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illimity Bank SpA (DE:53D)
STUTTGART:53D
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Positive Factors
IT Investment Valorisation
The valorisation of IT investments through the partnership with Apax Partners should enhance the capital base by 90bps.
Strategic Partnership
Illimity announced a strategic agreement with Apax Partners to create a tech company focused on digital products, strategic tech consulting and banking services.
Negative Factors
Interest Rate Impact
Profitability is penalised by declining interest rates while uncertainties on the asset valuation and company strategy could penalise the stock market in the shorter run.
Profitability Pressure
The reshaping of the business out of NPL direct investments reduced the revenue generation without a material release of capital, thus putting pressure on the company profitability.
illimity Bank SpA (53D) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€311.36M
Dividend Yield6.92%
Average Volume (3M)0.00
Price to Earnings (P/E)4.8
Beta (1Y)0.91
Revenue GrowthN/A
EPS GrowthN/A
CountryDE
Employees766
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)<0.01
Shares Outstanding84,067,810
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.34
Price to Sales (P/S)0.00
P/FCF Ratio10.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€3.70Price Target Upside2.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
illimity Bank SpA Business Overview & Revenue Model
Company Descriptionillimity Bank S.p.A. provides private banking, and investment and trading services in Italy. The company operates through four divisions: Distressed Credit, Growth Credit, Investment Banking, and b-ilty. The Distressed Credit division is involved in the purchase of secured and unsecured corporate distressed loans on primary and secondary markets; provision of financing services primarily in the form of senior financing to investors in distressed loans; and management of corporate non-performing loans portfolios and underlying assets. The Growth Credit division is involved in the financing of the supply chains of the operators of Italian chains and industrial districts through the activity of recourse and non-recourse purchasing of customers' trade receivables; and financing to businesses; and financing solutions for acquisition activities. It also engages in the purchase of loans that are classified as unlikely-to-pay. The Investment Banking division operates in capital markets; implements complex financial transactions for the bank and companies; and provides corporate solutions, which invests in corporate bonds and alternative debts, as well as offers solutions to SMEs and Mid Caps to hedge market risks. The b-ilty division offers digital banking and lending products and services to business customers. Its products include deposits and current accounts; and account aggregator services, as well as digital credit and insurance products. The company also manages the assets of closed end alternative investment funds, own funds, and third-party institutional investors funds. illimity Bank S.p.A. is headquartered in Milan, Italy.
How the Company Makes Money
illimity Bank SpA Financial Statement Overview
Summary
Overall, illimity Bank SpA presents a mixed financial picture. The income statement shows a troubling decline in revenue and profitability with a score of 62. The balance sheet remains a strong point with no debt and adequate equity ratios, scoring 79, offering some stability. However, persistent negative cash flows, scoring 55, raise concerns about operational efficiency and liquidity management. The company needs to address profitability and cash flow challenges to improve its financial health.Income Statement
The company's income statement shows significant revenue fluctuations, with a recent revenue decline of 67.14% from 2023 to 2024. Gross profit margins are consistently high, reflecting effective cost management, but net profit margins have been negative in 2024 due to the losses reported. Historical EBIT and EBITDA margins were strong but recently unavailable, raising concerns about profitability trends.62
Positive
Balance Sheet
The balance sheet is relatively strong with a high equity ratio of 10.64% for 2024, indicating a solid capital base. The absence of debt in 2024 further strengthens the financial position. However, the declining trend in stockholders' equity could pose a risk if not reversed. Historically, the company has maintained a conservative debt profile, which is a positive indicator of stability.79
Positive
Cash Flow
Cash flow analysis highlights challenges, with negative operating cash flow in recent years indicating underlying operational issues. Free cash flow growth has been negative, pointing to pressures on liquidity. The free cash flow to net income ratio is concerning due to losses, suggesting the company is struggling to convert earnings into cash.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 295.42M | 178.61M | 543.84M | 261.62M | 207.52M | 133.62M | Gross Profit |
| 219.92M | 178.61M | 336.07M | 261.62M | 207.52M | 133.62M | EBIT |
| 111.28M | -7.56M | 173.51M | 100.86M | 80.75M | 38.69M | EBITDA |
| 111.42M | 0.00 | 176.32M | 125.77M | 98.66M | 47.31M | Net Income Common Stockholders |
| 75.18M | -38.40M | 104.40M | 75.33M | 65.59M | 31.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 273.39M | 414.10M | 431.70M | 703.66M | 577.57M | 1.06B | Total Assets |
| 7.56B | 8.40B | 7.26B | 6.36B | 4.66B | 4.13B | Total Debt |
| 1.42B | 0.00 | 611.74M | 686.91M | 530.56M | 333.95M | Net Debt |
| 1.15B | -414.10M | -464.26M | -16.75M | -47.01M | -725.36M | Total Liabilities |
| 6.59B | 7.50B | 6.30B | 5.51B | 3.89B | 3.54B | Stockholders Equity |
| 966.87M | 894.20M | 950.49M | 841.32M | 772.82M | 583.12M |
| Cash Flow | Free Cash Flow | ||||
| 52.23M | -26.99M | -232.15M | 173.16M | -494.79M | 173.44M | Operating Cash Flow |
| 52.23M | -7.63M | -199.81M | 200.55M | -473.22M | 216.34M | Investing Cash Flow |
| 0.00 | -11.00M | -34.22M | -27.45M | -46.48M | -42.90M | Financing Cash Flow |
| 0.00 | -25.81M | -15.05M | -100.00K | 73.87M | -736.00K |
illimity Bank SpA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
DE:53D
illimity Bank SpA
3.62
-1.20
-24.90%
GB:0RK6
Banca Monte dei Paschi di Siena SPA
7.32
2.97
68.28%
GB:0NWJ
Banca Popolare di Sondrio S.C.p.A.
12.26
5.77
88.91%
GB:0RLA
Banco BPM S.p.A.
10.38
4.66
81.47%
GB:0HBC
Intesa Sanpaolo SpA
5.01
1.73
52.74%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.