Board Change • Jun 11
Less than half of directors are independent There are 11 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 11 new directors. No experienced directors. 1 highly experienced director. 3 independent directors (6 non-independent directors). Director Luitgard Spogler is the most experienced director on the board, commencing their role in 2015. Independent Vice Chair Gioia Ghezzi was the last independent director to join the board, commencing their role in 2026. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Jan 30
Banca Sistema S.p.A. to Report Fiscal Year 2024 Final Results on Mar 14, 2025 Banca Sistema S.p.A. announced that they will report fiscal year 2024 final results on Mar 14, 2025 Reported Earnings • Nov 10
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: €29.1m (up 38% from 3Q 2023). Net income: €6.35m (up 36% from 3Q 2023). Profit margin: 22% (in line with 3Q 2023). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Banks industry in Europe. Reported Earnings • Aug 02
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: €25.5m (up 14% from 2Q 2023). Net income: €1.82m (down 39% from 2Q 2023). Profit margin: 7.1% (down from 13% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Banks industry in Europe. New Risk • Jul 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). New Risk • Jun 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.0% average weekly change). Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €1.59, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Banks industry in Europe. Total loss to shareholders of 1.5% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €2.57 per share. Reported Earnings • May 13
First quarter 2024 earnings released First quarter 2024 results: Revenue: €25.4m (up 4.9% from 1Q 2023). Net income: €4.14m (up 11% from 1Q 2023). Profit margin: 16% (up from 15% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Banks industry in Europe. Upcoming Dividend • Apr 22
Upcoming dividend of €0.065 per share Eligible shareholders must have bought the stock before 29 April 2024. Payment date: 02 May 2024. Trailing yield: 4.7%. Lower than top quartile of German dividend payers (4.8%). Lower than average of industry peers (6.5%). Reported Earnings • Feb 13
Full year 2023 earnings released Full year 2023 results: Revenue: €98.8m (up 1.4% from FY 2022). Net income: €16.5m (down 25% from FY 2022). Profit margin: 17% (down from 23% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.5% p.a. on average during the next 2 years, compared to a 2.4% growth forecast for the Banks industry in Europe. New Risk • Feb 13
New major risk - Revenue and earnings growth Earnings have declined by 8.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.8% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (17% net profit margin). Announcement • Jan 17
Banca Sistema S.p.A., Annual General Meeting, Apr 24, 2024 Banca Sistema S.p.A., Annual General Meeting, Apr 24, 2024. Agenda: To consider the financial statements as at 31 December 2023. Reported Earnings • Nov 15
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: €21.1m (down 16% from 3Q 2022). Net income: €4.68m (down 23% from 3Q 2022). Profit margin: 22% (down from 24% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Banks industry in Europe. Reported Earnings • Jul 31
Second quarter 2023 earnings released: EPS: €0.047 (vs €0.092 in 2Q 2022) Second quarter 2023 results: EPS: €0.047 (down from €0.092 in 2Q 2022). Revenue: €24.1m (down 12% from 2Q 2022). Net income: €3.74m (down 49% from 2Q 2022). Profit margin: 16% (down from 27% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Banks industry in Europe. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 12% per year. Reported Earnings • May 14
First quarter 2023 earnings released First quarter 2023 results: EPS: €0.046. Revenue: €24.3m (up 8.6% from 1Q 2022). Net income: €3.72m (down 16% from 1Q 2022). Profit margin: 15% (down from 20% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Banks industry in Europe. Announcement • May 11
Banca Sistema S.p.A. to Report Nine Months, 2023 Results on Nov 10, 2023 Banca Sistema S.p.A. announced that they will report nine months, 2023 results on Nov 10, 2023 Board Change • May 10
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Standing Auditor Luigi Ruggiero was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • May 01
Upcoming dividend of €0.065 per share at 4.8% yield Eligible shareholders must have bought the stock before 08 May 2023. Payment date: 10 May 2023. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 4.8%. Within top quartile of German dividend payers (4.5%). Lower than average of industry peers (6.1%). Reported Earnings • Feb 14
