Unipol Gruppo Finanziario SpA (UNI) AI Stock Analysis

• Market Cap: €11.81B
• Dividend Yield: 5.16%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.96
• Revenue Growth: 6.46%
• EPS Growth: -2.42%
• Country: IT
• Employees: 12,191
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Diversified
• EPS (TTM): 0.55
• Shares Outstanding: 717,473,500
• 10 Day Avg. Volume: 1,138,709
• 30 Day Avg. Volume: 1,262,698
• PEG Ratio: -1.56
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.09
• 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: €18.43
• Price Target Upside: 11.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: €19.00 ▲(15.36%Upside)

Unipol Gruppo Finanziario SpA exhibits strong technical momentum and a reasonable valuation, making it attractive in the near term. However, strategic focus on reversing revenue decline is crucial for sustainable growth. The stock's attractive dividend yield adds to its appeal.

Unipol Gruppo Finanziario SpA Business Overview & Revenue Model

Company Description

Unipol Gruppo S.p.A., together with its subsidiaries, provides insurance and banking services primarily in Italy. The company operates through Non-Life Insurance Business, Life Insurance Business, Banking Business, Real Estate Business, and Holding and Other Businesses segments. It offers non-life insurance products for vehicles, sports craft, and travel; home and condominiums; work related to businesses, traders, professionals, and legal protection; accident and health protection; and investments and welfare. The company also provides life insurance products; and reinsurance services to individuals and legal entities through its agency network. In addition, it is involved in the management of non-performing loans; operation and management of real estate properties; operation of resorts and hotels; and agricultural, harbor, and healthcare businesses. The company was formerly known as Unipol Gruppo Finanziario S.p.A. and changed its name to Unipol Gruppo S.p.A. in June 2017. Unipol Gruppo S.p.A. was founded in 1961 and is based in Bologna, Italy.

How the Company Makes Money

Unipol Gruppo Finanziario SpA generates revenue through several key streams, primarily driven by its insurance operations. The company earns premiums from policyholders in life, non-life, and health insurance sectors. These premiums are the primary source of income, with the non-life insurance segment, including motor vehicle and property insurance, contributing significantly to the revenue. Additionally, Unipol invests the collected premiums in various financial instruments, generating investment income. The company also profits from its banking operations, where it offers a variety of financial services, including loans and savings products. Strategic partnerships with other financial institutions and a focus on expanding its customer base further bolster its earnings potential.

Unipol Gruppo Finanziario SpA Financial Statement Overview

Summary

The company's financial performance is marked by strong operational efficiency and stable profitability despite declining revenue. The balance sheet shows manageable leverage, and cash flows are robust, though maintaining free cash flow levels is a concern. Addressing revenue growth is essential for long-term health.

Income Statement

The company's revenue has declined from €15.77 billion in 2019 to €11.01 billion in 2024, showing a negative growth trajectory. However, the EBIT margin has improved significantly in 2024 to 94.86%, indicating strong operational efficiency. The net profit margin for 2024 is 9.76%, showing stable profitability despite the revenue decrease. Overall, the income statement reflects a focus on cost management and operational efficiency, but the declining revenue trend is a concern.

Balance Sheet

The debt-to-equity ratio in 2024 is 0.69, indicating a manageable level of leverage. The return on equity (ROE) is 11.46% for 2024, which is a healthy return for shareholders. The equity ratio stands at 11.22%, showing a moderate reliance on equity for financing. The balance sheet reflects a stable financial position with prudent leverage, but the relatively low equity ratio suggests a potential risk if liabilities were to increase significantly.

Cash Flow

Operating cash flow has increased to €2.52 billion in 2024 from €1.54 billion in 2023, showing positive cash generation. The free cash flow to net income ratio is 1.48, indicating strong cash flow relative to net income. However, free cash flow has decreased compared to the previous year. Overall, the cash flow statement shows strong operational cash generation but highlights the need for continued focus on maintaining free cash flow levels.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.65B	12.16B	13.54B	14.31B	13.45B
Gross Profit	11.65B	11.47B	13.54B	14.31B	13.45B
EBITDA	1.14B	1.62B	1.06B	1.21B	1.50B
Net Income	1.07B	1.10B	525.00M	626.60M	707.40M
Balance Sheet
Total Assets	83.42B	79.46B	74.54B	80.26B	79.41B
Cash, Cash Equivalents and Short-Term Investments	1.71B	1.82B	43.66B	52.63B	53.60B
Total Debt	6.50B	5.02B	4.61B	4.28B	5.22B
Total Liabilities	73.80B	69.66B	66.88B	70.54B	69.88B
Stockholders Equity	9.37B	8.20B	6.13B	7.78B	7.61B
Cash Flow
Free Cash Flow	1.59B	244.00M	1.12B	1.41B	503.10M
Operating Cash Flow	2.82B	1.54B	1.94B	1.64B	708.20M
Investing Cash Flow	-2.77B	-1.41B	-2.12B	594.80M	-1.80B
Financing Cash Flow	146.00M	-111.00M	40.10M	-1.39B	1.18B

Unipol Gruppo Finanziario SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.47
• 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:UNI, the sentiment is Positive. The current price of 16.47 is below the 20-day moving average (MA) of 16.58, below the 50-day MA of 16.70, and above the 200-day MA of 13.38, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:UNI.

Unipol Gruppo Finanziario SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNI	74 Outperform	€11.81B	10.98	12.42%	5.16%	6.46%	-2.42%
Sector *	67 Neutral	$16.86B	11.82	9.77%	3.72%	12.02%	-8.27%
UNCFF	―	$102.36B	10.39	14.91%	5.00%	―	―
0K78	―	€48.42B	12.96	12.66%	4.56%	―	―
0DQZ	―	€5.51B	12.96	30.35%	9.00%	―	―
0RK6	―	€8.83B	4.53	18.24%	12.27%	―	―
0HBC	―	€86.61B	9.90	13.56%	7.02%	―	―