Credicorp Ltd.
Credicorp Ltd. Fundamental Analysis
Credicorp Ltd. (BAP) shows strong financial fundamentals with a PE ratio of 12.45, profit margin of 24.74%, and ROE of 19.28%. The company generates $27.8B in annual revenue with moderate year-over-year growth of 7.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BAP's fundamental strength across five key dimensions:
Efficiency Score
WeakBAP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBAP trades at attractive valuation levels.
Growth Score
ExcellentBAP delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBAP maintains a strong and stable balance sheet.
Profitability Score
ExcellentBAP achieves industry-leading margins.
Key Financial Metrics
Is BAP Expensive or Cheap?
P/E Ratio
BAP trades at 12.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BAP's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Credicorp Ltd. at 2.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.77 times EBITDA. This is generally considered low.
How Well Does BAP Make Money?
Net Profit Margin
For every $100 in sales, Credicorp Ltd. keeps $24.74 as profit after all expenses.
Operating Margin
Core operations generate 36.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.28 in profit for every $100 of shareholder equity.
ROA
Credicorp Ltd. generates $2.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Credicorp Ltd. generates strong operating cash flow of $8.77B, reflecting robust business health.
Free Cash Flow
Credicorp Ltd. generates strong free cash flow of $8.42B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $106.13 in free cash annually.
FCF Yield
BAP converts 9.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BAP Stacks Against Its Sector Peers
| Metric | BAP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.45 | 18.83 | Better (Cheaper) |
| ROE | 19.28% | 822.00% | Weak |
| Net Margin | 24.74% | 2005.00% | Weak |
| Debt/Equity | 0.94 | 1.01 | Neutral |
| Current Ratio | 3.15 | 673.11 | Strong Liquidity |
| ROA | 2.59% | -23560.00% (disorted) | Weak |
BAP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Credicorp Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.99%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1887.02%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-36.83%
Industry Style: Value, Dividend, Cyclical
Declining