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Mediobanca SPA ADR (MDIBY)
:MDIBY
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Mediobanca
(OTC:MDIBY)
Rating:77Outperform
Price Target:―
Mediobanca (MDIBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.20B
Dividend Yield3.58%
Average Volume (3M)1.81K
Price to Earnings (P/E)12.8
Beta (1Y)0.94
Revenue Growth17.58%
EPS Growth24.07%
CountryUS
Employees5,443
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)N/A
Shares Outstanding833,279,660
10 Day Avg. Volume371
30 Day Avg. Volume1,810
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.82
Price to Sales (P/S)0.00
P/FCF Ratio-2.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Mediobanca Business Overview & Revenue Model
Company DescriptionMediobanca Banca di Credito Finanziario S.p.A., together with its subsidiaries, provides various banking products and services in Italy and internationally. The company operates through Wealth Management, Consumer Banking, Corporate and Investment Banking, Principal Investing, and Holding Functions segments. The Wealth Management segment offers asset management and other services to private clients, and affluent and premier customers. The Consumer Banking segment provides a range of consumer credit products comprising personal loans and salary-backed finances; personal loan services for cars and motorcycles, consumer electronics, furniture, and travel; payment services that include credit cards and salary-backed loans; insurance products; and instalment payment solutions for online purchases. The Corporate and Investment Banking segment offers wholesale banking products and services, including lending, advisory, capital market, and proprietary trading services; and specialty finance services, such as factoring and credit management, as well as non-performing loans portfolio acquisitions and management. The Principal Investing segment engages in the equity investment and holding activities. The Holding Functions segment engages in treasury, and asset and liability management operations. The company was founded in 1946 and is headquartered in Milan, Italy.
How the Company Makes MoneyMediobanca generates revenue through multiple channels. In corporate and investment banking, the company earns money by providing services such as mergers and acquisitions advisory, equity and debt underwriting, and corporate lending. In consumer banking, Mediobanca offers personal loans, credit cards, and other financial products, earning interest and fees. Wealth management provides another revenue stream through asset management services, where the company charges fees based on assets under management. The company also benefits from strategic partnerships and investments that enhance its service offerings and expand its market reach.
Mediobanca Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: 3.37%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in wealth management and CIB, record revenue, and improved guidance. However, there were concerns about past NII performance and the impact of a potential offer from another bank, which was viewed negatively by the Board.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net profit of €660 million with a return on tangible equity of 14%. EPS increased by 10% to €0.79 per share.
Wealth Management and CIB Growth
Wealth Management saw €5 billion of net new money, while CIB revenue increased by 46% in the second quarter.
Record Revenue and Fee Generation
Revenue reached nearly €1 billion in the second quarter, a 14% increase Q-on-Q. Fees were up 36% Q-on-Q, driven by CIB and Wealth Management.
Capital Generation and Distribution
CET1 stood at 15.2%, with plans for a 10% payout and possible buyback leading to a 14.8% CET1.
Revised Guidance
Revenue projection increased from €3.8 billion to €4 billion, and net profit revised up to €1.4 billion.
Negative Updates
NII Challenges
Previous calls had highlighted disappointing NII trends, although there is now a slight improvement with a 2% Q-on-Q increase.
Potential Offer Concerns
There was a proposal from another bank that was not seen as beneficial due to cultural differences and potential dis-synergies.
