M&T Bank (MTB) AI Stock Analysis

• Market Cap: $31.04B
• Dividend Yield: 2.77%
• Average Volume (3M): 827.23K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.97
• Revenue Growth: 0.69%
• EPS Growth: 14.79%
• Country: US
• Employees: 22,291
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.24
• Shares Outstanding: 156,269,290
• 10 Day Avg. Volume: 836,024
• 30 Day Avg. Volume: 827,226
• PEG Ratio: -1.68
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 2.33
• P/FCF Ratio: 9.22
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 3.47
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $218.12
• Price Target Upside: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $225.00 ▲(12.26% Upside)

M&T Bank's overall score reflects strong financial performance and technical indicators, supported by attractive valuation metrics. The earnings call and corporate events further bolster confidence, despite some challenges in revenue growth and cash flow conversion.

Positive Factors

Strategic Expansion

M&T Bank's focus on expanding into new markets like New England and Long Island indicates a strategic growth initiative that can enhance its market position and customer base over the long term.

Strong Liquidity Position

A strong liquidity position with substantial reserves enhances M&T Bank's ability to manage financial obligations and invest in growth opportunities, supporting long-term stability.

Fee Income Growth

Sustained growth in fee income reflects M&T Bank's ability to diversify revenue streams beyond traditional interest income, contributing to financial resilience and profitability.

Negative Factors

Decline in Net Income

A significant decline in net income can indicate underlying operational challenges, affecting profitability and potentially limiting future investment and growth capabilities.

Net Interest Margin Decline

A declining net interest margin suggests pressure on core banking profitability, which could impact M&T Bank's ability to generate income from its primary lending activities.

Revenue Growth Challenges

Stagnant or declining revenue growth may hinder M&T Bank's ability to scale operations and compete effectively, posing a risk to long-term financial performance.

M&T Bank Business Overview & Revenue Model

Company Description

M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial lending and leasing, letters of credit, and cash management services for middle-market and large commercial customers. The company's Commercial Real Estate segment originates, sells, and services commercial real estate loans; and offers deposit services. Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services. The company's Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities. Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; mutual funds and annuities; and other services. The company also provides trust and wealth management; fiduciary and custodial; insurance agency; institutional brokerage and securities; and investment management services. It offers its services through banking offices, business banking centers, telephone and internet banking, and automated teller machines. As of December 31, 2021, the company operates 688 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia; and a full-service commercial banking office in Ontario, Canada. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

How the Company Makes Money

M&T Bank generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits and borrowings. The bank offers various loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees associated with services such as account maintenance, transaction processing, wealth management, and investment services. Additionally, M&T Bank benefits from strategic partnerships with other financial institutions and technology providers that enhance its service offerings and operational efficiency. The bank's revenue model is further supported by its focus on maintaining a strong loan portfolio and expanding its customer base through targeted marketing and community engagement.

M&T Bank Financial Statement Overview

Summary

M&T Bank demonstrates strong financial performance with consistent profitability and effective cash flow management. The balance sheet is solid, though liabilities need monitoring. Overall, the bank is well-positioned for future growth.

Income Statement

M&T Bank shows strong profitability with a consistent gross profit margin above 60% over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 66% and a net profit margin of 19.89%, reflecting solid cost management and profitability. However, revenue growth has been volatile, with a significant spike in 2023, which was not sustained in 2024. EBIT and EBITDA margins remain robust, suggesting efficient operations.

Balance Sheet

The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.42 in the TTM, indicating manageable leverage. The equity ratio stands at 13.78%, reflecting a sound financial structure. Return on equity is strong at 9.11%, demonstrating effective use of equity to generate profits. However, the total liabilities present a potential risk if not managed well.

