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Banca Mediolanum SpA (IT:BMED)
:BMED
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Banca Mediolanum SpA
(OTC:BMED)
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Rating:63Neutral
Price Target:―
Banca Mediolanum SpA's overall performance is solid with strong financial performance, particularly in revenue growth and profitability. However, liquidity concerns due to cash flow volatility and weak technical indicators suggest caution. The stock's attractive valuation provides a potential upside.
Banca Mediolanum SpA (BMED) vs. iShares MSCI Italy ETF (EWI)
Market Cap
$12.43B
Dividend Yield5.77%
Average Volume (3M)895.40K
Price to Earnings (P/E)10.8
Beta (1Y)1.01
Revenue Growth12.46%
EPS Growth26.82%
CountryIT
Employees3,871
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.32
Shares Outstanding745,386,400
10 Day Avg. Volume800,051
30 Day Avg. Volume895,403
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)2.10
Price to Sales (P/S)4.25
P/FCF Ratio7.45
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue4.21
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda9.42
Forecast
1Y Price Target
$17.50Price Target Upside6.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Banca Mediolanum SpA Business Overview & Revenue Model
Company DescriptionBanca Mediolanum S.p.A. provides various banking products and services in Italy. The company offers current accounts and mortgages and loans. It also provides debit, credit, and prepaid cards; savings and investment products, such as equities and bonds, as well as trading services; and insurance and pension products and services. The company was founded in 1982 and is headquartered in Basiglio, Italy.
How the Company Makes MoneyBanca Mediolanum generates revenue through various streams, including interest income from loans and mortgages, fees from asset management and investment services, and commissions from insurance products. The bank also earns income through its proprietary investment funds and financial advisory services. Key revenue streams include management fees from the assets under management (AUM) in their mutual funds and investment products, as well as transaction fees for financial services. Strategic partnerships with insurance companies and asset managers further enhance its offerings, contributing to its overall financial performance. Additionally, the bank's focus on digital solutions and a strong advisor network allows it to reach a broader customer base, driving revenue growth.
Banca Mediolanum SpA Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record-breaking financial results, significant asset inflows, and positive growth in key markets like Spain. While there are challenges such as increased acquisition costs and potential financial impacts from regulatory changes, the overall outlook remains highly positive.Q3-2024 Updates
Positive Updates
Record-Breaking Financial Results
Net income reached EUR 674.3 million, exceeding last year by 18%. Net commission income grew by 13% to over EUR 874 million, and recurring fees hit EUR 1.13 billion, a 14.5% increase.
Strong Asset Inflows
Total net inflows reached EUR 7.16 billion, a 28% increase, with managed assets nearly doubling to EUR 5.44 billion. October's managed asset flows were EUR 703 million.
Positive Market Conditions
Favorable market conditions contributed to strong net inflows into managed assets and positive mark-to-market and performance fees totaling EUR 51 million.
Growth in Spain
Spain's operating margin grew by 2%, and net income increased by 10% to EUR 54.4 million. Managed assets inflows surged by 131%, reaching EUR 930 million.
Customer and Network Expansion
Acquisition of 149,000 new bank customers by September, a 7% increase. The bank's customer base grew to over 1,888,000, and the family banker network increased by 2%.
Strong Capital Position
CET1 ratio remains high at 23.4%, and leverage ratio is at 7.3%, allowing for future growth and increased dividend distributions.
Negative Updates
Higher Acquisition Costs
Acquisition costs to gross commission ratio increased in Q3 due to stronger inflows into managed assets compared to previous quarters.
Impact of ECB Rate Cuts
Despite strong net interest income of over EUR 630 million, ECB rate cuts had an impact, with a slight decrease in Q3 compared to Q2.
Significant Financial Impact of Prepaid Stamp Duty
The government’s requirement for prepayment of stamp duty on insurance policies could have a significant financial impact, with a potential obligation of EUR 22 to 44 million.
