Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada (BMV:CREAL *) - Share price, News & Analysis

CREAL * fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	1/6
Financial Health	2/6
Dividends	0/6

CREAL * Stock Overview

Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada, a non- banking institution, provides financial solutions and services in Mexico.

Rewards

Trading at 90.7% below our estimate of its fair value

Risk Analysis

Earnings have declined by 18.8% per year over past 5 years

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (MX$149M)

+ 1 more risk

Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada
Historical stock prices
Current Share Price	Mex$0.42
52 Week High	Mex$17.75
52 Week Low	Mex$0.36
Beta	0.67
1 Month Change	-35.09%
3 Month Change	-69.78%
1 Year Change	-94.09%
3 Year Change	-98.20%
5 Year Change	-98.53%
Change since IPO	-98.02%

Shareholder Returns

	CREAL *	MX Consumer Finance	MX Market
7D	-1.4%	-4.2%	3.5%
1Y	-94.1%	0.7%	8.7%

Return vs Industry: CREAL * underperformed the MX Consumer Finance industry which returned 0.7% over the past year.

Return vs Market: CREAL * underperformed the MX Market which returned 8.7% over the past year.

Price Volatility

Is CREAL *'s price volatile compared to industry and market?
CREAL * volatility
CREAL * Average Weekly Movement	33.6%
Consumer Finance Industry Average Movement	6.4%
Market Average Movement	4.5%
10% most volatile stocks in MX Market	8.3%
10% least volatile stocks in MX Market	2.6%

Stable Share Price: CREAL * is more volatile than 90% of MX stocks over the past 3 months, typically moving +/- 34% a week.

Volatility Over Time: CREAL *'s weekly volatility has increased from 21% to 34% over the past year.

About the Company

Founded	Employees	CEO	Website
1993	657	Carlos Enrique Ochoa Valdes	https://www.creditoreal.com.mx

Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, Entidad No Regulada, a non- banking institution, provides financial solutions and services in Mexico. It offers leasing and payroll services, semi-new and used vehicle loans, and working capital finance for SMEs. The company was incorporated in 1993 and is based in Mexico City, Mexico.

Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada Fundamentals Summary

How do Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada's earnings and revenue compare to its market cap?
CREAL * fundamental statistics
Market Cap	Mex$149.47m
Earnings (TTM)	Mex$126.82m
Revenue (TTM)	Mex$4.51b

1.2x

P/E Ratio

0.0x

P/S Ratio

Is CREAL * overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CREAL * income statement (TTM)
Revenue	Mex$4.51b
Cost of Revenue	Mex$4.48b
Gross Profit	Mex$33.61m
Other Expenses	-Mex$93.21m
Earnings	Mex$126.82m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.35
Gross Margin	0.75%
Net Profit Margin	2.81%
Debt/Equity Ratio	306.3%

How did CREAL * perform over the long term?

See historical performance and comparison

Valuation

Is Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CREAL * (MX$0.42) is trading below our estimate of fair value (MX$4.52)

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

Price To Earnings Ratio

PE vs Industry: CREAL * is good value based on its PE Ratio (1.2x) compared to the MX Consumer Finance industry average (4.2x).

PE vs Market: CREAL * is good value based on its PE Ratio (1.2x) compared to the MX market (11.9x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: CREAL * is good value based on its PB Ratio (0x) compared to the MX Consumer Finance industry average (0.6x).

Future Growth

How is Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

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

9.0%

Forecasted Diversified Financials 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 Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada 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.

Past Performance

How has Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-18.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CREAL * has high quality earnings.

Growing Profit Margin: CREAL *'s current net profit margins (2.8%) are lower than last year (16.5%).

Past Earnings Growth Analysis

Earnings Trend: CREAL *'s earnings have declined by 18.8% per year over the past 5 years.

Accelerating Growth: CREAL *'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CREAL * had negative earnings growth (-83.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (36%).

Return on Equity

High ROE: CREAL *'s Return on Equity (0.2%) is considered low.

Financial Health

How is Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CREAL *'s short term assets (MX$61.3B) exceed its short term liabilities (MX$8.7B).

Long Term Liabilities: CREAL *'s short term assets (MX$61.3B) exceed its long term liabilities (MX$47.3B).

Debt to Equity History and Analysis

Debt Level: CREAL *'s net debt to equity ratio (283.9%) is considered high.

Reducing Debt: CREAL *'s debt to equity ratio has increased from 265% to 306.3% over the past 5 years.

Debt Coverage: CREAL *'s operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CREAL *'s interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Crédito Real. de Sociedad Financiera de Objeto Múltiple Entidad No Regulada 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 CREAL *'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CREAL *'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 CREAL *'s dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: CREAL * is not paying a notable dividend for the MX market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CREAL * has not reported any payouts.

Discover strong dividend paying companies

Management

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

7.1yrs

Average management tenure

CEO

Carlos Enrique Ochoa Valdes

7.08yrs

Tenure

Mr. Carlos Enrique Ochoa Valdes serves Chief Financial Officer at Crédito Real, S.A.B. de C.V., Sociedad Financiera de Objeto Múltiple, E.N.R. (formerly known as Crédito Real, S.A.B. de C.V., Sociedad Fina...

Leadership Team

Experienced Management: CREAL *'s management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: CREAL *'s board of directors are considered experienced (7.2 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	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31