Fact based stock research
UniCredit (BIT:UCG)

IT0005239360

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

UniCredit stock research in summary

unicredit.it

ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), UniCredit (Diversified Banks, Italy) shares have above-average financial characteristics compared with similar stocks. Shares of UniCredit are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives), are safely financed (Safety Rank of 67, which means low debt burdens), but show below-average growth (Growth Rank of 27). ...read more

RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on UniCredit's financial characteristics. As the company UniCredit's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 27) while being safely financed (Obermatt Safety Rank of 67), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 67% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	67
Growth Rank	27
Safety Rank	67
Combined Rank	65

Country	Italy
Industry	Diversified Banks
Index	MIB, Recycling
Size class	XX-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: UniCredit

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	87	70	67
GROWTH
GROWTH	98	53	36	27
SAFETY
SAFETY	87	59	87	67
SENTIMENT
SENTIMENT	n/a	37	85	^new
360° VIEW
360° VIEW	n/a	67	89	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better UniCredit is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	87	70	67
GROWTH
GROWTH	98	53	36	27
SAFETY
SAFETY	87	59	87	67
COMBINED
COMBINED	94	77	84	65

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of UniCredit the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), UniCredit shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for UniCredit. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value concerning UniCredit's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 77% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 61 (dividends are expected to be higher than 61% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 56% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for UniCredit to 44. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on UniCredit's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	60	70	56	52
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	6	88	81	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	82	83	64	44
DIVIDEND YIELD
DIVIDEND YIELD	16	58	66	61
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	42	87	70	67

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of UniCredit; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), UniCredit shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for UniCredit. Sales Growth has a below market rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors. The same is valid for Capital Growth, with a rank of 11, and Profit Growth, with a rank of 32. Currently, professionals expect the company to grow its profits less than 68% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 93, which means that the stock returns have recently been above 93% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for UniCredit, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	83	25	9	18
PROFIT GROWTH
PROFIT GROWTH	1	78	41	32
CAPITAL GROWTH
CAPITAL GROWTH	n/a	21	45	11
STOCK RETURNS
STOCK RETURNS	74	87	100	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	98	53	36	27

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of UniCredit.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company UniCredit has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of UniCredit is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for UniCredit. Refinancing is at 84, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 84% of its competitors. Liquidity is also good at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 22, which means the company has an above-average debt-to-equity ratio. It has more debt than 78% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), UniCredit has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and UniCredit could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with UniCredit and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	84	70	62	22
REFINANCING
REFINANCING	72	56	64	84
LIQUIDITY
LIQUIDITY	64	42	75	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	59	87	67

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of UniCredit and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	92	87	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	61	53	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	6	80	^new
MARKET PULSE
MARKET PULSE	n/a	24	55	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	37	85	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for UniCredit.
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