Cash Flow

The cash flow statement highlights healthy free cash flow generation, with a TTM free cash flow growth rate of 1.09%. The operating cash flow to net income ratio is 1.38, indicating efficient cash generation from operations. The free cash flow to net income ratio is also favorable at 1.30, supporting the bank's capacity to reinvest and manage its capital expenditures without relying heavily on debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.20B	13.40B	12.51B	8.44B	6.08B	6.28B
Gross Profit	8.88B	8.62B	8.75B	7.50B	6.04B	5.15B
EBITDA	3.99B	3.82B	4.12B	3.05B	2.78B	2.09B
Net Income	2.70B	2.59B	2.74B	1.99B	1.86B	1.35B
Balance Sheet
Total Assets	211.58B	208.10B	208.26B	200.73B	155.11B	142.60B
Cash, Cash Equivalents and Short-Term Investments	56.99B	35.33B	40.35B	37.35B	47.22B	30.04B
Total Debt	14.45B	13.66B	13.52B	7.52B	3.53B	4.44B
Total Liabilities	183.06B	179.08B	181.31B	175.41B	137.20B	126.41B
Stockholders Equity	28.52B	29.03B	26.96B	25.32B	17.90B	16.19B
Cash Flow
Free Cash Flow	2.96B	3.39B	3.65B	4.36B	2.57B	616.90M
Operating Cash Flow	3.13B	3.61B	3.90B	4.57B	2.71B	789.19M
Investing Cash Flow	-2.08B	-550.00M	-7.87B	16.59B	-13.63B	-22.02B
Financing Cash Flow	-699.00M	-2.88B	4.18B	-20.98B	10.70B	21.35B

M&T Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200.43
• 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 MTB, the sentiment is Positive. The current price of 200.43 is above the 20-day moving average (MA) of 198.43, above the 50-day MA of 194.14, and above the 200-day MA of 185.81, indicating a bullish trend. The MACD of 1.55 indicates Positive momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTB.

M&T Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBAN	78 Outperform	25.71B	13.06	10.08%	3.47%	6.06%	28.03%
RF	77 Outperform	24.03B	12.55	11.13%	3.70%	2.94%	20.85%
FITB	76 Outperform	30.39B	14.29	11.06%	3.20%	1.90%	2.87%
MTB	76 Outperform	$31.04B	12.87	9.47%	2.77%	0.69%	14.79%
CFG	73 Outperform	22.55B	15.94	6.31%	3.13%	-3.68%	25.31%
KEY	71 Outperform	20.52B	-282.15	0.90%	4.29%	-12.30%	-108.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

M&T Bank Corporate Events

M&T Bank Highlights Strategic Priorities in New Presentation

On September 9, 2025, M&T Bank Corporation released an investor presentation highlighting its strategic priorities and financial performance. The presentation emphasized M&T’s consistent profitability advantage over peers, its focus on expanding markets in New England and Long Island, and its commitment to simplifying operations to enhance customer and employee experiences. The bank also reported receiving multiple awards for its services in the small business and middle-market categories, showcasing its strong industry positioning.

M&T Bank Closes $750M Subordinated Notes Offering

On July 30, 2025, M&T Bank Corporation successfully closed a public offering of $750 million in 5.400% Fixed Rate Reset Subordinated Notes, Series B, due in 2035. This move is part of M&T’s strategic financial operations, potentially impacting its market positioning and offering opportunities for stakeholders.

M&T Bank Reports Strong Q2 2025 Financial Results

On July 16, 2025, M&T Bank Corporation announced its second quarter 2025 financial results, reporting a net income of $716 million, equating to $4.24 per diluted share. This performance reflects a notable improvement from the previous quarter, driven by increased taxable-equivalent net interest income and favorable asset repricing, which positively impacts the company’s financial standing and shareholder value.

M&T Bank Closes $750M Senior Notes Offering

On June 17, 2025, M&T Bank Corporation successfully closed a public offering of $750 million in Senior Medium-Term Notes with a fixed/floating rate due in 2031. This move is part of M&T’s strategic financial management, potentially enhancing its liquidity and market positioning.

M&T Bank Highlights Strategic Priorities in Presentation

On June 10, 2025, M&T Bank Corporation released an investor presentation on its website, highlighting its strategic priorities and financial performance. The presentation emphasized M&T’s consistent profitability and growth compared to peers, with a focus on optimizing resources, enhancing risk management capabilities, and expanding in specific markets. The bank’s performance metrics, such as net interest margin and efficiency ratio, demonstrated a competitive advantage, contributing to its strong industry positioning.