M&T Bank (MTB) AI Stock Analysis

• Market Cap: $25.95B
• Dividend Yield: 3.08%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.98
• Revenue Growth: 1.41%
• EPS Growth: 1.12%
• Country: US
• Employees: 22,291
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 3.32
• Shares Outstanding: 164,290,340
• 10 Day Avg. Volume: 1,608,477
• 30 Day Avg. Volume: 1,665,992
• 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: 1.78
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $197.75
• Price Target Upside: 12.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

M&T Bank shows strong financial performance with robust revenue growth and reduced leverage. However, challenges like declining net profit margins and cash flow concerns need attention. Technical analysis indicates mixed signals, with bearish long-term momentum. The valuation appears moderate, offering an attractive dividend yield. The earnings call reveals a mixed outlook with strengths in asset quality but pressures in earnings and net interest income.

Positive Factors

Capital Return

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

Credit Quality

Criticized loans declined significantly, driven by a substantial decrease in CRE criticized loans, indicating improved loan quality.

Stock Valuation

The unchanged $269 price target implies 38% upside, and the underperformance is seen as an attractive entry point for the shares.

Negative Factors

Consumer Loan Volume

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

Earnings Performance

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

Net Interest Income Guidance

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, 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 growth in revenue and operational efficiency, supported by a strong balance sheet with low leverage. However, there's a need for improved cash flow management and maintaining profit margins.

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: Positive
• Last Price: 175.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 175.31 is above the 20-day moving average (MA) of 163.38, above the 50-day MA of 173.15, and below the 200-day MA of 182.33, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 93.35 is Negative, 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	$21.97B	11.63	10.30%	4.11%	7.55%	17.46%
FITB	73 Outperform	$24.79B	11.77	11.71%	3.94%	6.12%	0.68%
MTB	72 Outperform	$25.95B	10.79	9.39%	3.08%	1.41%	1.12%
RF	72 Outperform	$19.06B	10.17	11.33%	4.70%	1.23%	12.14%
CFG	64 Neutral	$16.76B	12.31	6.37%	4.35%	-2.52%	13.92%
Sector *	64 Neutral	$12.65B	9.81	8.05%	17044.60%	12.57%	-4.75%
KEY	54 Neutral	$15.41B	1,663.64	0.14%	5.29%	-12.30%	-120.41%

M&T Bank Corporate Events

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.

Spark’s Take on MTB Stock

According to Spark, TipRanks’ AI Analyst, MTB is a Neutral.

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.

To see Spark’s full report on MTB stock, click here.

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.