What is the market’s view of Banco Latinoamericano de ComerciN future operating performance as reflected in the current price of $27? Banco Latinoamericano de ComerciN common shares will need to reach $46 to achieve average annual stock market performance of 9.0% over the next 6 years. Upper quartile performance will require a $54 Banco Latinoamericano de Comerci stock price by 2028.
Executive Summary
- Banco Latinoamericano de Comerci important characteristics: very high profitability, high expected growth, low financial strength, and low stability. A big positive influence on Banco Latinoamericano de Comerci valuation is its superior Growth.
- Low valuation, leading shareholder returns. Current valuation levels are below average relative to the Banco Latinoamericano de Comerci Peer Group. Recent market returns have significantly outperformed the Banco Latinoamericano de Comerci Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, Banco Latinoamericano de Comerci shares should reach a level of $112 by 2028 — an 29.1% per year total shareholder return. A 2028 stock price of $46 would reflect median performance and a price of $54 would be required to reach upper quartile performance.
- Growth has been Banco Latinoamericano de Comerci biggest valuation strength. Historical growth has been very high relative to the Banco Latinoamericano de Comerci Peer Group and forecasted growth is relatively high. Equity Growth, EPS Growth, Asset Growth, and Revenue Growth have all been superior. These factors have buoyed market perceptions of Banco Latinoamericano de Comerci. Banco Latinoamericano de Comerci historical income statement growth and balance sheet growth have diverged. Revenue growth has exceeded asset growth; earnings growth has paralleled equity growth and return on equity has been stable.
- Return on Equity is group leading. Asset Turnover is group lagging. The company has very low cash and will have to work to generate attractive investments and improve valuation.
- Banco Latinoamericano de Comerci risk profile is unfavorable. Overall variability has been very high with very high revenue variability, very high E.P.S. variability, and very high stock price volatility. Financial Strength is very low and earnings’ expectations are unavailable. The debt/capital ratio has declined very significantly.
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