Banco Latinoamericano De Comercio (BLX) AI Stock Analysis

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Banco Latinoamericano De Comercio

(NYSE:BLX)

72Outperform

Banco Latinoamericano De Comercio is performing well with strong financial growth and a solid valuation. The main strengths are its record net income growth and robust risk management. However, liquidity issues due to negative cash flow and potential margin pressures pose risks. Despite these challenges, the stock remains attractive due to its low P/E ratio and high dividend yield.

Banco Latinoamericano De Comercio (BLX) vs. S&P 500 (SPY)

Market Cap

$1.36B

Dividend Yield5.49%

Average Volume (3M)147.72K

Price to Earnings (P/E)6.9

Beta (1Y)0.79

Revenue Growth16.62%

EPS Growth23.05%

CountryUS

Employees175

SectorFinancial

Sector Strength83

IndustryBanks - Regional

Share Statistics

EPS (TTM)5.60

Shares Outstanding28,736,597

10 Day Avg. Volume134,933

30 Day Avg. Volume147,720

Financial Highlights & Ratios

PEG Ratio0.30

Price to Book (P/B)N/A

Price to Sales (P/S)55.45

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$42.00

Price Target Upside8.50% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Banco Latinoamericano De Comercio Business Overview & Revenue Model

Company DescriptionBanco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral loans, structured and syndicated credits, and loan commitments; financial guarantee contracts, such as issued and confirmed letters of credit, and stand-by letters of credit; and guarantees covering commercial risk and other assets, as well as co-financing arrangements, underwriting of syndicated credit facilities, structured trade financing in the form of factoring and vendor financing, and financial leasing. The company also provides treasury solutions, including term deposits and private placements. It primarily serves financial institutions, corporations, and sovereigns and state-owned entities. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. Banco Latinoamericano de Comercio Exterior, S. A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

How the Company Makes MoneyBladex makes money primarily through interest income generated from its extensive portfolio of trade finance loans and credit products offered to financial institutions and corporations in Latin America. The bank also earns fees from transaction services related to trade finance, such as letters of credit and other trade-related guarantees. Additionally, Bladex engages in treasury and investment activities, managing a portfolio of liquid assets to optimize returns. The bank's revenue is further supported by strategic partnerships with regional and international financial entities, enhancing its capacity to provide comprehensive trade finance solutions.

Banco Latinoamericano De Comercio Financial Statement Overview

Summary

Banco Latinoamericano De Comercio shows strong revenue growth and profitability with improved net profit margins. However, the company faces challenges in cash flow management, as operating and free cash flows have turned negative. The balance sheet reflects moderate leverage and a robust return on equity, though there's an increased reliance on debt.

Income Statement

Positive

Banco Latinoamericano De Comercio has shown strong revenue growth of 20.65% from 2023 to 2024, indicating a positive trajectory. The company's gross profit margin remains at 100%, which is typical for the banking industry as revenue is derived from interest income. Notably, the net profit margin improved significantly to 71.91% in 2024 from 70.03% in 2023. However, the lack of EBITDA data for 2024 limits a complete margin analysis.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 2.02 in 2024, demonstrating moderate leverage. The return on equity improved to 15.39% in 2024 from 13.80% in 2023, indicating enhanced profitability. However, the equity ratio decreased slightly to 11.28% in 2024, suggesting a higher reliance on debt financing.

Cash Flow

Neutral

The cash flow statement indicates a significant decrease in operating cash flow, turning negative in 2024, which poses a potential risk. Free cash flow also turned negative, reflecting a decrease in liquidity. The operating cash flow to net income ratio is not favorable, given the negative cash flow figures.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
286.34M	237.34M	166.67M	104.95M	99.16M
	Gross Profit
286.34M	238.65M	166.67M	101.46M	99.16M
	EBIT
231.91M	166.84M	276.65M	62.70M	63.59M
	EBITDA
0.00	169.25M	0.00	66.19M	67.93M
	Net Income Common Stockholders
205.87M	166.16M	-92.57M	62.70M	63.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.82B	1.99B	1.24B	1.25B	863.81M
	Total Assets
11.86B	10.74B	9.28B	8.04B	6.29B
	Total Debt
2.70B	4.68B	6.63B	3.32B	1.99B
	Net Debt
879.01M	2.63B	5.39B	2.07B	1.12B
	Total Liabilities
10.52B	9.54B	8.21B	7.05B	5.25B
	Stockholders Equity
1.34B	1.20B	1.07B	991.79M	1.04B
Cash Flow		Free Cash Flow
-1.13B	248.65M	-772.37M	-872.52M	1.25B
	Operating Cash Flow
-1.13B	250.75M	-769.65M	-871.71M	1.25B
	Investing Cash Flow
-180.02M	-12.77M	-166.66M	-446.08M	-319.90M
	Financing Cash Flow
1.14B	964.22M	916.25M	1.58B	-1.24B

Banco Latinoamericano De Comercio Technical Analysis

Technical Analysis Sentiment

Positive

Last Price38.71

Price Trends

50DMA

37.61

Positive

100DMA

36.78

Positive

200DMA

33.92

Positive

Market Momentum

MACD

0.31

Negative

RSI

58.25

Neutral

STOCH

83.87

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLX, the sentiment is Positive. The current price of 38.71 is above the 20-day moving average (MA) of 36.51, above the 50-day MA of 37.61, and above the 200-day MA of 33.92, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLX.

