M&T Bank (NYSE:MTB) - Share price, News & Analysis

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

MTB Stock Overview

M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services.

Rewards

Trading at 63.4% below our estimate of its fair value

Earnings are forecast to grow 13.17% per year

Earnings have grown 3.6% per year over the past 5 years

Pays a reliable dividend of 2.81%

Risk Analysis

Shareholders have been diluted in the past year

M&T Bank Competitors

PNC Financial Services Group

NYSE:PNC

US$64.2b

SVB Financial Group

NasdaqGS:SIVB

US$25.4b

First Republic Bank

NYSE:FRC

US$24.9b

Fifth Third Bancorp

NasdaqGS:FITB

US$24.5b

Price History & Performance

Summary of all time highs, changes and price drops for M&T Bank
Historical stock prices
Current Share Price	US$170.74
52 Week High	US$186.95
52 Week Low	US$128.46
Beta	0.87
1 Month Change	7.01%
3 Month Change	-8.25%
1 Year Change	3.96%
3 Year Change	2.67%
5 Year Change	5.85%
Change since IPO	2,501.75%

Shareholder Returns

	MTB	US Banks	US Market
7D	3.0%	1.5%	2.7%
1Y	4.0%	-16.6%	-8.1%

Return vs Industry: MTB exceeded the US Banks industry which returned -20.8% over the past year.

Return vs Market: MTB exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is MTB's price volatile compared to industry and market?
MTB volatility
MTB Average Weekly Movement	5.6%
Banks Industry Average Movement	3.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1856	17,457	Ren Jones	https://www3.mtb.com

M&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company’s Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial lending and leasing, letters of credit, and cash management services for middle-market and large commercial customers.

M&T Bank Fundamentals Summary

How do M&T Bank's earnings and revenue compare to its market cap?
MTB fundamental statistics
Market Cap	US$29.40b
Earnings (TTM)	US$1.69b
Revenue (TTM)	US$5.99b

18.1x

P/E Ratio

1.9x

P/B Ratio

Is MTB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTB income statement (TTM)
Revenue	US$5.99b
Cost of Revenue	US$0
Gross Profit	US$5.99b
Other Expenses	US$4.30b
Earnings	US$1.69b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.41
Gross Margin	100.00%
Net Profit Margin	28.19%
Debt/Equity Ratio	21.3%

How did MTB perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MTB ($170.74) is trading below our estimate of fair value ($466.5)

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 (18.1x) compared to the US Banks industry average (9.7x).

PE vs Market: MTB is poor value based on its PE Ratio (18.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: MTB is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: MTB is overvalued based on its PB Ratio (1.9x) compared to the US Banks industry average (1.1x).

Future Growth

How is M&T Bank forecast to perform in the next 1 to 3 years based on estimates from 13 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

13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTB's forecast earnings growth (13.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MTB's earnings (13.2% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: MTB's revenue (7.6% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: MTB's revenue (7.6% per year) is forecast to grow slower than 20% 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 (13.2%).

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

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

3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MTB has high quality earnings.

Growing Profit Margin: MTB's current net profit margins (28.2%) are higher than last year (26.9%).

Past Earnings Growth Analysis

Earnings Trend: MTB's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: MTB's earnings growth over the past year (15.9%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: MTB earnings growth over the past year (15.9%) underperformed the Banks industry 20.9%.

Return on Equity

High ROE: MTB's Return on Equity (9.9%) is considered low.

Financial Health

How is M&T Bank'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: MTB's Assets to Equity ratio (8.4x) is low.

Allowance for Bad Loans: MTB has a low allowance for bad loans (69%).

Low Risk Liabilities: 96% 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 (60%).

Low Risk Deposits: MTB's Loans to Deposits ratio (71%) is appropriate.

Level of Bad Loans: MTB has a high level of bad loans (2.3%).

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

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

2.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MTB's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: MTB's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (4.06%).

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

Earnings Coverage: With its reasonably low payout ratio (35.1%), 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 (31.9% payout ratio).

Next Steps

Explore strong dividend paying companies in the Banks industry.

Management

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

4.6yrs

Average management tenure

CEO

Ren Jones (56 yo)

4.42yrs

Tenure

US$6,868,174

Compensation

Mr. Rene F. Jones, also known as Ren, serves as Director at Federal Reserve Bank of New York since December 2021. He serves as Chairman of the Board, President and Chief Executive Officer of Wilmington Tru...

CEO Compensation Analysis

Compensation vs Market: Ren's total compensation ($USD6.87M) is below average for companies of similar size in the US market ($USD13.27M).

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

Leadership Team

Experienced Management: MTB's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: MTB's board of directors are considered experienced (9.8 years average tenure).

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 been diluted in the past year, with total shares outstanding growing by 39.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31