Net Margin - UniCredit SpA (MIL:UCG)

Watchlist Manager

Watchlist

Price: 62.78 EUR -1.92%

Market Cap: 97.8B EUR

35.6%

Current

29%

Average

23.6%

Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin

35.6%

Net Income

13.4B

Revenue

37.6B

Net Margin Across Competitors

Country		Company	Market Cap	Net Margin
IT		UniCredit SpA MIL:UCG	97.8B EUR	36%
US		JPMorgan Chase & Co NYSE:JPM	812.4B USD	32%
ZA	C	Capitec Bank Holdings Ltd JSE:CPI	469.7B Zac	25%
ZA	S	Standard Bank Group Ltd JSE:SBK	451.4B Zac	18%
CN		Industrial and Commercial Bank of China Ltd SSE:601398	2.9T CNY	41%
CN		Agricultural Bank of China Ltd SSE:601288	2.9T CNY	37%
US		Bank of America Corp NYSE:BAC	378.6B USD	26%
CN		China Construction Bank Corp SSE:601939	2.5T CNY	43%
US		Wells Fargo & Co NYSE:WFC	263.9B USD	24%
CN		Bank of China Ltd SSE:601988	1.7T CNY	33%
UK		HSBC Holdings PLC LSE:HSBA	180.8B GBP	21%

UniCredit SpA
Glance View

Economic Moat

None

Market Cap

97.8B EUR

Industry

Banking

UniCredit SpA stands as a testament to the evolution of European banking, weaving its narrative across the rich tapestry of the continent. Headquartered in Milan, UniCredit has emerged as a heavyweight in the financial services sector, deftly navigating the complexities of a dynamic market landscape. Its operations stretch far beyond the borders of Italy, boasting a significant presence in Central and Eastern Europe. This geographic diversification helps insulate the bank from domestic economic fluctuations, leveraging regional strengths through its extensive network of branches and subsidiaries. UniCredit is deeply rooted in retail, corporate, and investment banking, which forms the backbone of its operations. The bank serves millions of retail customers, offering everyday banking services like savings accounts, mortgages, and personal loans, while also catering to corporations with tailored financial solutions that include commercial loans, trade finance, and cash management. A quintessential aspect of UniCredit's business model lies in its ability to balance traditional banking with innovative financial solutions. The bank generates revenue primarily through the interest earned on customer deposits and loans, accounting for a substantial portion of its income. This is complemented by fees and commissions from a wide array of services, including asset management, insurance, and advisory services. Another strategic focus is the investment banking segment, where UniCredit capitalizes on market opportunities through trading and brokerage activities. This dual emphasis on core banking and capital markets reflects UniCredit's adaptive strategy to maintain profitability amidst an ever-evolving economic landscape. By embracing digital transformation while safeguarding strong client relationships, UniCredit continues to navigate the intricate web of global finance with resilience and foresight, consistently positioning itself as a pivotal player in the European banking scene.

View UCG Analysis

UCG Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	200 USD 0.21%
	Berkshire Hathaway Inc NYSE:BRK.A	755 597.37 USD 0.02%
	Bank of America Corp NYSE:BAC	51.64 USD 0.31%
	Mastercard Inc NYSE:MA	527.58 USD -1.73%
	UnitedHealth Group Inc NYSE:UNH	313.58 USD -2.17%
	Exxon Mobil Corp NYSE:XOM	119.03 USD 1.15%

	Franklin Covey Co NYSE:FC	15.13 USD 3.21%
	Mohawk Industries Inc NYSE:MHK	104.09 USD 0.11%
	Ardmore Shipping Corp NYSE:ASC	13.5 USD 5.14%
	ASGN Inc NYSE:ASGN	41.35 USD -0.48%
	Skyworks Solutions Inc NASDAQ:SWKS	62.32 USD -1.33%
	Weatherford International PLC NASDAQ:WFRD	71.4 USD 0.61%

	Johnson & Johnson NYSE:JNJ	200 USD 0.21%
	Bank of America Corp NYSE:BAC	51.64 USD 0.31%
	Mastercard Inc NYSE:MA	527.58 USD -1.73%
	Salesforce Inc NYSE:CRM	233.5 USD -1.49%
	Abbvie Inc NYSE:ABBV	233.87 USD -0.06%
	Home Depot Inc NYSE:HD	336.48 USD -6.02%

	Monolithic Power Systems Inc NASDAQ:MPWR	856.96 USD -4.46%
	Applovin Corp NASDAQ:APP	526.01 USD -2.46%
	NVIDIA Corp NASDAQ:NVDA	181.36 USD -2.81%
	Cal-Maine Foods Inc NASDAQ:CALM	87.96 USD -0.06%
	Pro Medicus Ltd ASX:PME	254.89 AUD 1.49%
	Lundin Gold Inc TSX:LUG	114.42 CAD 1.16%

UniCredit SpA
MIL:UCG