Banca Mediolanum (BIT:BMED) - Share price, News & Analysis

BMED fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	5/6
Financial Health	4/6
Dividends	4/6

BMED Stock Overview

Banca Mediolanum S.p.A. provides various banking products and services in Italy.

Rewards

Trading at 27.7% below our estimate of its fair value

Earnings are forecast to grow 8.97% per year

Earnings grew by 40% over the past year

Risk Analysis

Unstable dividend track record

Banca Mediolanum Competitors

Allianz

XTRA:ALV

€79.4b

BNP Paribas

ENXTPA:BNP

€66.3b

Intesa Sanpaolo

BIT:ISP

€38.5b

UniCredit

BIT:UCG

€21.7b

Price History & Performance

Summary of all time highs, changes and price drops for Banca Mediolanum
Historical stock prices
Current Share Price	€7.04
52 Week High	€9.89
52 Week Low	€5.87
Beta	1.63
1 Month Change	-3.96%
3 Month Change	-15.08%
1 Year Change	-10.27%
3 Year Change	15.92%
5 Year Change	-6.54%
Change since IPO	-3.67%

Recent News & Updates

Apr 08

I Ran A Stock Scan For Earnings Growth And Banca Mediolanum (BIT:BMED) Passed With Ease

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	BMED	IT Diversified Financial	IT Market
7D	-0.8%	1.3%	0.7%
1Y	-10.3%	-4.4%	-5.5%

Return vs Industry: BMED underperformed the Italian Diversified Financial industry which returned -4.7% over the past year.

Return vs Market: BMED underperformed the Italian Market which returned -5% over the past year.

Price Volatility

Is BMED's price volatile compared to industry and market?
BMED volatility
BMED Average Weekly Movement	6.4%
Diversified Financial Industry Average Movement	6.4%
Market Average Movement	6.3%
10% most volatile stocks in IT Market	8.6%
10% least volatile stocks in IT Market	4.0%

Stable Share Price: BMED is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BMED's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1982	3,318	Massimo Doris	https://www.bancamediolanum.it

Banca Mediolanum S.p.A. provides various banking products and services in Italy. The company offers current accounts and mortgages and loans. It also provides debit, credit, and prepaid cards; savings and investment products, such as equities and bonds, as well as trading services; and insurance and pension products and services.

Banca Mediolanum Fundamentals Summary

How do Banca Mediolanum's earnings and revenue compare to its market cap?
BMED fundamental statistics
Market Cap	€5.19b
Earnings (TTM)	€693.98m
Revenue (TTM)	€1.58b

7.5x

P/E Ratio

3.3x

P/S Ratio

Is BMED overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BMED income statement (TTM)
Revenue	€1.58b
Cost of Revenue	€4.47m
Gross Profit	€1.58b
Other Expenses	€886.41m
Earnings	€693.98m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.94
Gross Margin	99.72%
Net Profit Margin	43.79%
Debt/Equity Ratio	7.0%

How did BMED perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

27.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BMED (€7.04) is trading below our estimate of fair value (€9.74)

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

Price To Earnings Ratio

PE vs Industry: BMED is good value based on its PE Ratio (7.5x) compared to the Italian Diversified Financial industry average (11.4x).

PE vs Market: BMED is good value based on its PE Ratio (7.5x) compared to the Italian market (17.2x).

Price to Earnings Growth Ratio

PEG Ratio: BMED is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: BMED is good value based on its PB Ratio (0.2x) compared to the IT Diversified Financial industry average (1x).

Future Growth

How is Banca Mediolanum forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMED's forecast earnings growth (9% per year) is above the savings rate (1.7%).

Earnings vs Market: BMED's earnings (9% per year) are forecast to grow slower than the Italian market (10% per year).

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

Revenue vs Market: BMED's revenue (10.5% per year) is forecast to grow faster than the Italian market (0.06% per year).

High Growth Revenue: BMED's revenue (10.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BMED's Return on Equity is forecast to be low in 3 years time (18.1%).

Past Performance

How has Banca Mediolanum performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BMED has high quality earnings.

Growing Profit Margin: BMED's current net profit margins (43.8%) are higher than last year (37.8%).

Past Earnings Growth Analysis

Earnings Trend: BMED's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: BMED's earnings growth over the past year (40%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: BMED earnings growth over the past year (40%) exceeded the Diversified Financial industry 22.4%.

Return on Equity

High ROE: BMED's Return on Equity (2.9%) is considered low.

Financial Health

How is Banca Mediolanum'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: BMED's Assets to Equity ratio (3x) is low.

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

Low Risk Liabilities: 94% of BMED's liabilities are made up of primarily low risk sources of funding.

Loan Level: BMED has an appropriate level of Loans to Assets ratio (46%).

Low Risk Deposits: BMED's Loans to Deposits ratio (73%) is appropriate.

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

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BMED's dividend (6.53%) is higher than the bottom 25% of dividend payers in the Italian market (1.6%).

High Dividend: BMED's dividend (6.53%) is in the top 25% of dividend payers in the Italian market (4.78%)

Stability and Growth of Payments

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

Growing Dividend: BMED's dividend payments have increased, but the company has only paid a dividend for 6 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.5%), BMED's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BMED's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).

Discover strong dividend paying companies

Management

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

8.3yrs

Average management tenure

CEO

Massimo Doris (54 yo)

13.83yrs

Tenure

€1,231,727

Compensation

Mr. Massimo Antonio Doris serves as Managing Director and Director of Banca Mediolanum S.p.A. Mr. Doris started his career at Banca Mediolanum in 1999 as Financial Advisor. Previously he was based in Londo...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Massimo's total compensation is reasonable compared to companies of similar size in the Italian market.

Compensation vs Earnings: Massimo's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BMED's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: BMED's board of directors are considered experienced (4.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: BMED 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31