€112.1m market cap
€1.39 last close
Banca Sistema is a speciality finance provider with a primary focus on factoring receivables from the Italian public sector with salary and pension-based lending forming a second core activity. It is opportunistic and looking to diversify into new areas.
Investment summary
BST reported lending growth of more than 40% year-on-year in its 9M18 results but mix changes and some lumpiness associated with late payment interest (LPI) constrained earnings growth in the period; after an 11% increase in expenses and higher tax rate, earnings were 12% lower than for the prior year period. This effect should unwind as the business continues to grow. It would not require full delivery of the bank’s three-year plan targets, including ROE of over 18%, to warrant a higher valuation. The capital position remains strong with a CET1 ratio of 11.1%. FY18 results are due to be announced 8 February 2018.
Y/E Dec |
Revenue (€m) |
EBITDA (€m) |
PBT (€m) |
EPS (c) |
P/E (x) |
P/CF (x) |
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2016A | 81.5 | N/A | 35.7 | 32.85 | 4.2 | N/A |
2017A | 82.5 | N/A | 38.9 | 33.33 | 4.2 | N/A |
2018E | 87.0 | N/A | 39.0 | 32.44 | 4.3 | N/A |
2019E | 118.4 | N/A | 53.6 | 44.68 | 3.1 | N/A |
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Balance sheet |
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Forecast net debt (€m) | N/A |
Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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Gianluca Garbi | CEO |
Carlo Di Pierro | Head of IR |