NYSE:BAP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Credicorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

BAP

4.8%

US Banks

2.3%

US Market


1 Year Return

-6.4%

BAP

0.04%

US Banks

5.6%

US Market

Return vs Industry: BAP underperformed the US Banks industry which returned 0% over the past year.

Return vs Market: BAP underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

BAPIndustryMarket
7 Day2.6%4.8%2.3%
30 Day-3.4%-0.5%-1.0%
90 Day-11.5%2.0%-0.7%
1 Year-4.0%-6.4%2.9%0.04%7.9%5.6%
3 Year52.0%38.5%51.5%41.1%45.6%36.3%
5 Year55.1%37.1%70.9%52.3%65.8%47.6%

Price Volatility Vs. Market

How volatile is Credicorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

5.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BAP ($209.28) is trading below our estimate of fair value ($221.75)

Significantly Undervalued: 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 (13.4x) compared to the Banks industry average (12.6x).

PE vs Market: BAP is good value based on its PE Ratio (13.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BAP is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BAP is overvalued based on its PB Ratio (2.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Credicorp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAP's forecast earnings growth (11.8% per year) is above the savings rate (2.7%).

Earnings vs Market: BAP's earnings (11.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: BAP's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAP's revenue (9.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BAP's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BAP's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Credicorp performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BAP's earnings have grown by 12.8% per year over the past 5 years.

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

Earnings vs Industry: BAP had negative earnings growth (-3%) over the past year, making it difficult to compare to the Banks industry average (31.8%).


Return on Equity

High ROE: BAP's Return on Equity (16.6%) is considered low.


Return on Assets

ROA vs Industry: BAP has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BAP's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: BAP has a low level of unsold assets or inventory.

Debt Coverage by Assets: BAP's debt is covered by short term assets (assets are 1.617680x debt).


Financial Institutions Analysis

Asset Level: BAP's level of assets compared to its equity is low.

Allowance for Bad Loans: BAP has a sufficient allowance for bad loans.

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

Loan Level: BAP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BAP's loans are broadly funded by customer deposits.

Level of Bad Loans: BAP has a high level of bad loans (4.15%)


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAP's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BAP's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), 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 (45.5% payout ratio).


Next Steps

Management

What is the CEO of Credicorp's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Walter Bayly Llona (63yo)

1.5yrs

Tenure

0

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.  ...


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: BAP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

57yo

Average Age

Experienced Board: BAP's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Walter Bayly Llona (63yo)

    Chief Executive Officer

    • Tenure: 1.5yrs
  • Dionisio Romero Paoletti (54yo)

    Executive Chairman of the Board

    • Tenure: 10.8yrs
  • Alvaro Correa Malachowski

    Deputy CEO & Head of Insurance and Pension Funds

    • Tenure: 6yrs
  • Reynaldo Llosa Benavides

    Chief Risk Officer

    • Tenure: 7.8yrs
  • Bárbara Falero

    Chief Compliance & Ethics Officer

    • Tenure: 11.7yrs
  • César Ríos Briceño

    Chief Financial Officer

    • Tenure: 1.5yrs
  • José Luis Rivera

    Head of Accounting

    • Tenure: 0yrs
  • Guillermo Morales

    Head of Legal

    • Tenure: 1.5yrs
  • Bernardo Sambra

    Chief of Human Resources Officer

    • Tenure: 1.5yrs
  • Milagros Cigüeñas

    Investor Relations Officer

    • Tenure: 0.2yrs

Board Members

  • Benedicto Cigüeñas Guevara

    Independent Director

    • Tenure: 5.8yrs
  • Jose Raimundo Morales Dasso (73yo)

    Independent Vice Chairman of the Board

    • Tenure: 10.8yrs
  • Juan Carlos Verme Giannoni

    Independent Director

    • Tenure: 24.2yrs
  • Fernando Fort Marie

    Director

    • Tenure: 20.6yrs
  • Dionisio Romero Paoletti (54yo)

    Executive Chairman of the Board

    • Tenure: 10.8yrs
  • Luis Enrique Romero Belismelis (57yo)

    Director

    • Tenure: 2.6yrs
  • Patricia Lizárraga Guthertz

    Independent Director

    • Tenure: 2.6yrs
  • Martín Pérez Monteverde

    Director

    • Tenure: 5.6yrs

Company Information

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


Key Information

  • Name: Credicorp Ltd.
  • Ticker: BAP
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$16.641b
  • Shares outstanding: 79.51m
  • Website: https://www.credicorp.gcs-web.com

Number of Employees


Location

  • Credicorp Ltd.
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM CX
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAPNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1995
BAPBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDOct 1995
BAP NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNOct 1995
0U8NLSE (London Stock Exchange)YesCommon SharesGBUSDOct 1995

Biography

Credicorp Ltd., a financial services holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:42
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.