LSE:0JW2

Stock Analysis Report

Executive Summary

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has M&T Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0JW2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

0JW2

-1.4%

GB Banks

6.0%

GB Market


1 Year Return

-32.2%

0JW2

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: 0JW2 exceeded the UK Banks industry which returned -33.5% over the past year.

Return vs Market: 0JW2 underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

0JW2IndustryMarket
7 Day0%-1.4%6.0%
30 Day-31.6%-23.4%-20.3%
90 Day-36.7%-34.8%-28.1%
1 Year-30.4%-32.2%-28.8%-33.5%-18.6%-22.7%
3 Yearn/a-32.0%-41.3%-13.4%-24.6%
5 Yearn/a-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

How volatile is M&T Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is M&T Bank undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0JW2 ($106.74) is trading below our estimate of fair value ($313.8)

Significantly Below Fair Value: 0JW2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0JW2 is poor value based on its PE Ratio (7.8x) compared to the Banks industry average (4.6x).

PE vs Market: 0JW2 is good value based on its PE Ratio (7.8x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0JW2's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0JW2 is overvalued based on its PB Ratio (1x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is M&T Bank forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0JW2's earnings are forecast to decline over the next 3 years (-4.7% per year).

Earnings vs Market: 0JW2's earnings are forecast to decline over the next 3 years (-4.7% per year).

High Growth Earnings: 0JW2's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0JW2's revenue (0.3% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: 0JW2'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: 0JW2's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has M&T Bank performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0JW2 has high quality earnings.

Growing Profit Margin: 0JW2's current net profit margins (31%) are lower than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: 0JW2's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: 0JW2's earnings growth over the past year (0.7%) is below its 5-year average (15.8% per year).

Earnings vs Industry: 0JW2 earnings growth over the past year (0.7%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0JW2's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is M&T Bank'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: 0JW2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0JW2's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: 0JW2's level of assets compared to its equity is low.

Allowance for Bad Loans: 0JW2 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0JW2's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0JW2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0JW2's loans are broadly funded by customer deposits.

Level of Bad Loans: 0JW2 has an appropriate level of bad loans (1.06%)


Next Steps

Dividend

What is M&T Bank's current dividend yield, its reliability and sustainability?

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0JW2's dividend (4.1%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0JW2's dividend (4.1%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: 0JW2's dividends per share have been stable in the past 10 years.

Growing Dividend: 0JW2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.8%), 0JW2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0JW2's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Ren Jones (54yo)

2.25s

Tenure

US$5,704,703

Compensation

Mr. René F. Jones, also known as Ren, serves as Chairman of the Board, President and Chief Executive Officer of Wilmington Trust, National Association. Mr. Jones is chief executive officer, chairman of the ...


CEO Compensation Analysis

Compensation vs Market: Ren's total compensation ($USD5.70M) is about average for companies of similar size in the UK market ($USD5.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
René Jones
Vice Chairman & CEO2.25yrsUS$5.70m0.048% $6.7m
Richard Gold
President2.25yrsUS$3.96m0.033% $4.6m
Darren King
Executive VP & CFO3.83yrsUS$2.70m0.036% $5.1m
Kevin Pearson
Vice Chairman & Director1.83yrsUS$3.97m0.034% $4.8m
Doris Meister
Executive Vice President of Wealth & Institutional Services3.58yrsUS$2.53m0.0022% $299.8k
Michael Spychala
Senior VPno datano data0.026% $3.7m
Michele Trolli
Executive VP and Chief Technology & Operations Officer2.17yrsno data0.010% $1.4m
Donald MacLeod
Administrative VPno datano datano data
Marianne Roche
Chief Regulatory Counsel & Enterprise Compliance Risk Managerno datano datano data
Laura O'Hara
Executive VP & General Counsel2.58yrsno data0.0016% $225.9k

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: 0JW2's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
René Jones
Vice Chairman & CEO2.25yrsUS$5.70m0.048% $6.7m
Richard Gold
President2.25yrsUS$3.96m0.033% $4.6m
Kevin Pearson
Vice Chairman & Director1.83yrsUS$3.97m0.034% $4.8m
Robert Sadler
Independent Director21.17yrsUS$180.00k0.060% $8.3m
Brent Baird
Independent Director37.17yrsUS$193.25k0.026% $3.7m
Robert Brady
Non-Executive Chairman4.75yrsUS$179.00k0.014% $1.9m
Gary Geisel
Independent Director10.83yrsUS$232.20k0.016% $2.3m
C. Bontempo
Independent Director29.17yrsUS$184.00k0.011% $1.5m
Herbert Washington
Independent Director24.17yrsUS$168.00k0.010% $1.4m
John Hawke
Independent Director7.75yrsUS$196.00k0.0048% $672.0k

9.3yrs

Average Tenure

72yo

Average Age

Experienced Board: 0JW2's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0JW2 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

M&T Bank Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M&T Bank Corporation
  • Ticker: 0JW2
  • Exchange: LSE
  • Founded: 1856
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$13.942b
  • Shares outstanding: 129.95m
  • Website: https://www.mtb.com

Number of Employees


Location

  • M&T Bank Corporation
  • One M&T Plaza
  • Buffalo
  • New York
  • 14203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
MTZDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0JW2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
A1ZDN2DB (Deutsche Boerse AG)6.45%-FRN PERP USD 'E'DEUSDFeb 2014
M1TB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services. The company’s Business Banking segment offers deposits, business loans and leases, and credit cards; and cash management, payroll, and letters of credit services to small businesses and professionals. Its Commercial Banking segment provides credit and banking services for middle-market and large commercial customers. The company’s Commercial Real Estate segment offers multifamily residential and commercial real estate credit, and 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; investment management; and insurance agency services. It offers its services through banking offices, business banking centers, telephone and Internet banking, mobile banking, and automated teller machines. As of December 31, 2019, the company operates 731 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia; a full-service commercial banking office in Ontario, and Canada; and an office in George Town, Cayman Islands. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:35
End of Day Share Price2020/03/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.