Banco Latinoamericano De Comercio Risk Analysis

Banco Latinoamericano De Comercio disclosed 33 risk factors in its most recent earnings report. Banco Latinoamericano De Comercio reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Banco Latinoamericano De Comercio Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPV	81 Outperform	$1.48B	10.11	19.64%	0.98%	-44.77%	-10.25%
OFG	78 Outperform	$1.59B	8.31	15.46%	2.76%	7.84%	6.82%
PFBC	77 Outperform	$1.07B	8.31	17.92%	3.56%	8.03%	-8.05%
BY	73 Outperform	$1.14B	9.52	11.08%	1.44%	7.68%	-1.13%
BLX	72 Outperform	$1.36B	6.91	16.20%	5.49%	16.62%	23.05%
CCB	71 Outperform	$1.32B	27.09	12.33%	―	30.90%	-0.62%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%

* Financial Sector Average

Performance Comparison

BLX

Banco Latinoamericano De Comercio

38.71

10.80

38.70%

OFG

OFG Bancorp

38.01

2.64

7.46%

PFBC

Preferred Bank

80.13

6.84

9.33%

SUPV

Grupo Supervielle SA

15.84

9.74

159.67%

Byline Bancorp

25.61

4.20

19.62%

CCB

Coastal Financial

88.08

49.12

126.08%

Banco Latinoamericano De Comercio Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: 2.98% | Next Earnings Date: May 5, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a record-breaking year for Banco Latinoamericano de Comercio Exterior, S.A., with significant growth in net income, commercial portfolio, and fee income, alongside robust risk management and strategic execution. However, there are concerns about the potential impact of US policies and net interest margin pressure, as well as increased expenses. Overall, the bank demonstrated strong performance and resilience but faces some challenges ahead.

Highlights

Record-Breaking Year

Banco Latinoamericano de Comercio Exterior, S.A. achieved a historic milestone with a commercial portfolio growth of 18%, reaching $10 billion, and deposits increasing by 23% for year-end closing balances. Net income reached an all-time high of $206 million, marking a 24% increase from the previous year, with a return on equity of 16.2%.

Strong Fee Income Growth

Fee income grew by 37% year-over-year, reaching $44 million for 2024, driven by strong performance in letters of credit and loan structuring fees.

Robust Risk Management

Non-performing loans remained minimal at just 0.2% of total exposure with robust reserve coverage, highlighting disciplined risk management practices.

Successful Strategic Plan Execution

The bank successfully concluded the first phase of its strategic plan, improving efficiency and expanding its client base by 70% and deposit base by 78%.

Strong Capital Position

The bank's tier one capital ratio was 15.5%, well within the defined target, and the board approved an increase in quarterly dividends.

Lowlights

Potential Impact of US Policies

Concerns over the US immigration and trade policies under President Trump, particularly the impact of potential mass deportations on remittances and tariffs on trade with Mexico.

Net Interest Margin Pressure

The bank anticipates a contraction in the net interest margin to around 2.3% for 2025, influenced by a competitive market environment and potential Fed rate cuts.

Increased Expenses

Total expenses for 2024 increased by 11% year-over-year, driven by higher salary expenses and ongoing investments in technology and business initiatives.

Company Guidance

In the fourth quarter of 2024, Banco Latinoamericano de Comercio Exterior, S.A. delivered outstanding financial performance, reaching a net income of $206 million, a 24% increase from the previous year, and a return on equity of 16.2%. Key achievements included an 18% growth in the commercial portfolio to $10 billion and a 23% rise in year-end deposits, both surpassing guidance. The bank's tier one capital ratio remained strong at 15.5%, and the efficiency ratio was maintained below 27%. Net interest income rose by 11% to $259 million, driven by increased loan volumes and a stable net interest margin of 2.47%. Furthermore, fee income saw an unprecedented growth of 37%, with notable contributions from letters of credit and loan structuring fees. Looking ahead to 2025, the bank projects commercial portfolio growth of 10-12%, deposit growth of 15-17%, and aims to sustain an efficiency ratio around 27%, despite ongoing investments in IT platforms.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.