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Intesa Sanpaolo ISP

Morningstar Rating
€3.77 +0.04 (0.96%)
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Company Report

Intesa Sanpaolo Earnings: Impressive Revenue Growth, Realized Efficiencies; Valuation Up 17%

Intesa Sanpaolo's first quarter of 2024 was one of its best quarters, with an impressive 21% EPS growth and the industry-lowest cost/income ratio of 38%. We raise our fair value estimate by 17% to EUR 3.50 per share from EUR 3.00 per share as we anticipate higher fee income growth than previously and structural improvements in cost management. Intesa’s digital investment (around EUR 3 billion over the past two years) is starting to bear fruit, supporting fee income expansion and efficiency gains. In response, we have decreased our short-term and midcycle efficiency ratio by 3% and incorporated 10% growth in fee and commission income for 2024. These changes are the main drivers of our fair value increase.

Price vs Fair Value

ISP is trading at a 276% premium.
Price
€3.77
Fair Value
€3.90
Uncertainty
High
1-Star Price
€4.93
5-Star Price
€7.10
Economic Moat
Qpr
Capital Allocation
Rpwshdlyn

Bulls Say, Bears Say

Bulls

Low-cost retail deposits comprise the bulk of Intesa's funding, which supports above-average profitability.

Bears

The recent improvement in Intesa's profitability is almost exclusively due to higher interest rates; historically, it did not outearn its cost of capital.

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News

Trading Information

Previous Close Price
€3.73
Day Range
€3.733.77
52-Week Range
€2.133.77
Bid/Ask
€3.74 / €3.77
Market Cap
€68.81 Bil
Volume/Avg
124.0 Mil / 93.5 Mil

Key Statistics

Price/Earnings (Normalized)
8.23
Price/Sales
2.52
Dividend Yield (Trailing)
6.21%
Dividend Yield (Forward)
6.21%
Total Yield
8.09%

Company Profile

Intesa Sanpaolo is an Italian banking group resulting from the merger of Banca Intesa and Sanpaolo IMI in 2007. The Italian segment still accounts for by far the most of its earnings. Still, Intesa also has a growing international presence, focusing on some smaller countries in Central and Eastern Europe. Intesa has an enviable market position in the Italian savings market that it services through its private banking, asset management and life insurance operations, which accounts for around 25% of its revenue. While Intesa does have a sizable corporate banking business, it has limited exposure to securities trading and underwriting.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Core
Total Number of Employees
93,910

Competitors

Valuation

Metric
ISP
UCG
ACA
Price/Earnings (Normalized)
8.236.217.71
Price/Book Value
1.180.970.66
Price/Sales
2.522.692.14
Price/Cash Flow
6.393.691.95
Price/Earnings
ISP
UCG
ACA

Financial Strength

Metric
ISP
UCG
ACA
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
ISP
UCG
ACA
Return on Assets (Normalized)
0.86%1.13%0.31%
Return on Equity (Normalized)
14.67%15.06%8.22%
Return on Invested Capital (Normalized)
Return on Assets
ISP
UCG
ACA
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRBhbpzbjnPgndl$88.9 Bil
ISNPY
Intesa Sanpaolo ADRPrbvjvnxWkfx$74.8 Bil
USB
U.S. BancorpBtttxzchdZvrrd$64.6 Bil
PNC
PNC Financial Services Group IncJkdkpbdXbjghl$63.8 Bil
ITUB
Itau Unibanco Holding SA ADRSjflbswMwdv$59.1 Bil
TFC
Truist Financial CorpVcvzvrmtwCfzbbfm$53.5 Bil
MFG
Mizuho Financial Group Inc ADRHygnvkxbQlmn$51.1 Bil
LYG
Lloyds Banking Group PLC ADRYsnpljyPfrjzh$44.3 Bil
NWG
NatWest Group PLC ADRFjdvMdyx$35.9 Bil
DB
Deutsche Bank AGFnhwXsgkd$34.1 Bil

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