M&T Bank Corporation
M&T Bank Corporation Fundamental Analysis
M&T Bank Corporation (MTB) shows moderate financial fundamentals with a PE ratio of 13.28, profit margin of 23.16%, and ROE of 9.88%. The company generates $11.6B in annual revenue with moderate year-over-year growth of 7.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MTB's fundamental strength across five key dimensions:
Efficiency Score
WeakMTB struggles to generate sufficient returns from assets.
Valuation Score
ModerateMTB shows balanced valuation metrics.
Growth Score
ModerateMTB shows steady but slowing expansion.
Financial Health Score
ModerateMTB shows balanced financial health with some risks.
Profitability Score
ModerateMTB maintains healthy but balanced margins.
Key Financial Metrics
Is MTB Expensive or Cheap?
P/E Ratio
MTB trades at 13.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MTB's PEG of 2.86 indicates potential overvaluation.
Price to Book
The market values M&T Bank Corporation at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.45 times EBITDA. This signals the market has high growth expectations.
How Well Does MTB Make Money?
Net Profit Margin
For every $100 in sales, M&T Bank Corporation keeps $23.16 as profit after all expenses.
Operating Margin
Core operations generate 29.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.88 in profit for every $100 of shareholder equity.
ROA
M&T Bank Corporation generates $1.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
M&T Bank Corporation generates strong operating cash flow of $3.22B, reflecting robust business health.
Free Cash Flow
M&T Bank Corporation generates strong free cash flow of $3.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.58 in free cash annually.
FCF Yield
MTB converts 9.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MTB Stacks Against Its Sector Peers
| Metric | MTB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.28 | 18.86 | Better (Cheaper) |
| ROE | 9.88% | 847.00% | Weak |
| Net Margin | 23.16% | 4202.00% | Weak |
| Debt/Equity | 0.45 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.32 | 667.17 | Weak Liquidity |
| ROA | 1.34% | -21543.00% (disorted) | Weak |
MTB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews M&T Bank Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.92%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
8.31%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
23.63%
Industry Style: Value, Dividend, Cyclical
High Growth