Mediobanca Banca di Credito Finanziario (BIT:MB) - Share price, News & Analysis

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

MB (€8.26) is trading above our estimate of [[fair value]] (€6.52)

MB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	4/6
Financial Health	3/6
Dividends	5/6

MB Stock Overview

Mediobanca Banca di Credito Finanziario S.p.A., together with its subsidiaries, provides various banking products and services in Italy and internationally.

Rewards

Price-To-Earnings ratio (7.6x) is below the Italian market (17.6x)

Revenue is forecast to grow 3.09% per year

Earnings grew by 41% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 0.8% per year for the next 3 years

Unstable dividend track record

Mediobanca Banca di Credito Finanziario Competitors

FinecoBank Banca Fineco

BIT:FBK

€7.0b

Banco BPM

BIT:BAMI

€4.1b

UniCredit

BIT:UCG

€19.1b

Credito Emiliano

BIT:CE

€1.8b

Price History & Performance

Summary of all time highs, changes and price drops for Mediobanca Banca di Credito Finanziario
Historical stock prices
Current Share Price	€8.26
52 Week High	€10.88
52 Week Low	€7.17
Beta	1.52
1 Month Change	-13.57%
3 Month Change	-12.06%
1 Year Change	-16.28%
3 Year Change	-12.82%
5 Year Change	-6.69%
Change since IPO	-2.36%

Recent News & Updates

Jun 08

If You Like EPS Growth Then Check Out Mediobanca Banca di Credito Finanziario (BIT:MB) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	MB	IT Banks	IT Market
7D	-2.2%	-4.4%	-1.0%
1Y	-16.3%	-18.9%	-17.4%

Return vs Industry: MB underperformed the Italian Banks industry which returned -14% over the past year.

Return vs Market: MB underperformed the Italian Market which returned -15% over the past year.

Price Volatility

Is MB's price volatile compared to industry and market?
MB volatility
MB Average Weekly Movement	4.2%
Banks Industry Average Movement	4.6%
Market Average Movement	5.0%
10% most volatile stocks in IT Market	7.4%
10% least volatile stocks in IT Market	3.4%

Stable Share Price: MB is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MB's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	4,965	Alberto Nagel	https://www.mediobanca.com

Mediobanca Banca di Credito Finanziario S.p.A., together with its subsidiaries, provides various banking products and services in Italy and internationally. The company operates through Wealth Management, Consumer Banking, Corporate and Investment Banking, Principal Investing, and Holding Functions segments. The Wealth Management segment offers asset management and other services to private clients, and affluent and premier customers.

Mediobanca Banca di Credito Finanziario Fundamentals Summary

How do Mediobanca Banca di Credito Finanziario's earnings and revenue compare to its market cap?
MB fundamental statistics
Market Cap	€6.99b
Earnings (TTM)	€919.58m
Revenue (TTM)	€2.47b

7.6x

P/E Ratio

0.6x

P/B Ratio

Is MB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MB income statement (TTM)
Revenue	€2.47b
Cost of Revenue	€0
Gross Profit	€2.47b
Other Expenses	€1.55b
Earnings	€919.58m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	1.09
Gross Margin	100.00%
Net Profit Margin	37.28%
Debt/Equity Ratio	279.1%

How did MB perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

61%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MB 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
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MB. This is calculated by dividing MB's market cap by their current preferred multiple.
What is MB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€6.99b

MB 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	-9.2x

Price to Earnings Ratio vs Peers

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

MB PE Ratio vs Peers

The above table shows the PE ratio for MB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.6x
FBK FinecoBank Banca Fineco	17x	12.2%	€7.0b
BAMI Banco BPM	6.3x	16.1%	€4.1b
UCG UniCredit	22.1x	26.5%	€19.1b
CE Credito Emiliano	4.9x	-0.4%	€1.8b
MB Mediobanca Banca di Credito Finanziario	7.6x	-0.8%	€7.0b

Forward PE

Price-To-Earnings vs Peers: MB is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (12.6x).

Price to Earnings Ratio vs Industry

How does MB's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: MB is expensive based on its Price-To-Earnings Ratio (7.6x) compared to the Italian Banks industry average (6.6x)

Price to Earnings Ratio vs Fair Ratio

What is MB'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.

MB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.6x
Fair PE Ratio	9.1x

Price-To-Earnings vs Fair Ratio: MB is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).

Share Price vs Fair Value

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

Below Fair Value: MB (€8.26) is trading above our estimate of fair value (€6.52)

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

Price to Earnings Growth Ratio

PEG Ratio: MB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Mediobanca Banca di Credito Finanziario forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

-0.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MB's earnings are forecast to decline over the next 3 years (-0.8% per year).

Earnings vs Market: MB's earnings are forecast to decline over the next 3 years (-0.8% per year).

High Growth Earnings: MB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MB's revenue (3.1% per year) is forecast to grow faster than the Italian market (0.4% per year).

High Growth Revenue: MB's revenue (3.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MB's Return on Equity is forecast to be low in 3 years time (7.9%).

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Past Performance

How has Mediobanca Banca di Credito Finanziario performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MB has high quality earnings.

Growing Profit Margin: MB's current net profit margins (37.3%) are higher than last year (30%).

Past Earnings Growth Analysis

Earnings Trend: MB's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: MB's earnings growth over the past year (41%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: MB earnings growth over the past year (41%) exceeded the Banks industry 35.8%.

Return on Equity

High ROE: MB's Return on Equity (8.3%) is considered low.

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Financial Health

How is Mediobanca Banca di Credito Finanziario's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

3/6

Financial Health Score 3/6

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: MB's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: Insufficient data to determine if MB has a sufficient allowance for bad loans.

Low Risk Liabilities: 64% of MB's liabilities are made up of primarily higher risk sources of funding.

Loan Level: MB has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: MB's Loans to Deposits ratio (181%) is high.

Level of Bad Loans: MB has an appropriate level of bad loans (0.9%).

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Dividend

What is Mediobanca Banca di Credito Finanziario 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

7.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MB's dividend (7.99%) is higher than the bottom 25% of dividend payers in the Italian market (1.71%).

High Dividend: MB's dividend (7.99%) is in the top 25% of dividend payers in the Italian market (5.19%)

Stability and Growth of Payments

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

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

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.7%), MB's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: MB's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).

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Management

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

9.3yrs

Average management tenure

CEO

Alberto Nagel (56 yo)

13.67yrs

Tenure

€4,007,394

Compensation

Mr. Alberto Nicola Nagel has been the Chief Executive Officer at Mediobanca Banca di Credito Finanziario S.p.A. since October 2008 and serves as its Co-Head of CIB. Mr. Nagel served as Chief Executive Offi...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Alberto's total compensation is reasonable compared to companies of similar size in the Italian market.

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

Leadership Team

Experienced Management: MB's management team is seasoned and experienced (9.3 years average tenure).

Board Members

Experienced Board: MB's board of directors are considered experienced (7.7 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	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30