Company Overview
Credicorp Ltd. operates within the Financial Services sector, specifically classified under Banks - Regional, delivering a comprehensive suite of banking services and products across a diverse portfolio of international markets including Peru, Colombia, Chile, Mexico, Panama, Bolivia, the United States, Bermuda, the Cayman Islands, and the United Kingdom. The company's operational scope is segmented into Universal Banking, Insurance, Medical Services, and Pensions, Microfinance, and other financial activities, providing a broad range of solutions to customers in Latin America and other global regions. In terms of scale, Credicorp Ltd. holds a market capitalization of $25.59B and generates an annual revenue of $20.70B, supporting a workforce of 47656 employees. These valuation and revenue figures indicate that the company functions as a significant regional financial institution with substantial market presence, utilizing its extensive employee base to manage complex operations across multiple jurisdictions and business lines.
Financial Health
The company reported a revenue of $20.70B and a net income of $6.93B over the trailing twelve months, while EBITDA data is not available in the current reporting period. The substantial gap between the $20.70B revenue and the $6.93B net income reveals a robust cost structure where operating expenses and provisions are absorbed to generate a highly profitable bottom line, typical for the banking sector where gross margins are often negligible. Free cash flow figures are not disclosed, which limits the immediate assessment of cash generation flexibility but suggests that liquidity management is likely handled through the massive cash reserves held on the balance sheet. Credicorp Ltd. reports a gross margin of 0.0%, an operating margin of 43.0%, and a profit margin of 33.5%, indicating that while the core lending business does not generate gross profit in traditional retail terms, the firm's overall operational efficiency is extremely high. The balance sheet shows a cash position of $30.84B against total debt of $34.60B, suggesting a leveraged balance sheet structure common for financial intermediaries that fund loans with customer deposits and debt. A debt-to-equity ratio is not available for calculation, and similarly, the current ratio is not provided, preventing a direct assessment of short-term liquidity relative to immediate obligations. Return on Equity stands at 19.1% and Return on Assets is 2.7%, metrics that reveal highly effective management in leveraging shareholder equity to generate returns, while the ROA reflects the capital-intensive nature of the banking industry where assets significantly outweigh equity.
Valuation Assessment
The stock trades with a P/E Ratio (TTM) of 13.07 and a Forward P/E of 9.98, where the lower forward multiple implies that the market expects earnings growth to accelerate significantly in the coming year compared to current historical performance. The price-to-book ratio is 2.37, indicating that the market values the company at a premium of 2.37 times its book value, reflecting investor confidence in the quality of its assets and intangible value beyond the balance sheet. Alternative valuation metrics show a price-to-sales ratio of 1.24, while EV/EBITDA is not available, suggesting that analysts rely heavily on earnings and book value multiples rather than cash flow-based valuation for this financial services entity. The 52-week high is $380.20 and the 52-week low is $165.51, placing the current trading price within a wide historical range that reflects significant volatility and potential for mean reversion around the average. The beta of 0.90 indicates that the stock's price volatility is slightly lower than the broader market, suggesting a defensive characteristic relative to the overall equity market during periods of fluctuation.
Growth & Income
Revenue growth over the last year is 5.0% while earnings growth stands at 42.2%, demonstrating that profitability is expanding at a rate far faster than the top line, which implies improved operational leverage or cost efficiencies rather than simple top-line expansion. For dividend payers, Credicorp Ltd. offers a dividend yield of 3.4% with a payout ratio of 46.9%, indicating a sustainable dividend policy where less than half of the net income is distributed to shareholders, leaving ample room for reinvestment. The high earnings growth relative to revenue suggests that the company is successfully converting its growing revenue base into higher profits, likely through margin expansion or favorable mix shifts within its banking and insurance segments. Overall, the growth and income profile combines moderate top-line expansion with aggressive earnings growth and a reliable, sustainable dividend yield that provides income to shareholders while allowing the company to fund organic growth initiatives.