Banco BBVA Argentina (BBAR) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: 0.24%
• Average Volume (3M): 882.76K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.87
• Revenue Growth: -47.41%
• EPS Growth: -18.95%
• Country: US
• Employees: 6,289
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.21
• Shares Outstanding: 204,236,700
• 10 Day Avg. Volume: 1,382,759
• 30 Day Avg. Volume: 882,761
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $10.00
• Price Target Upside: 4.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $10.00 ▲(4.28% Upside)

Banco BBVA Argentina's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call results. The financial stability and growth potential are positive, but technical analysis suggests caution due to bearish momentum. The high dividend yield is appealing but may indicate underlying risks.

Positive Factors

Market Share Growth

Increasing market share in private loans indicates strong competitive positioning and ability to capture more of the market, supporting long-term growth.

Strong Loan and Deposit Growth

Robust loan and deposit growth reflects strong demand for banking services and enhances revenue potential, contributing to sustainable business expansion.

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial resilience, allowing the bank to weather economic fluctuations and invest in growth opportunities.

Negative Factors

Decrease in Net Income

A significant decline in net income can affect profitability and limit the bank's ability to reinvest in business operations, impacting long-term growth.

Increased Loan Loss Allowances

Rising loan loss provisions and nonperforming loans indicate potential credit risk issues, which could strain financial performance and require more conservative lending.

Decline in Fee Income

A decline in fee income reduces a key revenue stream, potentially impacting overall profitability and necessitating adjustments in the bank's service offerings.

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 multiple key streams, primarily from interest income and fees. The bank earns interest income by lending to customers, including personal loans, mortgages, and business financing, with interest rates that vary based on market conditions and borrower credit risk. Fee income is derived from various banking services, such as account maintenance fees, transaction fees, and charges for financial advisory services. Additionally, BBVA Argentina benefits from its investment portfolio, which includes government and corporate bonds, contributing to its overall earnings. Strategic partnerships with fintech companies and digital platforms also enhance its revenue potential by expanding its customer base and introducing innovative financial products.

Banco BBVA Argentina Financial Statement Overview

Summary

Banco BBVA Argentina shows strong financial performance with impressive revenue growth and profitability. The balance sheet reflects a stable financial structure with low leverage, enhancing resilience. However, the cash flow statement highlights potential challenges in free cash flow generation, suggesting a 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.28T	5.20T	7.55T	4.61T	1.46T	410.90B
Gross Profit	2.76T	3.42T	4.16T	2.65T	904.85B	287.38B
EBITDA	564.20B	520.69B	743.02B	445.57B	118.65B	65.18B
Net Income	379.14B	360.41B	341.58B	399.02B	57.01B	29.55B
Balance Sheet
Total Assets	16.29T	14.72T	6.11T	1.96T	1.03T	688.97B
Cash, Cash Equivalents and Short-Term Investments	2.45T	5.16T	1.99T	913.64B	385.42B	279.68B
Total Debt	257.21B	1.11T	64.41B	24.10B	15.14B	1.17B
Total Liabilities	13.47T	12.10T	4.70T	1.59T	867.58B	584.21B
Stockholders Equity	2.77T	2.58T	1.40T	360.48B	159.41B	102.62B
Cash Flow
Free Cash Flow	-3.55T	-5.34T	559.08B	94.07B	108.67B	-13.29B
Operating Cash Flow	1.64T	2.59T	601.23B	110.48B	116.71B	-10.14B
Investing Cash Flow	-156.24B	-162.40B	-43.00B	-27.15B	-7.50B	-2.70B
Financing Cash Flow	347.38B	124.39B	-26.46B	-5.92B	-5.37B	-10.13B

Banco BBVA Argentina Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 9.59 is below the 20-day moving average (MA) of 12.80, below the 50-day MA of 14.60, and below the 200-day MA of 18.12, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 23.84 is Positive, neither overbought nor oversold. The STOCH value of 9.60 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
CBU	78 Outperform	$3.13B	16.14	10.91%	3.11%	11.95%	14.53%
FFBC	77 Outperform	$2.50B	10.47	9.77%	3.71%	4.62%	2.69%
SBCF	75 Outperform	$2.71B	18.93	6.31%	2.34%	5.70%	18.72%
SUPV	70 Outperform	$543.22M	8.55	8.59%	2.99%	-55.30%	-64.02%
BBAR	68 Neutral	$2.00B	6.43	13.26%	0.24%	-47.41%	-18.95%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
BMA	63 Neutral	$3.06B	7.62	10.91%	1.66%	-57.78%	-67.92%