Banco BPM (BIT:BAMI) - Share price, News & Analysis

BAMI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

BAMI Stock Overview

Banco BPM S.p.A., together with its subsidiaries, provides banking and financial products and services to individual, business, and corporate customers in Italy.

Rewards

PE ratio (7.2x) is below the Italian market (17.7x)

Earnings are forecast to grow 13.46% per year

Became profitable this year

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Banco BPM Competitors

Intesa Sanpaolo

BIT:ISP

€38.3b

UniCredit

BIT:UCG

€22.6b

Mediobanca Banca di Credito Finanziario

BIT:MB

€8.1b

BPER Banca

BIT:BPE

€2.5b

Price History & Performance

Summary of all time highs, changes and price drops for Banco BPM
Historical stock prices
Current Share Price	€3.11
52 Week High	€3.76
52 Week Low	€2.13
Beta	1.31
1 Month Change	1.24%
3 Month Change	-7.47%
1 Year Change	10.33%
3 Year Change	91.09%
5 Year Change	9.13%
Change since IPO	24.32%

Shareholder Returns

	BAMI	IT Banks	IT Market
7D	4.3%	1.1%	-0.5%
1Y	10.3%	-8.9%	-5.0%

Return vs Industry: BAMI exceeded the Italian Banks industry which returned -9.8% over the past year.

Return vs Market: BAMI exceeded the Italian Market which returned -5.5% over the past year.

Price Volatility

Is BAMI's price volatile compared to industry and market?
BAMI volatility
BAMI Average Weekly Movement	8.1%
Banks Industry Average Movement	6.4%
Market Average Movement	6.1%
10% most volatile stocks in IT Market	8.5%
10% least volatile stocks in IT Market	3.8%

Stable Share Price: BAMI is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BAMI's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

Founded	Employees	CEO	Website
n/a	20,360	Giuseppe Castagna	https://www.bancobpm.it

Banco BPM S.p.A., together with its subsidiaries, provides banking and financial products and services to individual, business, and corporate customers in Italy. The company operates through Retail, Corporate, Institutional, Private, Investment Banking, Strategic Partnerships, Leases, and Corporate Centre segments. It offers current accounts; home mortgages; personal loans; credit, debit, and prepaid cards; home, personal, assets, and auto and vehicle insurance; and saving and investment products, as well as online trading services.

Banco BPM Fundamentals Summary

How do Banco BPM's earnings and revenue compare to its market cap?
BAMI fundamental statistics
Market Cap	€4.68b
Earnings (TTM)	€646.78m
Revenue (TTM)	€3.42b

7.2x

P/E Ratio

0.4x

P/B Ratio

Is BAMI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAMI income statement (TTM)
Revenue	€3.42b
Cost of Revenue	€0
Gross Profit	€3.42b
Other Expenses	€2.78b
Earnings	€646.78m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	0.43
Gross Margin	100.00%
Net Profit Margin	18.90%
Debt/Equity Ratio	466.5%

How did BAMI perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is Banco BPM undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.24x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: BAMI (€3.11) is trading above our estimate of fair value (€2.45)

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

Price To Earnings Ratio

PE vs Industry: BAMI is good value based on its PE Ratio (7.2x) compared to the Italian Banks industry average (8.3x).

PE vs Market: BAMI is good value based on its PE Ratio (7.2x) compared to the Italian market (17.7x).

Price to Earnings Growth Ratio

PEG Ratio: BAMI is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: BAMI is good value based on its PB Ratio (0.4x) compared to the IT Banks industry average (0.5x).

Future Growth

How is Banco BPM forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

13.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAMI's forecast earnings growth (13.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BAMI's earnings (13.5% per year) are forecast to grow faster than the Italian market (9.5% per year).

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

Revenue vs Market: BAMI's revenue (2.8% per year) is forecast to grow faster than the Italian market (0.06% per year).

High Growth Revenue: BAMI's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BAMI's Return on Equity is forecast to be low in 3 years time (6%).

Past Performance

How has Banco BPM 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

-21.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BAMI has high quality earnings.

Growing Profit Margin: BAMI became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BAMI's earnings have declined by 21% per year over the past 5 years.

Accelerating Growth: BAMI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BAMI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (35.8%).

Return on Equity

High ROE: BAMI's Return on Equity (5%) is considered low.

Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

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: BAMI's Assets to Equity ratio (15.9x) is moderate.

Allowance for Bad Loans: BAMI has a low allowance for bad loans (56%).

Low Risk Liabilities: 57% of BAMI's liabilities are made up of primarily low risk sources of funding.

Loan Level: BAMI has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: BAMI's Loans to Deposits ratio (101%) is appropriate.

Level of Bad Loans: BAMI has a high level of bad loans (5.1%).

Dividend

What is Banco BPM current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

6.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BAMI's dividend (6.11%) is higher than the bottom 25% of dividend payers in the Italian market (1.62%).

High Dividend: BAMI's dividend (6.11%) is in the top 25% of dividend payers in the Italian market (4.79%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether BAMI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BAMI's dividend payments are increasing as they only just started paying a dividend.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.4%), BAMI's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BAMI's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Giuseppe Castagna (62 yo)

5.33yrs

Tenure

Mr. Giuseppe Castagna serves as a Director of ALETTI & C. Banca di Investimento Mobiliare SpA since 2018. Mr. Castagna was Managing Director and General Manager of Banca Popolare di Milano S.c.ar.l from Ja...

Leadership Team

Experienced Management: BAMI's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: BAMI's board of directors are considered experienced (5.3 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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31