DB:BXK

Stock Analysis Report

Executive Summary

Bancolombia S. A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

38.1%

BXK

4.4%

DE Banks

9.9%

DE Market


1 Year Return

-53.0%

BXK

-37.7%

DE Banks

-17.5%

DE Market

Return vs Industry: BXK underperformed the German Banks industry which returned -33.2% over the past year.

Return vs Market: BXK underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

BXKIndustryMarket
7 Day38.1%4.4%9.9%
30 Day-48.8%-25.5%-16.6%
90 Day-56.1%-27.2%-24.8%
1 Year-50.5%-53.0%-35.7%-37.7%-15.0%-17.5%
3 Year-36.2%-42.6%-43.7%-46.4%-17.4%-24.5%
5 Year-31.9%-42.8%-41.2%-53.2%-16.6%-28.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BXK (€21.4) is trading below our estimate of fair value (€47.61)

Significantly Below Fair Value: BXK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BXK is good value based on its PE Ratio (7.7x) compared to the Banks industry average (15.1x).

PE vs Market: BXK is good value based on its PE Ratio (7.7x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: BXK is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BXK is overvalued based on its PB Ratio (0.9x) compared to the DE Banks industry average (0.7x).


Next Steps

Future Growth

How is Bancolombia forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXK's forecast earnings growth (11% per year) is above the savings rate (-0.4%).

Earnings vs Market: BXK's earnings (11% per year) are forecast to grow slower than the German market (14.3% per year).

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

Revenue vs Market: BXK's revenue (13.6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: BXK's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BXK's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Bancolombia performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BXK has high quality earnings.

Growing Profit Margin: BXK's current net profit margins (24.5%) are higher than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: BXK's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: BXK's earnings growth over the past year (17.2%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: BXK earnings growth over the past year (17.2%) exceeded the Banks industry 0.7%.


Return on Equity

High ROE: BXK's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Bancolombia'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: BXK has a low level of unsold assets or inventory.

Debt Coverage by Assets: BXK's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: BXK's level of assets compared to its equity is low.

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

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

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

Low Risk Deposits: BXK's loans are broadly funded by customer deposits.

Level of Bad Loans: BXK has a high level of bad loans (4.08%)


Next Steps

Dividend

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

4.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BXK's dividend (4.67%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: BXK's dividend (4.67%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: BXK's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), BXK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BXK's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Juan Carlos Mora Uribe (54yo)

3.83s

Tenure

Mr. Juan Carlos Mora Uribe has been the Chief Executive Officer and President of Bancolombia S.a. since May 1, 2016. Mr. Uribe serves as Chief Innovation and Digital Transformation Officer at Bancolombia S ...


Leadership Team

NamePositionTenureCompensationOwnership
Juan Carlos Mora Uribe
President & CEO3.83yrsno datano data
José Humberto Acosta Martin
Chief Financial Officer0.17yrno datano data
Alejandro Mejia Jaramillo
Investor Relations Managerno datano datano data
Mauricio Rosillo Rojas
Chief Legal Officerno datano datano data
Claudia Uribe
Chief Legal Officer & General Counsel0.25yrno datano data
Enrique González Bacci
Vice President of Human Resources4.92yrsno datano data
Rodrigo Prieto Uribe
Chief Risk Management Officer & VP of Risk Management9.17yrsno datano data
Carmenza Henao Tisnes
Chief Internal Auditor Officer & VP of Internal Audit8.92yrsno datano data
Maria Cristina Arrastía Uribe
Chief Personal & SMES Banking Officer and Business Vicepresidency4.42yrsno datano data
Rafael Barraza Domínguez
CEO & President of Banco Agrícola SAno datano datano data

4.4yrs

Average Tenure

54yo

Average Age

Experienced Management: BXK's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gonzalo Alberto Pérez Rojas
Director16.17yrsno datano data
David Emilio Bojanini Garcia
Chairman of the Boardno datano datano data
Andres Felipe Mejia Cardona
Independent Director4yrsno datano data
Hernando José Gómez Restrepo
Independent Director7yrsno datano data
Luis Fernando Restrepo Echavarría
Independent Director4yrsno datano data
Arturo Leonidas Condo Tamayo
Independent Director4yrsno datano data

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: BXK's board of directors are considered experienced (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

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


Key Information

  • Name: Bancolombia S.A.
  • Ticker: BXK
  • Exchange: DB
  • Founded: 1945
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: Col$25.370t
  • Listing Market Cap: Col$5.667b
  • Shares outstanding: 961.83m
  • Website: https://www.grupobancolombia.com

Number of Employees


Location

  • Bancolombia S.A.
  • Carrera 48 # 26-85
  • Avenida Los Industriales
  • Medellín
  • Colombia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCOLOMBIABVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPFeb 1994
CIBNYSE (New York Stock Exchange)SPON ADR EACH REP 4 PRF COP500(BNY)USUSDJul 1995
BXKDB (Deutsche Boerse AG)SPON ADR EACH REP 4 PRF COP500(BNY)DEEURJul 1995
PFBCOLOMBVC (Bolsa de Valores de Colombia)Preferred SharesCOCOPNov 1995

Biography

Bancolombia S. A. provides various banking products and services to individual, corporate, and government customers in Colombia, Latin America, and the Caribbean region. The company operates in nine segments: Banking Colombia, Banking El Salvador, Banking Panama, Banking Guatemala, Trust, Investment Banking, Brokerage, Off Shore, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; financial support to real estate developers and mortgages; and financial and operating leasing services. The company also provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; and life, auto, commercial, and homeowner’s insurance products. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, merger and acquisition, restructurings, and structured corporate lending; trust and asset management services, such as money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; and digital banking and revolving credit facility, transportation, real estate brokerage, maintenance and remodeling, advertising and marketing, and outsourcing services. As of December 31, 2018, it operated 1,113 branches; 12,395 banking correspondents; 585 PAMs; 222 kiosks in El Salvador and 10 in Colombia; and 5,939 automatic teller machines. Bancolombia S.A. was founded in 1945 and is headquartered in Medellín, Colombia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:16
End of Day Share Price2020/03/30 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.