BIT:BFF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Banca Farmafactoring S.p.A., together with its subsidiaries, operates in the factoring industry in Italy, Spain, Portugal, Poland, the Czech Republic, Croatia, the Slovak Republic, France, and Greece. More Details


Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BFF is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 4% a week.

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


Market Performance


7 Day Return

2.9%

BFF

3.1%

IT Diversified Financial

2.6%

IT Market


1 Year Return

-13.4%

BFF

-16.5%

IT Diversified Financial

-8.5%

IT Market

Return vs Industry: BFF exceeded the Italian Diversified Financial industry which returned -16.5% over the past year.

Return vs Market: BFF underperformed the Italian Market which returned -8.6% over the past year.


Shareholder returns

BFFIndustryMarket
7 Day2.9%3.1%2.6%
30 Day19.1%30.9%23.1%
90 Day-0.2%14.4%10.3%
1 Year-13.4%-13.4%-16.1%-16.5%-6.0%-8.5%
3 Year-10.0%-25.7%5.4%-1.1%2.4%-7.6%
5 Yearn/a30.4%22.8%8.0%-25.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFF (€4.73) is trading below our estimate of fair value (€7.12)

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


Price To Earnings Ratio

PE vs Industry: BFF is good value based on its PE Ratio (9.1x) compared to the IT Diversified Financial industry average (9.9x).

PE vs Market: BFF is good value based on its PE Ratio (9.1x) compared to the Italian market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BFF is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BFF is good value based on its PB Ratio (1.9x) compared to the IT Diversified Financial industry average (2.1x).


Next Steps

Future Growth

How is Banca Farmafactoring forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFF's forecast earnings growth (9.2% per year) is above the savings rate (2%).

Earnings vs Market: BFF's earnings (9.2% per year) are forecast to grow slower than the Italian market (24.7% per year).

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

Revenue vs Market: BFF's revenue (9.1% per year) is forecast to grow faster than the Italian market (3.2% per year).

High Growth Revenue: BFF's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BFF's Return on Equity is forecast to be high in 3 years time (25.1%)


Next Steps

Past Performance

How has Banca Farmafactoring performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFF has high quality earnings.

Growing Profit Margin: BFF's current net profit margins (42.1%) are lower than last year (46.6%).


Past Earnings Growth Analysis

Earnings Trend: BFF's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: BFF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BFF had negative earnings growth (-5.8%) over the past year, making it difficult to compare to the Diversified Financial industry average (-35.4%).


Return on Equity

High ROE: Whilst BFF's Return on Equity (20.81%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Banca Farmafactoring's financial position?


Financial Position Analysis

Short Term Liabilities: BFF's short term assets (€5.6B) exceed its short term liabilities (€4.3B).

Long Term Liabilities: BFF's short term assets (€5.6B) exceed its long term liabilities (€965.7M).


Debt to Equity History and Analysis

Debt Level: BFF's debt to equity ratio (187.6%) is considered high.

Reducing Debt: BFF's debt to equity ratio has reduced from 556.1% to 187.6% over the past 5 years.

Debt Coverage: BFF's debt is not well covered by operating cash flow (12%).

Interest Coverage: Insufficient data to determine if BFF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Banca Farmafactoring current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BFF's dividend (1.54%) is higher than the bottom 25% of dividend payers in the Italian market (1.5%).

High Dividend: BFF's dividend (1.54%) is low compared to the top 25% of dividend payers in the Italian market (4.76%).


Stability and Growth of Payments

Stable Dividend: BFF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BFF has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.9%), BFF's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BFF's dividends in 3 years are forecast to be covered by earnings (74.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Massimiliano Belingheri (46 yo)

6.92yrs

Tenure

Mr. Massimiliano Belingheri, also known as Max, serves as Chief Executive Officer at Banca Farmafactoring S.p.A. Mr. Belingheri has been Vice-Chairman of Supervisory Board at BFF Polska S.A. since January ...


Board Members

NamePositionTenureCompensationOwnership
Massimiliano Belingheri
CEO & Director6.92yrsno data3.51%
€ 28.2m
Barbara Poggiali
Independent Non-Executive Director2.58yrsno datano data
Salvatore Messina
Chairman of the Board7.83yrsno datano data
Federico Fornari Luswergh
Independent Vice Chairman0.92yrno datano data
Gabriele Michaela Aumann
Independent Non-Executive Director5.83yrsno datano data
Ben Langworthy
Non-Executive Directorno datano datano data
Marco Lori
Statutory Auditor5yrsno datano data
Patrizia Oriundi
Standing Auditor4.75yrsno datano data
Isabel Aguilera
Independent Non-Executive Director2.58yrsno datano data
Carlo Paris
Independent Non-Executive Director2.58yrsno datano data
Paola Carrara
Chairman of the Board of Statutory Auditors2.58yrsno datano data
Giorgia Rodigari
Non-Executive & Non-Independent Director0.92yrno datano data

2.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BFF's board of directors are not considered experienced ( 2.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Banca Farmafactoring S.p.A.
  • Ticker: BFF
  • Exchange: BIT
  • Founded: 1985
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: €803.745m
  • Shares outstanding: 169.93m
  • Website: https://it.bffgroup.com

Number of Employees


Location

  • Banca Farmafactoring S.p.A.
  • Via Domenichino 5
  • Milan
  • Milan
  • 20149
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFFBIT (Borsa Italiana)YesOrdinary SharesITEURApr 2017
0RONLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2017
2BFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2017
BFFMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 2017

Biography

Banca Farmafactoring S.p.A., together with its subsidiaries, operates in the factoring industry in Italy, Spain, Portugal, Poland, the Czech Republic, Croatia, the Slovak Republic, France, and Greece. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 18:56
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.