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Intesa Sanpaolo Spa (ISNPY)
:ISNPY
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Intesa Sanpaolo
(OTC:ISNPY)
77Outperform
Intesa Sanpaolo (ISNPY) vs. S&P 500 (SPY)
Market Cap
$92.68B
Dividend Yield4.73%
Average Volume (3M)11.96K
Price to Earnings (P/E)9.9
Beta (1Y)0.50
Revenue Growth12.53%
EPS Growth29.58%
CountryUS
Employees94,440
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.07
Shares Outstanding2,967,278,300
10 Day Avg. Volume0
30 Day Avg. Volume11,955
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)N/A
Price to Sales (P/S)2.15
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Intesa Sanpaolo Business Overview & Revenue Model
Company DescriptionIntesa Sanpaolo S.p.A. (ISNPY) is one of Italy's largest banking groups, with a significant presence in the European financial sector. The company offers a comprehensive range of banking products and services, including retail banking, corporate banking, asset management, and insurance. Intesa Sanpaolo operates through various segments, such as Banca dei Territori, Corporate and Investment Banking, International Subsidiary Banks, and Private Banking, catering to diverse customer needs from individuals to large enterprises.
How the Company Makes MoneyIntesa Sanpaolo generates revenue primarily through interest income from its lending activities, including personal loans, mortgages, and corporate loans. Additionally, the bank earns fees and commissions from its wealth management and insurance services, investment banking activities, and payment processing services. Key revenue streams also include asset management fees and trading income. The bank's partnerships with international financial institutions and its strategic acquisitions further enhance its earnings potential by expanding its market reach and diversifying its financial products.
Intesa Sanpaolo Financial Statement Overview
Summary
Intesa Sanpaolo demonstrates strong financial performance with solid income statement metrics, including an improved gross profit margin and net profit margin. The balance sheet shows financial stability but is highly leveraged, requiring careful management. Cash flow challenges, with declining free cash flow and operational cash flow issues, present potential risks. However, historical resilience in cash flow performance mitigates some concerns.Income Statement
Intesa Sanpaolo has shown robust growth in its income statement metrics. The gross profit margin has improved significantly, with a notable gross profit margin of 108.7% in the latest year. The net profit margin also saw an increase, reflecting strong profitability. Revenue growth rate was 3.07% from 2022 to 2023, indicating steady growth. However, the absence of EBITDA margin due to missing data limits a comprehensive assessment.78
Positive
Balance Sheet
The balance sheet reflects solid financial stability with a manageable debt-to-equity ratio of 1.47. The return on equity improved to 12.08% in 2023, demonstrating efficient capital use. However, the equity ratio is relatively low at 6.64%, indicating high leverage, which could pose potential risks if not managed carefully.70
Positive
Cash Flow
Cash flow metrics present a mixed picture. The free cash flow growth rate is negative, indicating a decline in available cash, which raises concerns. The operating cash flow to net income ratio is also negative, suggesting operational cash flow issues. However, the company has managed substantial operating cash flows in previous years, which might provide some cushion.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 21.25B | 23.16B | 22.47B | 22.40B | 19.85B | 18.93B | Gross Profit |
| 21.25B | 25.17B | 22.47B | 22.40B | 19.85B | 18.93B | EBIT |
| 5.31B | 11.11B | 9.53B | 5.32B | 3.34B | 5.75B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 3.54B | 7.72B | 4.38B | 4.18B | 2.15B | 4.18B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| -89.27B | 89.27B | 123.84B | 147.09B | 86.77B | 27.79B | Total Assets |
| 963.57B | 963.57B | 975.68B | 1.07T | 1.00T | 816.10B | Total Debt |
| 93.71B | 93.71B | 96.14B | 101.21B | 107.15B | 95.35B | Net Debt |
| -6.97B | -100.69B | -27.71B | -45.88B | 20.39B | 67.56B | Total Liabilities |
| 899.44B | 899.44B | 913.86B | 1.00T | 936.29B | 759.89B | Stockholders Equity |
| 63.96B | 63.96B | 61.66B | 63.77B | 65.87B | 55.97B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -18.99B | 100.43B | 6.91B | -3.61B | 2.97B | Operating Cash Flow |
| 0.00 | -17.34B | 102.28B | 8.80B | -2.17B | 4.43B | Investing Cash Flow |
| 0.00 | -588.00M | -538.00M | -2.23B | -357.00M | -1.29B | Financing Cash Flow |
| 0.00 | -5.59B | -3.52B | -5.59B | 2.68B | -3.76B |
Intesa Sanpaolo Technical Analysis
Neutral
30.68
Price Trends
28.97
Positive
26.46
Positive
24.90
Positive
Market Momentum
0.69
Positive
50.75
Neutral
19.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISNPY, the sentiment is Neutral. The current price of 30.68 is below the 20-day moving average (MA) of 31.36, above the 50-day MA of 28.97, and above the 200-day MA of 24.90, indicating a neutral trend. The MACD of 0.69 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 19.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ISNPY.
