M&T Bank (MTB) AI Stock Analysis

• Market Cap: $28.88B
• Dividend Yield: 2.93%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.96
• Revenue Growth: 1.20%
• EPS Growth: 1.12%
• Country: US
• Employees: 22,291
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 3.32
• Shares Outstanding: 160,516,040
• 10 Day Avg. Volume: 1,066,820
• 30 Day Avg. Volume: 1,031,416
• PEG Ratio: N/A
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.66
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 2.82
• 1Y Price Target: $202.41
• Price Target Upside: 9.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $207.00 ▲(12.41%Upside)

M&T Bank's overall stock score reflects a solid financial foundation with consistent profitability and robust cash flow. The technical analysis presents mixed signals, necessitating caution. The valuation is moderate, offering an attractive dividend yield. The earnings call highlights strengths in liquidity and asset quality, but also identifies challenges in earnings and net interest income. Overall, M&T Bank is well-positioned for future growth, but investors should monitor earnings and market conditions closely.

Positive Factors

Capital Return

Buybacks accelerated substantially, exceeding both the analyst's estimate and consensus, suggesting strong capital return to shareholders.

Credit Metrics

Leading credit metrics continued to improve, with declines in non-performing assets and criticized loans.

Valuation

Stock valuation remains attractive at 10.2x/8.6x our FY25/26e EPS vs. 12% forecasted EPS growth over the next 3 years.

Negative Factors

Consumer Activities

MTB flagged strong growth in consumer activities as temporary, driven by reactions to tariffs.

Earnings

MTB reported earnings per share of $3.32, which missed the forecast and consensus estimates.

Net Interest Income

MTB lowered its 2025 net interest income guidance, owing to lower average loan and deposit outlooks.

M&T Bank Business Overview & Revenue Model

Company Description

M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial lending and leasing, letters of credit, and cash management services for middle-market and large commercial customers. The company's Commercial Real Estate segment originates, sells, and services commercial real estate loans; and offers deposit services. Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services. The company's Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities. Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; mutual funds and annuities; and other services. The company also provides trust and wealth management; fiduciary and custodial; insurance agency; institutional brokerage and securities; and investment management services. It offers its services through banking offices, business banking centers, telephone and internet banking, and automated teller machines. As of December 31, 2021, the company operates 688 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia; and a full-service commercial banking office in Ontario, Canada. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

How the Company Makes Money

M&T Bank makes money primarily through interest income and non-interest income. Interest income is generated from the interest earned on loans and advances provided to customers, including personal loans, mortgages, and commercial loans. The bank also invests in securities and earns interest on these investments. Non-interest income is derived from fees and service charges related to deposit accounts, wealth management, and investment advisory services. Additionally, the company earns revenue from transaction fees, credit card fees, and other banking services. M&T Bank's earnings are also influenced by economic factors, interest rate environments, and regulatory conditions. Significant partnerships with financial service providers and technology platforms enhance its service offerings and contribute to its revenue streams.

M&T Bank Financial Statement Overview

Summary

M&T Bank exhibits strong financial performance with consistent profitability and effective cash flow management. The balance sheet shows a prudent approach to leverage, though liabilities need monitoring. The bank's stable margins and cash generation indicate resilience and potential for future growth.

Income Statement

M&T Bank shows strong profitability with a consistent gross profit margin above 60% over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 66% and a net profit margin of 19.89%, reflecting solid cost management and profitability. However, revenue growth has been volatile, with a significant spike in 2023, which was not sustained in 2024. EBIT and EBITDA margins remain robust, suggesting efficient operations.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.42 in the TTM, indicating manageable leverage. The equity ratio stands at 13.78%, reflecting a sound financial structure. Return on equity is strong at 9.11%, demonstrating effective use of equity to generate profits. However, the total liabilities present a potential risk if not managed well.

Cash Flow

The cash flow statement highlights healthy free cash flow generation, with a TTM free cash flow growth rate of 1.09%. The operating cash flow to net income ratio is 1.38, indicating efficient cash generation from operations. The free cash flow to net income ratio is also favorable at 1.30, supporting the bank's capacity to reinvest and manage its capital expenditures without relying heavily on debt.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.28B	13.40B	9.00B	8.04B	5.99B	5.95B
	Gross Profit
8.76B	8.62B	9.00B	8.04B	5.99B	5.95B
	EBIT
3.41B	3.31B	4.52B	3.04B	2.46B	1.77B
	EBITDA
3.92B	3.82B	0.00	2.91B	2.69B	1.96B
	Net Income Common Stockholders
2.64B	2.59B	2.74B	1.99B	1.86B	1.35B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.99B	35.33B	29.69B	51.69B	43.66B	25.72B
	Total Assets
215.14B	208.10B	208.26B	200.73B	155.11B	142.60B
	Total Debt
16.25B	13.66B	13.20B	7.52B	3.53B	4.44B
	Net Debt
-17.59B	-7.12B	-16.60B	-18.96B	-39.68B	-20.77B
	Total Liabilities
187.97B	179.08B	181.31B	175.41B	137.20B	126.41B
	Stockholders Equity
27.17B	29.03B	26.96B	25.32B	17.90B	16.19B
Cash Flow		Free Cash Flow
3.43B	3.39B	3.65B	4.36B	2.57B	616.90M
	Operating Cash Flow
3.64B	3.61B	3.90B	4.57B	2.71B	789.19M
	Investing Cash Flow
4.40B	-550.00M	-7.87B	16.59B	-13.63B	-22.02B
	Financing Cash Flow
-7.62B	-2.88B	4.18B	-20.98B	10.70B	21.35B

M&T Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.14
• 50DMA: Positive
• 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 MTB, the sentiment is Positive. The current price of 184.14 is above the 20-day moving average (MA) of 181.95, above the 50-day MA of 172.44, and above the 200-day MA of 183.30, indicating a bullish trend. The MACD of 2.17 indicates Positive momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTB.

M&T Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	77 Outperform	$22.93B	12.13	10.30%	3.94%	7.55%	17.46%
RF	74 Outperform	$19.17B	10.29	11.33%	4.49%	1.05%	12.14%
MTB	74 Outperform	$28.88B	12.05	9.39%	2.93%	1.20%	1.12%
FITB	73 Outperform	$25.56B	12.17	11.71%	3.81%	5.75%	0.68%
CFG	70 Outperform	$17.46B	12.82	6.37%	4.06%	-2.12%	13.92%
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
KEY	59 Neutral	$17.43B	1,663.64	0.14%	5.02%	-12.50%	-120.77%

M&T Bank Corporate Events

M&T Bank Highlights Strategic Priorities in Investor Presentation

On May 6, 2025, M&T Bank Corporation released an investor presentation on its website, highlighting its financial performance and strategic priorities. The presentation emphasized M&T’s commitment to community banking, its strong balance sheet, and superior profitability compared to peers. The bank aims to expand in New England and Long Island, optimize resources, and enhance risk management capabilities, which could impact its market positioning and stakeholder value.

M&T Bank Reports Strong Q1 2025 Financial Results

On April 14, 2025, M&T Bank Corporation announced its first quarter 2025 financial results, reporting a net income of $584 million and diluted earnings per common share of $3.32. The bank experienced a slight decrease in net interest income compared to the previous quarter, yet saw an improvement in its net interest margin to 3.66%. Despite a decline in noninterest income and an increase in noninterest expenses, M&T Bank maintained a strong return on average assets and equity, indicating stable financial performance and resilience in its operations.