Banco Macro SA (BMA) AI Stock Analysis

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Banco Macro SA

(NYSE:BMA)

Rating:74Outperform

Price Target:―

Banco Macro's overall score reflects a balance of strong profitability and revenue growth against challenges in cash flow management and rising liabilities. The technical indicators show positive momentum, and the stock presents a fair valuation with an attractive dividend yield. The mixed results from the earnings call highlight the need to improve efficiency and manage loan loss provisions effectively. Despite these challenges, the bank's strong market position and capitalization provide a positive outlook for future growth.

Banco Macro SA (BMA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.82B

Dividend Yield29.07%

Average Volume (3M)328.93K

Price to Earnings (P/E)1083.1

Beta (1Y)0.95

Revenue Growth-46.30%

EPS Growth-79.35%

CountryUS

Employees9,004

SectorFinancial

Sector Strength73

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.60

Shares Outstanding62,817,800

10 Day Avg. Volume415,838

30 Day Avg. Volume328,930

Financial Highlights & Ratios

PEG Ratio-1.72

Price to Book (P/B)1.16

Price to Sales (P/S)0.00

P/FCF Ratio1.21

Enterprise Value/Market Cap273.29

Enterprise Value/Revenue0.08

Enterprise Value/Gross Profit0.33

Enterprise Value/Ebitda0.52

Forecast

1Y Price Target

$125.00

Price Target Upside68.49% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Banco Macro SA Business Overview & Revenue Model

Company DescriptionBanco Macro SA (BMA) is a leading financial institution in Argentina, offering a wide range of banking products and services. It operates in the financial services sector, providing personal and commercial banking solutions. Core services include savings and checking accounts, personal and business loans, credit cards, and investment products. Banco Macro is known for its extensive network of branches and ATMs across Argentina, catering to both individual and corporate clients.

How the Company Makes MoneyBanco Macro SA generates revenue primarily through interest income from loans and credit products, including personal, mortgage, and commercial loans. Another significant source of income is fee-based services, such as transaction fees, account maintenance fees, and fees from investment products. The bank also earns from the spread between interest earned on loans and paid on deposits. Banco Macro has established partnerships with various businesses and institutions to enhance its service offerings and reach a broader customer base, contributing to its financial performance.

Banco Macro SA Earnings Call Summary

Earnings Call Date:May 28, 2025

(Q1-2025)

% Change Since: -17.36%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture for Banco Macro. While the bank demonstrated solid loan growth and maintained a strong capital position, significant challenges were evident in the form of decreased net income, increased loan loss provisions, and lower interest and FX income. The bank's financial health is stable, but there are areas that require attention.

Q1-2025 Updates

Positive Updates

Net Income Performance

Banco Macro's net income totaled ARS45.7 billion in the first quarter of 2025. Although this is a decrease from the previous quarter, it represents continued profitability despite challenging conditions.

Net Interest Income Growth

Net interest income totaled ARS579.2 billion, which is ARS1 billion higher than the fourth quarter of 2024 and represents a 122% year-on-year increase.

Loan Growth

Private sector loans increased by 22% quarter-on-quarter and 94% year-on-year. The bank's total financing reached ARS7.7 trillion, reflecting robust loan demand.

Efficiency Ratio Improvement

The efficiency ratio improved to 38.2% from 39.4% in the previous quarter, indicating better cost management.

Strong Capitalization

Banco Macro reported an excess capital of ARS3.2 trillion, with a capital adequacy ratio of 34.3% and a Tier 1 ratio of 33.6%.

Negative Updates

Significant Decrease in Net Income Compared to Previous Quarter

Net income was 59% lower than in the fourth quarter of 2024, primarily due to lower net income from financial assets and liabilities at fair value through profit or loss.

Provision for Loan Losses Increase

Provision for loan losses increased by 62% quarter-on-quarter and 124% year-on-year, reflecting higher risk associated with loan growth.

Interest Income Decline

Interest income totaled ARS866.7 billion, which is 3% lower than the previous quarter and 22% lower than the same period last year.

Decreased FX Income

FX income was 95% lower than a year ago, impacted by the depreciation of the Argentine peso against the US dollar.

Company Guidance

In the first quarter of 2025 earnings call, Banco Macro provided guidance on several financial metrics. The bank expects real loan growth of 60% and deposit growth of 45% for the year. They anticipate a return on equity (ROE) between 8% to 10%, adjusted based on bond price fluctuations, with a capital adequacy ratio forecasted to be in the range of 28% to 29% by year-end. The bank's net interest margin, including foreign exchange, was reported at 23.2%, lower than previous quarters. Despite a decrease in net income due to lower financial asset income and higher inflation, the bank maintained a strong capital position with a Tier 1 ratio of 33.6%. Banco Macro's non-performing loan ratio was 1.44%, with a coverage ratio of 163.34%. The bank's market share over private sector loans was 9.5%, while its market share over private deposits stood at 7.8%. They also highlighted their strategic focus on organic growth, while remaining open to potential M&A opportunities in the future.

