Credicorp (BAP) AI Stock Analysis

• Market Cap: $17.71B
• Dividend Yield: 9.89%
• Average Volume (3M): 340.94K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.53
• Revenue Growth: 3.89%
• EPS Growth: 15.26%
• Country: US
• Employees: 38,758
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 6.28
• Shares Outstanding: 79,533,100
• 10 Day Avg. Volume: 292,112
• 30 Day Avg. Volume: 340,945
• PEG Ratio: 2.21
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $232.00
• Price Target Upside: 2.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $248.00 ▲(9.67%Upside)

Credicorp's overall stock score is bolstered by strong financial performance, particularly in profitability and equity utilization, and positive market sentiment following a robust earnings call. The stock's technical indicators suggest bullish momentum, although caution is advised due to near-overbought conditions. The attractive valuation and high dividend yield further enhance the investment appeal. However, challenges in revenue growth and cash flow stability need addressing to sustain long-term value.

Positive Factors

Excluding One-Time Impact

Excluding the one-time fraud impact, recurring net income expanded 65% and exceeded estimates.

Insurance Growth

Insurance showed strong growth supported by stronger reinsurance in the P&C Business and medical services results.

Recurring Net Income

Recurring net income expanded 6% and came in-line with estimates and market consensus.

Negative Factors

Earnings Estimates

Earnings estimates were modestly reduced due to softer net interest income growth and higher operating expenses.

Loan Growth

Loan growth remained flat and came 6% below expectations, with weaker lending activity in SME segments.

Operating Expenses

Operating expenses grew 16% and came 5% above expectations due to higher expenses in salaries, advertising, and innovation initiatives.

Credicorp Business Overview & Revenue Model

Company Description

Credicorp Ltd., a financial service 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. The company's Microfinance segment manages loans, credits, deposits, and current accounts of the small and microenterprises. Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments, and foundations; engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market; and structures securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.

How the Company Makes Money

Credicorp makes money through a diversified revenue model primarily centered around its banking and financial services operations. Its key revenue streams include interest income from loans and credit facilities, fees from banking and financial transactions, and premium income from insurance products. The company also generates income through asset management and investment banking services, which offer advisory and investment solutions to clients. In addition, Credicorp benefits from its strategic partnerships and market presence in Peru and other Latin American countries, which contribute to its overall earnings and growth.

Credicorp Financial Statement Overview

Summary

Credicorp exhibits strong profitability and effective equity utilization but faces challenges in revenue growth and cash conversion. The balance sheet remains stable with manageable leverage, but cash flow fluctuations suggest a need for improved cash management strategies. Overall, the company is financially sound but should focus on enhancing revenue and operational cash flow stability to maintain long-term growth.

Income Statement

Credicorp shows strong profitability with a robust EBIT margin of 50.34% and a net profit margin of 30.24% for 2024. However, revenue has declined by 6.83% compared to 2023, indicating potential concerns in revenue generation. Historical data shows fluctuating revenue trends, peaking in 2023, but generally growing over the longer term since 2020.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.66 and an equity ratio of 13.41%, reflecting moderate leverage and stable equity levels. Return on equity is strong at 16.02% for 2024, demonstrating effective utilization of equity. The balance sheet indicates resilience against potential financial instability, although equity levels show limited growth.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from the previous year, with a negative growth rate of 68.39%. The operating cash flow to net income ratio is 0.22, which highlights potential challenges in converting earnings to cash. Despite a positive free cash flow to net income ratio of 0.17, the cash flow from operations shows variability, suggesting potential liquidity management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.43B	18.20B	19.54B	16.71B	14.43B	13.60B
Gross Profit	17.98B	17.33B	19.54B	16.07B	14.43B	13.60B
EBITDA	9.02B	8.55B	7.52B	0.00	0.00	0.00
Net Income	5.77B	5.50B	4.87B	4.65B	3.58B	346.89M
Balance Sheet
Total Assets	254.22B	256.09B	238.84B	235.41B	243.44B	237.41B
Cash, Cash Equivalents and Short-Term Investments	86.24B	82.39B	67.34B	64.20B	74.42B	80.11B
Total Debt	35.45B	37.49B	37.55B	39.49B	47.71B	50.97B
Total Liabilities	217.81B	221.11B	205.73B	205.82B	216.61B	211.96B
Stockholders Equity	35.84B	34.35B	32.46B	29.00B	26.29B	24.95B
Cash Flow
Free Cash Flow	-3.69B	925.50M	2.93B	-2.03B	3.33B	12.05B
Operating Cash Flow	-3.53B	1.24B	4.08B	-1.15B	3.97B	12.69B
Investing Cash Flow	993.56M	527.56M	-1.26B	-1.09B	-3.73B	-1.87B
Financing Cash Flow	3.61B	11.48B	-2.26B	-1.60B	-465.30M	-2.09B

Credicorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 226.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAP, the sentiment is Positive. The current price of 226.13 is above the 20-day moving average (MA) of 218.70, above the 50-day MA of 205.35, and above the 200-day MA of 182.92, indicating a bullish trend. The MACD of 5.23 indicates Positive momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAP.

Credicorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAP	77 Outperform	$17.71B	11.46	16.35%	9.89%	3.89%	15.26%
BSAC	76 Outperform	$11.80B	11.07	24.02%	5.31%	18.54%	65.80%
CIB	75 Outperform	$11.58B	13.44	15.99%	15.07%	-5.45%	3.43%
BMA	74 Outperform	$4.44B	1,013.43	0.11%	31.07%	-46.30%	-79.35%
BCH	73 Outperform	$15.34B	11.69	23.88%	6.95%	-17.02%	-10.73%
BSBR	70 Outperform	$20.92B	17.11	10.89%	4.94%	-3.94%	31.52%
Sector *	67 Neutral	$16.86B	11.64	9.71%	3.83%	11.61%	-9.60%