UniCredit SpA
UCG: XMIL (ITA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €78.00 | Gbxm | Msgcmccvj |
UniCredit's Track Record Does Not Inspire Confidence
Business Strategy and Outlook
Since 2011 UniCredit has booked a cumulative net loss of EUR 20 billion and was loss-making in four of the 10 fiscal years over this period. UniCredit has not generated double-digit returns on equity since 2007, while we estimate its cost of equity to be around 12%. Unless this changes, UniCredit will continue to trade at a substantial discount to its own net asset value as well as the rest of the European banking sector.