FinecoBank SpA (FBK) AI Stock Analysis

• Market Cap: €11.36B
• Dividend Yield: 3.98%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.03
• Revenue Growth: 8.66%
• EPS Growth: 7.01%
• Country: IT
• Employees: 1,474
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.27
• Shares Outstanding: 611,575,300
• 10 Day Avg. Volume: 1,345,870
• 30 Day Avg. Volume: 1,427,340
• PEG Ratio: -0.97
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.49
• 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: €20.96
• Price Target Upside: 12.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: ―

FinecoBank SpA demonstrates strong financial performance with robust revenue growth and profitability. The company's balance sheet strength and reduced leverage are favorable, but challenges in cash flow efficiency need attention. Technical indicators suggest mixed momentum, while the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. These factors contribute to a moderately positive outlook for the stock.

FinecoBank SpA Business Overview & Revenue Model

Company Description

FinecoBank Banca Fineco S.p.A. provides banking and investment products and services. The company operates through Banking, Brokerage, and Investing segments. The company offers banking services, including current account and deposit services, payment services, mortgages, and personal loans, as well as debit, credit, and prepaid cards; and brokerage services comprising order execution services on behalf of customers with direct access to global equity markets, as well as to trade on currencies, indices, shares, bonds, commodities, futures, options, bonds, ETFs, and certificates. The company also provides asset management services, such as placement and distribution services of various products, including mutual funds and SICAV sub-funds, and insurance and pension products, as well as investment advisory services. It serves primarily through a network of personal financial advisors, and online and mobile channels. As of December 31, 2021, the company operated 424 financial shops. The company was founded in 1999 and is based in Reggio Emilia, Italy.

How the Company Makes Money

FinecoBank generates revenue through multiple streams, focusing primarily on its core banking, brokerage, and investment services. The bank earns income from interest on loans and other credit facilities offered to individuals and businesses. Additionally, FinecoBank derives significant revenue from its trading and investment platform, where it charges commissions and fees on brokerage transactions. The company also benefits from asset management fees, which are charged for managing client portfolios and investment funds. Partnerships with financial institutions and service providers enhance FinecoBank's offerings, contributing to its earnings by expanding its product range and customer base. Overall, FinecoBank's integrated approach to digital banking and financial services underpins its revenue model, driving growth and profitability.

FinecoBank SpA Financial Statement Overview

Summary

FinecoBank SpA exhibits strong revenue growth and profitability, with efficient cost management. However, increasing operational expenses and declining cash flow efficiency pose potential risks. The balance sheet shows a robust equity position and reduced leverage, contributing to financial stability. The company should focus on enhancing cash flow management to sustain growth.

Income Statement

FinecoBank SpA has shown strong revenue growth, with a revenue increase of 6.93% from 2023 to 2024. Gross profit margins remained at 100%, indicative of effective cost management. However, the EBIT margin decreased from 73.76% in 2023 to 59.45% in 2024, suggesting increased operational expenses. Net profit margin improved slightly from 49.48% in 2023 to 49.56% in 2024, reflecting stable profitability.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 6.89% in 2024, although this is a decrease from 6.59% in 2023. The debt-to-equity ratio improved, decreasing from 0.76 in 2023 to 0.34 in 2024, indicating reduced leverage. Return on equity increased to 27.29% in 2024 from 27.76% in 2023, highlighting efficient use of equity to generate profits.

Cash Flow

Cash flow from operations significantly declined from 2023 to 2024. The operating cash flow to net income ratio dropped sharply from 1.87 in 2023 to 0.24 in 2024, reflecting weaker operational efficiency. Free cash flow decreased by 87.87% over the same period, indicating potential risks in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.23B	938.24M	799.69M	761.23M
Gross Profit	1.32B	1.23B	938.24M	799.69M	761.23M
EBITDA	0.00	899.38M	631.22M	520.61M	486.47M
Net Income	652.28M	609.10M	428.50M	380.71M	323.57M
Balance Sheet
Total Assets	34.69B	33.32B	36.27B	33.87B	31.76B
Cash, Cash Equivalents and Short-Term Investments	2.26B	2.55B	1.47B	1.77B	2.03B
Total Debt	810.23M	1.68B	561.28M	562.60M	66.21M
Total Liabilities	32.30B	31.12B	34.36B	32.14B	30.07B
Stockholders Equity	2.39B	2.19B	1.91B	1.73B	1.69B
Cash Flow
Free Cash Flow	136.29M	1.12B	255.72M	-229.79M	1.07B
Operating Cash Flow	154.93M	1.14B	269.10M	-215.26M	1.10B
Investing Cash Flow	0.00	-15.72M	-12.40M	-15.86M	-29.38M
Financing Cash Flow	-451.82M	-321.30M	-258.52M	-343.78M	-20.18M

FinecoBank SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.58
• 50DMA: Negative
• 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:FBK, the sentiment is Positive. The current price of 18.58 is below the 20-day moving average (MA) of 18.70, below the 50-day MA of 18.82, and above the 200-day MA of 16.84, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:FBK.

FinecoBank SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FBK	71 Outperform	€11.36B	17.39	28.46%	3.98%	8.66%	7.01%
Sector *	61 Neutral	C$14.93B	6.47	22.27%	5.46%	30.07%	-22.51%
0DQZ	―	€5.44B	12.84	30.35%	9.09%	―	―
0RLA	―	€15.67B	8.13	13.41%	11.61%	―	―
0MU6	―	€10.87B	7.80	13.24%	7.84%	―	―
0HBF	―	€14.85B	11.42	11.91%	6.15%	―	―
BNMDF	―	$12.78B	10.71	27.96%	7.25%	―	―