Intesa Sanpaolo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $203.64B | 9.26 | 13.74% | 5.24% | 6.79% | 8.57% | |
77 Outperform | $92.68B | 9.91 | 14.35% | 4.73% | 12.53% | 29.58% | |
77 Outperform | $103.51B | 8.14 | 13.16% | 2.21% | 11.61% | 24.35% | |
75 Outperform | $61.50B | 9.25 | 12.75% | 5.13% | 4.07% | 9.97% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% |
* Financial Sector Average
Performance Comparison
ISNPY
Intesa Sanpaolo
30.68
10.40
51.28%
HSBC
HSBC Holdings
57.43
21.40
59.39%
ING
ING Groep
19.59
4.22
27.46%
SAN
Banco Santander SA
6.70
2.03
43.47%
Intesa Sanpaolo Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 18.82% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call detailed strong financial performance with record net income and robust shareholder returns. Significant growth in customer financial assets and a best-in-class cost income ratio were highlighted. However, there were concerns about the management of excess capital and potential pressure on net interest income due to declining Euribor rates.Highlights
Record Net Income and Shareholder Returns
Intesa Sanpaolo delivered its best-ever net income at EUR8.7 billion, reaching EUR9 billion when excluding non-recurring items. The bank distributed EUR6.1 billion in cash dividends and plans a EUR2 billion share buyback.
Strong Growth in Customer Financial Assets
Customer financial assets increased by EUR77 billion, demonstrating strong growth in direct deposits, assets under management, and assets under administration.
Best-in-Class Cost Income Ratio
Intesa Sanpaolo achieved a cost income ratio below 43%, marking it as best-in-class in Europe.
Stable Operating Costs and Asset Quality
Operating costs were down more than 1%, with a best-in-class cost income ratio. Asset quality remained high, with gross NPL stock down EUR200 million from last year.
Significant Tech Investments and Digital Growth
EUR4.2 billion invested in technology, with over 60% of applications cloud-based. Isybank added over 500,000 new clients in Q4.
Lowlights
Challenge of Managing Excess Capital
Despite strong capital generation, there is uncertainty regarding the use of excess capital, as the bank continues to accumulate more than it distributes.
Potential Pressure on Net Interest Income
Despite a resilient performance, there is concern about the impact of declining Euribor on net interest income in the coming years.
Company Guidance
During the full-year 2024 results conference call, Intesa Sanpaolo provided robust guidance for 2025, with expectations of net income well above EUR 9 billion. The bank achieved a record net income of EUR 8.7 billion for 2024, reaching EUR 9 billion when excluding non-recurring items and EUR 900 million in strategic gross income allocations. The bank announced cash dividends totaling EUR 6.1 billion and plans a share buyback of EUR 2 billion in June, pending shareholder approval. Customer financial assets rose by EUR 77 billion, and the bank maintained a strong capital position with a common equity Tier 1 ratio above 13.9%. Intesa Sanpaolo continues to invest heavily in technology, having deployed EUR 4.2 billion and hired over 2,300 IT specialists, resulting in more than 60% of applications being cloud-based. The bank also emphasized its commitment to social impact, deploying EUR 340 million to address social needs.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.