Banco BBVA Argentina (BBAR) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: <0.01%
• Average Volume (3M): 689.26K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.84
• Revenue Growth: -48.81%
• EPS Growth: 0.18%
• Country: US
• Employees: 6,289
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.34
• Shares Outstanding: 204,236,700
• 10 Day Avg. Volume: 585,481
• 30 Day Avg. Volume: 689,265
• PEG Ratio: 0.03
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.32
• 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: $20.50
• Price Target Upside: 39.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $16.00 ▲(9.14%Upside)

Banco BBVA Argentina's overall stock score is primarily driven by strong financial performance and a favorable valuation. The bank's robust revenue growth and profitability, along with a high dividend yield, are key strengths. However, bearish technical indicators and concerns from the earnings call about liquidity and future growth temper the score.

Banco BBVA Argentina Business Overview & Revenue Model

Company Description

Banco BBVA Argentina S.A. provides various banking products and services to individuals and companies in Argentina. It provides retail banking products and services, such as checking and savings accounts, time deposits, credit cards, consumer and secured loans, mortgages, insurance, and investment products to individuals; and small and medium-sized companies products and services, including financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance, and investment products to private-sector companies. The company also provides corporate and investment banking products and services, such as global transaction services; global markets solutions comprising risk management and securities brokerage; long-term financing products, including project finance and syndicated loans; and corporate finance services comprising mergers and acquisitions, and capital markets advisory services to corporations and multinational companies operating in Argentina. As of December 31, 2021, it operated a network of 243 branches, 15 in-company branches, 7 point of sale outlets, 2 points of express support, 884 ATMs, and 854 self-service terminals, as well as mobile and internet banking services. The company was formerly known as BBVA Banco Francés S.A. and changed its name to Banco BBVA Argentina S.A. in July 2019. Banco BBVA Argentina S.A. was incorporated in 1886 and is based in Buenos Aires, Argentina.

How the Company Makes Money

Banco BBVA Argentina generates revenue through a variety of financial services and products. The primary revenue streams include interest income from loans and mortgages extended to individuals and businesses, as well as fees from account maintenance, transactions, and card services. The bank also earns through investment banking activities, such as underwriting and advisory services, and wealth management solutions, which include asset management fees. Additionally, BBVA Argentina benefits from its integration with the global BBVA Group, allowing it to leverage international expertise and resources, enhancing its service offerings and operational efficiency.

Banco BBVA Argentina Financial Statement Overview

Summary

Banco BBVA Argentina demonstrates robust financial performance with strong revenue growth and profitability. The balance sheet is stable with low leverage, enhancing resilience. However, challenges in free cash flow generation suggest the need for careful cash management.

Income Statement

Banco BBVA Argentina has shown a substantial revenue growth rate from 2023 to 2024, indicating strong expansion. The gross profit margin remains healthy as all revenues translate into gross profit. The net profit margin has also improved, reflecting enhanced profitability. Despite EBITDA data being unavailable, the EBIT margin is strong, suggesting efficient operational management. Overall, the income statement reveals robust financial performance with significant growth trajectory.

Balance Sheet

The balance sheet of Banco BBVA Argentina is characterized by a strong equity ratio, indicating a solid financial foundation with a significant portion of assets financed by equity. The debt-to-equity ratio is low, reflecting conservative leverage and reduced financial risk. However, the return on equity (ROE) is moderate, suggesting room for improving shareholder returns. Overall, the balance sheet demonstrates financial stability and prudent risk management.

Cash Flow

The cash flow statement indicates a high operating cash flow to net income ratio, suggesting that net income is well-supported by cash from operations. However, the free cash flow has experienced a significant decline, indicating potential challenges in cash generation. The bank's ability to convert net income into free cash flow is under pressure, which could impact future financial flexibility. Overall, while operational cash flows are robust, free cash flow dynamics need attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.55T	7.55T	4.61T	161.12B	288.96B
Gross Profit	3.42T	3.69T	2.65T	904.85B	108.77B
EBITDA	520.69B	743.02B	72.59B	118.65B	0.00
Net Income	353.24B	341.58B	58.84B	18.31B	12.04B
Balance Sheet
Total Assets	14.72T	6.11T	1.96T	1.03T	688.97B
Cash, Cash Equivalents and Short-Term Investments	2.07T	1.99T	913.64B	385.42B	279.68B
Total Debt	1.11T	64.41B	24.10B	15.14B	1.17B
Total Liabilities	12.10T	4.70T	1.59T	867.58B	584.21B
Stockholders Equity	2.58T	1.40T	360.48B	159.41B	102.62B
Cash Flow
Free Cash Flow	-5.34T	559.08B	94.07B	108.67B	-13.29B
Operating Cash Flow	-5.17T	601.23B	110.48B	116.71B	-10.14B
Investing Cash Flow	-162.40B	-43.00B	-27.15B	-7.50B	-2.70B
Financing Cash Flow	7.89T	-26.46B	-5.92B	-5.37B	-10.13B

Banco BBVA Argentina Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBAR, the sentiment is Negative. The current price of 14.66 is below the 20-day moving average (MA) of 16.64, below the 50-day MA of 18.69, and below the 200-day MA of 17.86, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBAR.

Banco BBVA Argentina Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFBC	78 Outperform	$1.22B	9.70	17.21%	3.28%	0.94%	-8.61%
BMA	74 Outperform	$4.24B	960.15	0.11%	32.80%	-46.30%	-79.35%
WAL	74 Outperform	$9.33B	11.61	12.36%	1.80%	11.01%	6.63%
BPOP	74 Outperform	$7.77B	11.71	12.54%	2.47%	9.33%	43.64%
BKU	71 Outperform	$2.80B	11.60	8.63%	3.33%	-0.61%	39.49%
BBAR	70 Outperform	$3.02B	7.71	15.46%	<0.01%	-48.81%	0.18%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%