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Mediobanca (MDIBY)
OTHER OTC:MDIBY
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Mediobanca
(OTC:MDIBY)
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Rating:77Outperform
Price Target:―
Action:N/ADate:02/14/25
Mediobanca achieves a strong stock score due to robust financial performance, technical strength, and positive earnings call guidance. However, potential risks from non-cash expenses, financial leverage, and overbought technical indicators should be monitored.
Positive Factors
Revenue Growth
Consistent revenue growth across various segments indicates strong market demand and effective business strategies, supporting long-term financial health.
Wealth Management Expansion
Substantial growth in wealth management reflects robust client acquisition and retention, enhancing recurring revenue streams and market position.
Capital Strength
A strong CET1 ratio signifies solid capital adequacy, providing financial stability and flexibility for growth and shareholder returns.
Negative Factors
Equity Ratio Concerns
A low equity ratio suggests potential vulnerability to financial distress, impacting the company's ability to withstand economic downturns.
Negative EBITDA Margin
A negative EBITDA margin indicates inefficiencies in operations, which could hinder profitability and require strategic adjustments to improve margins.
Takeover Uncertainty
The potential takeover introduces uncertainty and could disrupt strategic plans, affecting long-term business operations and stakeholder interests.
Mediobanca (MDIBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.05B
Dividend Yield5.4%
Average Volume (3M)3.24K
Price to Earnings (P/E)13.3
Beta (1Y)0.87
Revenue Growth-0.19%
EPS Growth7.12%
CountryUS
Employees5,443
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.73
Shares Outstanding813,279,660
10 Day Avg. Volume1,070
30 Day Avg. Volume3,238
Financial Highlights & Ratios
PEG Ratio1.80
Price to Book (P/B)1.39
Price to Sales (P/S)4.44
P/FCF Ratio0.00
Enterprise Value/Market Cap3.17
Enterprise Value/Revenue61.59
Enterprise Value/Gross Profit61.59
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Jul 31, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record-breaking net new money and significant growth in several business segments. Despite some challenges such as higher costs and a decrease in NII in specific areas, the overall outlook remains optimistic with plans for further growth and improvements in capital structure and ESG initiatives.Q4-2025 Updates
Positive Updates
Record Net New Money
Achieved EUR 11 billion of net new money, representing a 30% increase year-on-year.
Loan Growth in Consumer Finance
Increased consumer finance loan production to EUR 9 billion, up 9% year-on-year.
EPS and Dividend Growth
Net profit increased by 4%, EPS up 7%, and total dividend per share increased to EUR 1.15, up 7% year-on-year.
Wealth Management and CIB Performance
Wealth Management fees increased by 13%, with a record net new money of EUR 11 billion. CIB revenue reached EUR 900 million, up 16% year-on-year.
Cost of Risk Improvement
Cost of risk was lower than expected at 44 basis points, compared to a forecasted 50-55 basis points.
ESG and Social Initiatives
Significant ESG improvements, including an 18% reduction in financed emissions and enhanced social initiatives.
Negative Updates
Decrease in Net Interest Income
Wealth Management experienced a 5% decrease in NII due to non-recurrent items related to capital distribution.
Cost Increases
Increased costs driven by business-related growth, technology investments, and inflation, totaling EUR 68 million.
Higher Cost of Funding
Higher than expected cost of funding in private banking and Premier Banking due to market uncertainties.
Company Guidance
During the call, Alberto Nicola Nagel presented a robust set of metrics reflecting the company's strong performance and future guidance. The firm achieved EUR 11 billion in net new money, marking a 30% year-on-year increase. Average loans in the corporate and investment banking (CIB) sector grew by 8%, reaching EUR 1 billion, and consumer finance loans increased by 9% to EUR 9 billion annually. Revenue rose to EUR 3.7 billion, with a growth rate of 6% over the past two years, while gross operating profit climbed 8%. The return on risk-weighted assets improved to 2.9%, up from 2.4% at the plan's inception. The company also increased its dividend to EUR 1.15 per share, up 7% year-on-year. Looking ahead, the firm aims for EUR 4.4 billion in revenue over the next three years, with a 6% growth rate. It plans to shift its distribution policy to a full cash dividend model starting next year, targeting a 9% growth in recurring EPS and a 17% ordinary return on equity. The continued focus on expanding wealth management and consumer finance, along with strategic capital optimization, underscores the company's ambitious growth trajectory.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 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.51B | 5.28B | 3.93B | 2.87B | 2.99B |
| Gross Profit | 3.51B | 3.25B | 2.91B | 2.51B | 2.59B |
| EBITDA | 0.00 | 1.82B | 1.52B | 1.25B | 1.17B |
| Net Income | 1.33B | 1.27B | 1.03B | 906.98M | 807.58M |
Balance Sheet | |||||
| Total Assets | 103.95B | 99.23B | 91.64B | 90.57B | 82.60B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 4.10B | 4.76B | 8.33B | 3.69B |
| Total Debt | 40.18B | 33.73B | 31.96B | 22.75B | 22.88B |
| Total Liabilities | 92.75B | 87.98B | 80.19B | 79.82B | 71.50B |
| Stockholders Equity | 11.19B | 11.16B | 11.33B | 10.65B | 11.01B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 388.35M | -3.24B | 5.80B | -1.45B |
| Operating Cash Flow | 0.00 | 439.51M | -3.16B | 5.86B | -1.40B |
| Investing Cash Flow | 0.00 | 19.05M | 170.29M | 263.54M | 152.63M |
| Financing Cash Flow | 0.00 | -1.33B | -633.95M | -821.05M | -3.69M |
Mediobanca Technical Analysis
Negative
21.12
Price Trends
21.18
Negative
20.16
Positive
21.30
Negative
Market Momentum
0.34
Positive
45.48
Neutral
40.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDIBY, the sentiment is Negative. The current price of 21.12 is below the 20-day moving average (MA) of 22.08, below the 50-day MA of 21.18, and below the 200-day MA of 21.30, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDIBY.
Mediobanca Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.05B | 13.29 | 11.52% | 5.40% | -0.19% | 7.12% | |
74 Outperform | $28.07B | 14.16 | 18.88% | 4.82% | 8.72% | 27.70% | |
69 Neutral | $25.96B | 15.58 | 7.24% | 2.89% | -3.93% | 40.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $30.61B | 9.27 | ― | 2.86% | -4.88% | 4.84% | |
63 Neutral | $22.78B | 13.63 | 9.48% | 3.90% | 3.86% | 5473.29% | |
57 Neutral | $24.30B | 23.21 | 9.34% | 4.98% | 1.13% | -11.93% |
* Financial Sector Average
MDIBY
Mediobanca
19.79
2.80
16.49%
BSBR
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6.15
1.97
47.20%
BAP
Credicorp
332.68
159.34
91.93%
KEY
KeyCorp
20.91
5.23
33.34%
SHG
Shinhan Financial Group Co
63.77
31.97
100.53%
CFG
Citizens Financial
59.68
17.63
41.92%
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.