LSE:0R9H

Stock Analysis Report

Executive Summary

Banca Sistema S.p.A. provides various banking products and services to multinationals, small and medium enterprises, professionals, and individual investors in Italy.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 0R9H has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0R9H

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

35.1%

0R9H

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0R9H exceeded the UK Banks industry which returned -6% over the past year.

Return vs Market: 0R9H exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

0R9HIndustryMarket
7 Day0%-3.6%0.05%
30 Day8.0%-3.6%-1.7%
90 Day6.8%-2.3%4.1%
1 Year42.4%35.1%-1.2%-6.0%12.6%7.1%
3 Year-2.6%-13.7%-6.7%-17.4%18.4%3.6%
5 Yearn/a-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Banca Sistema 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: 0R9H (€2.02) is trading below our estimate of fair value (€5.3)

Significantly Below Fair Value: 0R9H is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0R9H is good value based on its PE Ratio (6.3x) compared to the Banks industry average (9.2x).

PE vs Market: 0R9H is good value based on its PE Ratio (6.3x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0R9H is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 0R9H is overvalued based on its PB Ratio (1.1x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0R9H's forecast earnings growth (10.1% per year) is above the savings rate (0.5%).

Earnings vs Market: 0R9H's earnings (10.1% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: 0R9H's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0R9H's revenue (11.8% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: 0R9H's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0R9H's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Banca Sistema performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0R9H has high quality earnings.

Growing Profit Margin: 0R9H's current net profit margins (31.7%) are lower than last year (32.7%).


Past Earnings Growth Analysis

Earnings Trend: 0R9H's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: 0R9H's earnings growth over the past year (5.9%) is below its 5-year average (9% per year).

Earnings vs Industry: 0R9H earnings growth over the past year (5.9%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0R9H's Return on Equity (16.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banca Sistema'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: 0R9H has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0R9H's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: 0R9H's level of assets compared to its equity is very high.

Allowance for Bad Loans: 0R9H has a low allowance for bad loans.

Low Risk Liabilities: 0R9H's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0R9H has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0R9H's loans are broadly funded by customer deposits.

Level of Bad Loans: 0R9H has a high level of bad loans (6.78%)


Next Steps

Dividend

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

4.43%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: 0R9H's dividend (4.43%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: 0R9H's dividend (4.43%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0R9H has been paying a dividend for less than 10 years.

Growing Dividend: 0R9H's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), 0R9H's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0R9H's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Gianluca Garbi (49yo)

5.8yrs

Tenure

€2,155,000

Compensation

Dr. Gianluca Garbi has been the Chief Executive Officer of Banca Sistema S.p.A. since April 22, 2014 and has been its General Manager since April 22, 2014 and serves as its Managing Director. Dr. Garbi ser ...


CEO Compensation Analysis

Compensation vs Market: Gianluca's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD588.44K).

Compensation vs Earnings: Gianluca's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gianluca Garbi
CEO, MD5.8yrs€2.16m0.21% 363.8k
Ilaria Bennati
Head of Finance & CFO2.2yrsno datano data
Nicolò Fiorio
Head of Operations & COO0yrsno datano data
Carlo Di Pierro
Head of Investor Relations0yrsno datano data
Steve Skerrett
Head of Commercial Division2.3yrsno datano data
Andrea Trupia
Deputy Head of Commercial Division3.7yrsno datano data
Anna Mascioni
Head of Media Relations0yrsno datano data
Franco Pozzi
Head of Internal Audit & Member of Supervisory Committee1.1yrsno datano data
Fausto Galmarini
Head of Institutional Relations1.1yrsno datano data
Fabrizio Piscitelli
Head of Credit2.3yrsno datano data

2.3yrs

Average Tenure

Experienced Management: 0R9H's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gianluca Garbi
CEO, MD5.8yrs€2.16m0.21% 363.8k
Franco Pozzi
Head of Internal Audit & Member of Supervisory Committee1.1yrsno datano data
Giovanni Puglisi
Deputy Chairperson0yrs€30.90kno data
Daniele Pittatore
Independent Director & Member of Supervisory Commitee1.6yrs€41.50kno data
Massimo Conigliaro
Chairman of the Board of Statutory Auditors & Chairman of the the Supervisory Body2.8yrsno datano data
Luitgard Spögler
Chairperson of the Board4.3yrs€12.00kno data
Carlotta Franceschi
Independent Director5.1yrs€4.00kno data
Laura Ciambellotti
Independent Director2.1yrsno datano data
Federico Luzzi
Independent Director2.1yrsno datano data
Francesco Galietti
Independent Director2.1yrsno datano data

2.1yrs

Average Tenure

51yo

Average Age

Experienced Board: 0R9H's board of directors are not considered experienced ( 2.1 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

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


Key Information

  • Name: Banca Sistema S.p.A.
  • Ticker: 0R9H
  • Exchange: LSE
  • Founded: 2011
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €171.877m
  • Shares outstanding: 80.32m
  • Website: https://www.bancasistema.it

Number of Employees


Location

  • Banca Sistema S.p.A.
  • Largo Augusto 1/A
  • ang. via Verziere 13
  • Milan
  • Milan
  • 20122
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BSTBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2015
0R9HLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2015
BSTMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2015
B2SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2015

Biography

Banca Sistema S.p.A. provides various banking products and services to multinationals, small and medium enterprises, professionals, and individual investors in Italy. It engages in the purchase of trade receivables from the public administration. The company offers current accounts, time and securities deposits, salary and pension backed loans, and collateralized loans. It also provides recourse, non-recourse, maturity, and online factoring services; VAT receivables; receivables certifications; and credit management services. Banca Sistema S.p.A. was founded in 2011 and is based in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:01
End of Day Share Price2020/02/20 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.