Banca Generali SpA (BGN) AI Stock Analysis

• Market Cap: €5.36B
• Dividend Yield: 8.01%
• Average Volume (3M): 196.44K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.91
• Revenue Growth: 16.74%
• EPS Growth: 32.37%
• Country: IT
• Employees: 1,265
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.97
• Shares Outstanding: 116,851,640
• 10 Day Avg. Volume: 155,951
• 30 Day Avg. Volume: 196,444
• PEG Ratio: 0.24
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.68
• 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: €52.65
• Price Target Upside: 13.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• 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 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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	982.00M	802.46M	737.31M	817.26M	712.43M
Gross Profit	982.00M	781.10M	737.31M	817.26M	712.43M
EBITDA	0.00	484.60M	359.15M	428.67M	380.59M
Net Income	431.20M	326.14M	213.03M	323.10M	274.92M
Balance Sheet
Total Assets	16.82B	15.52B	17.27B	16.19B	13.18B
Cash, Cash Equivalents and Short-Term Investments	0.00	618.97M	986.75M	1.83B	863.33M
Total Debt	356.40M	281.70M	633.26M	381.85M	340.35M
Total Liabilities	15.36B	14.30B	16.20B	15.09B	11.99B
Stockholders Equity	1.46B	1.21B	1.07B	1.11B	1.18B
Cash Flow
Free Cash Flow	653.77M	286.72M	-611.97M	1.16B	63.69M
Operating Cash Flow	678.11M	314.29M	-592.13M	1.17B	78.97M
Investing Cash Flow	-27.73M	-27.47M	-20.50M	93.36M	-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 Price: 46.44
• 50DMA: Negative
• 100DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BGN	76 Outperform	€5.36B	12.63	30.35%	8.01%	16.74%	32.37%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
0RLA		€15.27B	7.92	13.41%	10.31%	―	―
0MU6		€10.87B	7.73	13.24%	7.84%	―	―
0QVF		€11.29B	17.34	28.46%	3.49%	―	―
0HBF		€15.18B	11.61	11.91%	6.02%	―	―
BNMDF		$12.44B	10.34	27.96%	7.34%	―	―