SNSE:BCI

Stock Analysis Report

Banco de Crédito e Inversiones

Executive Summary

Banco de Crédito e Inversiones provides various banking products and services to individuals, micro-enterprises, businesses, and institutions in Chile, the United States, Latin America, and the Asia-Pacific.

Rewards

PE ratio (12.2x) is below the CL market (12.8x)

Earnings are forecast to grow 10.42% per year

Earnings grew by 15.5% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Banco de Crédito e Inversiones's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

BCI

-1.2%

CL Banks

-0.6%

CL Market


1 Year Return

-16.4%

BCI

-22.5%

CL Banks

-17.3%

CL Market

Return vs Industry: BCI exceeded the CL Banks industry which returned -22.5% over the past year.

Return vs Market: BCI matched the CL Market which returned -17.3% over the past year.


Shareholder returns

BCIIndustryMarket
7 Day-1.0%-1.2%-0.6%
30 Day-0.6%-4.2%-4.1%
90 Day-9.6%-13.7%-5.0%
1 Year-14.5%-16.4%-20.3%-22.5%-14.5%-17.3%
3 Year18.5%9.8%27.0%15.0%8.2%-1.3%
5 Year60.0%36.6%68.2%37.2%21.9%-4.2%

Price Volatility Vs. Market

How volatile is Banco de Crédito e Inversiones's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Banco de Crédito e Inversiones undervalued compared to its fair value and its price relative to the market?

12.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCI (CLP36191) is trading above our estimate of fair value (CLP14476.76)

Significantly Below Fair Value: BCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BCI is good value based on its PE Ratio (12.2x) compared to the Banks industry average (13.5x).

PE vs Market: BCI is good value based on its PE Ratio (12.2x) compared to the CL market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: BCI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BCI is good value based on its PB Ratio (1.4x) compared to the CL Banks industry average (1.4x).


Next Steps

Future Growth

How is Banco de Crédito e Inversiones forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCI's forecast earnings growth (10.4% per year) is above the savings rate (7.5%).

Earnings vs Market: BCI's earnings (10.4% per year) are forecast to grow slower than the CL market (13.4% per year).

High Growth Earnings: BCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: BCI's revenue (8.2% per year) is forecast to grow faster than the CL market (5.5% per year).

High Growth Revenue: BCI's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BCI's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has Banco de Crédito e Inversiones performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCI has high quality earnings.

Growing Profit Margin: BCI's current net profit margins (28.4%) are lower than last year (28.4%).


Past Earnings Growth Analysis

Earnings Trend: BCI's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: BCI's earnings growth over the past year (15.5%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: BCI earnings growth over the past year (15.5%) exceeded the Banks industry 6.2%.


Return on Equity

High ROE: BCI's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Banco de Crédito e Inversiones's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: BCI's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: BCI's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BCI has a low allowance for bad loans.

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

Loan Level: BCI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BCI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: BCI has a high level of bad loans (4.13%)


Next Steps

Dividend

What is Banco de Crédito e Inversiones's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.5%markettop25%5.5%industryaverage3.5%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: BCI's dividend (2.65%) is higher than the bottom 25% of dividend payers in the CL market (2.46%).

High Dividend: BCI's dividend (2.65%) is low compared to the top 25% of dividend payers in the CL market (5.5%).


Stability and Growth of Payments

Stable Dividend: BCI's dividend payments have been volatile in the past 10 years.

Growing Dividend: BCI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.5%), BCI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCI's dividends in 3 years are forecast to be well covered by earnings (40.9% payout ratio).


Next Steps

Management

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

4.4yrs

Average board tenure


CEO

Eugenio Von Chrismar Carvajal 0

4.9yrs

Tenure

0

Mr. Eugenio von Chrismar Carvajal serves as Chief Executive Officer of Banco de Credito e Inversiones SA since March 2015. Mr. Carvajal serves as Director of BCI Factoring SA. He holds a degree in civil en ...


Board Members

NamePositionTenureCompensationOwnership
Mario Gómez Dubravcic
Director8.8yrsno datano data
José Pablo Arellano Marín
Director8.9yrsno datano data
Luis Enrique Yarur Rey
Chairman of the Board28.3yrsno data0.99% CLP50.7b
Lionel Olavarría Leyton
Vice Chairman of the Board4.9yrsno datano data
Juan Edgardo Goldenberg Peñafiel
Director2.1yrsno datano data
Miguel Ángel Gazali Nacrur
Independent Director1.1yrsno datano data
Claudia Manuela Sánchez Muñoz
Director3.9yrsno datano data
Klaus Schmidt Hebbel Dunker
Independent Director3.3yrsno datano data

4.4yrs

Average Tenure

Experienced Board: BCI's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 7.4%.


Top Shareholders

Company Information

Banco de Crédito e Inversiones's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Banco de Crédito e Inversiones
  • Ticker: BCI
  • Exchange: SNSE
  • Founded: 1937
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CL$5.125t
  • Shares outstanding: 141.62m
  • Website: https://www.bci.cl

Number of Employees


Location

  • Banco de Crédito e Inversiones
  • Avenida El Golf 125
  • Piso 7
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCISNSE (Santiago Stock Exchange)YesCommon SharesCLCLPDec 1992

Biography

Banco de Crédito e Inversiones provides various banking products and services to individuals, micro-enterprises, businesses, and institutions in Chile, the United States, Latin America, and the Asia-Pacific. It operates through Retail Banking, Wholesale Banking, and Finance Division business units. The company offers current accounts, cards, and investments; insurance, payment, foreign trade, and cash management services; financing services, such as working capital, guarantee ballot, factoring, leasing, long term financing, and credit line; and institutional and real estate banking, ERNC and infrastructure project, sales and trading, and corporate finance services. It also provides wealth management and corporate services. The company was founded in 1937 and is headquartered in Santiago, Chile. Banco de Crédito e Inversiones is a subsidiary of Empresas Juan Yarur SpA. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 18:02
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.