NYSE:MTB

Stock Analysis Report

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Executive Summary

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has M&T Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: MTB's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

4.9%

MTB

3.1%

US Banks

0.6%

US Market


1 Year Return

-9.8%

MTB

-4.2%

US Banks

21.0%

US Market

Return vs Industry: MTB underperformed the US Banks industry which returned -5% over the past year.

Return vs Market: MTB underperformed the US Market which returned 22% over the past year.


Shareholder returns

MTBIndustryMarket
7 Day4.9%3.1%0.6%
30 Day17.6%15.6%4.2%
90 Day45.2%42.5%12.4%
1 Year-6.4%-9.8%-0.7%-4.2%23.7%21.0%
3 Year-11.1%-18.1%5.5%-3.5%47.4%37.6%
5 Year58.7%40.1%96.6%71.7%131.6%105.9%

Long-Term Price Volatility Vs. Market

How volatile is M&T Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M&T Bank undervalued compared to its fair value and its price relative to the market?

23.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTB ($146.71) is trading below our estimate of fair value ($192.05)

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


Price To Earnings Ratio

PE vs Industry: MTB is poor value based on its PE Ratio (14.6x) compared to the US Banks industry average (12.2x).

PE vs Market: MTB is good value based on its PE Ratio (14.6x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: MTB is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MTB is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1x).


Next Steps

Future Growth

How is M&T Bank forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTB's forecast earnings growth (7.1% per year) is above the savings rate (2%).

Earnings vs Market: MTB's earnings (7.1% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: MTB's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: MTB's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTB's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has M&T Bank performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTB has high quality earnings.

Growing Profit Margin: MTB's current net profit margins (25.2%) are lower than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: MTB's earnings have grown by 10.9% per year over the past 5 years.

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

Earnings vs Industry: MTB had negative earnings growth (-31.6%) over the past year, making it difficult to compare to the Banks industry average (-4.4%).


Return on Equity

High ROE: MTB's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is M&T Bank'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


Financial Institutions Analysis

Asset Level: MTB's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: MTB has a sufficient allowance for bad loans (142%).

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

Loan Level: MTB has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: MTB's Loans to Deposits ratio (83%) is appropriate.

Level of Bad Loans: MTB has an appropriate level of bad loans (1.3%).


Next Steps

Dividend

What is M&T Bank current dividend yield, its reliability and sustainability?

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTB's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: MTB's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.88%).


Stability and Growth of Payments

Stable Dividend: MTB's dividends per share have been stable in the past 10 years.

Growing Dividend: MTB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), MTB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTB's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Ren Jones (55 yo)

3.08yrs

Tenure

US$5,704,703

Compensation

Mr. René F. Jones, also known as Ren, serves as Chairman of the Board, President and Chief Executive Officer of Wilmington Trust, National Association. Mr. Jones is chief executive officer, chairman of the...


CEO Compensation Analysis

Compensation vs Market: Ren's total compensation ($USD5.70M) is below average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Ren's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
René Jones
Chairman & CEO3.08yrsUS$5.70m0.053%
$ 9.9m
Richard Gold
President3.08yrsUS$3.96m0.033%
$ 6.3m
Darren King
Executive VP & CFO4.67yrsUS$2.70m0.037%
$ 6.9m
Kevin Pearson
Vice Chairman2.67yrsUS$3.97m0.035%
$ 6.5m
Doris Meister
Executive Vice President of Wealth & Institutional Services4.42yrsUS$2.53m0.00070%
$ 131.8k
Michael Spychala
Senior VPno datano data0.027%
$ 5.0m
Michele Trolli
Executive VP and Chief Technology & Operations Officer3yrsno data0.010%
$ 2.0m
Donald MacLeod
Administrative VPno datano datano data
Marianne Roche
Chief Regulatory Counsel & Enterprise Compliance Risk Managerno datano datano data
Laura O'Hara
Executive VP & General Counsel3.42yrsno data0.0015%
$ 274.8k
David Lanzillo
Director of Public Relationsno datano datano data
Francesco Lagutaine
Senior VP and Chief Marketing & Communications Officer0.42yrno datano data

3.3yrs

Average Tenure

58yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
René Jones
Chairman & CEO3.08yrsUS$5.70m0.053%
$ 9.9m
Richard Gold
President3.08yrsUS$3.96m0.033%
$ 6.3m
Kevin Pearson
Vice Chairman2.67yrsUS$3.97m0.035%
$ 6.5m
Robert Sadler
Independent Director22yrsUS$180.00k0.061%
$ 11.5m
Robert Brady
Vice Chairman & Lead Independent Director5.58yrsUS$179.00k0.015%
$ 2.7m
Thomas Jefferson Cunningham
Independent Director20yrsUS$190.00k0.0096%
$ 1.8m
Gary Geisel
Independent Director11.67yrsUS$232.20k0.017%
$ 3.3m
C. Bontempo
Independent Director30yrsUS$184.00k0.012%
$ 2.2m
Herbert Washington
Independent Director25yrsUS$168.00k0.011%
$ 2.0m
Melinda Rich
Independent Director11.75yrsUS$131.00k0.013%
$ 2.5m
John Hawke
Independent Director8.58yrsUS$196.00k0.0049%
$ 918.5k
Newton Merrill
Independent Director5.58yrsUS$167.00k0.0024%
$ 449.8k

10.1yrs

Average Tenure

73yo

Average Age

Experienced Board: MTB's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MTB insiders have only sold shares 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

M&T Bank Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M&T Bank Corporation
  • Ticker: MTB
  • Exchange: NYSE
  • Founded: 1856
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$18.822b
  • Shares outstanding: 128.29m
  • Website: https://www.mtb.com

Number of Employees


Location

  • M&T Bank Corporation
  • One M&T Plaza
  • Buffalo
  • New York
  • 14203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
MTZDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0JW2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
A1ZDN2DB (Deutsche Boerse AG)ALT TIER I PERPDEUSDFeb 2014
M1TB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services. The company’s Business Banking se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/13 23:28
End of Day Share Price2021/01/13 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.