It's been a great morning session for M&T Bank investors, who saw their shares rise 5.9% to a price of $142.47 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
M&T Bank Has Attractive Multiples and Trades Below Its Fair Value:
M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 12.38 and an average price to book (P/B) ratio of 1.58. In contrast, M&T Bank has a trailing 12 month P/E ratio of 9.0 and a P/B ratio of 0.95.
M&T Bank has moved 7.1% over the last year compared to 23.4% for the S&P 500 — a difference of -16.3%. M&T Bank has a 52 week high of $148.23 and a 52 week low of $108.53.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,599 | $4,880 | $4,193 | $3,939 | $6,247 | $10,224 |
| Interest Income (M) | $4,072 | $4,130 | $3,866 | $3,825 | $5,822 | $7,115 |
| Operating Margins | 55% | 52% | 42% | 62% | 42% | 35% |
| Net Margins | 42% | 40% | 32% | 47% | 32% | 27% |
| Net Income (M) | $1,918 | $1,929 | $1,353 | $1,859 | $1,992 | $2,741 |
| Depreciation & Amort. (M) | $105 | $19 | $15 | $10 | $56 | $62 |
| Diluted Shares (M) | 144 | 134 | 129 | 129 | 164 | 167 |
| Earnings Per Share | $12.74 | $13.75 | $9.94 | $13.8 | $11.53 | $15.79 |
| EPS Growth | n/a | 7.93% | -27.71% | 38.83% | -16.45% | 36.95% |
| Avg. Price | $150.1 | $142.84 | $106.1 | $139.96 | $164.91 | $143.935 |
| P/E Ratio | 11.77 | 10.38 | 10.67 | 10.13 | 14.23 | 9.08 |
| Free Cash Flow (M) | $1,992 | $2,180 | $617 | $2,566 | $4,360 | $3,649 |
| CAPEX (M) | $98 | $178 | $172 | $149 | $214 | $256 |
| EV / EBITDA | 11.24 | 9.87 | 9.34 | 8.18 | 8.89 | 8.32 |
| Total Debt (M) | $8,445 | $6,986 | $4,382 | $3,485 | $3,965 | $8,201 |
| Net Debt / EBITDA | 2.62 | 2.16 | 1.59 | 0.87 | 0.92 | 1.76 |
M&T Bank has rapidly growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display low leverage levels and positive EPS growth. Furthermore, M&T Bank has decent net margins with a negative growth trend.
