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UniCredit SpA (IT:UCG)
:UCG
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UniCredit SpA
(OTC:UCG)
Rating:82Outperform
Price Target:
€65.00
▲(18.16%Upside)
UniCredit SpA (UCG) vs. iShares MSCI Italy ETF (EWI)
Market Cap
$84.43B
Dividend Yield5.29%
Average Volume (3M)5.72M
Price to Earnings (P/E)9.1
Beta (1Y)1.25
Revenue Growth3.21%
EPS Growth7.24%
CountryIT
Employees75,265
SectorFinancial
Sector Strength76
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.79
Shares Outstanding1,557,675,200
10 Day Avg. Volume5,470,151
30 Day Avg. Volume5,715,158
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.47
Price to Sales (P/S)0.00
P/FCF Ratio-1.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.05Price Target Upside16.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
UniCredit SpA Business Overview & Revenue Model
Company DescriptionUniCredit S.p.A. operates as a commercial bank that provides retail, corporate, and private banking services. It offers accounts and deposits, loans, cards, transactions and payments, funds, advisory, treasury, and insurance products, as well as digital and mobile banking services. The company also provides solutions for payments and liquidity, working capital, hedging, international trade, and treasury operations; and funding solutions comprising of structured, project, and commodity trade and export finance, as well as debt and equity funding; and structured investments and investments advisory solutions. In addition, the company provides corporate finance, capital structure, and rating advisory, as well as patient capital, financial sponsor solutions, and sustainable finance solutions. It servs retail, corporate, and public sector customers, as well as international companies and institutional clients. The company operates in Italy, Other European countries, America, Asia, and internationally. The company was formerly known as Unicredito Italiano S.p.A and changed its name to UniCredit S.p.A. UniCredit S.p.A. was founded in 1870 and is headquartered in Milan, Italy.
How the Company Makes MoneyUniCredit SpA generates revenue through various streams. Primarily, the bank earns income from interest on loans and advances to customers, which is a significant portion of its revenue. Additionally, UniCredit makes money from fees and commissions related to services such as asset management, investment banking, and transaction processing. Trading and investment activities also contribute to its earnings, as the bank engages in securities trading and investment in financial markets. UniCredit benefits from its strategic presence across multiple European countries, allowing it to leverage local market knowledge and maintain diversified revenue streams. Furthermore, partnerships with other financial institutions and businesses enhance its product offerings and expand its customer base, thereby contributing to its overall profitability.
UniCredit SpA Earnings Call Summary
Earnings Call Date:May 11, 2025
(Q1-2025)
| % Change Since: 20.04%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial quarter with record-breaking profits, improved capital ratios, and strategic expansions. However, challenges such as NII decline and geopolitical issues in Russia were noted. Despite these, the overall sentiment leans towards optimism due to significant achievements and strategic initiatives.Q1-2025 Updates
Positive Updates
Record-Breaking Quarter
Q1 2025 marked the best quarter in UniCredit's history with record results across all KPIs, including a net profit increase of 8.3% to EUR 2.8 billion and a return on tangible equity of 22%.
Strong Revenue Growth
Net revenue increased by 3.2% year-on-year with fees growing to 36% of total revenues. This was supported by excellent fee generation and trading performance.
Capital and Asset Quality Improvements
CET1 ratio increased to 16.1%, with organic capital generation of EUR 3.1 billion and a reduction in cost-to-income ratio to 35.4%, beating peers significantly.
Geographical and Segmental Performance
All regions, including Italy, Germany, Austria, and Central and Eastern Europe, showed strong financial performance with positive growth in fees and net income.
Successful Strategic Initiatives
Partnership with Google to accelerate the transformation by moving applications to the cloud, enhancing agility, and improving security.
Negative Updates
NII Decline
Net interest income (NII) showed a decline, especially noted in Austria, impacting overall revenue growth.
Challenges in Russia
Continued efforts towards an accelerated ordinary wind-down of Russian operations, with significant reductions in local deposits and loans.
Banking Sector Challenges
Macroeconomic environment remains challenging with pressures on NII due to normalizing rates and local volatility.
