DB:UIPN

Stock Analysis Report

Executive Summary

Unipol Gruppo S.p.A., together with its subsidiaries, provides insurance and banking services primarily in Italy.

Rewards

Trading at 44.5% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -16.3% per year for the next 3 years

Unstable dividend track record

Profit margins (5.6%) are lower than last year (9.8%)



Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Unipol Gruppo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UIPN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

UIPN

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

25.5%

UIPN

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: UIPN underperformed the German Insurance industry which returned 28% over the past year.

Return vs Market: UIPN exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

UIPNIndustryMarket
7 Day-2.7%0.4%0.07%
30 Day-8.0%0.3%1.4%
90 Day-0.9%4.3%6.1%
1 Year30.8%25.5%32.7%27.1%18.4%14.8%
3 Year57.1%37.6%64.7%44.8%17.4%7.0%
5 Year43.5%8.9%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is Unipol Gruppo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Unipol Gruppo undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UIPN (€4.93) is trading below our estimate of fair value (€8.87)

Significantly Below Fair Value: UIPN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UIPN is good value based on its PE Ratio (4.2x) compared to the Insurance industry average (11.9x).

PE vs Market: UIPN is good value based on its PE Ratio (4.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: UIPN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UIPN is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Unipol Gruppo forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UIPN's earnings are forecast to decline over the next 3 years (-16.3% per year).

Earnings vs Market: UIPN's earnings are forecast to decline over the next 3 years (-16.3% per year).

High Growth Earnings: UIPN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UIPN's revenue (0.3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: UIPN's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UIPN's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Unipol Gruppo performed over the past 5 years?

36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UIPN has high quality earnings.

Growing Profit Margin: UIPN's current net profit margins (5.6%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: UIPN has become profitable over the past 5 years, growing earnings by 36.8% per year.

Accelerating Growth: UIPN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UIPN had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

High ROE: UIPN's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Unipol Gruppo's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: UIPN has a low level of unsold assets or inventory.

Debt Coverage by Assets: UIPN's debt is covered by short term assets (assets are 3.5x debt).


Financial Institutions Analysis

Asset Level: UIPN's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if UIPN has a sufficient allowance for bad loans.

Low Risk Liabilities: UIPN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if UIPN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UIPN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if UIPN has an appropriate level of bad loans.


Next Steps

Dividend

What is Unipol Gruppo's current dividend yield, its reliability and sustainability?

3.64%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: UIPN's dividend (3.58%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: UIPN's dividend (3.58%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: UIPN's dividend payments have been volatile in the past 10 years.

Growing Dividend: UIPN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), UIPN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UIPN's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Next Steps

Management

What is the CEO of Unipol Gruppo's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average board tenure


CEO

Carlo Cimbri (54yo)

10yrs

Tenure

€2,975,519

Compensation

Mr. Carlo Cimbri has been the Chief Executive Officer of Fondiaria-SAI S.p.A since November 2012. Mr. Cimbri has been the Chief Executive Officer of Unipol Gruppo Finanziario S.p.A. since April 29, 2010 an ...


CEO Compensation Analysis

Compensation vs Market: Carlo's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.07M).

Compensation vs Earnings: Carlo's compensation has been consistent with company performance over the past year.


Board Age and Tenure

9.0yrs

Average Tenure

62yo

Average Age

Experienced Board: UIPN's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Carlo Cimbri (54yo)

    Group CEO

    • Tenure: 10yrs
    • Compensation: €2.98m
  • Eugenio Ferioli

    President of Unipol Merchant Spa and Vice President of Unipol Banca Spa

    • Tenure: 13.9yrs
  • Maurizio Castellina (62yo)

    General Manager of Administration

    • Gianluca Santi

      General Manager of Business Development & Corporate Communications

      • R. Avesani

        Chief Innovation Officer

        • Riccardo Baudi

          Chief Investment Officer

          • Adriano Donati

            Head of Investor Relations

            • Walter Visani

              Head of Ethics

              • G. A. Giay

                Chief Human Resource Officer

                • P. De Collibus

                  Chief Legal Officer


                  Board Members

                  • Pierluigi Stefanini (66yo)

                    Chairman of the Board

                    • Tenure: 14yrs
                    • Compensation: €659.29k
                  • Enea Mazzoli

                    Honorary Chairman

                    • Carlo Cimbri (54yo)

                      Group CEO

                      • Tenure: 10yrs
                      • Compensation: €2.98m
                    • Milo Pacchioni (69yo)

                      Non-Executive Director

                      • Tenure: 14yrs
                      • Compensation: €47.00k
                    • Pier Morara (64yo)

                      Independent Director

                      • Tenure: 14yrs
                      • Compensation: €59.00k
                    • Giuseppina Gualtieri (62yo)

                      Independent Director

                      • Tenure: 7yrs
                      • Compensation: €67.00k
                    • Francesco Berardini (72yo)

                      Non-executive Director

                      • Tenure: 11yrs
                      • Compensation: €56.00k
                    • Ernesto Dalle Rive (59yo)

                      Vice Chairman

                      • Tenure: 1yrs
                      • Compensation: €52.00k
                    • Rossana Zambelli (61yo)

                      Independent Director

                      • Tenure: 7yrs
                      • Compensation: €87.00k
                    • Mario Civetta (53yo)

                      Chairman of the Board of Statutory Auditors

                      • Tenure: 4yrs

                    Company Information

                    Unipol Gruppo S.p.A.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Unipol Gruppo S.p.A.
                    • Ticker: UIPN
                    • Exchange: DB
                    • Founded: 1961
                    • Industry: Multi-line Insurance
                    • Sector: Insurance
                    • Market Cap: €3.546b
                    • Shares outstanding: 716.43m
                    • Website: https://www.unipol.it

                    Number of Employees


                    Location

                    • Unipol Gruppo S.p.A.
                    • Via Stalingrado, 45
                    • Bologna
                    • Bologna
                    • 40128
                    • Italy

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    UNIBIT (Borsa Italiana)YesCommon StockITEURJan 1992
                    0Q6MLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
                    UPZP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
                    UIPNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
                    UNIMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
                    UNIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
                    UFGS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDApr 2012

                    Biography

                    Unipol Gruppo S.p.A., together with its subsidiaries, provides insurance and banking services primarily in Italy. The company operates through Non-Life Insurance Business, Life Insurance Business, Banking Business, Real Estate Business, and Holding and Other Businesses segments. It offers non-life and life insurance products; and reinsurance services to small and medium sized companies through its agency network. The company also provides traditional banking, portfolio management, and other investment services; and consumer credit, including personal loans and financing services. In addition, it is involved in the management of real estate properties; operation of resorts and hotels; and agricultural and healthcare businesses. The company was formerly known as Unipol Gruppo Finanziario S.p.A. and changed its name to Unipol Gruppo S.p.A. in June 2017. Unipol Gruppo S.p.A. was founded in 1961 and is based in Bologna, Italy. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/19 21:10
                    End of Day Share Price2020/01/17 00:00
                    Earnings2019/06/30
                    Annual Earnings2018/12/31


                    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.