Credicorp Ltd (BAP, Financial) has recently experienced a notable uptick in its stock performance, with a 20.61% gain over the past week and a 10.24% gain over the past three months. The current market capitalization stands at $11.96 billion, with the stock price at $150.36. When compared to the GF Value of $166.87, Credicorp Ltd is considered modestly undervalued, a consistent assessment from three months prior when the GF Value was at $175.59. This valuation suggests that the stock may have room for growth, aligning with the positive trend observed in its recent price movements.
Overview of Credicorp Ltd
Credicorp Ltd, a leading financial services company in Peru, operates across various segments including commercial banking, insurance, investment banking, and asset management. Its subsidiaries, such as Banco de Credito del Peru and Atlantic Security Bank, contribute to a diversified portfolio of financial offerings. The company's commitment to providing a wide range of services, from trade finance to pension fund management, positions it as a comprehensive financial solutions provider in the region. 
Assessing Credicorp's Profitability
Credicorp's Profitability Rank stands at 6/10, reflecting a solid position within the industry. The company's Return on Equity (ROE) is an impressive 16.99%, outperforming 83.7% of its industry peers. Additionally, its Return on Assets (ROA) of 2.11% surpasses 88.54% of competitors. These figures, coupled with a consistent track record of profitability over the past decade, underscore Credicorp's financial robustness and its ability to generate value for shareholders.
Growth Trajectory of Credicorp Ltd
Credicorp's Growth Rank is also 6/10, indicating a stable upward trend in its financial performance. The company has achieved a 3-Year Revenue Growth Rate per Share of 9.60%, which is better than 66.48% of industry peers. Over a 5-year period, this growth rate stands at 7.40%, surpassing 62.67% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 4.10%, which is more favorable than nearly half of the industry. However, the 3-Year EPS without NRI Growth Rate is a modest 2.30%, and the 5-Year EPS without NRI Growth Rate is at -3.90%, indicating some challenges in earnings growth.
Investor Confidence in Credicorp
Prominent investors have maintained significant holdings in Credicorp, demonstrating confidence in the company's prospects. Dodge & Cox is the leading shareholder with 5,425,162 shares, representing a 6.82% share percentage. Baillie Gifford (Trades, Portfolio) follows with 1,412,326 shares, and John Rogers (Trades, Portfolio) holds 1,086,953 shares. These substantial investments by well-regarded firms and individuals may signal a positive outlook on Credicorp's future performance.
Competitive Landscape
Credicorp operates in a competitive banking industry, with peers such as KeyCorp (KEY, Financial) with a market cap of $13.41 billion, Citizens Financial Group Inc (CFG, Financial) at $15.65 billion, and Webster Financial Corp (WBS, Financial) at $8.79 billion. While these competitors have similar market capitalizations, Credicorp's recent stock performance and profitability metrics suggest it is holding its own in this competitive space.
Conclusion: Credicorp's Market Position and Outlook
In summary, Credicorp Ltd has demonstrated a strong stock performance with significant gains over the past week and three months. The company's profitability and growth metrics indicate a healthy financial state and potential for future expansion. Despite some areas of slower earnings growth, investor confidence remains high, as evidenced by the holdings of major shareholders. When compared to its competitors, Credicorp's market position appears robust, with a modest undervaluation suggesting an attractive entry point for investors. As the company continues to navigate the dynamic financial services landscape, its stock performance will be one to watch for value investors seeking opportunities in the banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