Company Guidance
During the UniCredit First Quarter 2025 Results Conference Call, the company provided an upgraded guidance for 2025, projecting net income to exceed 2024 levels, with a return on tangible equity (RoTE) above 17%. This guidance revision was driven by Q1 outperformance across nonoperating profit, net income, RoTE, and organic capital generation. Key metrics from Q1 included a 3.2% increase in net revenue, a 20% increase in NII RoAC, and an 8.3% rise in net profit to EUR 2.8 billion, achieving a 22% RoTE. The cost-to-income ratio improved to 35.4%, with cost reductions of 1.3% at constant perimeter. UniCredit's CET1 ratio increased to 16.1%, and the company generated EUR 3.1 billion of capital organically. The outlook for 2025 remains optimistic, with a focus on maintaining competitive strengths and leveraging structural advantages, while also considering further guidance upgrades in the coming quarters based on business performance.UniCredit SpA Financial Statement Overview
Summary
UniCredit SpA demonstrates strong revenue growth and profitability. The balance sheet is stable with zero debt, though a low equity ratio poses a risk. Cash flow challenges exist, but there are improvements. Overall, financials are strong, with room for better cash flow management.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.85
Very Positive
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.75
Positive
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.99B | 23.57B | 21.04B | 18.60B | 18.43B |
| Gross Profit | ||||
| 23.99B | 23.57B | 21.04B | 18.60B | 18.43B |
| EBIT | ||||
| 14.34B | 13.39B | 7.29B | 3.88B | -2.46B |
| EBITDA | ||||
| 12.57B | 12.19B | 8.23B | 3.23B | -544.00M |
| Net Income Common Stockholders | ||||
| 9.72B | 9.51B | 6.46B | 2.10B | -2.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 115.17B | 72.34B | 111.80B | 162.27B | 165.62B |
| Total Assets | ||||
| 784.00B | 784.97B | 857.77B | 916.67B | 931.46B |
| Total Debt | ||||
| 122.72B | 122.52B | 115.46B | 125.91B | 134.08B |
| Net Debt | ||||
| 68.41B | 50.18B | -18.48B | -36.35B | -31.53B |
| Total Liabilities | ||||
| 721.16B | 720.73B | 794.28B | 854.58B | 871.51B |
| Stockholders Equity | ||||
| 62.44B | 64.08B | 63.34B | 61.63B | 59.51B |
| Cash Flow | Free Cash Flow | |||
| -8.33B | -42.28B | 9.09B | -8.76B | 81.89B |
| Operating Cash Flow | ||||
| -7.08B | -41.13B | 10.26B | -7.52B | 83.32B |
| Investing Cash Flow | ||||
| -1.06B | -787.00M | -237.00M | -699.00M | 569.00M |
| Financing Cash Flow | ||||
| -10.99B | -8.45B | -5.55B | -1.41B | 660.00M |
UniCredit SpA Technical Analysis
Positive
55.01
Price Trends
54.19
Positive
51.16
Positive
44.49
Positive
Market Momentum
0.27
Positive
45.64
Neutral
11.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:UCG, the sentiment is Positive. The current price of 55.01 is below the 20-day moving average (MA) of 56.74, above the 50-day MA of 54.19, and above the 200-day MA of 44.49, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 11.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:UCG.
UniCredit SpA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $84.43B | 9.12 | 14.91% | 5.29% | 3.21% | 7.24% | |
62 Neutral | AU$9.55B | 7.87 | 10.79% | 5.17% | 31.14% | 38.26% | |
| €14.86B | 7.70 | 13.41% | 10.17% | ― | ― | ||
| €10.86B | 7.79 | 13.24% | 7.85% | ― | ― | ||
| €11.64B | 17.82 | 28.46% | 3.89% | ― | ― | ||
| €85.47B | 9.66 | 13.56% | 7.09% | ― | ― | ||
| €15.69B | 12.06 | 11.91% | 5.79% | ― | ― |
* Financial Sector Average
Performance Comparison
IT:UCG
UniCredit SpA
55.01
21.47
64.02%
GB:0RLA
Banco BPM S.p.A.
9.63
4.12
74.77%
GB:0MU6
BPER Banca S.p.A.
7.64
3.20
72.07%
GB:0QVF
FinecoBank SpA
18.74
4.91
35.50%
GB:0HBC
Intesa Sanpaolo SpA
4.77
1.53
47.22%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
19.14
6.11
46.89%
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.