LSE:0MU6

Stock Analysis Report

Executive Summary

BPER Banca S.p.A. provides corporate and investment banking, private banking and wealth management, and financial products and services to individuals, and small and medium enterprises in Italy and internationally.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has BPER Banca's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0MU6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.5%

0MU6

-8.5%

GB Banks

-8.6%

GB Market


1 Year Return

-0.7%

0MU6

-14.3%

GB Banks

-1.3%

GB Market

Return vs Industry: 0MU6 exceeded the UK Banks industry which returned -14.3% over the past year.

Return vs Market: 0MU6 exceeded the UK Market which returned -1.3% over the past year.


Shareholder returns

0MU6IndustryMarket
7 Day-10.5%-8.5%-8.6%
30 Day-18.2%-9.4%-8.4%
90 Day-16.9%-11.1%-5.3%
1 Year2.7%-0.7%-8.5%-14.3%4.0%-1.3%
3 Year-15.9%-21.6%-13.2%-24.5%7.6%-6.1%
5 Year-45.4%-50.4%-10.1%-27.8%23.4%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is BPER Banca undervalued compared to its fair value and its price relative to the market?

42.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0MU6 (€3.81) is trading below our estimate of fair value (€3.98)

Significantly Below Fair Value: 0MU6 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0MU6 is good value based on its PE Ratio (4.9x) compared to the Banks industry average (8.6x).

PE vs Market: 0MU6 is good value based on its PE Ratio (4.9x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0MU6 is poor value based on its PEG Ratio (29.7x)


Price to Book Ratio

PB vs Industry: 0MU6 is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.7x).


Next Steps

Future Growth

How is BPER Banca forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0MU6's forecast earnings growth (0.2% per year) is below the savings rate (0.5%).

Earnings vs Market: 0MU6's earnings (0.2% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: 0MU6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0MU6's revenue (12.2% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0MU6's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0MU6's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has BPER Banca performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0MU6 has a large one-off gain of €152.4M impacting its December 31 2019 financial results.

Growing Profit Margin: 0MU6's current net profit margins (21.4%) are lower than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: 0MU6's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: 0MU6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0MU6 had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: 0MU6's Return on Equity (7.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BPER Banca'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: 0MU6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0MU6's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: 0MU6's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0MU6 has a low allowance for bad loans.

Low Risk Liabilities: 0MU6's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0MU6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0MU6 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0MU6 has a high level of bad loans (9.29%)


Next Steps

Dividend

What is BPER Banca's current dividend yield, its reliability and sustainability?

3.89%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.9%markettop25%5.4%industryaverage7.1%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: 0MU6's dividend (3.71%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: 0MU6's dividend (3.71%) is low compared to the top 25% of dividend payers in the UK market (5.4%).


Stability and Growth of Payments

Stable Dividend: 0MU6's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0MU6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), 0MU6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0MU6's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Alessandro Vandelli (60yo)

5.8yrs

Tenure

€1,085,000

Compensation

Mr. Alessandro Vandelli has been General Manager of BPER Banca SpA since January 1, 2020. Mr. Vandelli graduated with honours in Economics and Commerce from Modena University in 1984. He subsequently atten ...


CEO Compensation Analysis

Compensation vs Market: Alessandro's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD1.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alessandro Vandelli
GM, MD & Director5.8yrs€1.09mno data
Roberto Ferrari
Chief Financial Officer0yrsno datano data
Gilberto Borghi
Head of Investor Relations0yrsno datano data
Alessandro Simonazzi
Head of Planning & Control0yrsno datano data
Gian Venturini
Head of General Affairs Department6.2yrsno datano data
Claudio Battistella
Chief Lending Officer4.1yrsno datano data
Matteo Bigarelli
Head of Equity Investments and Special Projects0yrsno datano data
Emilio Annovi
Financial Reporting Officer and Manager of Administration & Reporting Department0yrsno datano data

5.8yrs

Average Tenure

Experienced Management: 0MU6's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alessandro Vandelli
GM, MD & Director5.8yrs€1.09mno data
Mara Bernardini
Independent Director6.1yrs€73.00kno data
Pietro Ferrari
Chairman1.8yrs€83.00kno data
Elisabetta Gualandri
Independent Director7.5yrs€102.00kno data
Valeria Venturelli
Independent Director3.8yrsno datano data
Roberta Marracino
Independent Director2.8yrsno datano data
Giuseppe Capponcelli
Deputy Chairman2.8yrsno datano data
Rossella Schiavini
Independent Director2.8yrsno datano data
Massimo Belcredi
Independent Director2.8yrsno datano data
Paolo De Mitri
Chairman of the Statutory Auditors0yrsno datano data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 0MU6's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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 been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: BPER Banca S.p.A.
  • Ticker: 0MU6
  • Exchange: LSE
  • Founded: 1867
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €1.872b
  • Shares outstanding: 520.17m
  • Website: https://www.bper.it

Number of Employees


Location

  • BPER Banca S.p.A.
  • Via San Carlo 8/20
  • Modena
  • Modena
  • 41121
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BPEBIT (Borsa Italiana)YesOrdinary SharesITEURMar 1992
0MU6LSE (London Stock Exchange)YesOrdinary SharesGBEURMar 1992
4BEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1992
BPEMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 1992
BPEWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMar 1992
BPXX.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2013

Biography

BPER Banca S.p.A. provides corporate and investment banking, private banking and wealth management, and financial products and services to individuals, and small and medium enterprises in Italy and internationally. It operates through Retail, Private, Corporate, Large Corporate, Finance, Corporate Centre, and Other Activities segments. The company offers deposits, loans, leasing and factoring services, guarantees, insurance policies, investment products, and consumer credit and payment card products; engages in treasury activities; and manages investment portfolio. As of December 31, 2017, it operated through a network of 1,218 branches located in 18 regions in Italy, as well as a branch office in the Grand Duchy of Luxembourg. The company was formerly known as Banca popolare dell'Emilia Romagna s.c. BPER Banca S.p.A. was founded in 1867 and is headquartered in Modena, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:07
End of Day Share Price2020/02/28 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.