UniCredit SpA (UCG) AI Stock Analysis

• Market Cap: $98.66B
• Dividend Yield: 3.9%
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.32
• Revenue Growth: 27.78%
• EPS Growth: 12.17%
• Country: IT
• Employees: 75,265
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.60
• Shares Outstanding: 1,557,675,200
• 10 Day Avg. Volume: 4,221,260
• 30 Day Avg. Volume: 4,945,062
• PEG Ratio: 0.47
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 2.72
• P/FCF Ratio: -7.84
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $73.22
• Price Target Upside: 18.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: €71.00 ▲(15.30% Upside)

UniCredit SpA's strong financial performance and upgraded earnings guidance are the most significant factors driving the score. The stock's undervaluation and attractive dividend yield further enhance its appeal. However, technical indicators suggest caution, and cash flow management remains an area for improvement.

UniCredit SpA Business Overview & Revenue Model

Company Description

UniCredit SpA (UCG) is a leading European commercial bank headquartered in Milan, Italy. The bank operates primarily in Italy and Central and Eastern Europe, providing a wide range of financial services including retail banking, corporate banking, investment banking, wealth management, and asset management. With a strong focus on customer service and innovation, UniCredit aims to support individuals and businesses in achieving their financial goals through a comprehensive suite of products and services tailored to diverse market needs.

How the Company Makes Money

UniCredit generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, mortgages, and business loans, which yield interest payments. Additionally, UniCredit earns fees and commissions from its investment banking services, including underwriting, advisory services, and asset management. Wealth management services, such as portfolio management and financial planning, also contribute to revenue through fees charged to clients. Moreover, the bank benefits from transactional banking services, where it charges fees for services related to payment processing and account maintenance. Strategic partnerships with other financial institutions, fintech companies, and global networks enhance its service offerings and revenue potential. Overall, UniCredit's diversified revenue streams and focus on customer-centric solutions play a crucial role in its financial performance.

UniCredit SpA Financial Statement Overview

Summary

UniCredit SpA demonstrates strong revenue growth and high profitability, with a robust net profit margin. The balance sheet shows a healthy reduction in debt, enhancing financial stability, though the low equity ratio poses a risk. Cash flow management remains a challenge, with negative free cash flow, but improvements are noted.

Income Statement

The income statement shows strong revenue growth over recent years, with a 5.3% increase from 2023 to 2024. Net profit margins are robust, at approximately 39.1% in 2024, indicating significant profitability. However, the absence of EBIT and EBITDA figures in 2024 limits a more comprehensive assessment of operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a total equity of €62.44 billion in 2024, translating to an equity ratio of approximately 8%. The company has reduced its debt to zero, which enhances financial stability. However, the low equity ratio suggests a potential risk in terms of leverage despite the absence of debt.

Cash Flow

The cash flow statement indicates negative free cash flow in 2024, although an improvement from the prior year. Operating cash flow remains negative, raising concerns about cash generation from core activities. However, the significant reduction in operating cash outflows from 2023 to 2024 is a positive development.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.68B	23.99B	22.96B	18.07B	22.29B	11.25B
Gross Profit	24.98B	26.58B	25.36B	18.07B	18.60B	11.25B
EBITDA	14.79B	14.08B	12.97B	8.66B	3.34B	-544.00M
Net Income	10.60B	9.72B	9.51B	6.46B	2.10B	-2.91B
Balance Sheet
Total Assets	860.33B	784.00B	784.97B	857.77B	916.67B	931.46B
Cash, Cash Equivalents and Short-Term Investments	41.80B	41.55B	72.34B	134.24B	162.27B	165.62B
Total Debt	96.02B	122.72B	186.12B	237.23B	125.91B	325.23B
Total Liabilities	791.91B	721.16B	720.73B	794.28B	854.58B	871.51B
Stockholders Equity	68.02B	62.44B	64.08B	63.34B	62.19B	59.51B
Cash Flow
Free Cash Flow	0.00	-8.33B	-41.72B	9.09B	-8.76B	81.89B
Operating Cash Flow	0.00	-7.08B	-41.13B	10.26B	-7.52B	83.32B
Investing Cash Flow	0.00	-1.06B	-787.00M	-237.00M	-699.00M	569.00M
Financing Cash Flow	0.00	-10.99B	-8.45B	-5.55B	-1.41B	660.00M

UniCredit SpA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.58
• 50DMA: Negative
• 100DMA: Negative
• 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:UCG, the sentiment is Negative. The current price of 61.58 is below the 20-day moving average (MA) of 63.41, below the 50-day MA of 65.32, and above the 200-day MA of 55.65, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:UCG.

UniCredit SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	79 Outperform	€18.70B	8.29	14.64%	6.20%	-0.56%	2.54%
UCG	74 Outperform	$98.66B	9.41	16.99%	3.90%	27.78%	12.17%
BAMI	73 Outperform	€18.15B	7.57	16.45%	8.19%	2.23%	72.08%
FBK	72 Outperform	€11.41B	17.55	32.83%	3.91%	2.97%	4.64%
MB	70 Outperform	€12.75B	9.73	11.90%	6.91%	-19.78%	7.06%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ISP	61 Neutral	€97.01B	10.50	15.91%	6.22%	-5.85%	15.20%

UniCredit SpA Corporate Events

UniCredit Reports Record Profits and Strong Growth in 2025

UniCredit S.p.A., a leading European commercial bank, has reported a record third quarter and nine-month performance for 2025, showcasing its consistent profitable growth across its diverse business lines. The bank, headquartered in Milan, operates primarily in the financial services sector, offering a range of banking products and services across Europe.

UniCredit’s Earnings Call: Record Profits and Optimistic Outlook

UniCredit’s recent earnings call conveyed a generally positive sentiment, underscoring the bank’s robust financial performance marked by record net profits and improved return on tangible equity. The call highlighted significant strides in cost efficiency and strategic initiatives, despite acknowledging challenges such as the termination of the BPM transaction, the impact of declining interest rates on net interest income (NII), and geopolitical volatility. Overall, the positive developments, including upgraded guidance and strong capital generation, were emphasized as outweighing the negatives.

UniCredit S.p.A Reports Record-Breaking Financial Performance

UniCredit S.p.A, a prominent banking institution in Europe, operates across various financial services sectors, including retail banking, corporate banking, and wealth management, with a significant presence in Italy, Germany, and Central and Eastern Europe.