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BPER Banca S.p.A. (IT:BPE)
:BPE
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BPER Banca S.p.A.
(BPE)
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Rating:79Outperform
Price Target:
€11.50
▲(11.98% Upside)
BPER Banca S.p.A. receives a strong overall stock score driven by its solid financial performance, particularly in revenue growth and balance sheet strength. The stock's technical indicators are positive, supporting a bullish outlook. Additionally, the company's attractive valuation with a low P/E ratio and high dividend yield further enhances its investment appeal. However, cash flow management remains a concern that needs addressing to ensure long-term sustainability.
BPER Banca S.p.A. (BPE) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€20.29B
Dividend Yield5.82%
Average Volume (3M)11.27M
Price to Earnings (P/E)9.3
Beta (1Y)1.40
Revenue Growth-0.56%
EPS Growth2.54%
CountryIT
Employees19,508
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.12
Shares Outstanding1,964,323,600
10 Day Avg. Volume12,056,490
30 Day Avg. Volume11,270,287
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)0.76
Price to Sales (P/S)1.14
P/FCF Ratio-22.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€11.00Price Target Upside7.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BPER Banca S.p.A. Business Overview & Revenue Model
Company DescriptionBPER Banca S.p.A. (BPE) is an Italian banking group that provides a wide range of financial services to individuals, businesses, and institutional clients. With a presence primarily in Italy, the bank operates through a network of branches and offers products including loans, mortgages, savings accounts, investment services, and insurance. BPER Banca is also involved in various financial services related to asset management and corporate banking, making it a significant player in the regional banking sector.
How the Company Makes MoneyBPER Banca generates revenue through multiple streams, primarily from interest income on loans extended to customers, which represents a significant portion of its earnings. The bank also earns money through fees and commissions related to various banking services such as account maintenance, transaction processing, and advisory services. Additionally, BPER Banca benefits from investment income derived from its securities portfolio and asset management services. The bank's partnerships with other financial institutions and its focus on expanding its digital banking services further contribute to its revenue by enhancing customer engagement and broadening its service offerings.
BPER Banca S.p.A. Financial Statement Overview
Summary
BPER Banca S.p.A. exhibits strong revenue growth and improving balance sheet strength, with notable equity improvements and moderate leverage. However, cash flow management remains an area for improvement, with negative free cash flow and operating cash flow ratios indicating potential inefficiencies. Overall, the company is on a solid financial footing but should focus on enhancing cash flow stability to sustain long-term growth.Income Statement
BPER Banca S.p.A. shows strong growth in revenue, with a significant increase from €2.49 billion in 2019 to €7.63 billion in 2024, indicating a robust expansion strategy. The EBIT and EBITDA margins are also substantial, with the EBIT margin at 33.28% and the EBITDA margin at 30.78% for 2024. However, the net profit margin has declined slightly from previous years, signaling potential cost management issues.85
Very Positive
Balance Sheet
The company's equity has strengthened over the years, with stockholders' equity rising from €5.16 billion in 2019 to €11.35 billion in 2024. The debt-to-equity ratio stands at 1.75, indicating moderate leverage. While the equity ratio at 8.07% suggests a lower proportion of equity financing, the return on equity is relatively strong at 12.35% for 2024.75
Positive
Cash Flow
The cash flow statement presents some concerns, with a negative free cash flow of €-386.9 million in 2024, although this is an improvement from 2023. The operating cash flow to net income ratio is negative, which could signal inefficiencies in cash generation relative to income. Nonetheless, the company has shown an ability to recover from a negative cash flow position in previous years.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.22B | 7.63B | 4.96B | 3.63B | 2.53B | 1.92B |
| Gross Profit | 5.85B | 5.99B | 4.92B | 4.31B | 3.70B | 1.92B |
| EBITDA | 2.73B | 2.42B | 1.94B | 1.60B | 962.19M | 367.10M |
| Net Income | 1.58B | 1.40B | 1.52B | 1.45B | 525.12M | 236.93M |
Balance Sheet | ||||||
| Total Assets | 144.53B | 140.59B | 142.13B | 152.30B | 136.35B | 93.05B |
| Cash, Cash Equivalents and Short-Term Investments | 8.60B | 9.42B | 10.09B | 14.00B | 21.77B | 8.98B |
| Total Debt | 20.11B | 23.45B | 11.90B | 29.57B | 7.33B | 27.14B |
| Total Liabilities | 132.89B | 129.03B | 132.56B | 144.18B | 129.49B | 86.72B |
| Stockholders Equity | 11.43B | 11.35B | 9.37B | 7.94B | 6.70B | 6.20B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -386.94M | -3.58B | 12.46B | 1.02B | -870.78M |
| Operating Cash Flow | 0.00 | -251.27M | -3.42B | 12.79B | 1.26B | -634.98M |
| Investing Cash Flow | 0.00 | -215.29M | -314.08M | -17.07M | -743.13M | -223.13M |
| Financing Cash Flow | 0.00 | 513.33M | -178.37M | -85.50M | -64.13M | 772.97M |
BPER Banca S.p.A. Technical Analysis
Positive
10.27
Price Trends
9.56
Positive
8.87
Positive
7.84
Positive
Market Momentum
0.25
Negative
61.27
Neutral
65.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BPE, the sentiment is Positive. The current price of 10.27 is above the 20-day moving average (MA) of 9.90, above the 50-day MA of 9.56, and above the 200-day MA of 7.84, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 65.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BPE.
BPER Banca S.p.A. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | €20.29B | 9.29 | 14.64% | 5.82% | -0.56% | 2.54% | |
74 Outperform | €5.65B | 14.44 | 31.25% | 5.33% | 4.46% | -0.62% | |
72 Outperform | €19.05B | 7.95 | 16.45% | 7.94% | 2.23% | 72.08% | |
71 Outperform | €23.09B | 5.69 | 15.13% | 11.09% | -5.31% | -35.03% | |
71 Outperform | €12.36B | 19.01 | 32.83% | 3.51% | 2.97% | 4.64% | |
71 Outperform | $13.05B | 11.38 | 26.99% | 5.27% | 2.34% | 53.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
IT:BPE
BPER Banca S.p.A.
10.27
4.99
94.62%
IT:BGN
Banca Generali SpA
51.55
11.66
29.22%
IT:BMPS
Banca Monte dei Paschi di Siena SPA
7.76
2.96
61.63%
IT:BAMI
Banco BPM S.p.A.
12.60
6.63
111.25%
IT:FBK
FinecoBank SpA
21.07
6.80
47.65%
IT:BMED
Banca Mediolanum SpA
18.03
7.28
67.71%
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.