MB IM

Mediobanca - Banca di Credito Finanziario S.p.A.

Finance/Real Estate


Presented:03/13/2019
Price:€8.88
Cap:$8.69B
Current Price:€15.65
Cap:$14.41B

Presented

Date03/13/2019
Price€8.88
Market Cap$8.69B
Ent Value$44.40B
P/E Ratio8.88x
Book Value€10.99
Div Yield5.29%
Shares O/S878.34M
Ave Daily Vol3,604,737
Short IntN/A

Current

Price€15.65
Market Cap$14.41B
Mediobanca SpA engages in the provision of financial and banking services. It operates through the following business segments: Corporate and Investment Banking; Principal Investing; Corporate Centre; and Retail and Consumer Banking. The Corporate and Investment Banking segment comprises wholesale banking services which includes lending, structured finance, and investment banking activity, and private banking. The Principal Investing segment includes the investments in private equity funds. The Retail and Consumer Banking segment comprises consumer credit and retail banking activities. The Corporate Centre segment houses all other companies, plus certain centralized group cost functions. The company was founded in 1946 and is headquartered in Milan, Italy.

Publicly traded companies mentioned herein: Mediobanca Banca di Credito Finanziario SpA (MB IM), UniCredit SpA (UCG IM)

Highlights

Looking around the world, the presenter takes note of the economic surprise indices and sentiment toward various markets. At this time, none seems to be more hated, broadly speaking, than Europe. And, within Europe, Italy is “not even controversial anymore - everyone agrees that the macro trends are bad.” However, within the Italian financial sector, Mediobanca (MB IM; “MB”) stands out as a potentially well-positioned investment bank/asset manager that can deploy capital if things get worse, and he is long the stock at what looks like an attractive valuation (0.8x P/TB and ~9x P/E). With a 5.25% dividend yield and excess capital in the neighborhood of 15% of MB’s current market cap, there could be meaningful upside for patient shareholders (i.e., a 10% ROE firm should trade at a P/TB of 1.2, which alone implies ~40% upside potential).

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Idea Discussion

Commentor 1 - 2 weeks ago

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