BANCA SISTEMA SPA (BST.MI) Stock Fundamental Analysis
BIT:BST - Euronext Milan - IT0003173629 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to BST. BST was compared to 87 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
In the past year BST was profitable.
BST had a negative operating cash flow in the past year.
Each year in the past 5 years BST has 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.
Looking at the Return On Equity, with a value of 10.40%, BST is in line with its industry, outperforming 52.87% of the companies in the same industry.
With an excellent Return On Invested Capital value of 0.78%, BST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BST is in line with the industry average of 0.78%.
The 3 year average ROIC (0.48%) for BST is below the current ROIC(0.78%), indicating increased profibility in the last year.
| 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
BST has a Profit Margin of 20.93%. This is comparable to the rest of the industry: BST outperforms 44.83% of its industry peers.
BST's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 34.68%, BST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of BST has declined.
| 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.
BST has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BST has about the same amount of shares outstanding.
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.
BST's Altman-Z score of -0.79 is amongst the best of the industry. BST outperforms 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.
BST has a worse Debt to Equity ratio (12.48) than 90.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.79 |
ROIC/WACC0.21
WACC3.7%
2.3 Liquidity
A Current Ratio of 0.04 indicates that BST may have some problems paying its short term obligations.
BST's Current ratio of 0.04 is amongst the best of 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.
Looking at the Quick ratio, with a value of 0.04, BST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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%.
Measured over the past years, BST shows a small growth in Revenue. The Revenue has been growing by 5.61% on average per year.
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.
Based on estimates for the next years, BST will show a quite strong growth in Revenue. The Revenue will grow by 9.42% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.08 indicates a rather cheap valuation of BST.
96.55% of the companies in the same industry are more expensive than BST, based on the Price/Earnings ratio.
BST's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 4.51, the valuation of BST can be described as very cheap.
97.70% of the companies in the same industry are more expensive than BST, based on the Price/Forward Earnings ratio.
BST is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BST is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.53 |
4.3 Compensation for Growth
BST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BST's earnings are expected to grow with 33.09% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y28.95%
EPS Next 3Y33.09%
5. Dividend
5.1 Amount
BST has a Yearly Dividend Yield of 5.54%, which is a nice return.
Compared to an average industry Dividend Yield of 5.13, BST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, BST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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 (7/1/2025, 7:00:00 PM)
1.674
-0.07 (-3.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners8.96%
Inst Owner ChangeN/A
Ins Owners23.61%
Ins Owner ChangeN/A
Market Cap134.62M
Analysts82.86
Price Target2.28 (36.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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)3.55%
PT rev (3m)3.55%
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)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.08 | ||
| Fwd PE | 4.51 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.43 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 2.53 |
EPS(TTM)0.41
EY24.49%
EPS(NY)0.37
Fwd EY22.17%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)-0.74
OCFYN/A
SpS1.94
BVpS3.91
TBVpS3.3
PEG (NY)0.11
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
WACC3.7%
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