Following the sale of some dividend stocks
I bought a 2nd tranche of an Italian bank stock with a dividend:
intesa sanpaolo
Here is a compact fundamental analysis of Intesa Sanpaolo
## 1st P/E ratio (trailing & forward) incl. sector comparison
| Key figure | Intesa Sanpaolo | Typical EU banking sector* |
|----------------------------|-----------------|----------------------------|
| Share price (approx.) | € 5.1 | - |
| P/E ratio trailing (TTM) | 9-11 approx. 8-10 (large euro banks, roughly) |
| P/E ratio forward (estimate) | around 7-9 (derived from high earnings growth and dividend yield) | similar, sometimes slightly higher |
| P/S ratio (price/sales, ttm) | approx. 3.3-4.1 mostly 2-3 |
| P/B ratio (price/book, mrq) | approx. 1.5 often 0.7-1.2 |
Interpretation: The **KGV** is slightly above the pure substance sector (many banks trade below book value), which reflects the high profitability and dividend policy, but is still in the "favorable to fair" range in absolute terms.
## 2. earnings per share (EPS) & trend
- Current EPS (TTM): around € 0.50-0.54 per share.
- Net profit 2024: Record net profit of € 8.7 bn, +12% compared to 2023.
- Profit growth: According to Simply Wall St, on average approx. 28% p.a. over several years, sales growth approx. 11.5% p.a.
The **EPS trend** of the last 3-5 years thus shows clearly above-average growth for a major bank, driven by the interest rate environment, fees and insurance business.
## 3. EBIT & EBIT margin (operating result)
Banks typically report operating profit as "operating income/operating margin" rather than traditional EBIT, but analogously:
- 2024: Very strong operating profitability, driven by interest business, fees and record insurance result; cost/income ratio at record low of 42.7% (one of the best ratios in Europe).
- High net margin: net margin around 36.5% according to analysis platform, ROE around 14.3%.
Conclusion: Operating **earning power** and margins are clearly above the average of major European banks, which justifies the slightly higher valuation level.
## 4. dividend, yield & payout ratio
| Key figure | Value (last) |
|-------------------------------|-------------------------|
| Dividend per share (current) | approx. € 0.34-0.37
| Dividend yield (forward) | approx. 6.4-7.7%
| Dividend payout ratio (payout) | approx. 67%
| Total payout 2024 | € 6.1 billion cash dividends
| Additional planned share buy-back of € 2 billion
The bank pursues a shareholder-friendly policy with a high **dividend yield** plus buybacks; with ~2/3 payout ratio, there is still a buffer for capital expansion and growth.
## 5. share price history & performance
| period | price info / performance* |
|--------------|--------------------------------------------------------|
| 52-W-Range | approx. 3.5-6.2 €
|
| Last price | approx. € 5.1 (March 2026, Milan Stock Exchange) |
| 1-J Performance | approx. +39% (last 12 months) |
| Volatility | Beta approx. 0.8 (below market average)
*Compared to a broad index such as the Euro Stoxx 50 or S&P 500, Intesa Sanpaolo has outperformed very strongly in the last year; exact benchmark figures fluctuate depending on the reporting date, but are well below +39%.
This means that the share has clearly outperformed in the last 1-3 years, but has already seen a double-digit decline since the high (February 2026 at approx. €6.16).
## 6. overall valuation - favorable / fair / expensive?
Points in favor of the share:
- Above-average profit and sales growth combined with very high profitability (ROE, net margin, cost/income).
- High and probably sustainable dividend yield of around 6-7% plus share buybacks.
- Valuation ratios (P/E ratio, P/B ratio) rather in the "cheap to fair" range compared to European peers, considering the high quality.
Risks/observation points:
- Significant share price increase in recent years; some of the improvement is already priced in.
- Cyclical interest rate and credit risk in the banking sector in general (interest rate turnaround, economic situation in Italy/eurozone).
Overall assessment from an investor's perspective: Based on the available key figures, Intesa Sanpaolo currently appears **rather favorably to fairly valued**, especially for income-oriented investors who value stable, high dividends and accept the banking sector risk.
Sources:
[1] Intesa Sanpaolo SpA, ISP:MIL summary - FT.com - Markets data
