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Banca Popolare di Sondrio S.C.p.A. (IT:BPSO)
:BPSO
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Banca Popolare di Sondrio S.C.p.A. (BPSO) AI Stock Analysis

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IT:BPSO

Banca Popolare di Sondrio S.C.p.A.

(LSE:BPSO)

Rating:80Outperform
Price Target:
€14.00
▲(15.70% Upside)
Banca Popolare di Sondrio's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. The stock's attractive valuation and positive technical indicators further enhance its investment appeal.

Banca Popolare di Sondrio S.C.p.A. (BPSO) vs. iShares MSCI Italy ETF (EWI)

Banca Popolare di Sondrio S.C.p.A. Business Overview & Revenue Model

Company DescriptionBanca Popolare di Sondrio S.p.A., together with its subsidiaries, provides various banking products and services in Italy. The company offers current accounts, savings deposits, certificates of deposits, time deposit accounts, and bonds; and loans comprising foreign currency loans, artisan loans, agricultural loans, personal loans, and mortgage loans primarily to retail customers and SMEs. It also offers repurchase agreements, securities lending, custody and administration of securities, consultancy, individual portfolio management, guarantees, leasing, and factoring services. In addition, the company provides credit and debit cards, and insurance products, as well as collection and payment services; manages hotels; issues government securities and prime corporate bonds; and manages and maintains rented units. As of December 31, 2021, it operated 350 branches. The company was founded in 1871 and is headquartered in Sondrio, Italy.
How the Company Makes MoneyBanca Popolare di Sondrio generates revenue primarily through interest income from loans and advances to customers, which constitute a significant portion of its earnings. The bank also earns fee income from various services, including asset management and advisory services, as well as transaction fees from payment processing and account maintenance. Additionally, BPSO invests in government and corporate bonds, providing a steady stream of interest income. The bank's cooperative structure allows it to maintain a strong focus on customer satisfaction, which can lead to higher customer retention and loyalty, further enhancing its revenue-generating capabilities. Partnerships with financial institutions and local businesses facilitate a diverse range of services, contributing to the overall financial performance.

Banca Popolare di Sondrio S.C.p.A. Financial Statement Overview

Summary
Banca Popolare di Sondrio demonstrates strong revenue growth and profitability with a solid balance sheet. However, cash flow challenges, particularly negative operating and free cash flows, could pose risks if not addressed.
Income Statement
85
Very Positive
Banca Popolare di Sondrio has demonstrated strong revenue growth, with a notable increase of 38.1% from 2023 to 2024. The gross profit margin and EBIT margin remain robust, both at approximately 45.8%. The net profit margin for 2024 is also commendable at 32.6%, reflecting efficient cost management. Overall, the bank shows a solid income statement with consistent profitability and growth.
Balance Sheet
78
Positive
The bank maintains a healthy balance sheet with an improving equity position, as indicated by the increase in stockholders' equity. The debt-to-equity ratio stands at 1.39, suggesting moderate leverage, typical for the banking sector. Return on equity is strong at 13.8%, indicating effective use of shareholder funds. The bank's equity ratio is 7.3%, reflecting a stable financial position, though slightly on the lower side for non-banking industries.
Cash Flow
60
Neutral
The cash flow statement indicates challenges with negative free cash flow in recent years, particularly a decline of 74% from 2023 to 2024. The operating cash flow is negative, suggesting potential issues with core operational cash generation. The free cash flow to net income ratio is also negative, indicating that net income isn't translating into free cash flow effectively.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.76B1.28B1.16B1.11B883.21M
Gross Profit1.76B1.16B1.16B1.11B883.21M
EBITDA807.34M689.66M388.44M392.11M184.52M
Net Income574.94M461.16M251.32M268.63M106.60M
Balance Sheet
Total Assets56.63B57.72B57.85B55.02B49.81B
Cash, Cash Equivalents and Short-Term Investments4.26B4.92B6.99B7.94B7.39B
Total Debt5.78B4.48B4.19B4.42B3.43B
Total Liabilities52.47B53.91B54.47B51.64B46.71B
Stockholders Equity4.16B3.81B3.39B3.27B3.00B
Cash Flow
Free Cash Flow-629.23M-2.43B1.45B286.12M3.22B
Operating Cash Flow-505.88M-2.31B1.58B344.51M3.26B
Investing Cash Flow-41.48M-71.18M-198.45M-43.32M-27.01M
Financing Cash Flow-252.06M-126.92M-89.94M-26.42M-14.00K

Banca Popolare di Sondrio S.C.p.A. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.10
Price Trends
50DMA
12.12
Negative
100DMA
11.67
Positive
200DMA
10.18
Positive
Market Momentum
MACD
0.04
Positive
RSI
46.48
Neutral
STOCH
24.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BPSO, the sentiment is Neutral. The current price of 12.1 is below the 20-day moving average (MA) of 12.41, below the 50-day MA of 12.12, and above the 200-day MA of 10.18, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 24.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BPSO.

Banca Popolare di Sondrio S.C.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€5.44B9.0314.61%6.61%3.04%17.77%
68
Neutral
$17.80B11.8710.23%3.74%9.69%1.18%
€9.24B5.4615.13%
€17.38B7.2516.45%
€16.86B7.7814.64%
€4.46B6.7315.88%
$14.68B12.1828.26%7.36%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:BPSO
Banca Popolare di Sondrio S.C.p.A.
12.10
5.69
88.83%
GB:0RK6
Banca Monte dei Paschi di Siena SPA
7.30
2.90
65.91%
GB:0RLA
Banco BPM S.p.A.
11.50
6.24
118.63%
GB:0MU6
BPER Banca S.p.A.
8.67
4.19
93.53%
GB:0K93
Credito Emiliano SPA Credem
13.20
3.90
41.94%
BNMDF
Banca Mediolanum SpA
20.52
9.28
82.56%
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: Jul 15, 2025