Company Guidance
In the recent earnings call, Mediobanca provided an optimistic outlook for its fiscal year 2025, highlighting a net profit of €660 million and a return on tangible equity of 14% for the first half of the fiscal period. The company reported a 7% increase in revenue compared to the previous six months, with significant contributions from various business segments. Wealth Management recorded approximately €5 billion in net new money, while the Corporate and Investment Banking (CIB) segment saw a 46% increase in revenue. Consumer Finance also performed well, with over €4 billion in new loans issued, surpassing sector growth. The cost/income ratio improved to 42%, driven by a 30% rise in fees, particularly from CIB and Wealth Management. Additionally, the bank's Common Equity Tier 1 (CET1) ratio was reported at 15.2%, with expectations to adjust to 14.8% considering a potential buyback. Net interest income (NII) is recovering with a 2% quarterly increase, supported by growth in consumer finance and CIB lending. Mediobanca also revised its revenue guidance upward to €4 billion, with net profit anticipated to reach €1.4 billion, and emphasized a robust capital distribution strategy.Mediobanca Financial Statement Overview
Summary
Mediobanca shows strong revenue growth and profitability with efficient cost management. However, concerns over negative EBITDA margin and low equity ratio pose risks. Cash flow is improving but needs better income conversion.Income Statement
Mediobanca has shown solid revenue growth, with a significant increase in total revenue from the previous year. The gross profit margin is high, indicating efficient cost management. However, the negative EBITDA margin is a concern, suggesting potential issues with non-cash expenses.78
Positive
Balance Sheet
The company has a manageable debt-to-equity ratio, indicating balanced leverage. The return on equity is strong, reflecting effective use of shareholders' funds. However, the equity ratio is relatively low, which could imply higher financial risk.70
Positive
Cash Flow
Free cash flow has improved significantly, showing strong growth. However, the operating cash flow to net income ratio is low, indicating potential challenges in translating earnings into cash flow. The free cash flow to net income ratio is positive, suggesting some ability to generate cash from operations.65
Positive
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.85B | 2.85B | 2.51B | 2.59B | 2.33B |
| Gross Profit | 2.85B | 2.85B | 2.51B | 2.59B | 2.33B |
| EBITDA | -26.10M | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 1.03B | 1.03B | 906.98M | 807.58M | 600.38M |
Balance Sheet | |||||
| Total Assets | 99.23B | 91.64B | 90.57B | 82.60B | 78.95B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 4.24B | 7.86B | 3.27B | 3.22B |
| Total Debt | 6.84B | 22.28B | 22.75B | 22.88B | 24.56B |
| Total Liabilities | 87.98B | 31.96B | 79.82B | 71.50B | 69.21B |
| Stockholders Equity | 11.16B | 11.33B | 10.65B | 11.01B | 9.65B |
Cash Flow | |||||
| Free Cash Flow | 388.35M | -3.24B | 5.80B | -1.45B | 2.89B |
| Operating Cash Flow | 439.51M | -3.16B | 5.86B | -1.40B | 2.94B |
| Investing Cash Flow | 19.05M | 170.29M | 263.54M | 152.63M | 52.59M |
| Financing Cash Flow | -1.33B | -633.95M | -821.05M | -3.69M | -512.33M |
Mediobanca Technical Analysis
Neutral
21.77
Price Trends
22.04
Negative
19.88
Positive
17.65
Positive
Market Momentum
0.10
Positive
42.15
Neutral
39.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDIBY, the sentiment is Neutral. The current price of 21.77 is below the 20-day moving average (MA) of 22.54, below the 50-day MA of 22.04, and above the 200-day MA of 17.65, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 39.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDIBY.
Mediobanca Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.20B | 12.84 | 12.05% | 3.58% | 17.58% | 24.07% | |
77 Outperform | $17.71B | 11.46 | 16.35% | 9.89% | 3.89% | 15.26% | |
76 Outperform | $11.80B | 11.07 | 24.02% | 5.31% | 18.54% | 65.80% | |
75 Outperform | $11.68B | 13.44 | 15.99% | 15.07% | -5.45% | 3.43% | |
73 Outperform | $15.38B | 11.69 | 23.88% | 6.94% | -17.02% | -10.73% | |
70 Outperform | $20.92B | 17.11 | 10.89% | 4.94% | -3.94% | 31.52% | |
62 Neutral | AU$9.99B | 8.08 | 10.79% | 5.21% | 32.02% | 38.31% |
* Financial Sector Average
Performance Comparison
MDIBY
Mediobanca
21.77
7.15
48.91%
BCH
Banco De Chile
30.33
8.37
38.11%
BSBR
Banco Santander Brasil
5.45
0.69
14.50%
BSAC
Banco Santander Chile
25.12
6.92
38.02%
CIB
Bancolombia
46.36
17.96
63.24%
BAP
Credicorp
226.13
73.99
48.63%
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.