Banco de Chile Fundamental Analysis (NYSE: BCH)
Banco de Chile (NYSE: BCH) shows strong financial fundamentals with a PE ratio of 8.48, profit margin of 41.59%, and ROE of 36.87%. The company generates $5228.2B in annual revenue with weak year-over-year growth of -4.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -71.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BCH's fundamental strength across five key dimensions:
Efficiency Score
WeakBCH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBCH trades at attractive valuation levels.
Growth Score
WeakBCH faces weak or negative growth trends.
Financial Health Score
ModerateBCH shows balanced financial health with some risks.
Profitability Score
ModerateBCH maintains healthy but balanced margins.
Key Financial Metrics
Is BCH Expensive or Cheap?
P/E Ratio
BCH trades at 8.48 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BCH's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Banco de Chile at 3.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.58 times EBITDA. This signals the market has high growth expectations.
How Well Does BCH Make Money?
Net Profit Margin
For every $100 in sales, Banco de Chile keeps $41.59 as profit after all expenses.
Operating Margin
Core operations generate 64.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.87 in profit for every $100 of shareholder equity.
ROA
Banco de Chile generates $3.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Banco de Chile generates limited operating cash flow of $-15.58B, signaling weaker underlying cash strength.
Free Cash Flow
Banco de Chile generates weak or negative free cash flow of $-40.51B, restricting financial flexibility.
FCF Per Share
Each share generates $-80.20 in free cash annually.
FCF Yield
BCH converts -0.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BCH Stacks Against Its Sector Peers
| Metric | BCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.48 | 20.15 | Better (Cheaper) |
| ROE | 36.87% | 630.00% | Weak |
| Net Margin | 41.59% | -696.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 803.39 | Weak Liquidity |
| ROA | 3.89% | 286.00% | Weak |
BCH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Banco de Chile's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.38%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
196.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
119.52%
Industry Style: Value, Dividend, Cyclical
High Growth