Now trading at a price of $143.38, M&T Bank has moved 2.9% so far today.
M&T Bank returned gains of 15.2% last year, with its stock price reaching a high of $148.23 and a low of $108.53. Over the same period, the stock underperformed the S&P 500 index by -4.9%. The company's 50-day average price was $139.59. 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. Based in Buffalo, NY, the Large-Cap Finance company has 21,736 full time employees. M&T Bank has offered a 3.7% dividend yield over the last 12 months.
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 | $143.38 |
| P/E Ratio | 11.77 | 10.38 | 10.67 | 10.13 | 14.23 | 9.05 |
| 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 | 8.29 |
| 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.
M&T Bank Is Potentially Undervalued and Its Shares Are on Sale:
M&T Bank has a trailing twelve month P/E ratio of 9.4, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $16.15, the company has a forward P/E ratio of 8.6. The 3.4% compound average growth rate of M&T Bank's historical and projected earnings per share yields a PEG ratio of 2.74. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing M&T Bank in terms of its equity because its P/B ratio is 0.95 while the sector average is 1.58. The company's shares are currently trading -40.1% above their Graham number.
Overview of M&T Bank's Market Factors:
M&T Bank has an average amount of shares sold short because 2.4% of the company's shares are sold short. Institutions own 86.6% of the company's shares, and the insider ownership rate stands at 0.45%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,786,612,905.
