BIT:UCG

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (7.6x) is below the Italian market (18.3x)

Earnings grew by 120.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.2% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Solid track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

UCG

-1.5%

IT Banks

-1.7%

IT Market


1 Year Return

7.9%

UCG

9.3%

IT Banks

15.3%

IT Market

Return vs Industry: UCG matched the Italian Banks industry which returned 9.3% over the past year.

Return vs Market: UCG underperformed the Italian Market which returned 15.3% over the past year.


Shareholder returns

UCGIndustryMarket
7 Day-0.9%-1.5%-1.7%
30 Day6.6%1.4%-0.2%
90 Day17.4%13.2%4.7%
1 Year10.2%7.9%15.2%9.3%20.6%15.3%
3 Year4.8%-49.5%-7.0%-31.4%29.3%10.1%
5 Year-50.8%-77.6%-19.2%-51.4%27.5%-17.3%

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?

7.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UCG (€12.55) is trading above our estimate of fair value (€9.86)

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 (7.6x) compared to the Banks industry average (9x).

PE vs Market: UCG is good value based on its PE Ratio (7.6x) compared to the Italian market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is UniCredit forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCG's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: UCG's earnings are forecast to decline over the next 3 years (-1.2% per year).

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

Revenue vs Market: UCG's revenue (1.1% per year) is forecast to grow slower than the Italian market (3.1% per year).

High Growth Revenue: UCG's revenue (1.1% 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 (6.8%).


Next Steps

Past Performance

How has UniCredit performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UCG has high quality earnings.

Growing Profit Margin: UCG's current net profit margins (28.7%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: UCG has become profitable over the past 5 years, growing earnings by 26.3% per year.

Accelerating Growth: UCG's earnings growth over the past year (120.4%) exceeds its 5-year average (26.3% per year).

Earnings vs Industry: UCG earnings growth over the past year (120.4%) exceeded the Banks industry 17.6%.


Return on Equity

High ROE: UCG's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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

Inventory Level: UCG has a low level of unsold assets or inventory.

Debt Coverage by Assets: UCG's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: UCG's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: UCG has a high level of bad loans (4.94%)


Next Steps

Dividend

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

2.15%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.0%markettop25%4.4%industryaverage5.4%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: UCG's dividend (2.15%) is higher than the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: UCG's dividend (2.15%) is low compared to the top 25% of dividend payers in the Italian market (4.45%).


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: With its low payout ratio (16.3%), UCG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UCG's dividends in 3 years are forecast to be well covered by earnings (35.4% payout ratio).


Next Steps

Management

What is the CEO of UniCredit's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Jean Mustier (58yo)

3.4yrs

Tenure

0

Mr. Jean-Pierre Mustier has been a Partner at Tikehau Capital since January 1, 2015. At Tikehau Capital, Mr. Mustier's primary focus is on its international expansion, while also contributing to the variou ...


Management Age and Tenure

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: UCG's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: UCG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Ranieri De Marchis (58yo)

    Co-Chief Operating Officer

    • Tenure: 3.3yrs
  • Jean Mustier (58yo)

    CEO & Director

    • Tenure: 3.4yrs
  • Carlo Vivaldi (54yo)

    Co-Chief Operating Officer

    • Tenure: 0.8yrs
  • Paolo Cornetta (58yo)

    Senior EVP & Head of Group Human Capital

    • Tenure: 9yrs
  • Mirko Davide Bianchi (57yo)

    CO- CFO & Senior EVP

    • Tenure: 0.9yrs
  • Maximilian Hohenberg (49yo)

    • Tenure: 1.6yrs
  • Carlo Appetiti (53yo)

    Chief Compliance Officer

    • Tenure: 5yrs
  • Gianpaolo Alessandro

    Senior EVP

    • Tenure: 3.9yrs
  • Stefano Porro (44yo)

    Co-Chief Financial Officer

    • Tenure: 0.9yrs
  • Jörg Pietzner

    Head of Group Investor Relations

    • Tenure: 0yrs

Board Members

  • Lamberto Andreotti (68yo)

    Deputy Chairman

    • Tenure: 0.9yrs
  • Jean Mustier (58yo)

    CEO & Director

    • Tenure: 3.4yrs
  • Sergio Balbinot (61yo)

    Director

    • Tenure: 3.5yrs
  • Stefano Micossi (73yo)

    Independent Director

    • Tenure: 1.7yrs
  • Cesare Bisoni (75yo)

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: €125.30k
  • Marco Giuseppe Rigotti (52yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 0.7yrs
  • Mohamed Hamad Hamed Al Mehairi (44yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: €19.63k
  • Elena Emilia Zambon (55yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: €89.39k
  • Isabelle de Wismes (61yo)

    Independent Director

    • Tenure: 1.7yrs
  • Alexander Wolfgring (57yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: €257.62k

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: €27.903b
  • Shares outstanding: 2.22b
  • Website: https://www.unicreditgroup.eu

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UCGSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1980
UNCF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1980
0RLSLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1980
CRINDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1980
UCGWSE (Warsaw Stock Exchange)YesOrdinary SharesPLPLNNov 1980
UCG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1980
UCGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1980
CRINDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1980
UCGBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1980
52762405BDL (Bourse de Luxembourg)9.375%-FRN SUB PERP EUR50000 'REGS'LUEURJul 2010
UCGWSE (Warsaw Stock Exchange)NPVPLPLNJan 2017
UCGSWX (SIX Swiss Exchange)NPVCHCHFJan 2017
UCG NBMV (Bolsa Mexicana de Valores)NPVMXMXNJan 2017
0RLSLSE (London Stock Exchange)NPVGBEURJan 2017
UNCR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2017
CRIPDB (Deutsche Boerse AG)UNSPONSORD ADRDEEUROct 2017

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, Central and Ea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/04 20:39
End of Day Share Price2019/12/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.