OTCPK:BMDP.Y

Stock Analysis Report

Banca Monte dei Paschi di Siena

Executive Summary

Banca Monte dei Paschi di Siena S.p.A. provides retail and commercial banking services in Italy.

Rewards

PE ratio (10.4x) is below the US market (18.4x)

Earnings are forecast to grow 21.74% per year

Became profitable this year

Risk Analysis

Shares are highly illiquid

Large one-off items impacting financial results



Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Banca Monte dei Paschi di Siena's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BMDP.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

BMDP.Y

2.7%

US Banks

1.1%

US Market


1 Year Return

-18.7%

BMDP.Y

22.7%

US Banks

17.8%

US Market

Return vs Industry: BMDP.Y underperformed the US Banks industry which returned 22.7% over the past year.

Return vs Market: BMDP.Y underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BMDP.YIndustryMarket
7 Day0.7%2.7%1.1%
30 Day-6.4%0.9%1.4%
90 Day-16.0%10.0%3.9%
1 Year-18.7%-18.7%26.3%22.7%20.3%17.8%
3 Year-93.1%-93.1%31.8%22.6%44.8%35.4%
5 Year-99.8%-99.9%80.2%60.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Banca Monte dei Paschi di Siena's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Banca Monte dei Paschi di Siena undervalued compared to its fair value and its price relative to the market?

10.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BMDP.Y ($0.74) is trading above our estimate of fair value ($0.17)

Significantly Below Fair Value: BMDP.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BMDP.Y is good value based on its PE Ratio (10.4x) compared to the Banks industry average (12.7x).

PE vs Market: BMDP.Y is good value based on its PE Ratio (10.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BMDP.Y is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: BMDP.Y is good value based on its PB Ratio (0.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Banca Monte dei Paschi di Siena forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BMDP.Y's forecast earnings growth (21.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BMDP.Y's earnings (21.7% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BMDP.Y's revenue (3.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BMDP.Y's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Banca Monte dei Paschi di Siena performed over the past 5 years?

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BMDP.Y has a large one-off loss of €167.4M impacting its September 30 2019 financial results.

Growing Profit Margin: BMDP.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BMDP.Y has become profitable over the past 5 years, growing earnings by 28.8% per year.

Accelerating Growth: BMDP.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BMDP.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (27.1%).


Return on Equity

High ROE: BMDP.Y's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banca Monte dei Paschi di Siena'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: BMDP.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: BMDP.Y's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: BMDP.Y has a low allowance for bad loans.

Low Risk Liabilities: BMDP.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: BMDP.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BMDP.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: BMDP.Y has a high level of bad loans (13.47%)


Next Steps

Dividend

What is Banca Monte dei Paschi di Siena's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BMDP.Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BMDP.Y's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BMDP.Y's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BMDP.Y's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BMDP.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BMDP.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Banca Monte dei Paschi di Siena's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Marco Morelli (58yo)

3.3yrs

Tenure

0

Mr. Marco Morelli has been Chief Executive Officer, General Manager and Director of Banca Monte dei Paschi di Siena S.p.A. since September 20, 2016. Mr. Morelli is also a Founding Partner and Deputy Chairm ...


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: BMDP.Y's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

56yo

Average Age

Experienced Board: BMDP.Y's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Marco Morelli (58yo)

    CEO, GM & Director

    • Tenure: 3.3yrs
  • Marco Palocci

    Head of Communication & Public Affairs Division

    • Tenure: 0yrs
  • Alessandro Signorini

    Head of the North West Italy Area

    • Tenure: 7.1yrs
  • Andrea Rovellini

    CFO & Senior Deputy General Manager

    • Tenure: 1.8yrs
  • Vittorio Calvanico

    Chief Operating Officer

    • Tenure: 1.6yrs
  • Renzo Filippo Quagliana

    Group General Counsel

    • Tenure: 3.1yrs
  • Massimo Molinari

    Head of Research and Investor Relations

    • Tenure: 0yrs
  • Fabiano Fossali

    Head of Markets & Products Division

    • Tenure: 0.08yrs
  • Ettore Carneade

    Compliance Officer

    • Tenure: 1.9yrs
  • Roberto Coita

    Chief Human Capital Officer

    • Tenure: 0.5yrs

Board Members

  • Antonino Turicchi (54yo)

    Deputy Chairman

    • Tenure: 2yrs
    • Compensation: €88.68k
  • Marco Morelli (58yo)

    CEO, GM & Director

    • Tenure: 3.3yrs
  • Angelo Riccaboni

    Independent Director

    • Tenure: 2yrs
  • Elena Cenderelli

    Chairman of the Board of Statutory Auditors

    • Tenure: 4.7yrs
  • Maria Elena Bruna Cappello (51yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: €74.79k
  • Stefania Bariatti (63yo)

    Chairwoman of the Board

    • Tenure: 2yrs
    • Compensation: €72.98k
  • Nicola Maione

    • Tenure: 2yrs
  • Marco Giorgino

    Independent Director

    • Tenure: 2yrs
  • Fiorella Kostoris

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: €77.86k
  • Roberto Lancellotti

    Independent Director

    • Tenure: 2yrs

Company Information

Banca Monte dei Paschi di Siena S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banca Monte dei Paschi di Siena S.p.A.
  • Ticker: BMDP.Y
  • Exchange: OTCPK
  • Founded: 1472
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €1.582b
  • Listing Market Cap: €1.755b
  • Shares outstanding: 1.10b
  • Website: https://www.mps.it

Number of Employees


Location

  • Banca Monte dei Paschi di Siena S.p.A.
  • Piazza Salimbeni, 3
  • Siena
  • Siena
  • 53100
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMPSBIT (Borsa Italiana)YesCommon StockITEURJun 1999
0RK6LSE (London Stock Exchange)YesCommon StockGBEURJun 1999
MPINDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1999
BMDP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 1999
BMPSMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 1999
BMDP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Banca Monte dei Paschi di Siena S.p.A. provides retail and commercial banking services in Italy. It operates through Retail Banking, Corporate Banking, Wealth Management, and Banca Widiba SpA segments. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:19
End of Day Share Price2019/12/09 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.