Full year 2022 earnings released Full year 2022 results: Revenue: €97.4m (flat on FY 2021). Net income: €22.0m (down 5.4% from FY 2021). Profit margin: 23% (down from 24% in FY 2021). Non-performing loans: 9.99% (down from 11.51% in FY 2021). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in Europe. Reported Earnings • Nov 16
Third quarter 2022 earnings released Third quarter 2022 results: EPS: €0.07. Revenue: €25.0m (up 6.3% from 3Q 2021). Net income: €5.63m (down 11% from 3Q 2021). Profit margin: 23% (down from 27% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Banks industry in Europe. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Pier Taverna was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Pier Taverna was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 31
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: €27.1m (up 32% from 2Q 2021). Net income: €7.82m (up 94% from 2Q 2021). Profit margin: 29% (up from 20% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 12%, compared to a 22% growth forecast for the industry in Germany. Reported Earnings • May 13
First quarter 2022 earnings released First quarter 2022 results: EPS: €0.055. Revenue: €22.4m (up 2.2% from 1Q 2021). Net income: €4.41m (down 1.2% from 1Q 2021). Profit margin: 20% (in line with 1Q 2021). Over the next year, revenue is forecast to grow 15%, compared to a 15% growth forecast for the industry in Germany. Reported Earnings • May 13
First quarter 2022 earnings released First quarter 2022 results: EPS: €0.055. Revenue: €22.4m (up 2.2% from 1Q 2021). Net income: €4.41m (down 1.2% from 1Q 2021). Profit margin: 20% (in line with 1Q 2021). Over the next year, revenue is forecast to grow 15%, compared to a 15% growth forecast for the industry in Germany. Upcoming Dividend • Apr 27
Upcoming dividend of €0.072 per share Eligible shareholders must have bought the stock before 02 May 2022. Payment date: 04 May 2022. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 4.0%. Within top quartile of German dividend payers (4.0%). Lower than average of industry peers (6.5%). Reported Earnings • Feb 16
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: €97.3m (up 6.3% from FY 2020). Net income: €23.3m (down 9.7% from FY 2020). Profit margin: 24% (down from 28% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.0%. Over the next year, revenue is forecast to grow 14%, compared to a 12% growth forecast for the banks industry in Germany. Reported Earnings • Nov 04
Third quarter 2021 earnings released: EPS €0.078 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €23.5m (down 2.4% from 3Q 2020). Net income: €6.29m (down 15% from 3Q 2020). Profit margin: 27% (down from 31% in 3Q 2020). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Upcoming Dividend • Nov 01
Upcoming dividend of €0.17 per share Eligible shareholders must have bought the stock before 08 November 2021. Payment date: 10 November 2021. Trailing yield: 3.5%. Within top quartile of German dividend payers (3.2%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 05
Second quarter 2021 earnings released The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €20.5m (down 7.6% from 2Q 2020). Net income: €3.94m (down 48% from 2Q 2020). Profit margin: 19% (down from 34% in 2Q 2020). The decrease in margin was primarily driven by higher expenses. Is New 90 Day High Low • Mar 03
New 90-day high: €1.95 The company is up 16% from its price of €1.68 on 03 December 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €2.78 per share. Analyst Estimate Surprise Post Earnings • Feb 13
Revenue beats expectations Revenue exceeded analyst estimates by 1.2%. Over the next year, revenue is forecast to grow 23%, compared to a 25% growth forecast for the Banks industry in Germany. Reported Earnings • Feb 13
Full year 2020 earnings released The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: €91.6m (flat on FY 2019). Net income: €25.8m (down 12% from FY 2019). Profit margin: 28% (down from 32% in FY 2019). Is New 90 Day High Low • Feb 10
New 90-day high: €1.80 The company is up 12% from its price of €1.60 on 11 November 2020. The German market is up 11% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Banks industry, which is also up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.03 per share. Announcement • Feb 06
Banca Sistema S.p.A., Annual General Meeting, Apr 30, 2021 Banca Sistema S.p.A., Annual General Meeting, Apr 30, 2021. Agenda: To consider the approval of the financial statements as at 31 December 2020. Analyst Estimate Surprise Post Earnings • Nov 18
Revenue misses expectations Revenue missed analyst estimates by 1.0%. Over the next year, revenue is forecast to grow 22%, compared to a 20% growth forecast for the Banks industry in Germany. Is New 90 Day High Low • Oct 24
New 90-day low: €1.57 The company is down 13% from its price of €1.79 on 24 July 2020. The German market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Banks industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €4.28 per share.