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UniCredit SpA (IT:UCG)
:UCG
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UniCredit SpA
(OTC:UCG)
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Rating:78Outperform
Price Target:
€78.00
▲(21.29% Upside)
UniCredit SpA's strong financial performance, highlighted by robust revenue growth and profitability, is a key driver of the stock's score. The positive earnings call, with record profits and upgraded guidance, further supports the stock's outlook. However, technical indicators suggest overbought conditions, and cash flow management remains an area for improvement.
UniCredit SpA (UCG) vs. iShares MSCI Italy ETF (EWI)
Market Cap
$101.28B
Dividend Yield3.74%
Average Volume (3M)4.66M
Price to Earnings (P/E)9.7
Beta (1Y)1.31
Revenue Growth3.38%
EPS Growth12.17%
CountryIT
Employees75,265
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.16
Shares Outstanding1,557,675,200
10 Day Avg. Volume5,601,305
30 Day Avg. Volume4,656,618
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.04
Price to Sales (P/S)2.72
P/FCF Ratio-7.84
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue8.10
Enterprise Value/Gross Profit8.33
Enterprise Value/Ebitda14.07
Forecast
1Y Price Target
$74.03Price Target Upside15.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
UniCredit SpA Business Overview & Revenue Model
Company DescriptionUniCredit S.p.A. operates as a commercial bank that provides retail, corporate, and private banking services. It offers accounts and deposits, loans, cards, transactions and payments, funds, advisory, treasury, and insurance products, as well as digital and mobile banking services. The company also provides solutions for payments and liquidity, working capital, hedging, international trade, and treasury operations; and funding solutions comprising of structured, project, and commodity trade and export finance, as well as debt and equity funding; and structured investments and investments advisory solutions. In addition, the company provides corporate finance, capital structure, and rating advisory, as well as patient capital, financial sponsor solutions, and sustainable finance solutions. It servs retail, corporate, and public sector customers, as well as international companies and institutional clients. The company operates in Italy, Other European countries, America, Asia, and internationally. The company was formerly known as Unicredito Italiano S.p.A and changed its name to UniCredit S.p.A. UniCredit S.p.A. was founded in 1870 and is headquartered in Milan, Italy.
How the Company Makes MoneyUniCredit generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. The bank offers various loan products, including personal loans, mortgages, and business loans, which yield interest payments. Additionally, UniCredit earns fees and commissions from its investment banking services, including underwriting, advisory services, and asset management. Wealth management services, such as portfolio management and financial planning, also contribute to revenue through fees charged to clients. Moreover, the bank benefits from transactional banking services, where it charges fees for services related to payment processing and account maintenance. Strategic partnerships with other financial institutions, fintech companies, and global networks enhance its service offerings and revenue potential. Overall, UniCredit's diversified revenue streams and focus on customer-centric solutions play a crucial role in its financial performance.
UniCredit SpA Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with record profits, improved operational efficiency, and upgraded guidance. However, challenges such as the withdrawal from the Banco BPM bid and the costs associated with the Commerzbank stake hedge were notable low points.Q2-2025 Updates
Positive Updates
Record Net Profit and Return on Tangible Equity
UniCredit posted record net profit of EUR 3.3 billion in Q2 and EUR 6.1 billion in H1 2025, driven by core revenue growth and cost of risk discipline.
Core Revenue Growth
Core revenues grew 1.3% year-over-year in Q2 and 1.5% in H1 2025, with net interest income holding up better than expected and fees growing by 3.6% in the half.
Operational Efficiency
UniCredit reduced costs by 1.5% in Q2 and 1.4% in H1, improving the cost/income ratio to less than 36%.
Capital Efficiency
Capital efficiency improved, with net revenue to RWA reaching 8.8% in Q2 and 9% in H1. CET1 ratio increased to 16.2% pro forma.
Geographical Performance
Italy, Germany, Austria, and Central and Eastern Europe showed strong performance with record-setting growth in various KPIs.
Guidance Upgrade
Upgraded 2025 guidance with net profit expected to reach circa EUR 10.5 billion and distribution guidance upgraded to at least EUR 9.5 billion.
Negative Updates
Withdrawal from Banco BPM Bid
UniCredit withdrew its bid for Banco BPM due to ongoing uncertainty with the Golden Power and the shifting value of the transaction.
Commerzbank Hedging Costs
The cost of hedging the Commerzbank stake is impacting net profit, with EUR 600 million net profit expected from Commerzbank despite higher consensus earnings.
Russia Exposure
Profit from Russia remains volatile, with plans for significant reduction in exposure by 2026, impacting future earnings.
