BANCA SISTEMA SPA (BST.MI) Stock Fundamental Analysis
BIT:BST - Euronext Milan - IT0003173629 - Common Stock - Currency: EUR
BST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 94 industry peers in the Banks industry. BST has a medium profitability rating, but doesn't score so well on its financial health evaluation. An interesting combination arises when we look at growth and value: BST is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
BST had positive earnings in the past year.
In the past year BST has reported a negative cash flow from operations.
In the past 5 years BST has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: BST reported negative operating cash flow in multiple years.
1.2 Ratios
BST has a Return On Assets (0.72%) which is comparable to the rest of the industry.
BST has a Return On Equity (10.40%) which is in line with its industry peers.
BST has a better Return On Invested Capital (0.78%) than 100.00% of its industry peers.
BST had an Average Return On Invested Capital over the past 3 years of 0.48%. This is in line with the industry average of 0.78%.
The last Return On Invested Capital (0.78%) for BST is above the 3 year average (0.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 10.4% | ||
| ROIC | 0.78% |
ROA(3y)0.47%
ROA(5y)0.55%
ROE(3y)7.85%
ROE(5y)9.17%
ROIC(3y)0.48%
ROIC(5y)0.55%
1.3 Margins
With a Profit Margin value of 20.93%, BST perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
In the last couple of years the Profit Margin of BST has declined.
BST has a Operating Margin of 34.68%. This is amongst the best in the industry. BST outperforms 100.00% of its industry peers.
BST's Operating Margin has declined in the last couple of years.
BST has a better Gross Margin (87.96%) than 100.00% of its industry peers.
BST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.68% | ||
| PM (TTM) | 20.93% | ||
| GM | 87.96% |
OM growth 3Y0.62%
OM growth 5Y-5.25%
PM growth 3Y-3.25%
PM growth 5Y-8.39%
GM growth 3Y-2.09%
GM growth 5Y-1.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BST is destroying value.
The number of shares outstanding for BST remains at a similar level compared to 1 year ago.
The number of shares outstanding for BST remains at a similar level compared to 5 years ago.
BST has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.79, we must say that BST is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of BST (-0.79) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 12.48 is on the high side and indicates that BST has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 12.48, BST is doing worse than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.79 |
ROIC/WACC0.21
WACC3.67%
2.3 Liquidity
BST has a Current Ratio of 0.04. This is a bad value and indicates that BST is not financially healthy enough and could expect problems in meeting its short term obligations.
BST has a Current ratio of 0.04. This is amongst the best in the industry. BST outperforms 100.00% of its industry peers.
BST has a Quick Ratio of 0.04. This is a bad value and indicates that BST is not financially healthy enough and could expect problems in meeting its short term obligations.
BST's Quick ratio of 0.04 is amongst the best of the industry. BST outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
BST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.70%, which is quite impressive.
Measured over the past years, BST shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.89% on average per year.
Looking at the last year, BST shows a very strong growth in Revenue. The Revenue has grown by 25.56%.
BST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
EPS 1Y (TTM)92.7%
EPS 3Y2.71%
EPS 5Y-2.89%
EPS Q2Q%180.04%
Revenue 1Y (TTM)25.56%
Revenue growth 3Y6.16%
Revenue growth 5Y5.61%
Sales Q2Q%46.38%
3.2 Future
Based on estimates for the next years, BST will show a very strong growth in Earnings Per Share. The EPS will grow by 33.09% on average per year.
The Revenue is expected to grow by 9.42% on average over the next years. This is quite good.
EPS Next Y35.97%
EPS Next 2Y28.95%
EPS Next 3Y33.09%
EPS Next 5YN/A
Revenue Next Year9.74%
Revenue Next 2Y8.54%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.33, the valuation of BST can be described as very cheap.
Based on the Price/Earnings ratio, BST is valued cheaply inside the industry as 96.81% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BST to the average of the S&P500 Index (26.43), we can say BST is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.78, the valuation of BST can be described as very cheap.
Based on the Price/Forward Earnings ratio, BST is valued cheaply inside the industry as 97.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BST to the average of the S&P500 Index (22.17), we can say BST is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 4.78 |
4.2 Price Multiples
BST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BST is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BST's earnings are expected to grow with 33.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y28.95%
EPS Next 3Y33.09%
5. Dividend
5.1 Amount
BST has a Yearly Dividend Yield of 3.76%.
BST's Dividend Yield is slightly below the industry average, which is at 5.02.
BST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of BST decreases each year by -5.71%.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
15.99% of the earnings are spent on dividend by BST. This is a low number and sustainable payout ratio.
DP15.99%
EPS Next 2Y28.95%
EPS Next 3Y33.09%
BIT:BST (6/4/2025, 7:00:00 PM)
1.774
-0.01 (-0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners8.98%
Inst Owner ChangeN/A
Ins Owners23.61%
Ins Owner ChangeN/A
Market Cap142.67M
Analysts82.86
Price Target2.2 (24.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.07
Dividend Growth(5Y)-5.71%
DP15.99%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)5.2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.75%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 4.78 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.45 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 2.59 |
EPS(TTM)0.41
EY23.11%
EPS(NY)0.37
Fwd EY20.92%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)-0.74
OCFYN/A
SpS1.94
BVpS3.91
TBVpS3.3
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 10.4% | ||
| ROCE | 7.1% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.81% | ||
| ROICexgc | 0.91% | ||
| OM | 34.68% | ||
| PM (TTM) | 20.93% | ||
| GM | 87.96% | ||
| FCFM | N/A |
ROA(3y)0.47%
ROA(5y)0.55%
ROE(3y)7.85%
ROE(5y)9.17%
ROIC(3y)0.48%
ROIC(5y)0.55%
ROICexc(3y)0.5%
ROICexc(5y)0.57%
ROICexgc(3y)0.54%
ROICexgc(5y)0.59%
ROCE(3y)4.74%
ROCE(5y)5.2%
ROICexcg growth 3Y1.01%
ROICexcg growth 5Y-2.17%
ROICexc growth 3Y-2.27%
ROICexc growth 5Y-4.36%
OM growth 3Y0.62%
OM growth 5Y-5.25%
PM growth 3Y-3.25%
PM growth 5Y-8.39%
GM growth 3Y-2.09%
GM growth 5Y-1.78%
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 67.99 | ||
| Cap/Depr | 155.31% | ||
| Cap/Sales | 3.54% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | -0.79 |
F-Score4
WACC3.67%
ROIC/WACC0.21
Cap/Depr(3y)105.28%
Cap/Depr(5y)497.24%
Cap/Sales(3y)2.58%
Cap/Sales(5y)9.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.7%
EPS 3Y2.71%
EPS 5Y-2.89%
EPS Q2Q%180.04%
EPS Next Y35.97%
EPS Next 2Y28.95%
EPS Next 3Y33.09%
EPS Next 5YN/A
Revenue 1Y (TTM)25.56%
Revenue growth 3Y6.16%
Revenue growth 5Y5.61%
Sales Q2Q%46.38%
Revenue Next Year9.74%
Revenue Next 2Y8.54%
Revenue Next 3Y9.42%
Revenue Next 5YN/A
EBIT growth 1Y101.93%
EBIT growth 3Y6.82%
EBIT growth 5Y0.07%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.38%
OCF growth 3YN/A
OCF growth 5YN/A