Scotiabank PerúA (BVL:SCOTIAC1) - Share price, News & Analysis

Q: What is the Fair Price of SCOTIAC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SCOTIAC1 (PEN19) is trading above our estimate of [[fair value]] (PEN8.01)

SCOTIAC1 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

SCOTIAC1 Stock Overview

Scotiabank Perú S.A.A. provides various banking products and financial services to individuals and businesses in Peru.

Rewards

Earnings grew by 1772.2% over the past year

Risk Analysis

Earnings have declined by 12.6% per year over past 5 years

High level of non-cash earnings

Scotiabank PerúA Competitors

Banco BBVA Perú

BVL:BBVAC1

S/12.5b

Banco de Crédito del Perú

BVL:CREDITC1

S/30.9b

Intercorp Financial Services

BVL:IFS

US$2.6b

Mibanco Banco de la Microempresa

BVL:MIBANC1

S/3.7b

Price History & Performance

Summary of all time highs, changes and price drops for Scotiabank PerúA
Historical stock prices
Current Share Price	S/19.00
52 Week High	S/27.10
52 Week Low	S/19.00
Beta	0.55
1 Month Change	-13.64%
3 Month Change	-29.63%
1 Year Change	-20.93%
3 Year Change	-36.91%
5 Year Change	-12.05%
Change since IPO	-76.40%

Shareholder Returns

	SCOTIAC1	PE Banks	PE Market
7D	-9.5%	-1.5%	-2.7%
1Y	-20.9%	-4.5%	4.7%

Return vs Industry: SCOTIAC1 underperformed the PE Banks industry which returned -4.2% over the past year.

Return vs Market: SCOTIAC1 underperformed the PE Market which returned 5% over the past year.

Price Volatility

Is SCOTIAC1's price volatile compared to industry and market?
SCOTIAC1 volatility
SCOTIAC1 Average Weekly Movement	4.9%
Banks Industry Average Movement	5.1%
Market Average Movement	5.0%
10% most volatile stocks in PE Market	8.8%
10% least volatile stocks in PE Market	1.4%

Stable Share Price: SCOTIAC1 is not significantly more volatile than the rest of PE stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCOTIAC1's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1943	n/a	Francisco Javier Sardon de Taboada	https://www.scotiabank.com.pe

Scotiabank Perú S.A.A. provides various banking products and financial services to individuals and businesses in Peru. The company offers intangible, free, Scotiabank super, salary, power, kids, income, CTS, mortgage savings, euro, current, travel, and target accounts; term deposits; credit, debit, and business cards; personal, business, medium-term, and SME loans; loan with mortgage guarantee; salary advances; mortgage and vehicle credit; and mutual funds. It also provides financial, life, accident, vehicular, home multi-risk, and health insurance, as well as property insurance against fire; wealth management services; collection services; payment solutions and transfer services; machinery, vehicle, and real estate leasing services; sales and purchase financing; guarantees; export letter of credit, import letter of credit, export documentary collection, and import documentary collection services; import, pre-shipment, and post-shipment financing products; and online and telephone banking services.

Scotiabank PerúA Fundamentals Summary

How do Scotiabank PerúA's earnings and revenue compare to its market cap?
SCOTIAC1 fundamental statistics
Market Cap	S/15.25b
Earnings (TTM)	S/1.27b
Revenue (TTM)	S/3.57b

12.0x

P/E Ratio

1.6x

P/B Ratio

Is SCOTIAC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCOTIAC1 income statement (TTM)
Revenue	S/3.57b
Cost of Revenue	S/0
Gross Profit	S/3.57b
Other Expenses	S/2.30b
Earnings	S/1.27b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.59
Gross Margin	100.00%
Net Profit Margin	35.67%
Debt/Equity Ratio	159.9%

How did SCOTIAC1 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SCOTIAC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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 SCOTIAC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SCOTIAC1. This is calculated by dividing SCOTIAC1's market cap by their current preferred multiple.
What is SCOTIAC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/15.25b

SCOTIAC1 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 SCOTIAC1's PE Ratio compare to its peers?

SCOTIAC1 PE Ratio vs Peers

The above table shows the PE ratio for SCOTIAC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.6x
BBVAC1 Banco BBVA Perú	7.1x	n/a	S/12.5b
CREDITC1 Banco de Crédito del Perú	8.4x	n/a	S/30.9b
IFS Intercorp Financial Services	6.1x	7.1%	US$2.6b
MIBANC1 Mibanco Banco de la Microempresa	13x	n/a	S/3.7b
SCOTIAC1 Scotiabank PerúA	12x	n/a	S/15.3b

Forward PE

Price-To-Earnings vs Peers: SCOTIAC1 is expensive based on its Price-To-Earnings Ratio (12x) compared to the peer average (8.6x).

Price to Earnings Ratio vs Industry

How does SCOTIAC1's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Earnings vs Industry: SCOTIAC1 is expensive based on its Price-To-Earnings Ratio (12x) compared to the PE Banks industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is SCOTIAC1'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.

SCOTIAC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SCOTIAC1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SCOTIAC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCOTIAC1 (PEN19) is trading above our estimate of fair value (PEN8.01)

Significantly Below Fair Value: SCOTIAC1 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SCOTIAC1's PEG Ratio to determine if it is good value.

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Future Growth

How is Scotiabank PerúA 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

8.6%

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 Scotiabank PerúA 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.

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Examine Scotiabank PerúA's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Scotiabank PerúA performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

-12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCOTIAC1 has a high level of non-cash earnings.

Growing Profit Margin: SCOTIAC1's current net profit margins (35.7%) are higher than last year (3.8%).

Past Earnings Growth Analysis

Earnings Trend: SCOTIAC1's earnings have declined by 12.6% per year over the past 5 years.

Accelerating Growth: SCOTIAC1's earnings growth over the past year (1772.2%) exceeds its 5-year average (-12.6% per year).

Earnings vs Industry: SCOTIAC1 earnings growth over the past year (1772.2%) exceeded the Banks industry 486.9%.

Return on Equity

High ROE: SCOTIAC1's Return on Equity (12.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Scotiabank PerúA'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: SCOTIAC1's Assets to Equity ratio (7.6x) is low.

Allowance for Bad Loans: SCOTIAC1 has a low allowance for bad loans (81%).

Low Risk Liabilities: 71% of SCOTIAC1's liabilities are made up of primarily low risk sources of funding.

Loan Level: SCOTIAC1 has an appropriate level of Loans to Assets ratio (75%).

Low Risk Deposits: SCOTIAC1's Loans to Deposits ratio (121%) is appropriate.

Level of Bad Loans: SCOTIAC1 has a high level of bad loans (7.7%).

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Dividend

What is Scotiabank PerúA 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 SCOTIAC1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SCOTIAC1'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 SCOTIAC1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SCOTIAC1's dividend payments have been increasing.

Current Payout to Shareholders

Earnings Coverage: SCOTIAC1 is not paying a notable dividend for the PE market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCOTIAC1's dividend in 3 years as they are not forecast to pay a notable one for the PE market.

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Management

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

3.3yrs

Average management tenure

CEO

Francisco Javier Sardon de Taboada

1.08yrs

Tenure

Mr. Francisco Javier Sardon de Taboada serves as Chief Executive Officer, Country Head and Vice President of the Board at Scotiabank Perú S.A.A. since June 1, 2021. He is Executive Vice President of the Bo...

Leadership Team

Experienced Management: SCOTIAC1's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: SCOTIAC1's board of directors are considered experienced (5.3 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	2022/07/04 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31