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

• Market Cap: €5.95B
• Dividend Yield: 5.9%
• Average Volume (3M): 903.18K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.32
• Revenue Growth: -3.55%
• EPS Growth: 25.09%
• Country: IT
• Employees: 3,720
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.36
• Shares Outstanding: 453,385,800
• 10 Day Avg. Volume: 1,017,772
• 30 Day Avg. Volume: 903,177
• PEG Ratio: 0.25
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 2.08
• P/FCF Ratio: -5.82
• 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: €11.00
• Price Target Upside: -18.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: €14.00 ▲(3.17% 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. Business Overview & Revenue Model

Company Description

Banca 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 Money

Banca 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.76B	1.28B	1.16B	1.11B	883.21M
Gross Profit	1.97B	1.76B	1.16B	1.16B	1.11B	883.21M
EBITDA	779.26M	807.34M	689.66M	388.44M	392.11M	184.52M
Net Income	517.66M	574.94M	461.16M	251.32M	268.63M	106.60M
Balance Sheet
Total Assets	56.70B	56.63B	57.72B	57.85B	55.02B	49.81B
Cash, Cash Equivalents and Short-Term Investments	2.87B	4.26B	4.92B	6.99B	7.94B	7.39B
Total Debt	13.66B	5.78B	4.48B	4.19B	4.42B	3.43B
Total Liabilities	52.88B	52.47B	53.91B	54.47B	51.64B	46.71B
Stockholders Equity	3.82B	4.16B	3.81B	3.39B	3.27B	3.00B
Cash Flow
Free Cash Flow	91.15M	-629.23M	-2.43B	1.45B	286.12M	3.22B
Operating Cash Flow	91.15M	-505.88M	-2.31B	1.58B	344.51M	3.26B
Investing Cash Flow	0.00	-41.48M	-71.18M	-198.45M	-43.32M	-27.01M
Financing Cash Flow	0.00	-252.06M	-126.92M	-89.94M	-26.42M	-14.00K

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

• Technical Analysis Sentiment: Positive
• Last Price: 13.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BPSO, the sentiment is Positive. The current price of 13.57 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 12.48, and above the 200-day MA of 10.64, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 67.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BPSO.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPSO	80 Outperform	€5.95B	9.18	15.89%	5.90%	-3.55%	25.09%
BPE	80 Outperform	18.83B	8.44	12.35%	6.24%	-0.56%	2.54%
BAMI	79 Outperform	19.62B	8.10	13.15%	7.71%	2.23%	72.08%
BMPS	70 Outperform	19.64B	5.76	16.75%	11.14%	-5.31%	―
CE	67 Neutral	4.62B	6.81	―	6.99%	-3.34%	13.60%
BMED	63 Neutral	12.51B	10.73	27.81%	5.60%	12.46%	26.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%