BIT:BFF

Stock Analysis Report

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, and Greece.

Rewards

Trading at 10% below its fair value

Earnings are forecast to grow 7.3% per year

Earnings have grown 0.5% per year over the past 5 years

Risk Analysis

Dividend of 9.96% is not well covered by earnings

Significant insider selling over the past 3 months



Snowflake Analysis

Good value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

BFF

-0.3%

IT Diversified Financial

-0.6%

IT Market


1 Year Return

18.7%

BFF

40.5%

IT Diversified Financial

19.0%

IT Market

Return vs Industry: BFF underperformed the Italian Diversified Financial industry which returned 40.5% over the past year.

Return vs Market: BFF matched the Italian Market which returned 19% over the past year.


Shareholder returns

BFFIndustryMarket
7 Day-0.9%-0.3%-0.6%
30 Day-1.6%1.0%-0.5%
90 Day15.8%13.2%5.4%
1 Year31.8%18.7%44.2%40.5%24.4%19.0%
3 Yearn/a34.8%15.6%29.6%10.3%
5 Yearn/a73.7%53.0%32.3%-13.7%

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?

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFF (€5.41) is trading below our estimate of fair value (€6.01)

Significantly Below Fair Value: BFF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BFF is good value based on its PE Ratio (9.8x) compared to the Diversified Financial industry average (21.5x).

PE vs Market: BFF is good value based on its PE Ratio (9.8x) compared to the Italian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BFF is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BFF is good value based on its PB Ratio (2.7x) compared to the IT Diversified Financial industry average (2.9x).


Next Steps

Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFF's forecast earnings growth (7.3% per year) is above the savings rate (1.2%).

Earnings vs Market: BFF's earnings (7.3% per year) are forecast to grow slower than the Italian market (8.7% per year).

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

Revenue vs Market: BFF's revenue (6.8% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: BFF's revenue (6.8% 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 (27.2%)


Next Steps

Past Performance

How has Banca Farmafactoring performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFF has high quality earnings.

Growing Profit Margin: BFF's current net profit margins (46.6%) are lower than last year (46.7%).


Past Earnings Growth Analysis

Earnings Trend: BFF's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: BFF's earnings growth over the past year (10.5%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: BFF earnings growth over the past year (10.5%) underperformed the Diversified Financial industry 10.5%.


Return on Equity

High ROE: Whilst BFF's Return on Equity (27.96%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banca Farmafactoring'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: BFF has a low level of unsold assets or inventory.

Debt Coverage by Assets: BFF's debt is covered by short term assets (assets are 6.2x debt).


Financial Institutions Analysis

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

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

Low Risk Liabilities: BFF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BFF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BFF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BFF has an appropriate level of bad loans.


Next Steps

Dividend

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

9.96%

Current Dividend Yield


Dividend Yield vs Market

company10.0%marketbottom25%2.0%markettop25%4.3%industryaverage2.4%forecastin3Years8.9%

Current dividend yield vs market & industry

Notable Dividend: BFF's dividend (9.96%) is higher than the bottom 25% of dividend payers in the Italian market (1.96%).

High Dividend: BFF's dividend (9.96%) is in the top 25% of dividend payers in the Italian market (4.34%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BFF has been paying a dividend for less than 10 years.

Growing Dividend: BFF's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.3%), BFF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BFF's dividends in 3 years are forecast to be covered by earnings (76.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Massimiliano Belingheri (45yo)

6yrs

Tenure

0

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 Age and Tenure

1.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: BFF's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BFF insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Sell€79,35026 Nov 19
Luciano Seminara
EntityIndividual
Shares15,000
Max Price€5.29
Sell€129,81525 Nov 19
Luciano Seminara
EntityIndividual
Shares25,000
Max Price€5.19
Sell€131,77525 Nov 19
Luciano Seminara
EntityIndividual
Shares25,000
Max Price€5.27
Sell€83,82519 Nov 19
Luciano Seminara
EntityIndividual
Shares15,640
Max Price€5.36
Sell€57,75615 Nov 19
Luciano Seminara
EntityIndividual
Shares10,918
Max Price€5.29
Sell€1,779,65311 Oct 19
Massimiliano Belingheri
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares370,761
Max Price€4.80
Buy€14,32211 Sep 19
Walter Landi
EntityIndividual
Shares3,070
Max Price€4.67
Buy€20,61311 Sep 19
Walter Landi
EntityIndividual
Shares4,430
Max Price€4.67
Buy€446,88020 Aug 19
Massimiliano Belingheri
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares99,499
Max Price€4.49
Buy€227,48516 Aug 19
Massimiliano Belingheri
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,551
Max Price€4.50
Sell€17,63025 Jun 19
Andrea Benettin
EntityIndividual
Shares3,526
Max Price€5.00
Sell€119,240,00503 Apr 19
Centerbridge Partners, L.P.
EntityCompany
Shares22,000,000
Max Price€5.42

Ownership Breakdown

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


Management Team

  • Massimiliano Belingheri (45yo)

    CEO & Director

    • Tenure: 6yrs
  • Marina Corsi

    Head of Internal Audit

    • Tenure: 0yrs
  • Emanuele Bona

    Vice President of Finance & Administration Department

    • Tenure: 0yrs

Board Members

  • Massimiliano Belingheri (45yo)

    CEO & Director

    • Tenure: 6yrs
  • Barbara Poggiali (56yo)

    Non Executive Director

    • Tenure: 1.7yrs
  • Salvatore Messina (73yo)

    Chairman of the Board

    • Tenure: 6.9yrs
  • Federico Fornari Luswergh (55yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Luigi Sbrozzi (37yo)

    Vice Chairman

    • Tenure: 0yrs
  • Gabriele Michaela Aumann (66yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
  • Ben Langworthy (41yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Isabel Aguilera (59yo)

    Non Executive Director

    • Tenure: 1.7yrs
  • Carlo Paris (63yo)

    Non Executive Director

    • Tenure: 1.7yrs
  • Paola Carrara (43yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 1.7yrs

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: €912.014m
  • Shares outstanding: 170.15m
  • 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, and Greece. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:57
End of Day Share Price2019/12/06 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.