Mediobanca Banca di Credito Finanziario S.p.A. (MB) AI Stock Analysis

• Market Cap: €14.55B
• Dividend Yield: 6.5%
• Average Volume (3M): 7.12M
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.40
• Revenue Growth: -19.78%
• EPS Growth: 7.06%
• Country: IT
• Employees: 5,443
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 813,279,660
• 10 Day Avg. Volume: 6,170,759
• 30 Day Avg. Volume: 7,124,949
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €18.65
• Price Target Upside: 8.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: €20.50 ▲(18.91% Upside)

Mediobanca Banca di Credito Finanziario S.p.A. receives an overall score of 70, primarily driven by its strong financial performance and attractive valuation. The technical analysis presents a mixed short-term outlook, but longer-term indicators remain supportive. The lack of information from earnings calls and corporate events limits further insights into recent strategic developments.

Mediobanca Banca di Credito Finanziario S.p.A. Business Overview & Revenue Model

Company Description

Mediobanca Banca di Credito Finanziario S.p.A., together with its subsidiaries, provides various banking products and services in Italy and internationally. The company operates through Wealth Management, Consumer Banking, Corporate and Investment Banking, Principal Investing, and Holding Functions segments. The Wealth Management segment offers asset management and other services to private clients, and affluent and premier customers. The Consumer Banking segment provides a range of consumer credit products comprising personal loans and salary-backed finances; personal loan services for cars and motorcycles, consumer electronics, furniture, and travel; payment services that include credit cards and salary-backed loans; insurance products; and instalment payment solutions for online purchases. The Corporate and Investment Banking segment offers wholesale banking products and services, including lending, advisory, capital market, and proprietary trading services; and specialty finance services, such as factoring and credit management, as well as non-performing loans portfolio acquisitions and management. The Principal Investing segment engages in the equity investment and holding activities. The Holding Functions segment engages in treasury, and asset and liability management operations. The company was founded in 1946 and is headquartered in Milan, Italy.

How the Company Makes Money

Mediobanca generates revenue through a diversified model that includes fees and commissions from its corporate and investment banking activities, interest income from its consumer banking operations, and management fees from its wealth management services. The Corporate & Investment Banking division earns through advisory fees for mergers and acquisitions, underwriting, and trading activities. The Consumer Banking segment, primarily through its subsidiary CheBanca!, generates income from interest on loans and mortgages, as well as fees from retail banking services. The Wealth Management division contributes to revenue through advisory fees and management fees from assets under management. Strategic partnerships and investments in other financial institutions also play a role in Mediobanca's financial performance, enhancing its ability to offer comprehensive financial solutions.

Mediobanca Banca di Credito Finanziario S.p.A. Financial Statement Overview

Summary

Mediobanca Banca di Credito Finanziario S.p.A. demonstrates strong revenue and profit growth with effective cost management, as evidenced by a robust net profit margin of around 33% and a gross profit margin near 100%. The balance sheet reflects typical banking leverage with a stable equity base. However, cash flow variability, particularly the volatility in operating cash flow, poses challenges despite recent improvements in free cash flow.

Income Statement

The company exhibits a strong revenue growth with a 8.63% increase from the previous year, and a consistent net profit margin averaging around 33%. The gross profit margin remains robust at near 100%, indicative of effective cost management. However, the negative EBITDA in the latest year might suggest unusual or one-off expenses impacting operating results.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a leveraged position typical for banking institutions. The equity ratio stands at approximately 11%, indicating a stable equity base. Return on equity is strong at around 9.2%, showcasing effective utilization of equity capital, although improvements could enhance shareholder returns.

Cash Flow

Cash flow performance is mixed with a substantial increase in free cash flow in the latest year, reflecting improved capital efficiency. However, the volatility in operating cash flow, swinging from negative to positive, suggests potential challenges in cash generation consistency. The free cash flow to net income ratio is positive, indicating good conversion of earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.85B	2.51B	2.59B	2.33B
Gross Profit	2.85B	2.85B	2.51B	2.59B	2.33B
EBITDA	-536.12M	1.06B	888.98M	895.04M	594.72M
Net Income	1.03B	1.03B	906.98M	807.58M	600.38M
Balance Sheet
Total Assets	99.23B	91.64B	90.57B	82.60B	78.95B
Cash, Cash Equivalents and Short-Term Investments	3.36B	4.24B	7.86B	3.27B	3.22B
Total Debt	6.84B	22.28B	22.75B	22.88B	24.56B
Total Liabilities	87.98B	31.96B	79.82B	71.50B	69.21B
Stockholders Equity	11.16B	11.33B	10.65B	11.01B	9.65B
Cash Flow
Free Cash Flow	550.37M	-3.24B	5.80B	-1.45B	2.89B
Operating Cash Flow	601.53M	-3.16B	5.86B	-1.40B	2.94B
Investing Cash Flow	-3.48B	170.29M	263.54M	152.63M	52.59M
Financing Cash Flow	2.00B	-633.95M	-821.05M	-3.69M	-512.33M

Mediobanca Banca di Credito Finanziario S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:MB, the sentiment is Negative. The current price of 17.24 is below the 20-day moving average (MA) of 20.15, below the 50-day MA of 20.24, and below the 200-day MA of 17.87, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 23.83 is Positive, neither overbought nor oversold. The STOCH value of 1.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:MB.

Mediobanca Banca di Credito Finanziario S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPE	80 Outperform	€18.46B	8.45	12.35%	6.36%	-0.56%	2.54%
BAMI	79 Outperform	€19.08B	7.96	13.15%	7.86%	2.23%	72.08%
UCG	75 Outperform	€99.13B	9.46	15.57%	3.73%	3.38%	12.17%
FBK	71 Outperform	€11.31B	17.39	27.30%	4.02%	2.97%	4.64%
MB	70 Outperform	€14.55B	11.28	11.90%	6.50%	-19.78%	7.06%
ISP	61 Neutral	€98.68B	10.91	―	6.08%	-5.85%	15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%