SNSE:SECURITY

Stock Analysis Report

Executive Summary

Grupo Security S.A., a diversified financial company, provides banking, insurance, asset management, and other services to large and medium-sized companies, and high-income individuals in Chile.


Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

How has Grupo Security's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SECURITY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

SECURITY

-1.3%

CL Banks

1.6%

CL Market


1 Year Return

-52.9%

SECURITY

-36.5%

CL Banks

-37.6%

CL Market

Return vs Industry: SECURITY underperformed the CL Banks industry which returned -37.3% over the past year.

Return vs Market: SECURITY underperformed the CL Market which returned -38% over the past year.


Shareholder returns

SECURITYIndustryMarket
7 Day-6.7%-1.3%1.6%
30 Day-19.3%-15.2%-20.9%
90 Day-33.4%-22.2%-27.3%
1 Year-50.7%-52.9%-34.0%-36.5%-35.3%-37.6%
3 Year-38.4%-46.6%-6.2%-16.0%-26.2%-32.8%
5 Year-14.5%-33.5%31.2%7.3%-10.6%-29.7%

Price Volatility Vs. Market

How volatile is Grupo Security's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grupo Security undervalued compared to its fair value and its price relative to the market?

5.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SECURITY (CLP130.24) is trading above our estimate of fair value (CLP46.65)

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


Price To Earnings Ratio

PE vs Industry: SECURITY is good value based on its PE Ratio (5.9x) compared to the Banks industry average (9.7x).

PE vs Market: SECURITY is good value based on its PE Ratio (5.9x) compared to the CL market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SECURITY is good value based on its PB Ratio (0.6x) compared to the CL Banks industry average (1.3x).


Next Steps

Future Growth

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

9.4%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SECURITY's forecast earnings growth is above the savings rate (7.5%).

Earnings vs Market: Insufficient data to determine if SECURITY's earnings are forecast to grow faster than the CL market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SECURITY's revenue is forecast to grow faster than the CL market.

High Growth Revenue: Insufficient data to determine if SECURITY's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SECURITY's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Grupo Security performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SECURITY has high quality earnings.

Growing Profit Margin: SECURITY's current net profit margins (21.1%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: SECURITY's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: SECURITY's earnings growth over the past year (0.8%) is below its 5-year average (5.8% per year).

Earnings vs Industry: SECURITY earnings growth over the past year (0.8%) underperformed the Banks industry 0.8%.


Return on Equity

High ROE: SECURITY's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Grupo Security'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: SECURITY has a low level of unsold assets or inventory.

Debt Coverage by Assets: SECURITY's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: SECURITY has a sufficient allowance for bad loans.

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

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

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

Level of Bad Loans: SECURITY has an appropriate level of bad loans (1.37%)


Next Steps

Dividend

What is Grupo Security's current dividend yield, its reliability and sustainability?

9.41%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 30 2020Ex Dividend DateApr 15 2020Dividend Pay DateApr 20 20205 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SECURITY's dividend (9.41%) is higher than the bottom 25% of dividend payers in the CL market (3.13%).

High Dividend: SECURITY's dividend (9.41%) is in the top 25% of dividend payers in the CL market (6.99%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.9%), SECURITY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.3yrs

Average management tenure


CEO

Renato Arturo Peñafiel Muñoz (67yo)

24.08s

Tenure

Mr. Renato Arturo Peñafiel Muñoz has been the Chief Executive Officer and General Manager at Grupo Security S.A. since January 02, 1996 and served as its President. Mr. Peñafiel Muñoz serves as Director at ...


Leadership Team

NamePositionTenureCompensationOwnership
Renato Arturo Peñafiel Muñoz
CEO & GM24.08yrsno datano data
Rodrigo Antonio Carvacho Contreras
Corporate Chief Accounting Manager5.75yrsno datano data
Marcela Villafaña
Head of Investor Relationsno datano datano data
Alejandra Zegers Correa
Corporate Marketing and Quality Manager14.75yrsno datano data
Fernando Salinas Pinto
Senior Vice President of Planning & Controlno datano datano data
Karin Becker Schmidt
Executive Vice President of Corporate Culture29.17yrsno datano data
Felipe Hernán Jaque Serrano
Chief Economist3yrsno datano data
Alfonso Verdugo Ramírez de Arellano
Controller & Corporate Business Risk Manager13.83yrsno datano data

14.3yrs

Average Tenure

50yo

Average Age

Experienced Management: SECURITY's management team is seasoned and experienced (14.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Naoshi Matsumoto Takahashi
Independent Director29.17yrsCL$1.26kno data
Francisco Armando Silva Silva
Independent Chairman of the Boardno dataCL$10.95kno data
Horacio Pavez García
Independent Director29.17yrsCL$1.41kno data
Jorge Eduardo Marín Correa
Independent Director26.17yrsCL$540.00no data
Juan Cristóbal Pavez Recart
Independent Director18.17yrsCL$1.16kno data
Mario Weiffenbach Oyarzún
Independent Director3.92yrsCL$490.00no data
Bruno Philippi Irarrázabal
Independent Director6.92yrsCL$1.26k1.27% CLP6.1b
Hernán de las Heras Marín
Independent Director6.92yrsCL$1.44kno data
Ana Inés Saínz de Vicuña Bemberg
Independent Director10.58yrsCL$1.12kno data

14.4yrs

Average Tenure

75yo

Average Age

Experienced Board: SECURITY's board of directors are seasoned and experienced ( 14.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grupo Security S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Security S.A.
  • Ticker: SECURITY
  • Exchange: SNSE
  • Founded: 1981
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CL$481.237b
  • Shares outstanding: 3.70b
  • Website: https://www.security.cl

Number of Employees


Location

  • Grupo Security S.A.
  • Avda. Apoquindo 3150
  • Piso 15
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SECURITYSNSE (Santiago Stock Exchange)YesOrdinary SharesCLCLPSep 1995

Biography

Grupo Security S.A., a diversified financial company, provides banking, insurance, asset management, and other services to large and medium-sized companies, and high-income individuals in Chile. It operates through four segments: Lending, Asset Management, Insurance, and Services. The Lending segment provides commercial and retail banking, and factoring services. The Asset Management segment offers general fund management; stock brokerage and securities intermediation; investment and third-party asset management; advisory; and asset management and securitized equities. The Insurance segment offers life and general insurance, travel assistance, and insurance brokerage services. The Services segment engages in real estate development; and travel and tourism activities, including the provision of travel agency services. Grupo Security S.A. was founded in 1981 and is headquartered in Santiago, Chile. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 18:38
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.