Valuation Scorecard: Stock Rating A-Highest (3/19/24)-Bancolombia SA Bancolombia, Colo (CIB).

Over the next 6 years, Bancolombia SA Bancolombia, Colo shares will need to reach $59 to achieve average annual stock market performance of 9.0%. To achieve Upper quartile performance, Bancolombia SA Bancolombia, ColoN stock price will need to reach $69 by 2028. At the current price of $35, what are market expectations regarding Bancolombia SA Bancolombia, ColoN future operating performance?

Executive Summary

• Bancolombia SA Bancolombia, Colo important characteristics: below average financial strength, very low expected growth, low stability, and very low profitability. A big positive influence on Bancolombia SA Bancolombia, Colo valuation is its superior Profitability.
• Very low valuation, leading shareholder returns. Current valuation levels are very low relative to the Bancolombia SA Bancolombia, Colo Peer Group. Recent market returns have significantly outperformed the Bancolombia SA Bancolombia, Colo Peer Group. Total shareholder returns expected to significantly beat the overall equity market. Based on current investor expectations, Bancolombia SA Bancolombia, Colo shares should reach a level of $147 by 2028 — an 32.4% per year total shareholder return. A 2028 stock price of $59 would reflect median performance and a price of $69 would be required to reach upper quartile performance.
• Bancolombia SA Bancolombia, Colo historical growth is average. Historical growth has been average relative to the Bancolombia SA Bancolombia, Colo Peer Group and forecasted growth is relatively below average. EPS Growth has been superior. Revenue Growth, and Equity Growth have lagged. Bancolombia SA Bancolombia, Colo historical income statement growth has been higher than growth in the balance sheet. Revenue growth has exceeded asset growth; earnings growth has exceeded equity growth resulting in an improving return on equity.
• Profitability has been Bancolombia SA Bancolombia, Colo biggest valuation strength. Pretax ROA, and Asset Turnover are group leading. Return on Equity is group lagging. The company has very low cash and will have to work to generate attractive investments and improve valuation.
• Bancolombia SA Bancolombia, Colo 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 below average and earnings’ expectations are below average. The debt/capital ratio has risen very significantly.

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