BPER Banca S.p.A. (BPE) AI Stock Analysis

• Market Cap: €18.70B
• Dividend Yield: 6.33%
• Average Volume (3M): 11.27M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.38
• Revenue Growth: -0.56%
• EPS Growth: 2.54%
• Country: IT
• Employees: 19,508
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.64
• Shares Outstanding: 1,964,323,600
• 10 Day Avg. Volume: 12,056,490
• 30 Day Avg. Volume: 11,270,287
• PEG Ratio: -0.83
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -22.41
• 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: €11.00
• Price Target Upside: 16.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: €11.50 ▲(21.31% Upside)

BPER Banca S.p.A. receives a strong overall stock score driven by its solid financial performance, particularly in revenue growth and balance sheet strength. The stock's technical indicators are positive, supporting a bullish outlook. Additionally, the company's attractive valuation with a low P/E ratio and high dividend yield further enhances its investment appeal. However, cash flow management remains a concern that needs addressing to ensure long-term sustainability.

BPER Banca S.p.A. Business Overview & Revenue Model

Company Description

BPER Banca S.p.A. (BPE) is an Italian banking group that provides a wide range of financial services to individuals, businesses, and institutional clients. With a presence primarily in Italy, the bank operates through a network of branches and offers products including loans, mortgages, savings accounts, investment services, and insurance. BPER Banca is also involved in various financial services related to asset management and corporate banking, making it a significant player in the regional banking sector.

How the Company Makes Money

BPER Banca generates revenue through multiple streams, primarily from interest income on loans extended to customers, which represents a significant portion of its earnings. The bank also earns money through fees and commissions related to various banking services such as account maintenance, transaction processing, and advisory services. Additionally, BPER Banca benefits from investment income derived from its securities portfolio and asset management services. The bank's partnerships with other financial institutions and its focus on expanding its digital banking services further contribute to its revenue by enhancing customer engagement and broadening its service offerings.

BPER Banca S.p.A. Financial Statement Overview

Summary

BPER Banca S.p.A. demonstrates strong revenue growth and improving balance sheet strength, with notable equity improvements and moderate leverage. However, cash flow management remains an area for improvement, with negative free cash flow and operating cash flow ratios indicating potential inefficiencies.

Income Statement

BPER Banca S.p.A. shows strong growth in revenue, with a significant increase from €2.49 billion in 2019 to €7.63 billion in 2024, indicating a robust expansion strategy. The EBIT and EBITDA margins are also substantial, with the EBIT margin at 33.28% and the EBITDA margin at 30.78% for 2024. However, the net profit margin has declined slightly from previous years, signaling potential cost management issues.

Balance Sheet

The company's equity has strengthened over the years, with stockholders' equity rising from €5.16 billion in 2019 to €11.35 billion in 2024. The debt-to-equity ratio stands at 1.75, indicating moderate leverage. While the equity ratio at 8.07% suggests a lower proportion of equity financing, the return on equity is relatively strong at 12.35% for 2024.

Cash Flow

The cash flow statement presents some concerns, with a negative free cash flow of €-386.9 million in 2024, although this is an improvement from 2023. The operating cash flow to net income ratio is negative, which could signal inefficiencies in cash generation relative to income. Nonetheless, the company has shown an ability to recover from a negative cash flow position in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.22B	7.63B	4.96B	3.63B	2.53B	1.92B
Gross Profit	5.85B	5.99B	4.92B	4.31B	3.70B	1.92B
EBITDA	2.73B	2.42B	1.94B	1.60B	962.19M	367.10M
Net Income	1.58B	1.40B	1.52B	1.45B	525.12M	236.93M
Balance Sheet
Total Assets	144.53B	140.59B	142.13B	152.30B	136.35B	93.05B
Cash, Cash Equivalents and Short-Term Investments	8.60B	9.42B	10.09B	14.00B	21.77B	8.98B
Total Debt	20.11B	23.45B	11.90B	29.57B	7.33B	27.14B
Total Liabilities	132.89B	129.03B	132.56B	144.18B	129.49B	86.72B
Stockholders Equity	11.43B	11.35B	9.37B	7.94B	6.70B	6.20B
Cash Flow
Free Cash Flow	0.00	-386.94M	-3.58B	12.46B	1.02B	-870.78M
Operating Cash Flow	0.00	-251.27M	-3.42B	12.79B	1.26B	-634.98M
Investing Cash Flow	0.00	-215.29M	-314.08M	-17.07M	-743.13M	-223.13M
Financing Cash Flow	0.00	513.33M	-178.37M	-85.50M	-64.13M	772.97M

BPER Banca S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.48
• 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 IT:BPE, the sentiment is Neutral. The current price of 9.48 is below the 20-day moving average (MA) of 9.59, above the 50-day MA of 9.30, and above the 200-day MA of 7.60, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 51.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:BPE.

BPER Banca S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	79 Outperform	€18.70B	8.29	14.64%	6.33%	-0.56%	2.54%
FBK	72 Outperform	€11.41B	17.55	32.83%	3.88%	2.97%	4.64%
BGN	71 Outperform	€5.30B	13.53	32.52%	5.78%	6.75%	0.27%
BAMI	70 Neutral	€18.15B	7.57	16.45%	8.23%	2.23%	72.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMED	67 Neutral	$12.29B	10.58	28.26%	5.63%	12.46%	26.82%
BMPS	66 Neutral	€21.21B	5.22	15.13%	12.24%	-5.31%	-35.03%