BIT:UCG

Stock Analysis Report

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Market Cap

€24.1b

Last Updated

2021/06/14 17:54 UTC

Data Sources

Company Financials +

Executive Summary

UniCredit S.p.A. operates as a commercial bank. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-1.1%

UCG

-0.7%

IT Banks

0.3%

IT Market


1 Year Return

36.0%

UCG

38.3%

IT Banks

28.8%

IT Market

Return vs Industry: UCG underperformed the Italian Banks industry which returned 42.4% over the past year.

Return vs Market: UCG exceeded the Italian Market which returned 30.2% over the past year.


Shareholder returns

UCGIndustryMarket
7 Day-1.1%-0.7%0.3%
30 Day5.2%3.2%4.5%
90 Day15.4%7.9%7.4%
1 Year38.0%36.0%42.1%38.3%32.5%28.8%
3 Year-22.5%-25.2%-0.2%-8.9%20.1%9.8%
5 Year-9.3%-56.9%-25.2%-42.4%33.3%9.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: UCG (€10.74) is trading above our estimate of fair value (€6.34)

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


Price To Earnings Ratio

PE vs Industry: UCG is good value based on its PE Ratio (-8.1x) compared to the Italian Banks industry average (8.2x).

PE vs Market: UCG is good value based on its PE Ratio (-8.1x) compared to the Italian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UCG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UCG is good value based on its PB Ratio (0.4x) compared to the IT Banks industry average (0.6x).


Future Growth

How is UniCredit forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCG's forecast earnings growth (23.6% per year) is above the savings rate (1.8%).

Earnings vs Market: UCG's earnings (23.6% per year) are forecast to grow faster than the Italian market (16.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UCG's revenue (3.3% per year) is forecast to grow faster than the Italian market (2.6% per year).

High Growth Revenue: UCG's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UCG's Return on Equity is forecast to be low in 3 years time (5.9%).


Past Performance

How has UniCredit performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCG has a large one-off loss of €1.9B impacting its March 31 2021 financial results.

Growing Profit Margin: UCG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: UCG has become profitable over the past 5 years, growing earnings by 29.5% per year.

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

Earnings vs Industry: UCG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (13.1%).


Return on Equity

High ROE: UCG's Return on Equity (1.3%) is considered low.


Financial Health

How is UniCredit'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


Financial Institutions Analysis

Asset Level: UCG's Assets to Equity ratio (15.4x) is moderate.

Allowance for Bad Loans: UCG has a low allowance for bad loans (79%).

Low Risk Liabilities: 56% of UCG's liabilities are made up of primarily low risk sources of funding.

Loan Level: UCG has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: UCG's Loans to Deposits ratio (113%) is appropriate.

Level of Bad Loans: UCG has a high level of bad loans (4.2%).


Dividend

What is UniCredit current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UCG's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.21%).

High Dividend: UCG's dividend (1.12%) is low compared to the top 25% of dividend payers in the Italian market (3.61%).


Stability and Growth of Payments

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

Growing Dividend: UCG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: UCG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: UCG's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Andrea Orcel (57 yo)

0.17

Tenure

Mr. Andrea Orcel serves as Chief Executive Officer & Director at UniCredit S.p.A. since April 15, 2021. He serves as Senior Vice President of Merrill Lynch & Co. Inc. and served as its Head of Global Finan...


Leadership Team

Experienced Management: UCG's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: UCG's board of directors are not considered experienced ( 1.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: UniCredit S.p.A.
  • Ticker: UCG
  • Exchange: BIT
  • Founded: 1870
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €24.098b
  • Shares outstanding: 2.24b
  • Website: https://www.unicreditgroup.eu

Number of Employees


Location

  • UniCredit S.p.A.
  • Tower A
  • Piazza Gae Aulenti, 3
  • Milan
  • Milan
  • 20154
  • Italy

Listings


Biography

UniCredit S.p.A. operates as a commercial bank. The company operates through Commercial Banking Italy, Commercial Banking Germany, Commercial Banking Austria, Corporate & Investment Banking, and Central Ea...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 17:54
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.