Banca Generali (BATS-CHIXE:BGNM) - Share price, News & Analysis

Q: What is the Fair Price of BGNM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BGNM (€28.31) is trading below our estimate of [[fair value]] (€29.5)

BGNM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	5/6

BGNM Stock Overview

Banca Generali S.p.A. distributes financial products and services for affluent and private customers through financial advisors primarily in Italy.

Rewards

Trading at 4% below our estimate of its fair value

Earnings are forecast to grow 13.65% per year

Risk Analysis

Shares are highly illiquid

High level of non-cash earnings

Unstable dividend track record

Banca Generali Competitors

Petershill Partners

LSE:PHLL

UK£2.7b

Ninety One Group

LSE:N91

UK£1.9b

Man Group

LSE:EMG

UK£3.2b

Bridgepoint Group

LSE:BPT

UK£2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Banca Generali
Historical stock prices
Current Share Price	€28.31
52 Week High	€43.25
52 Week Low	€26.28
Beta	1.58
1 Month Change	7.73%
3 Month Change	n/a
1 Year Change	n/a
3 Year Change	6.75%
5 Year Change	-3.51%
Change since IPO	215.96%

Shareholder Returns

	BGNM	GB Capital Markets	GB Market
7D	0%	1.8%	0.9%
1Y	n/a	-13.1%	-8.2%

Return vs Industry: Insufficient data to determine how BGNM performed against the UK Capital Markets industry.

Return vs Market: Insufficient data to determine how BGNM performed against the UK Market.

Price Volatility

Is BGNM's price volatile compared to industry and market?
BGNM volatility
BGNM Average Weekly Movement	n/a
Capital Markets Industry Average Movement	4.5%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: Insufficient data to determine BGNM's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine BGNM's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1997	974	Gian Mossa	https://www.bancagenerali.com

Banca Generali S.p.A. distributes financial products and services for affluent and private customers through financial advisors primarily in Italy. It operates through Wealth Management Cash-Generating Unit (CGU) and Private Banking CGU segments. The company offers asset management products, such as portfolio management, investment advisory and mutual fund management, and managed solutions consisting of funds and Sicavs, and financial and insurance wrappers; banking products and services; insurance products; and trade finance services.

Banca Generali Fundamentals Summary

How do Banca Generali's earnings and revenue compare to its market cap?
BGNM fundamental statistics
Market Cap	€3.27b
Earnings (TTM)	€264.31m
Revenue (TTM)	€601.07m

12.4x

P/E Ratio

5.4x

P/S Ratio

Is BGNM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BGNM income statement (TTM)
Revenue	€601.07m
Cost of Revenue	€28.00k
Gross Profit	€601.04m
Other Expenses	€336.73m
Earnings	€264.31m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 04, 2022

Earnings per share (EPS)	2.30
Gross Margin	100.00%
Net Profit Margin	43.97%
Debt/Equity Ratio	145.6%

How did BGNM perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

85%

Payout Ratio

Does BGNM pay a reliable dividends?

See BGNM dividend history and benchmarks

When do you need to buy BGNM by to receive an upcoming dividend?
Banca Generali dividend dates
Ex Dividend Date	Feb 20 2023
Dividend Pay Date	Feb 22 2023
Days until Ex dividend	187 days
Days until Dividend pay date	189 days

Does BGNM pay a reliable dividends?

See BGNM dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is BGNM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BGNM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BGNM. This is calculated by dividing BGNM's market cap by their current preferred multiple.
What is BGNM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.27b

BGNM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does BGNM's PE Ratio compare to its peers?

BGNM PE Ratio vs Peers

The above table shows the PE ratio for BGNM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.4x
PHLL Petershill Partners	10x	5.3%	UK£2.7b
N91 Ninety One Group	9.5x	-4.6%	UK£1.9b
EMG Man Group	6.8x	-12.9%	UK£3.2b
BPT Bridgepoint Group	30.6x	18.5%	UK£2.3b
BGNM Banca Generali	12.4x	13.6%	€3.3b

Price-To-Earnings vs Peers: BGNM is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (14.4x).

Price to Earnings Ratio vs Industry

How does BGNM's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: BGNM is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the UK Capital Markets industry average (10.5x)

Price to Earnings Ratio vs Fair Ratio

What is BGNM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BGNM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BGNM's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BGNM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BGNM (€28.31) is trading below our estimate of fair value (€29.5)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Banca Generali forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGNM's forecast earnings growth (13.6% per year) is above the savings rate (0.9%).

Earnings vs Market: BGNM's earnings (13.6% per year) are forecast to grow faster than the UK market (9.8% per year).

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

Revenue vs Market: BGNM's revenue (8.7% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: BGNM's revenue (8.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BGNM's Return on Equity is forecast to be high in 3 years time (24.9%)

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Past Performance

How has Banca Generali performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BGNM has a high level of non-cash earnings.

Growing Profit Margin: BGNM's current net profit margins (44%) are higher than last year (43.3%).

Past Earnings Growth Analysis

Earnings Trend: BGNM's earnings have grown by 11.8% per year over the past 5 years.

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

Earnings vs Industry: BGNM had negative earnings growth (-20.6%) over the past year, making it difficult to compare to the Capital Markets industry average (24.3%).

Return on Equity

High ROE: Whilst BGNM's Return on Equity (26.31%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

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

Financial Health Score

5/6

Financial Health Score 5/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BGNM's Assets to Equity ratio (17.6x) is moderate.

Allowance for Bad Loans: BGNM has a low allowance for bad loans (55%).

Low Risk Liabilities: 84% of BGNM's liabilities are made up of primarily low risk sources of funding.

Loan Level: BGNM has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: BGNM's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: BGNM has an appropriate level of bad loans (0.4%).

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Dividend

What is Banca Generali current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.84%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BGNM's dividend (6.84%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: BGNM's dividend (6.84%) is in the top 25% of dividend payers in the UK market (5.13%)

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.7%), BGNM's payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BGNM's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).

Discover strong dividend paying companies

Management

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

10.4yrs

Average management tenure

CEO

Gian Mossa (48 yo)

6.33yrs

Tenure

€10,397

Compensation

Mr. Gian Maria Mossa has been the Chief Executive Officer of Banca Generali S.p.A. since March 2017. Mr. Mossa has been General Manager since March 23, 2017. Mr. Mossa served as General Manager of Banca Ge...

Leadership Team

Experienced Management: BGNM's management team is seasoned and experienced (10.4 years average tenure).

Board Members

Experienced Board: BGNM's board of directors are considered experienced (3.8 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31