Company Guidance
In the second quarter of 2025, UniCredit reported record net profit and return on tangible equity, primarily driven by core revenue growth and disciplined cost management. The bank achieved a net profit of EUR 3.3 billion for the quarter and EUR 6.1 billion for the first half, with core revenues growing by 1.3% year-over-year in Q2 and 1.5% in the half. Net interest income held up well despite declining interest rates, and fees increased by 3.6% in the half. Trading revenues, excluding one-offs, rose by 22% in the half. Operational efficiency improved, with costs reduced by 1.5% in Q2, leading to a cost/income ratio of less than 36%. The bank's capital efficiency also progressed, with net revenue to RWA reaching 8.8% in the quarter. Moreover, UniCredit upgraded its 2025 guidance, projecting a net profit of approximately EUR 10.5 billion and a distribution of at least EUR 9.5 billion, reflecting the robust performance and strategic initiatives such as the internalization of life insurance in Italy and the integration of Alpha Bank in Romania.UniCredit SpA Financial Statement Overview
Summary
UniCredit SpA demonstrates strong revenue growth and high profitability, with a robust net profit margin of 39.1%. The balance sheet shows a healthy reduction in debt, enhancing financial stability, though the low equity ratio poses a potential risk. Cash flow management remains a challenge, with negative free cash flow, but improvements are noted.Income Statement
The income statement shows strong revenue growth over recent years, with a 5.3% increase from 2023 to 2024. Net profit margins are robust, at approximately 39.1% in 2024, indicating significant profitability. However, the absence of EBIT and EBITDA figures in 2024 limits a more comprehensive assessment of operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position with a total equity of €62.44 billion in 2024, translating to an equity ratio of approximately 8%. The company has reduced its debt to zero, which enhances financial stability. However, the low equity ratio suggests a potential risk in terms of leverage despite the absence of debt.75
Positive
Cash Flow
The cash flow statement indicates negative free cash flow in 2024, although an improvement from the prior year. Operating cash flow remains negative, raising concerns about cash generation from core activities. However, the significant reduction in operating cash outflows from 2023 to 2024 is a positive development.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.68B | 23.99B | 22.96B | 18.07B | 22.29B | 11.25B |
| Gross Profit | 24.98B | 26.58B | 25.36B | 18.07B | 18.60B | 11.25B |
| EBITDA | 14.79B | 14.08B | 12.97B | 8.66B | 3.34B | -544.00M |
| Net Income | 10.60B | 9.72B | 9.51B | 6.46B | 2.10B | -2.91B |
Balance Sheet | ||||||
| Total Assets | 860.33B | 784.00B | 784.97B | 857.77B | 916.67B | 931.46B |
| Cash, Cash Equivalents and Short-Term Investments | 41.80B | 41.55B | 72.34B | 134.24B | 162.27B | 165.62B |
| Total Debt | 96.02B | 122.72B | 186.12B | 237.23B | 125.91B | 325.23B |
| Total Liabilities | 791.91B | 721.16B | 720.73B | 794.28B | 854.58B | 871.51B |
| Stockholders Equity | 68.02B | 62.44B | 64.08B | 63.34B | 62.19B | 59.51B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -8.33B | -41.72B | 9.09B | -8.76B | 81.89B |
| Operating Cash Flow | 0.00 | -7.08B | -41.13B | 10.26B | -7.52B | 83.32B |
| Investing Cash Flow | 0.00 | -1.06B | -787.00M | -237.00M | -699.00M | 569.00M |
| Financing Cash Flow | 0.00 | -10.99B | -8.45B | -5.55B | -1.41B | 660.00M |
UniCredit SpA Technical Analysis
Neutral
64.31
Price Trends
64.98
Negative
60.84
Positive
53.08
Positive
Market Momentum
-0.24
Positive
43.55
Neutral
26.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:UCG, the sentiment is Neutral. The current price of 64.31 is below the 20-day moving average (MA) of 65.70, below the 50-day MA of 64.98, and above the 200-day MA of 53.08, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:UCG.
UniCredit SpA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 18.44B | 8.46 | 12.35% | 6.37% | -0.56% | 2.54% | |
79 Outperform | 19.07B | 7.85 | 13.15% | 7.93% | 2.23% | 72.08% | |
78 Outperform | $101.28B | 9.66 | 16.29% | 3.74% | 3.38% | 12.17% | |
72 Outperform | 11.21B | 17.43 | 27.30% | 4.04% | 2.97% | 4.64% | |
70 Outperform | 15.14B | 11.95 | ― | 5.82% | -19.78% | 7.06% | |
61 Neutral | 96.21B | 10.71 | ― | 6.30% | -5.85% | 15.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
IT:UCG
UniCredit SpA
64.31
26.66
70.81%
GB:0RLA
Banco BPM S.p.A.
12.50
6.98
126.45%
GB:0MU6
BPER Banca S.p.A.
9.42
4.66
97.90%
GB:0QVF
FinecoBank SpA
18.34
3.78
25.96%
GB:0HBC
Intesa Sanpaolo SpA
5.47
1.92
54.08%
GB:0HBF
Mediobanca Banca di Credito Finanziario S.p.A.
19.25
4.81
33.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.