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BAP

CredicorpNYSE:BAP Stock Report

Market Cap

US$10.4b

7D

-2.8%

1Y

7.5%

Updated

23 Oct, 2021

Data

Company Financials +
BAP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends2/6

BAP Overview

Credicorp Ltd., a financial services holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally.

Credicorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Credicorp
Historical stock prices
Current Share PriceUS$130.49
52 Week HighUS$88.67
52 Week LowUS$169.50
Beta0.78
1 Month Change19.90%
3 Month Change9.52%
1 Year Change7.46%
3 Year Change-39.51%
5 Year Change-12.02%
Change since IPO1,024.39%

Recent News & Updates

Sep 02

Good Execution At Credicorp Canceled Out By Political Risk

Credicorp had a mixed quarter on weakness in insurance and higher opex meant to grow the business further down the line, but spread income and loan growth were positives. Credit quality continues to improve, and Credicorp management solidified their good reputation by acting quickly and conservatively on reserving early in the cycle. Digitalization remains a significant long-term opportunity for Credicorp, and customer utilization has improved as a result of the pandemic. The election of Pedro Castillo has created turmoil in the Peruvian economy and market, with considerable uncertainty over how much of the Marxist campaign rhetoric will become actual policy/law. Credicorp is undervalued on a long-term core earnings growth rate of 7% and mid-teens ROEs, but there is very high uncertainty and risk around the macro and regulatory environments.

Shareholder Returns

BAPUS BanksUS Market
7D-2.8%3.3%1.7%
1Y7.5%73.9%30.3%

Return vs Industry: BAP underperformed the US Banks industry which returned 73.9% over the past year.

Return vs Market: BAP underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is BAP's price volatile compared to industry and market?
BAP volatility
BAP Beta0.78
Industry Beta1.32
Market Beta1

Stable Share Price: BAP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BAP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188935,776Walter Bayly Llonahttps://www.grupocredicorp.com

Credicorp Ltd., a financial services holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally. The company’s Universal Banking segment offers deposits and current accounts, and various credits and financial instruments to individuals and legal entities. Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pensions, as well as provides private pension fund management services.

Credicorp Fundamentals Summary

How do Credicorp's earnings and revenue compare to its market cap?
BAP fundamental statistics
Market CapS/41.48b
Earnings (TTM)S/2.12b
Revenue (TTM)S/10.39b

19.6x

P/E Ratio

1.7x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BAP income statement (TTM)
RevenueS/10.39b
Cost of RevenueS/466.48m
Gross ProfitS/9.93b
ExpensesS/7.81b
EarningsS/2.12b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)26.64
Gross Margin95.51%
Net Profit Margin20.38%
Debt/Equity Ratio197.4%

How did BAP perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

17.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BAP ($130.49) is trading below our estimate of fair value ($158.12)

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


Price To Earnings Ratio

PE vs Industry: BAP is poor value based on its PE Ratio (19.6x) compared to the US Banks industry average (11.2x).

PE vs Market: BAP is poor value based on its PE Ratio (19.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BAP is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BAP is overvalued based on its PB Ratio (1.7x) compared to the US Banks industry average (1.2x).


Future Growth

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

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAP's forecast earnings growth (25.9% per year) is above the savings rate (2%).

Earnings vs Market: BAP's earnings (25.9% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: BAP's revenue (13.7% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: BAP's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAP's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Credicorp performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: BAP's current net profit margins (20.4%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: BAP's earnings have declined by 15.2% per year over the past 5 years.

Accelerating Growth: BAP's earnings growth over the past year (28%) exceeds its 5-year average (-15.2% per year).

Earnings vs Industry: BAP earnings growth over the past year (28%) underperformed the Banks industry 37.5%.


Return on Equity

High ROE: BAP's Return on Equity (8.4%) is considered low.


Financial Health

How is Credicorp'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


Financial Institutions Analysis

Asset Level: BAP's Assets to Equity ratio (9.6x) is low.

Allowance for Bad Loans: BAP has a sufficient allowance for bad loans (137%).

Low Risk Liabilities: 68% of BAP's liabilities are made up of primarily low risk sources of funding.

Loan Level: BAP has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: BAP's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: BAP has a high level of bad loans (4.8%).


Dividend

What is Credicorp current dividend yield, its reliability and sustainability?

0.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAP's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: BAP's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.47%).


Stability and Growth of Payments

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

Growing Dividend: BAP's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.8%), BAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAP's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Walter Bayly Llona (65 yo)

3.5yrs

Tenure

Mr. Walter Bayly Llona has been Chief Executive Officer of Credicorp Ltd. since April 1, 2018. Mr. Bayly Llona served as Chief Operating Officer of Credicorp Ltd.since April 2008 until April 1, 2018. Mr....


Leadership Team

Experienced Management: BAP's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: BAP's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

Credicorp Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Credicorp Ltd.
  • Ticker: BAP
  • Exchange: NYSE
  • Founded: 1889
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$10.376b
  • Shares outstanding: 79.52m
  • Website: https://www.grupocredicorp.com

Number of Employees


Location

  • Credicorp Ltd.
  • Calle Centenario N ° 156
  • La Molina
  • Lima
  • Lima
  • 12
  • Peru

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 22:08
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.