The transformation of UniCredit in two years from a perennial underperformer to one of the most profitable banks in Europe has been astounding. While the new management team has made good strategic decisions, the return to positive interest rates after a decade of zero or negative interest rates played a significant role in its transformation.
Low-cost retail deposits constitute the bulk of UniCredit's funding, which should support above-average profitability through the cycle.
UniCredit's credit underwriting was poor in the past, and its current cost of risk is far below normalized and long-term levels.
|
Metric
|
UCG
|
ISP
|
CBK
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.58 | 11.01 | 17.90 |
Price/Book Value | 1.79 | 1.98 | 1.53 |
Price/Sales | 5.18 | 4.00 | 3.60 |
Price/Cash Flow | 7.26 | 12.28 | — |
|
Metric
|
UCG
|
ISP
|
CBK
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
UCG
|
ISP
|
CBK
|
|---|---|---|---|
Return on Assets (Normalized) | 1.39% | 1.02% | 0.62% |
Return on Equity (Normalized) | 18.03% | 16.60% | 12.26% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
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Name
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Price
|
Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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United States