Attractive P/E Ratio
Low Price-to-Book Ratio
Strong Net Profit Margin
Good Return on Equity
Excellent Liquidity Ratios
Low Debt Levels
🏦 Strong Business Model
📈 Improvement in Asset Quality
💼 Competitive Position
🚀 Growth in New Markets
📊 Positive Economic Outlook
💡 Diverse Revenue Streams
High EV/EBITDA Ratio
Moderate Operating Profit Margin
Low Interest Coverage
⚠️ Margin Pressure
🔍 Uncertainty in Loan Demand
Overall, M&T Bank displays a strong business model with a commitment to community and customer relationships, leading to improved asset quality. However, it faces challenges with margin pressure and uncertainty in loan demand. Future prospects appear solid with targeted market expansions and a positive economic outlook.
Analysis Date: January 16, 2025
Last Updated: April 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$194.09
Current Market Price: $154.78
IV/P Ratio: 1.25x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
20.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for MTB
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.11)
P/B ratio ≤ 1.5 (0.90)
Current ratio ≥ 2.0 (35.96x)
Long-term debt < Net current assets (0.36x)
Margin of safety (20.0%)
MTB meets all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
MTB shows a net profit margin of 22.72%, indicating that the company retains a significant portion of revenue as profit, which is a sign of strong operational efficiency.
With a return on equity of 9.12%, MTB demonstrates effective use of shareholders' equity to generate profits, which is a positive indicator for investors.
The operating profit margin of 22.41% is solid but not exceptional, suggesting that while the company is profitable, there may be room for operational improvements.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
9.12%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.33%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
100.00%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
22.72%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
MTB has a current ratio of 599.33 and a quick ratio of 599.33, indicating exceptional liquidity and the ability to cover short-term obligations without financial strain.
With a debt-to-equity ratio of 0.47 and debt-to-assets ratio of 0.07, MTB maintains a low level of debt, which suggests financial stability and lower risk.
The interest coverage ratio of 0.61 indicates that MTB may have difficulty covering its interest expenses, which could be a concern for future financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.47x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
35.96x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
M&T Bank's success is driven by its purpose of making a difference in people's lives, focusing on relationship-based banking, which allows them to provide customized solutions to customers. Their commitment to community support enhances their brand loyalty.
M&T Bank has shown a significant reduction in criticized loans and nonaccrual loans, indicating better asset quality management. The ongoing optimization of their commercial real estate (CRE) concentration has resulted in a healthier loan portfolio.
M&T Bank's unique knowledge of its customers and community gives it a competitive edge. Their diversified product offerings and focus on relationship management set them apart from larger banks that are more line-oriented.
The net interest margin decreased slightly, and while they expect a recovery, it remains dependent on the economic environment and movements from the Federal Reserve.
M&T Bank is focusing on expanding in New England and Long Island, aiming to replicate past successes in other markets. This demonstrates a commitment to long-term growth and market penetration.
The bank anticipates GDP growth of 2.8% for 2024 and expects improved consumer spending. This economic backdrop supports the potential for loan growth and business expansion.
M&T is expanding its capabilities in capital markets and investment banking, which could lead to increased fee income and revenue diversification.
Current loan demand is mixed, with some areas showing strength while others are soft due to uncertain economic conditions. This could impact future growth.