Banco de Chile Fundamental Analysis (NYSE: BCH)
Banco de Chile (NYSE: BCH) shows moderate financial fundamentals with a PE ratio of 15.87, profit margin of 34.32%, and ROE of 20.82%. The company generates $3579.3B in annual revenue with weak year-over-year growth of -4.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BCH's fundamental strength across five key dimensions:
Efficiency Score
WeakBCH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBCH trades at attractive valuation levels.
Growth Score
WeakBCH faces weak or negative growth trends.
Financial Health Score
WeakBCH carries high financial risk with limited liquidity.
Profitability Score
ExcellentBCH achieves industry-leading margins.
Key Financial Metrics
Is BCH Expensive or Cheap?
P/E Ratio
BCH trades at 15.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BCH's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Banco de Chile at 3.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.24 times EBITDA. This is generally considered low.
How Well Does BCH Make Money?
Net Profit Margin
For every $100 in sales, Banco de Chile keeps $34.32 as profit after all expenses.
Operating Margin
Core operations generate 43.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.82 in profit for every $100 of shareholder equity.
ROA
Banco de Chile generates $2.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Banco de Chile produces operating cash flow of $430.53B, showing steady but balanced cash generation.
Free Cash Flow
Banco de Chile generates strong free cash flow of $386.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $765.43 in free cash annually.
FCF Yield
BCH converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BCH Stacks Against Its Sector Peers
| Metric | BCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.87 | 20.35 | Better (Cheaper) |
| ROE | 20.82% | 610.00% | Weak |
| Net Margin | 34.32% | 641.00% | Weak |
| Debt/Equity | 2.35 | 0.91 | Weak (High Leverage) |
| Current Ratio | 0.28 | 799.65 | Weak Liquidity |
| ROA | 2.20% | -77.00% (disorted) | Weak |
BCH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Banco de Chile's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.38%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
196.86%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
119.52%
Industry Style: Value, Dividend, Cyclical
High Growth