LSE:0QVF

Stock Analysis Report

FinecoBank Banca Fineco

Executive Summary

FinecoBank Banca Fineco S.p.A. provides banking and investment products and services in Italy and internationally.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.9%

0QVF

-1.4%

GB Banks

6.0%

GB Market


1 Year Return

-28.8%

0QVF

-33.5%

GB Banks

-22.7%

GB Market

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

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


Shareholder returns

0QVFIndustryMarket
7 Day11.9%-1.4%6.0%
30 Day-12.0%-23.4%-20.3%
90 Day-21.9%-34.8%-28.1%
1 Year-26.9%-28.8%-28.8%-33.5%-18.6%-22.7%
3 Year44.5%30.8%-32.0%-41.3%-13.4%-24.6%
5 Year51.9%28.5%-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

20.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0QVF (€8.35) is trading above our estimate of fair value (€4.73)

Significantly Below Fair Value: 0QVF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0QVF is poor value based on its PE Ratio (20.1x) compared to the Banks industry average (4.6x).

PE vs Market: 0QVF is poor value based on its PE Ratio (20.1x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0QVF is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: 0QVF is overvalued based on its PB Ratio (5.4x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is FinecoBank Banca Fineco forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QVF's forecast earnings growth (4.5% per year) is above the savings rate (0.5%).

Earnings vs Market: 0QVF's earnings (4.5% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: 0QVF's revenue (4.9% per year) is forecast to grow faster than the UK market (2.6% per year).

High Growth Revenue: 0QVF's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QVF's Return on Equity is forecast to be high in 3 years time (24.5%)


Next Steps

Past Performance

How has FinecoBank Banca Fineco performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QVF has high quality earnings.

Growing Profit Margin: 0QVF's current net profit margins (43.7%) are higher than last year (38.9%).


Past Earnings Growth Analysis

Earnings Trend: 0QVF's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: 0QVF's earnings growth over the past year (19.5%) exceeds its 5-year average (9.6% per year).

Earnings vs Industry: 0QVF earnings growth over the past year (19.5%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: 0QVF's Return on Equity (20.9%) is considered high.


Next Steps

Financial Health

How is FinecoBank Banca Fineco'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: 0QVF has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QVF's debt is covered by short term assets (assets are 23.6x debt).


Financial Institutions Analysis

Asset Level: 0QVF's level of assets compared to its equity is very high.

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

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

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

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

Level of Bad Loans: 0QVF has an appropriate level of bad loans (0.08%)


Next Steps

Dividend

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

3.87%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 30 2020Ex Dividend DateMay 18 2020Dividend Pay DateMay 20 20202 days from Ex DividendBuy in the next 49 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 0QVF's dividend (3.87%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: 0QVF's dividend (3.87%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0QVF has been paying a dividend for less than 10 years.

Growing Dividend: 0QVF's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.7%), 0QVF's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QVF's dividends in 3 years are forecast to be covered by earnings (72.2% payout ratio).


Next Steps

Management

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

14.7yrs

Average management tenure


CEO

Alessandro Foti (59yo)

no data

Tenure

€1,260,849

Compensation

Mr. Alessandro Foti serves as Managing Director of FinecoBank S.p.A and has been its General Manager since July 01, 2014 and served as its Chief Executive Officer. He served as the Chief Executive Officer  ...


CEO Compensation Analysis

Compensation vs Market: Alessandro's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD3.42M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alessandro Foti
CEO, GM & Executive Directorno data€1.26mno data
Lorena Pelliciari
Chief Financial Officer20.17yrsno datano data
Fabio Milanesi
Deputy General Manager of Itno datano datano data
Stefania Mantegazza
Head of Investor Relationsno datano datano data
Silvio Puchar
Head of Compliance15.17yrsno datano data
Andrea Pepe
Head of Legal & Corporate Affairs14.17yrsno datano data
Paolo Grazia
Deputy GM of Invst Products5.17yrsno datano data
Stefano Orfanini
Chief Risk Officerno datano datano data

14.7yrs

Average Tenure

Experienced Management: 0QVF's management team is seasoned and experienced (14.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alessandro Foti
CEO, GM & Executive Directorno data€1.26mno data
Andrea Zappia
Director0.17yrno datano data
Enrico Ramusino
Chairman of the Board10.58yrs€206.23kno data
Patrizia Albano
Director2.92yrsno datano data
Francesco Saita
Vice Chairman6.17yrs€117.80kno data
Elena Spagnol
Chairman of the Board of Statutory Auditors2.5yrsno datano data
Elena Biffi
Director2.92yrsno datano data
Maria Malaguti
Director2.92yrsno datano data
Gianmarco Montanari
Director2.92yrsno datano data
Maurizio Santacroce
Director2.92yrsno datano data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Board: 0QVF's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: FinecoBank Banca Fineco S.p.A.
  • Ticker: 0QVF
  • Exchange: LSE
  • Founded: 1999
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €5.027b
  • Shares outstanding: 607.95m
  • Website: https://finecobank.com

Number of Employees


Location

  • FinecoBank Banca Fineco S.p.A.
  • Tower A
  • Piazza Gae Aulenti 3
  • Milan
  • 20154
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBKBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2014
FBKMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2014
0QVFLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2014
FBKWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2014
FCBB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014

Biography

FinecoBank Banca Fineco S.p.A. provides banking and investment products and services in Italy and internationally. The company operates through Banking, Brokerage, and Investing segments. Its banking services include current account and deposit services, payment services, mortgages, and personal loans, as well as debit, credit, and prepaid cards; and brokerage services comprise order execution services on behalf of customers with direct access to principal global equity markets and to trade on currencies, indices, shares, bonds, commodities, futures, options, bonds, ETFs, and certificates. The company’s investing business include placement and distribution services of various products, including mutual funds and SICAV sub-funds, and insurance and pension products, as well as investment advisory services. It serves primarily through a network of personal financial advisors, and online and mobile channels. As of December 31, 2018, the company operated 390 financial shops. The company was founded in 1999 and is headquartered in Milan, Italy. FinecoBank Banca Fineco S.p.A. is a subsidiary of UniCredit S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:43
End of Day Share Price2020/03/27 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.