Company Overview
Intercorp Financial Services Inc. operates as a comprehensive financial provider within the Financial Services sector, specifically categorized under Banks - Regional. The company delivers a diversified suite of banking, insurance, wealth management, and payment services catering to both retail and commercial clients in Peru. Its operational portfolio includes the provision of loans, credit facilities, deposits, and current accounts, alongside life annuity products with single payments. The entity employs 9,229 individuals to support its extensive service network across the region. The company holds a market capitalization of $5.29 billion and reported annual revenue of $5.50 billion over the trailing twelve months. This scale indicates a significant presence within the Peruvian banking landscape, positioning the firm as a major institutional player capable of serving a broad demographic of clients. The substantial employee count relative to its revenue suggests a labor-intensive operational model typical of regional banking institutions managing physical branches and extensive distribution channels.
Financial Health
The company reported revenue of $5.50 billion and net income of $1.93 billion for the trailing twelve months, while EBITDA figures are not disclosed in the available data. The difference between the $5.50 billion revenue and the $1.93 billion net income reveals a cost structure where operating expenses, including provisions for loan losses and administrative costs, consume approximately 64.8% of top-line revenue. Free cash flow metrics are unavailable for this specific reporting period, which limits the ability to assess immediate financial flexibility regarding capital expenditure and organic growth funding through cash generation alone. The firm reports a gross margin of 0.0%, a standard characteristic for financial intermediaries where revenue is recorded net of the cost of funds, while the operating margin stands at 39.7%. This operating margin indicates that the company retains a robust portion of its operating income after covering internal expenses, reflecting efficient branch management and fee-based revenue streams. The profit margin is recorded at 35.2%, demonstrating the ability to convert a significant majority of gross revenue into bottom-line earnings before taxes and extraordinary items. In terms of leverage, the company holds $4.56 billion in cash against total debt of $13.16 billion, indicating a net debt position rather than a conservative cash-rich balance sheet. The debt-to-equity ratio is not explicitly calculated or provided in the available facts, preventing a direct assessment of leverage intensity relative to shareholder equity. Current ratio data is unavailable, which precludes a specific analysis of short-term liquidity coverage using the standard current assets divided by current liabilities metric. Return on equity is 16.6%, suggesting that management is generating a high return on the shareholders' invested capital. Return on assets is 2.0%, a figure that is lower than the ROE due to the asset-heavy nature of banking, where a large asset base of loans requires significant capital to generate proportional profits.
Valuation Assessment
The trailing twelve-month P/E ratio is 9.90, while the forward P/E ratio is 8.20. The difference between these two metrics implies that the market expects earnings growth to accelerate or that the current stock price already anticipates an improvement in profitability relative to historical performance. The price-to-book ratio is 1.52, indicating that the market values the company at one and a half times its net asset value, suggesting a moderate premium over the book value often seen in regulated banking sectors with strong franchise advantages. The price-to-sales ratio is 0.96, which values the company at just under one dollar of revenue per dollar of sales, reflecting the capital-light nature of financial services where revenue recognition occurs at origination rather than collection. The EV/EBITDA multiple is not available in the provided data, limiting the ability to compare valuation based on enterprise value and operating earnings. The 52-week high is $52.58 and the 52-week low is $29.09. Without a specific current share price in the provided facts, the exact percentage deviation from the trading range cannot be calculated, but the stock has demonstrated volatility within this defined band over the last year. The beta is 0.77, which signifies that the stock's price volatility is historically 23% lower than the broader market benchmark. This lower beta suggests that Intercorp Financial Services Inc. may offer a defensive characteristic, moving less aggressively than the overall market during periods of high volatility.
Growth & Income
Revenue growth year-over-year is 1.1%, while earnings growth year-over-year is -2.8%. Earnings are growing slower than revenue, indicated by a negative growth rate compared to the positive revenue expansion, which implies that cost pressures or one-time charges may be offsetting top-line gains in the most recent period. For dividend payers, the company offers a dividend yield of 2.1% with a payout ratio of 22.0%. This low payout ratio suggests that the company retains the vast majority of its earnings for reinvestment or debt reduction, making the dividend highly sustainable given the earnings base. Since the payout ratio is only 22.0%, the company is not dependent on dividends for shareholder returns and instead reinvests the remaining 78.0% of earnings into business operations, loan origination, or balance sheet strengthening. The overall growth and income profile presents a mix of stable, albeit slow, revenue expansion, a contracting earnings trend, and a conservative, low-yield dividend policy that prioritizes capital preservation and internal growth over high income distribution.