M&T Bank (MTB) AI Stock Analysis

• Market Cap: $28.80B
• Dividend Yield: 2.98%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.02
• Revenue Growth: 6.07%
• EPS Growth: -7.10%
• Country: US
• Employees: 21,873
• Sector: Financial
• Sector Strength: 86
• Industry: Banks - Regional
• EPS (TTM): 14.63
• Shares Outstanding: 164,290,340
• 10 Day Avg. Volume: 1,792,272
• 30 Day Avg. Volume: 1,542,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.27
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 3.20
• 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: $218.14
• Price Target Upside: 24.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

M&T Bank's overall stock score reflects strong financial performance with robust revenue growth and operational efficiency. However, technical indicators suggest caution due to bearish momentum. While the company is moderately valued, concerns about decreased earnings and higher expenses weigh on the outlook.

Positive Factors

Capital Return

Expect capital return to ramp in 2025, with M&T Bank in a strong position to increase buybacks and benefit from the reduction of CRE exposure.

Earnings Outlook

M&T Bank's earnings outlook is solid, with significant benefits expected from the roll off of receive fixed swaps, driving substantial uplift to net interest income.

Negative Factors

Commercial Real Estate Exposure

M&T Bank's office commercial real estate (CRE) exposure and relatively lower loan loss reserves are expected to remain a headwind.

Growth Challenges

In the near term, CRE is likely to be an overhang in terms of growth, expenses, and capital due to costly workouts.

M&T Bank Business Overview & Revenue Model

Company Description

M&T Bank Corporation (MTB) is a regional financial services company headquartered in Buffalo, New York. It operates as a bank holding company and provides a wide range of financial products and services to individuals, businesses, and institutions. M&T Bank offers services such as personal and business banking, wealth management, investment services, and commercial banking. It primarily serves customers across the northeastern United States, with a focus on community banking and personalized service.

How the Company Makes Money

M&T Bank makes money primarily through interest income, which it earns by providing loans and credit products to individual and commercial clients. This includes personal loans, mortgages, commercial real estate loans, and lines of credit. Additionally, the bank generates revenue from non-interest income sources, such as fees for deposit accounts, transaction services, and wealth management services. The bank also benefits from investment advisory fees, mortgage banking revenue, and service charges on deposit accounts. M&T Bank's earnings are further supported by strategic acquisitions and partnerships that expand its market presence and service offerings.

M&T Bank Financial Statement Overview

Summary

M&T Bank demonstrates robust revenue growth and operational efficiency, supported by a strong balance sheet with low leverage. While cash flow management needs attention, the bank's financial position is solid, with promising growth prospects. Maintaining profit margins and optimizing cash flows are crucial for sustaining long-term growth.

Income Statement

M&T Bank's income statement shows strong growth with a notable increase in total revenue from $8.998 billion in 2023 to $11.026 billion in 2024, representing a 22.5% growth rate. The gross profit margin has remained stable at 100% due to its nature as a bank. The net profit margin, however, decreased slightly from 30.5% in 2023 to 23.5% in 2024, indicating a need to control expenses. The EBIT margin saw a significant increase, indicating improved operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a strong equity base. The debt-to-equity ratio decreased significantly from 0.49 in 2023 to 0.04 in 2024, showing reduced leverage. ROE decreased from 10.2% to 8.9%, suggesting a slight decline in shareholder returns. The equity ratio improved slightly, indicating a stable asset base.

Cash Flow

Cash flows are strong, with a positive operating cash flow of $3.61 billion in 2024. Free cash flow to net income ratio is healthy at 1.4, indicating efficient cash generation. However, the free cash flow growth rate is negative due to a decrease from $3.649 billion in 2023 to $3.61 billion in 2024, suggesting potential cash management concerns that need attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.03B	9.00B	8.04B	5.99B	5.95B
	Gross Profit
11.03B	9.00B	8.04B	5.99B	5.95B
	EBIT
10.92B	4.52B	3.04B	2.46B	1.77B
	EBITDA
0.00	0.00	2.91B	2.69B	1.96B
	Net Income Common Stockholders
2.59B	2.74B	1.99B	1.86B	1.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.96B	29.69B	51.69B	43.66B	25.72B
	Total Assets
208.10B	208.26B	200.73B	155.11B	142.60B
	Total Debt
1.06B	13.20B	7.52B	3.53B	4.44B
	Net Debt
-849.00M	-16.60B	-18.96B	-39.68B	-20.77B
	Total Liabilities
179.08B	181.31B	175.41B	137.20B	126.41B
	Stockholders Equity
29.03B	26.96B	25.32B	17.90B	16.19B
Cash Flow		Free Cash Flow
3.61B	3.65B	4.36B	2.57B	616.90M
	Operating Cash Flow
3.61B	3.90B	4.57B	2.71B	789.19M
	Investing Cash Flow
-550.00M	-7.87B	16.59B	-13.63B	-22.02B
	Financing Cash Flow
-2.88B	4.18B	-20.98B	10.70B	21.35B

M&T Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 175.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTB, the sentiment is Negative. The current price of 175.28 is below the 20-day moving average (MA) of 177.61, below the 50-day MA of 188.56, and below the 200-day MA of 180.03, indicating a bearish trend. The MACD of -2.54 indicates Negative momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 49.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTB.

M&T Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	71 Outperform	$69.24B	12.88	11.10%	3.63%	7.24%	7.51%
RF	71 Outperform	$19.40B	11.08	10.72%	4.47%	2.70%	-8.16%
USB	70 Neutral	$65.84B	11.16	11.00%	4.58%	5.59%	15.52%
FITB	67 Neutral	$25.93B	12.38	11.92%	3.62%	11.21%	-2.26%
Sector *	64 Neutral	$14.24B	10.18	8.97%	4.28%	16.38%	-12.00%
MTB	63 Neutral	$28.80B	11.98	9.23%	2.98%	6.07%	-7.10%
KEY	54 Neutral	$17.87B	1,663.64	-0.99%	5.07%	-11.11%	-133.79%

M&T Bank Corporate Events

M&T Bank Unveils Q1 2025 Strategic Priorities

On March 4, 2025, M&T Bank Corporation released an investor presentation on its website, detailing its strategic priorities and financial performance for the first quarter of 2025. The presentation highlights M&T’s focus on expanding its New England and Long Island markets, optimizing resources, enhancing system resilience, and managing risk. The bank’s diversified business model and community-focused approach aim to sustain its stable funding base and long-term customer relationships, positioning it strongly in the Northeast and Mid-Atlantic regions.

M&T Bank Reports Decreased 2024 Financial Performance

M&T Bank Corporation reported its financial results for the fourth quarter of 2024 on January 16, 2025, announcing a net income of $681 million and diluted earnings per share of $3.86. For the full year, the bank achieved a net income of $2.59 billion with diluted earnings per share of $14.64. These results reflect a decrease in full-year net interest income and noninterest income compared to 2023, as well as a slight reduction in return on average assets and equity, indicating challenges in maintaining previous performance levels.