Intercorp Financial Services Inc. Fundamental Analysis (NYSE: IFS)
Intercorp Financial Services Inc. Fundamental Analysis (NYSE: IFS)
Intercorp Financial Services Inc. (NYSE: IFS) shows strong financial fundamentals with a PE ratio of 9.73, profit margin of 23.32%, and ROE of 16.90%. The company generates $9.0B in annual revenue with moderate year-over-year growth of 4.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IFS's fundamental strength across five key dimensions:
Efficiency Score
WeakIFS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIFS trades at attractive valuation levels.
Growth Score
ModerateIFS shows steady but slowing expansion.
Financial Health Score
WeakIFS carries high financial risk with limited liquidity.
Profitability Score
ExcellentIFS achieves industry-leading margins.
Key Financial Metrics
Is IFS Expensive or Cheap?
P/E Ratio
IFS trades at 9.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IFS's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values Intercorp Financial Services Inc. at 1.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.02 times EBITDA. This is generally considered low.
How Well Does IFS Make Money?
Net Profit Margin
For every $100 in sales, Intercorp Financial Services Inc. keeps $23.32 as profit after all expenses.
Operating Margin
Core operations generate 29.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.90 in profit for every $100 of shareholder equity.
ROA
Intercorp Financial Services Inc. generates $1.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intercorp Financial Services Inc. generates strong operating cash flow of $4.37B, reflecting robust business health.
Free Cash Flow
Intercorp Financial Services Inc. generates strong free cash flow of $3.85B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $34.68 in free cash annually.
FCF Yield
IFS converts 18.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How IFS Stacks Against Its Sector Peers
| Metric | IFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.73 | 20.70 | Better (Cheaper) |
| ROE | 16.90% | 648.00% | Weak |
| Net Margin | 23.32% | -1514.00% (disorted) | Strong |
| Debt/Equity | 1.09 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.74 | 831.47 | Weak Liquidity |
| ROA | 1.98% | -576.00% (disorted) | Weak |
IFS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intercorp Financial Services Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.65%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
391.18%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-85.44%
Industry Style: Value, Dividend, Cyclical
Declining