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UCG

UniCredit BIT:UCG Stock Report

Last Price

€9.71

Market Cap

€20.7b

7D

-5.1%

1Y

-3.9%

Updated

27 Jun, 2022

Data

Company Financials +
UCG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends2/6

UCG Stock Overview

UniCredit S.p.A. operates as a commercial bank that provides retail, corporate, and private banking services.

UniCredit Competitors

Price History & Performance

Summary of all time highs, changes and price drops for UniCredit
Historical stock prices
Current Share Price€9.71
52 Week High€15.93
52 Week Low€7.75
Beta1.89
1 Month Change-10.24%
3 Month Change-5.64%
1 Year Change-3.86%
3 Year Change-8.95%
5 Year Change-42.82%
Change since IPO-92.16%

Recent News & Updates

Shareholder Returns

UCGIT BanksIT Market
7D-5.1%3.3%1.1%
1Y-3.9%-15.0%-15.6%

Return vs Industry: UCG exceeded the Italian Banks industry which returned -15% over the past year.

Return vs Market: UCG exceeded the Italian Market which returned -15.6% over the past year.

Price Volatility

Is UCG's price volatile compared to industry and market?
UCG volatility
UCG Average Weekly Movement6.7%
Banks Industry Average Movement4.8%
Market Average Movement5.1%
10% most volatile stocks in IT Market7.2%
10% least volatile stocks in IT Market3.3%

Stable Share Price: UCG is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: UCG's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

FoundedEmployeesCEOWebsite
187078,571Andrea Orcelhttps://www.unicreditgroup.eu

UniCredit S.p.A. operates as a commercial bank that provides retail, corporate, and private banking services. It offers accounts and deposits, loans, cards, transactions and payments, funds, advisory, treasury, and insurance products, as well as digital and mobile banking services. The company also provides solutions for payments and liquidity, working capital, hedging, international trade, and treasury operations; and funding solutions comprising of structured, project, and commodity trade and export finance, as well as debt and equity funding; and structured investments and investments advisory solutions.

UniCredit Fundamentals Summary

How do UniCredit's earnings and revenue compare to its market cap?
UCG fundamental statistics
Market Cap€20.74b
Earnings (TTM)€864.00m
Revenue (TTM)€13.11b

23.7x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UCG income statement (TTM)
Revenue€13.11b
Cost of Revenue€0
Gross Profit€13.11b
Other Expenses€12.25b
Earnings€864.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)0.41
Gross Margin100.00%
Net Profit Margin6.59%
Debt/Equity Ratio141.7%

How did UCG perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 UCG?

Other financial metrics that can be useful for relative valuation.

UCG 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

UCG PE Ratio vs Peers
The above table shows the PE ratio for UCG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.5x
ISP Intesa Sanpaolo
9.9x15.9%€36.5b
MB Mediobanca Banca di Credito Finanziario
7.8x-0.8%€7.3b
FBK FinecoBank Banca Fineco
17.7x12.2%€7.3b
BAMI Banco BPM
6.5x16.1%€4.3b
UCG UniCredit
23.7x26.5%€20.7b

Price-To-Earnings vs Peers: UCG is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (10.5x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: UCG is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the Italian Banks industry average (6.7x)


Price to Earnings Ratio vs Fair Ratio

What is UCG'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.

UCG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.7x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: UCG is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

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

Below Fair Value: UCG (€9.71) is trading below our estimate of fair value (€18.7)

Significantly Below Fair Value: UCG is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: UCG is good value based on its PEG Ratio (0.9x)


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Future Growth

How is UniCredit forecast to perform in the next 1 to 3 years based on estimates from 19 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


26.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UCG's forecast earnings growth (26.5% per year) is above the savings rate (1.7%).

Earnings vs Market: UCG's earnings (26.5% per year) are forecast to grow faster than the Italian market (10.3% per year).

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

Revenue vs Market: UCG's revenue (2.5% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: UCG's revenue (2.5% 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 (6.9%).


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Past Performance

How has UniCredit performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UCG has a large one-off loss of €1.7B impacting its March 31 2022 financial results.

Growing Profit Margin: UCG's current net profit margins (6.6%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: UCG has become profitable over the past 5 years, growing earnings by 33.5% per year.

Accelerating Growth: UCG's earnings growth over the past year (35.8%) exceeds its 5-year average (33.5% per year).

Earnings vs Industry: UCG earnings growth over the past year (35.8%) underperformed the Banks industry 35.8%.


Return on Equity

High ROE: UCG's Return on Equity (1.5%) is considered low.


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Financial Health

How is UniCredit'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: UCG's Assets to Equity ratio (15.4x) is moderate.

Allowance for Bad Loans: UCG has a low allowance for bad loans (81%).

Low Risk Liabilities: 79% 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 (58%).

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

Level of Bad Loans: UCG has a high level of bad loans (3.1%).


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UCG's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.71%).

High Dividend: UCG's dividend (1.24%) is low compared to the top 25% of dividend payers in the Italian market (5.19%).


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

Earnings Coverage: With its low payout ratio (17.7%), 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 (39.2% payout ratio).


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Management

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

1.5yrs

Average management tenure


CEO

Andrea Orcel (58 yo)

1.17yrs

Tenure

€6,700,443

Compensation

Mr. Andrea Orcel serves as Supervisory Board Member at UniCredit Bank AG since 2021 and serves as Chairman of Supervisory Board since July 14, 2021. He serves as Chief Executive Officer & Director at UniCr...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD7.11M) is above average for companies of similar size in the Italian market ($USD3.51M).

Compensation vs Earnings: Insufficient data to compare Andrea's compensation with company performance.


Leadership Team

Experienced Management: UCG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: UCG's board of directors are not considered experienced ( 1.2 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 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
  • Implied Market Cap: €20.737b
  • Shares outstanding: 2.11b
  • Website: https://www.unicreditgroup.eu

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.