| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$130.49 |
| 52 Week High | US$88.67 |
| 52 Week Low | US$169.50 |
| Beta | 0.78 |
| 1 Month Change | 19.90% |
| 3 Month Change | 9.52% |
| 1 Year Change | 7.46% |
| 3 Year Change | -39.51% |
| 5 Year Change | -12.02% |
| Change since IPO | 1,024.39% |
Recent News & Updates
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
| BAP | US Banks | US Market | |
|---|---|---|---|
| 7D | -2.8% | 3.3% | 1.7% |
| 1Y | 7.5% | 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
| BAP volatility | |
|---|---|
| BAP Beta | 0.78 |
| Industry Beta | 1.32 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1889 | 35,776 | Walter Bayly Llona | https://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
| BAP fundamental statistics | |
|---|---|
| Market Cap | S/41.48b |
| Earnings (TTM) | S/2.12b |
| Revenue (TTM) | S/10.39b |
19.6x
P/E Ratio1.7x
P/B RatioIs BAP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BAP income statement (TTM) | |
|---|---|
| Revenue | S/10.39b |
| Cost of Revenue | S/466.48m |
| Gross Profit | S/9.93b |
| Expenses | S/7.81b |
| Earnings | S/2.12b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 04, 2021
| Earnings per share (EPS) | 26.64 |
| Gross Margin | 95.51% |
| Net Profit Margin | 20.38% |
| Debt/Equity Ratio | 197.4% |
How did BAP perform over the long term?
See historical performance and comparisonDividends
1.0%
Current Dividend Yield19%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/23 22:08 |
| End of Day Share Price | 2021/10/22 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.