Banco Macro SA Financial Statement Overview

Summary

Banco Macro SA exhibits strong financial performance, particularly in terms of profitability and revenue growth. The balance sheet is stable with a solid equity base, though rising liabilities could pose a risk if not managed properly. Cash flow management appears to be an area for improvement, as recent declines may affect liquidity. Overall, the company is in a strong financial position, but should focus on enhancing cash flow stability and managing liabilities.

Income Statement

Very Positive

Banco Macro SA demonstrates strong revenue growth, with total revenue increasing significantly over the years. The gross profit margin is exceptionally high, indicating efficient cost management. However, the net profit margin shows fluctuations, suggesting some volatility in managing expenses or other income sources. Overall, the income statement reflects a robust financial performance with high profitability metrics.

Balance Sheet

Positive

The balance sheet shows a healthy equity position with a relatively low debt-to-equity ratio, indicating strong financial stability. The equity ratio is also strong, reflecting a solid capital structure. However, there is a noticeable increase in total liabilities over the years, which could indicate rising obligations. Overall, the balance sheet is solid, but attention to liability management is advisable.

Cash Flow

Positive

The company's cash flow statement reveals fluctuations in operating cash flow, with a notable decline in the latest year. Free cash flow has also decreased recently, indicating potential challenges in maintaining liquidity. Despite the past strong free cash flow, recent trends suggest the need for improved cash flow management to support ongoing operations and investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.52T	3.15B	1.51T	1.13T	409.07B
	Gross Profit
4.52T	2.83T	1.51T	1.13T	409.07B
	EBIT
0.00	714.74B	184.16B	145.94B	115.26B
	EBITDA
0.00	772.19B	47.23B	35.79B	12.82B
	Net Income Common Stockholders
325.50B	587.32B	126.95B	138.74B	76.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.21T	1.20T	1.21T	335.69B	196.18B
	Total Assets
14.49T	6.72T	6.51T	1.95T	1.17T
	Total Debt
446.45B	396.48B	239.19B	90.36B	60.98B
	Net Debt
-2.33T	-806.62B	-539.60B	-245.34B	-135.19B
	Total Liabilities
10.44T	4.67T	280.10B	102.52B	72.23B
	Stockholders Equity
4.05T	2.04T	1.59T	466.72B	228.74B
Cash Flow		Free Cash Flow
794.07B	-142.30B	1.54T	229.96B	341.09B
	Operating Cash Flow
918.59B	-85.23B	1.61T	271.77B	351.90B
	Investing Cash Flow
-133.69B	-951.69B	-75.77B	-42.03B	-10.81B
	Financing Cash Flow
-592.03B	-56.91M	-77.79B	-52.64B	-20.05B

Banco Macro SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price74.19

Price Trends

50DMA

85.09

Negative

100DMA

86.77

Negative

200DMA

84.05

Negative

Market Momentum

MACD

-3.51

Positive

RSI

33.03

Neutral

STOCH

19.86

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMA, the sentiment is Negative. The current price of 74.19 is below the 20-day moving average (MA) of 84.57, below the 50-day MA of 85.09, and below the 200-day MA of 84.05, indicating a bearish trend. The MACD of -3.51 indicates Positive momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BMA.

Banco Macro SA Risk Analysis

Banco Macro SA disclosed 38 risk factors in its most recent earnings report. Banco Macro SA reported the most risks in the "Macro & Political" category.

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

Latest Risks Added 2 New Risks

The Argentine economy has experienced significant volatility in recent decades, characterized by periods of low or negative growth, high levels of inflation and currency devaluation. Q4, 2023

The occurrence of any of the above may have a material adverse effect on our business, results of operations, cash flow or financial condition. Q4, 2023

Banco Macro SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBAR	76 Outperform	$3.70B	9.42	15.46%	34.35%	-48.81%	0.18%
CIB	75 Outperform	$10.98B	12.50	15.99%	5.40%	-5.45%	3.43%
BMA	74 Outperform	$4.82B	1,083.07	0.11%	29.07%	-46.30%	-79.35%
BLX	71 Outperform	$1.46B	7.42	15.82%	6.01%	8.33%	13.48%
GGAL	71 Outperform	$8.87B	5.89	28.17%	1.97%	-35.65%	70.23%
FHB	66 Neutral	$2.94B	12.74	9.11%	4.44%	-0.47%	5.97%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%

* Financial Sector Average

Performance Comparison

BMA

Banco Macro SA

74.19

15.95

27.39%

BLX

Banco Latinoamericano De Comercio

41.60

14.33

52.55%

CIB

Bancolombia

42.53

15.15

55.33%

BBAR

Banco BBVA Argentina

17.92

8.76

95.63%

GGAL

Grupo Financiero Galicia SA

54.67

22.92

72.19%

FHB

First Hawaiian

23.41

4.18

21.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.