Banca Generali SpA (BGN) AI Stock Analysis

• Market Cap: €5.96B
• Dividend Yield: 5.25%
• Average Volume (3M): 366.27K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.89
• 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: 225,668
• 30 Day Avg. Volume: 366,273
• PEG Ratio: 2.80
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €55.47
• Price Target Upside: 5.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• 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 SpA (BGN) is a leading Italian private bank specializing in wealth management and financial planning services. The company offers a wide range of products, including asset management, insurance products, and banking services, tailored to meet the needs of its clients, which primarily consist of affluent individuals and families. Banca Generali operates through a network of financial advisors and private bankers, providing personalized advisory services to help clients manage and grow their wealth.

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
	EBIT
673.10M	519.00M	344.65M	401.63M	353.53M
	EBITDA
0.00	484.60M	359.15M	428.67M	380.59M
	Net Income Common Stockholders
431.20M	326.14M	213.03M	323.10M	274.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	618.97M	986.75M	1.83B	863.33M
	Total Assets
16.82B	15.52B	17.27B	16.19B	13.18B
	Total Debt
356.40M	281.70M	633.26M	381.85M	340.35M
	Net Debt
356.40M	-832.84M	-353.48M	-1.45B	-522.98M
	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: Positive
• Last Price: 52.45
• 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 52.45 is below the 20-day moving average (MA) of 52.91, above the 50-day MA of 50.08, and above the 200-day MA of 44.60, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 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
UCG	82 Outperform	$85.58B	9.45	14.91%	3.89%	3.21%	7.24%
BGN	76 Outperform	€5.96B	14.26	30.35%	5.25%	16.74%	32.37%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%
BMED	63 Neutral	$10.79B	9.42	27.96%	6.32%	21.55%	36.51%
ISP	61 Neutral	€86.47B	9.94	13.56%	6.89%	6.32%	17.08%