65
Negative
100DMA
49.39
Negative
200DMA
45.55
Positive
Market Momentum
MACD
-1.26
Positive
RSI
35.05
Neutral
STOCH
21.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BGN, the sentiment is Negative. The current price of 46.44 is below the 20-day moving average (MA) of 48.31, below the 50-day MA of 50.65, and above the 200-day MA of 45.55, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:BGN.

Banca Generali SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITBGN
76
Outperform
€5.36B12.6330.35%8.01%16.74%32.37%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
€15.27B7.9213.41%10.31%
€10.87B7.7313.24%7.84%
€11.29B17.3428.46%3.49%
€15.18B11.6111.91%6.02%
$12.44B10.3427.96%7.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BGN
Banca Generali SpA
46.44
10.54
29.36%
GB:0RLA
Banco BPM S.p.A.
10.02
4.36
77.03%
GB:0MU6
BPER Banca S.p.A.
7.50
2.61
53.37%
GB:0QVF
FinecoBank SpA
18.52
4.04
27.90%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
18.61
5.32
40.03%
BNMDF
Banca Mediolanum SpA
17.16
6.53
61.43%
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: Apr 26, 2025