Banco BBVA Perú (BVL:BBVAC1) - Share price, News & Analysis

Q: What is the Fair Price of BBVAC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BBVAC1 (PEN1.7) is trading below our estimate of [[fair value]] (PEN1.76)

BBVAC1 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	4/6

BBVAC1 Stock Overview

Banco BBVA Perú, S.A. provides various banking products and services in Peru.

Rewards

Trading at 3.3% below our estimate of its fair value

Pays a reliable dividend of 9.46%

Risk Analysis

Earnings have declined by 5.3% per year over past 5 years

High level of non-cash earnings

Shareholders have been diluted in the past year

Banco BBVA Perú Competitors

Intercorp Financial Services

BVL:IFS

US$2.6b

Scotiabank PerúA

BVL:SCOTIAC1

S/15.3b

Banco de Crédito del Perú

BVL:CREDITC1

S/28.7b

Mibanco Banco de la Microempresa

BVL:MIBANC1

S/3.7b

Price History & Performance

Summary of all time highs, changes and price drops for Banco BBVA Perú
Historical stock prices
Current Share Price	S/1.70
52 Week High	S/2.30
52 Week Low	S/1.43
Beta	0.49
1 Month Change	6.25%
3 Month Change	-23.42%
1 Year Change	-10.53%
3 Year Change	-41.72%
5 Year Change	-41.21%
Change since IPO	1,301.43%

Shareholder Returns

	BBVAC1	PE Banks	PE Market
7D	1.2%	-1.7%	-2.9%
1Y	-10.5%	-2.1%	4.7%

Return vs Industry: BBVAC1 underperformed the PE Banks industry which returned -2.1% over the past year.

Return vs Market: BBVAC1 underperformed the PE Market which returned 4.7% over the past year.

Price Volatility

Is BBVAC1's price volatile compared to industry and market?
BBVAC1 volatility
BBVAC1 Average Weekly Movement	6.3%
Banks Industry Average Movement	5.1%
Market Average Movement	5.0%
10% most volatile stocks in PE Market	8.7%
10% least volatile stocks in PE Market	1.6%

Stable Share Price: BBVAC1 is not significantly more volatile than the rest of PE stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BBVAC1's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1951	6,154	Fernando Eguiluz Lozano	https://www.bbva.pe

Banco BBVA Perú, S.A. provides various banking products and services in Peru. The company offers savings, current, and travel accounts; term deposits; and debit, credit, and prepaid cards. It also provides personal and commercial loans; mortgage, vehicle, and motorcycle credits; bail letters; financial leasing; and electronic factoring services.

Banco BBVA Perú Fundamentals Summary

How do Banco BBVA Perú's earnings and revenue compare to its market cap?
BBVAC1 fundamental statistics
Market Cap	S/12.55b
Earnings (TTM)	S/1.78b
Revenue (TTM)	S/4.83b

7.1x

P/E Ratio

1.3x

P/B Ratio

Is BBVAC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBVAC1 income statement (TTM)
Revenue	S/4.83b
Cost of Revenue	S/0
Gross Profit	S/4.83b
Other Expenses	S/3.05b
Earnings	S/1.78b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.24
Gross Margin	100.00%
Net Profit Margin	36.82%
Debt/Equity Ratio	238.9%

How did BBVAC1 perform over the long term?

See historical performance and comparison

Dividends

9.5%

Current Dividend Yield

61%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BBVAC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 BBVAC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BBVAC1. This is calculated by dividing BBVAC1's market cap by their current preferred multiple.
What is BBVAC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/12.55b

BBVAC1 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 Earnings Ratio vs Peers

How does BBVAC1's PE Ratio compare to its peers?

BBVAC1 PE Ratio vs Peers

The above table shows the PE ratio for BBVAC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.9x
IFS Intercorp Financial Services	6.1x	7.1%	US$2.6b
SCOTIAC1 Scotiabank PerúA	12x	n/a	S/15.3b
CREDITC1 Banco de Crédito del Perú	7.8x	n/a	S/28.7b
MIBANC1 Mibanco Banco de la Microempresa	13x	n/a	S/3.7b
BBVAC1 Banco BBVA Perú	7.1x	n/a	S/12.5b

Forward PE

Price-To-Earnings vs Peers: BBVAC1 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

How does BBVAC1's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Earnings vs Industry: BBVAC1 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the PE Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is BBVAC1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBVAC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BBVAC1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BBVAC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBVAC1 (PEN1.7) is trading below our estimate of fair value (PEN1.76)

Significantly Below Fair Value: BBVAC1 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BBVAC1's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Banco BBVA Perú 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

8.7%

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 BBVA Perú 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.

Discover growth companies

Examine whether Banco BBVA Perú is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Banco BBVA Perú performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

-5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BBVAC1 has a high level of non-cash earnings.

Growing Profit Margin: BBVAC1's current net profit margins (36.8%) are higher than last year (17.5%).

Past Earnings Growth Analysis

Earnings Trend: BBVAC1's earnings have declined by 5.3% per year over the past 5 years.

Accelerating Growth: BBVAC1's earnings growth over the past year (265.3%) exceeds its 5-year average (-5.3% per year).

Earnings vs Industry: BBVAC1 earnings growth over the past year (265.3%) underperformed the Banks industry 486.9%.

Return on Equity

High ROE: BBVAC1's Return on Equity (18.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Banco BBVA Perú'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: BBVAC1's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: BBVAC1 has a low allowance for bad loans (98%).

Low Risk Liabilities: 69% of BBVAC1's liabilities are made up of primarily low risk sources of funding.

Loan Level: BBVAC1 has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: BBVAC1's Loans to Deposits ratio (110%) is appropriate.

Level of Bad Loans: BBVAC1 has a high level of bad loans (6.4%).

Discover healthy companies

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

9.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BBVAC1's dividend (9.46%) is higher than the bottom 25% of dividend payers in the PE market (7.13%).

High Dividend: BBVAC1's dividend (9.46%) is low compared to the top 25% of dividend payers in the PE market (27.22%).

Stability and Growth of Payments

Stable Dividend: BBVAC1's dividends per share have been stable in the past 10 years.

Growing Dividend: BBVAC1's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.2%), BBVAC1's dividend payments are covered by earnings.

Future Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Fernando Eguiluz Lozano

3yrs

Tenure

Mr. Fernando Eguiluz Lozano has been General Manager and Director at Banco BBVA Perú since July 1, 2019.

Leadership Team

Experienced Management: BBVAC1's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: BBVAC1's board of directors are considered experienced (7.7 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 9.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/06 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31