Company Guidance
During the Q3 2024 earnings call for Banca Mediolanum, CEO Massimo Doris provided strong guidance reflecting impressive financial performance. The bank achieved a net income of EUR 674.3 million, an 18% increase compared to the previous year, and a Q3 net income of EUR 224.4 million. Total net inflows for the first nine months reached EUR 7.16 billion, marking a 28% increase, with managed assets contributing EUR 5.44 billion, nearly doubling last year's figure. Net commission income grew by 13% to EUR 874 million, while recurring fees rose by 14.5% to EUR 1.13 billion. Despite a slight dip in net interest income due to promotional activities, the bank revised its NII guidance for 2024 to an 8% increase. The CET1 ratio stood at 23.4%, indicating a robust capital base, and the board announced a higher interim dividend of EUR 0.37 per share. Doris also highlighted significant growth in the Spanish market, with managed assets inflows reaching EUR 930 million, a 131% increase. The guidance for 2024 was revised upwards, with expectations of net inflows into managed assets around EUR 7.5 billion.Banca Mediolanum SpA Financial Statement Overview
Summary
Banca Mediolanum SpA showcases strong profitability and revenue growth, supported by a robust equity structure and prudent debt management. However, incomplete cash flow data and historical cash flow volatility suggest potential liquidity concerns.Income Statement
Banca Mediolanum SpA has demonstrated strong revenue growth with a significant increase from 2023 to 2024 and a consistently improving net profit margin, reflecting efficient operations and cost management. However, the absence of EBITDA data limits the assessment of operational cash generation capacity.68
Positive
Balance Sheet
The company maintains a strong equity position with a high equity ratio, indicating stability. The debt-to-equity ratio is favorable, reflecting a conservative approach to leverage. Yet, the absence of total asset data for 2024 prevents a complete analysis of asset management efficiency.74
Positive
Cash Flow
Cash flow analysis is constrained by limited data, notably in operating and free cash flows for 2024. Historical data shows volatility in cash flow generation, with periods of negative free cash flow, signaling potential liquidity risks.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.42B | 1.99B | 3.57B | 1.46B | 5.25B | 1.21B |
| Gross Profit | 2.63B | 2.81B | 1.87B | 545.36M | 6.40B | 2.98B |
| EBITDA | 1.53B | 1.51B | -19.41M | 720.45M | 942.99M | 531.42M |
| Net Income | 1.15B | 1.12B | 821.87M | 506.83M | 713.05M | 434.46M |
Balance Sheet | ||||||
| Total Assets | 85.97B | 86.15B | 77.83B | 73.60B | 73.52B | 59.03B |
| Cash, Cash Equivalents and Short-Term Investments | 806.77M | 684.44M | 188.13M | 2.75B | 519.02M | 664.61M |
| Total Debt | 393.24M | 6.94B | 8.63B | 9.70B | 68.01M | 74.38M |
| Total Liabilities | 81.80B | 82.13B | 74.38B | 70.66B | 70.64B | 56.29B |
| Stockholders Equity | 4.18B | 4.03B | 3.45B | 2.94B | 2.88B | 2.74B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.14B | -1.81B | 2.24B | 848.49M | -49.76M |
| Operating Cash Flow | 0.00 | 1.15B | -1.75B | 2.30B | 909.30M | -7.00M |
| Investing Cash Flow | 0.00 | -15.52M | -23.93M | -34.06M | -38.14M | -38.16M |
| Financing Cash Flow | 0.00 | -640.36M | -385.65M | -431.51M | -737.97M | 4.92M |
Banca Mediolanum SpA Technical Analysis
Neutral
16.45
Price Trends
17.04
Negative
15.86
Positive
14.49
Positive
Market Momentum
0.03
Positive
46.97
Neutral
50.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BMED, the sentiment is Neutral. The current price of 16.45 is below the 20-day moving average (MA) of 16.97, below the 50-day MA of 17.04, and above the 200-day MA of 14.49, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 50.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BMED.
Banca Mediolanum SpA Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | €18.40B | 8.42 | 14.64% | 6.39% | -0.56% | 2.54% | |
72 Outperform | €11.64B | 17.90 | 32.83% | 3.97% | 2.97% | 4.64% | |
71 Outperform | €18.45B | 7.69 | 16.45% | 8.20% | 2.23% | 72.08% | |
70 Outperform | €5.38B | 13.74 | 32.52% | 5.92% | 6.75% | 0.27% | |
70 Outperform | €12.80B | 9.93 | 11.90% | 6.88% | -19.78% | 7.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $12.43B | 10.84 | 28.26% | 5.77% | 12.46% | 26.82% |
* Financial Sector Average
IT:BMED
Banca Mediolanum SpA
16.45
5.75
53.80%
IT:BGN
Banca Generali SpA
46.48
5.90
14.55%
IT:BAMI
Banco BPM S.p.A.
12.01
6.33
111.29%
IT:BPE
BPER Banca S.p.A.
9.25
3.84
70.97%
IT:FBK
FinecoBank SpA
18.66
3.79
25.52%
IT:MB
Mediobanca Banca di Credito Finanziario S.p.A.
15.96
0.86
5.70%
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.