Credicorp (BAP) AI Stock Analysis

• Market Cap: $14.16B
• Dividend Yield: 5.46%
• Average Volume (3M): 347.53K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.60
• Revenue Growth: 5.84%
• EPS Growth: 12.67%
• Country: US
• Employees: 38,758
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 18.43
• Shares Outstanding: 79,533,100
• 10 Day Avg. Volume: 472,570
• 30 Day Avg. Volume: 347,526
• PEG Ratio: 0.76
• Price to Book (P/B): N/A
• Price to Sales (P/S): 13.85
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $215.67
• Price Target Upside: 21.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Credicorp's strong profitability and effective equity utilization drive its solid financial performance score. Technical indicators show positive momentum but caution due to overbought signals. Attractive valuation metrics and a favorable earnings call further boost the score. However, challenges in cash flow management and impacts from the Sartor case slightly temper the overall outlook.

Credicorp Business Overview & Revenue Model

Company Description

Credicorp Ltd., a financial service holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally. The company's Universal Banking segment offers deposits and current accounts, and various credits and financial instruments to individuals and legal entities. Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pensions, as well as provides private pension fund management services. The company's Microfinance segment manages loans, credits, deposits, and current accounts of the small and microenterprises. Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments, and foundations; engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market; and structures securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.

How the Company Makes Money

Credicorp generates revenue through its various subsidiaries, each contributing to its diverse income streams. The company's primary source of revenue is its banking operations, mainly through Banco de Crédito del Perú (BCP), which provides traditional banking services such as loans, deposits, and credit cards. BCP earns interest income from lending activities and generates fee income from transaction services. Additionally, Credicorp's insurance arm, Pacifico Seguros, contributes to revenue through the sale of life, health, and property insurance products, earning premiums and managing risk. Prima AFP, the company's pension fund manager, generates income from fees charged on assets under management. Credicorp Capital, the investment banking and asset management subsidiary, earns revenue from advisory services, trading, and asset management fees. Strategic partnerships and a strong regional presence enhance Credicorp's ability to capture market share and expand its revenue base.

Credicorp Financial Statement Overview

Summary

Credicorp shows strong profitability with a robust EBIT margin and effective equity utilization. However, there are challenges in revenue growth and cash conversion. The balance sheet remains stable with manageable leverage, but cash flow fluctuations suggest a need for improved cash management strategies.

Income Statement

Credicorp shows strong profitability with a robust EBIT margin of 50.34% and a net profit margin of 30.24% for 2024. However, revenue has declined by 6.83% compared to 2023, indicating potential concerns in revenue generation. Historical data shows fluctuating revenue trends, peaking in 2023, but generally growing over the longer term since 2020.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.66 and an equity ratio of 13.41%, reflecting moderate leverage and stable equity levels. Return on equity is strong at 16.02% for 2024, demonstrating effective utilization of equity. The balance sheet indicates resilience against potential financial instability, although equity levels show limited growth.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow from the previous year, with a negative growth rate of 68.39%. The operating cash flow to net income ratio is 0.22, which highlights potential challenges in converting earnings to cash. Despite a positive free cash flow to net income ratio of 0.17, the cash flow from operations shows variability, suggesting potential liquidity management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.20B	19.54B	17.34B	14.43B	13.60B
	Gross Profit
18.20B	16.18B	17.34B	14.43B	13.60B
	EBIT
9.16B	6.85B	10.23B	5.25B	236.92M
	EBITDA
0.00	7.52B	0.00	0.00	0.00
	Net Income Common Stockholders
5.50B	4.87B	4.65B	3.58B	346.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.07B	66.62B	64.97B	73.73B	79.48B
	Total Assets
256.09B	238.84B	236.75B	244.82B	237.41B
	Total Debt
22.63B	26.76B	26.01B	24.81B	22.91B
	Net Debt
2.56B	-7.09B	-8.10B	-14.48B	-13.82B
	Total Liabilities
221.11B	205.73B	207.17B	217.78B	211.96B
	Stockholders Equity
34.35B	32.46B	28.99B	26.50B	24.95B
Cash Flow		Free Cash Flow
925.50M	2.93B	-2.03B	3.33B	12.05B
	Operating Cash Flow
1.24B	4.08B	-1.13B	3.97B	12.69B
	Investing Cash Flow
527.56M	-1.26B	-1.09B	-3.73B	-1.87B
	Financing Cash Flow
11.48B	-2.26B	-1.60B	-465.30M	-2.09B

Credicorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 178.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAP, the sentiment is Negative. The current price of 178.02 is below the 20-day moving average (MA) of 187.81, below the 50-day MA of 185.70, and below the 200-day MA of 179.64, indicating a bearish trend. The MACD of 1.70 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAP.

Credicorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMA	81 Outperform	$5.21B	11.72	9.05%	12.40%	40.86%	236.42%
CIB	77 Outperform	$9.96B	11.40	15.62%	17.16%	-0.15%	8.78%
BAP	74 Outperform	$14.16B	9.65	16.36%	5.46%	5.84%	12.67%
BSAC	73 Outperform	$9.77B	10.97	16.05%	2.72%	-22.63%	32.31%
BCH	73 Outperform	$12.50B	9.81	21.96%	6.44%	-19.01%	-13.44%
BSBR	70 Neutral	$16.51B	13.42	11.61%	5.02%	-3.94%	31.52%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%