Banca Generali SpA (BGN) AI Stock Analysis

• Market Cap: €5.65B
• Dividend Yield: 5.33%
• Average Volume (3M): 205.05K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.88
• Revenue Growth: 4.46%
• EPS Growth: -0.62%
• Country: IT
• Employees: 1,265
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.00
• Shares Outstanding: 116,851,640
• 10 Day Avg. Volume: 152,172
• 30 Day Avg. Volume: 205,053
• PEG Ratio: 0.37
• Price to Book (P/B): 3.50
• Price to Sales (P/S): 5.12
• P/FCF Ratio: 12.21
• 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: €59.06
• Price Target Upside: 14.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €54.00 ▲(4.75% Upside)

Banca Generali SpA's overall stock score is driven primarily by its strong financial performance, with robust income statement metrics and prudent balance sheet management. The valuation is also favorable, with a reasonable P/E ratio and an attractive dividend yield. However, technical analysis indicates a neutral to slightly bearish trend, which tempers the overall score. The absence of earnings call data and corporate events does not impact the score due to their exclusion.

Banca Generali SpA Business Overview & Revenue Model

Company Description

Banca Generali S.p.A. distributes financial products and services for affluent and private customers through financial advisors primarily in Italy. It operates through Wealth Management Cash-Generating Unit (CGU) and Private Banking CGU segments. The company offers asset management products, such as portfolio management, investment advisory and mutual fund management, and managed solutions consisting of funds and Sicavs, and financial and insurance wrappers; banking products and services; insurance products; and trade finance services. It operates 218 bank branches and financial advisor offices. The company was founded in 1997 and is headquartered in Trieste, Italy.

How the Company Makes Money

Banca Generali generates revenue through several key streams. Primarily, it earns fees from asset management services, which include management fees based on the assets under management (AUM) of investment funds and portfolios it manages for clients. Additionally, the bank earns commissions from the sale of financial products, including investment funds, insurance policies, and pension plans. Banca Generali also benefits from advisory fees charged for providing financial planning and consultancy services. Partnerships with various financial institutions and asset managers enhance its product offerings, contributing to its revenue. Furthermore, the bank's focus on high-net-worth individuals allows it to charge premium fees for personalized services, thereby increasing profitability.

Banca Generali SpA Financial Statement Overview

Summary

Banca Generali SpA shows strong income statement performance with increasing revenues and profitability margins, supported by efficient cost management and operational efficiency. The balance sheet reflects prudent financial leverage and solid returns on equity, although the equity ratio is slightly below industry norms, indicating some room for improvement in capital utilization. Cash flow statements reveal volatility in cash generation, highlighting an area of concern for maintaining operational liquidity. Overall, the company's financial health appears robust, with strategic opportunities for growth and improvement.

Income Statement

Banca Generali SpA demonstrates strong profitability with a consistent increase in total revenue from €666.69M in 2019 to €982M in 2024. The net profit margin improved from 40.81% in 2019 to 43.90% in 2024, indicating enhanced efficiency in translating revenue into profit. However, the gross profit margin remained static at 100%, typical for the banking sector, reflecting the company's ability to manage costs effectively. EBIT margins have improved significantly from 50.12% in 2019 to 68.54% in 2024, showcasing strong operational efficiency.

Balance Sheet

The company's financial leverage is well-managed with a debt-to-equity ratio decreasing from 0.36 in 2019 to 0.24 in 2024, indicating prudent financial management. The return on equity increased from 29.65% in 2019 to 29.54% in 2024, showing effectiveness in utilizing shareholder funds despite minor fluctuations. The equity ratio remains stable at around 8.67% in 2024, reflecting a solid capital structure but slightly lower than optimal for the banking industry, which might indicate room for improvement in capital efficiency.

Cash Flow

Banca Generali SpA's cash flow statements show volatility, with operating cash flows fluctuating significantly, from a negative €328.63M in 2019 to zero in 2024, indicating potential challenges in maintaining consistent cash generation from operations. The free cash flow was negative in 2022 but showed a recovery in 2023 to €286.72M. The free cash flow to net income ratio is not calculable in 2024, highlighting potential concerns about sustainable cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	998.68M	802.46M	642.53M	717.59M	631.74M
Gross Profit	989.74M	1.14B	802.46M	742.66M	717.59M	631.74M
EBITDA	524.51M	569.77M	484.60M	359.15M	428.67M	380.59M
Net Income	391.81M	431.20M	326.14M	213.03M	323.10M	274.92M
Balance Sheet
Total Assets	17.58B	16.82B	15.52B	17.27B	16.19B	13.18B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.30B	618.97M	986.75M	1.83B	863.33M
Total Debt	438.00M	1.47B	1.93B	2.40B	381.85M	936.86M
Total Liabilities	16.22B	15.36B	14.30B	16.20B	15.09B	11.99B
Stockholders Equity	1.35B	1.46B	1.21B	1.07B	1.11B	1.18B
Cash Flow
Free Cash Flow	0.00	418.88M	286.72M	-611.97M	1.16B	63.69M
Operating Cash Flow	0.00	421.81M	314.29M	-592.13M	1.17B	78.97M
Investing Cash Flow	0.00	-27.73M	-27.47M	-20.50M	93.36M	-15.57M
Financing Cash Flow	0.00	-213.24M	-1.94B	-233.46M	-311.38M	-14.69M

Banca Generali SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:BGN, the sentiment is Positive. The current price of 51.55 is above the 20-day moving average (MA) of 48.74, above the 50-day MA of 48.62, and above the 200-day MA of 48.96, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 71.93 is Negative, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:BGN.

Banca Generali SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	79 Outperform	€20.29B	9.29	12.55%	5.82%	-11.28%	-15.25%
BGN	74 Outperform	€5.65B	14.44	31.25%	5.33%	4.46%	-0.62%
BAMI	72 Outperform	€19.05B	7.95	16.45%	7.94%	2.23%	72.08%
FBK	71 Outperform	€12.36B	19.01	32.83%	3.51%	2.97%	4.64%
BMED	71 Outperform	$13.05B	11.38	26.99%	5.27%	2.34%	53.62%
MB	70 Outperform	€13.01B	10.05	11.91%	6.79%	-0.72%	6.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%