Banco Hipotecario (BASE:BHIP) - Share price, News & Analysis

BHIP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

BHIP Stock Overview

Banco Hipotecario S.A. provides wholesale and retail banking services in Argentina.

Risk Analysis

Earnings have declined by 52% per year over past 5 years

Does not have a meaningful market cap (ARS11B)

Banco Hipotecario Competitors

Grupo Supervielle

BASE:SUPV

AR$31.4b

Banco Patagonia

BASE:BPAT

AR$51.3b

Banco BBVA Argentina

BASE:BBAR

AR$121.4b

Banco Macro

BASE:BMA

AR$178.7b

Price History & Performance

Summary of all time highs, changes and price drops for Banco Hipotecario
Historical stock prices
Current Share Price	AR$7.50
52 Week High	AR$11.40
52 Week Low	AR$6.90
Beta	2.2
1 Month Change	-1.32%
3 Month Change	-5.90%
1 Year Change	-21.55%
3 Year Change	-57.39%
5 Year Change	10.29%
Change since IPO	-7.98%

Shareholder Returns

	BHIP	AR Banks	AR Market
7D	2.5%	-2.5%	-1.8%
1Y	-21.5%	6.4%	33.6%

Return vs Industry: BHIP underperformed the AR Banks industry which returned 2% over the past year.

Return vs Market: BHIP underperformed the AR Market which returned 27.3% over the past year.

Price Volatility

Is BHIP's price volatile compared to industry and market?
BHIP volatility
BHIP Average Weekly Movement	3.4%
Banks Industry Average Movement	5.0%
Market Average Movement	4.7%
10% most volatile stocks in AR Market	6.2%
10% least volatile stocks in AR Market	3.1%

Stable Share Price: BHIP is less volatile than 75% of AR stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BHIP's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1886	n/a	Manuel Juan Luciano Herrera Grazioli	https://www.hipotecario.com.ar

Banco Hipotecario S.A. provides wholesale and retail banking services in Argentina. The company offers savings, current, and investor accounts; personal loans comprising destination, housing extension, and salary plans, as well as mortgage credits; home, life, personal accident, ATM robbery, moving goods, protected purchase, health, and comprehensive business insurance products, as well as cellular protection. It also provides investment products, such as fixed term deposits, mutual funds, titles and shares, mortgage certificates, security boxes, and market data solutions, as well as debit and credit cards.

Banco Hipotecario Fundamentals Summary

How do Banco Hipotecario's earnings and revenue compare to its market cap?
BHIP fundamental statistics
Market Cap	AR$11.03b
Earnings (TTM)	-AR$512.44m
Revenue (TTM)	AR$33.48b

0.4x

P/B Ratio

0.3x

P/S Ratio

Is BHIP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BHIP income statement (TTM)
Revenue	AR$33.48b
Cost of Revenue	AR$472.58m
Gross Profit	AR$33.01b
Other Expenses	AR$33.52b
Earnings	-AR$512.44m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.35
Gross Margin	98.59%
Net Profit Margin	-1.53%
Debt/Equity Ratio	47.7%

How did BHIP perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BHIP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BHIP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BHIP. This is calculated by dividing BHIP's market cap by their current preferred multiple.
What is BHIP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AR$11.03b

BHIP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does BHIP's PB Ratio compare to its peers?

BHIP PB Ratio vs Peers

The above table shows the PB ratio for BHIP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.6x
SUPV Grupo Supervielle	0.5x	120.1%	AR$31.4b
BPAT Banco Patagonia	0.6x	n/a	AR$51.3b
BBAR Banco BBVA Argentina	0.6x	7.8%	AR$121.4b
BMA Banco Macro	0.6x	2.7%	AR$178.7b
BHIP Banco Hipotecario	0.4x	n/a	AR$11.0b

Price-To-Book vs Peers: BHIP is good value based on its Price-To-Book Ratio (0.4x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does BHIP's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Book vs Industry: BHIP is good value based on its Price-To-Book Ratio (0.4x) compared to the AR Banks industry average (0.6x)

Price to Book Ratio vs Fair Ratio

What is BHIP's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BHIP PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.4x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate BHIP's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BHIP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate BHIP's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate BHIP's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BHIP's PEG Ratio to determine if it is good value.

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Future Growth

How is Banco Hipotecario forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.1%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Banco Hipotecario has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Banco Hipotecario's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Banco Hipotecario performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-52.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BHIP is currently unprofitable.

Growing Profit Margin: BHIP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BHIP is unprofitable, and losses have increased over the past 5 years at a rate of 52% per year.

Accelerating Growth: Unable to compare BHIP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BHIP is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (36%).

Return on Equity

High ROE: BHIP has a negative Return on Equity (-2%), as it is currently unprofitable.

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Financial Health

How is Banco Hipotecario's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: BHIP's Assets to Equity ratio (9.6x) is low.

Allowance for Bad Loans: BHIP has a low allowance for bad loans (77%).

Low Risk Liabilities: 81% of BHIP's liabilities are made up of primarily low risk sources of funding.

Loan Level: BHIP has an appropriate level of Loans to Assets ratio (20%).

Low Risk Deposits: BHIP's Loans to Deposits ratio (28%) is appropriate.

Level of Bad Loans: BHIP has a high level of bad loans (7.1%).

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Dividend

What is Banco Hipotecario current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BHIP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BHIP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BHIP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BHIP's dividend payments have been increasing.

Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BHIP's dividend in 3 years as they are not forecast to pay a notable one for the AR market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

12.5yrs

Average board tenure

CEO

Manuel Juan Luciano Herrera Grazioli

5yrs

Tenure

Mr. Manuel Juan Luciano Herrera Grazioli has been General Manager at Banco Hipotecario SA since June 01, 2017 and was its Interim Chief Financial Officer since April 27, 2020.

Board Members

Experienced Board: BHIP's board of directors are seasoned and experienced ( 12.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31