Last Updated: 08 Nov 2024
Executive Summary
Banco Macro SA B ADR (BMA) is a leading commercial bank in Argentina, offering a wide range of banking products and services to retail and corporate clients. With a market capitalization of $6.04 billion, the company has a strong financial position, supported by solid profitability and a conservative risk profile. The stock is currently trading at $81.68, below its 52-week high of $83.69, offering potential upside for investors.
Company Overview
Banco Macro was founded in 1975 and is headquartered in Buenos Aires, Argentina. The company operates through a network of over 450 branches and 1,000 ATMs across the country. It offers a comprehensive suite of banking services, including retail banking, corporate banking, investment banking, and asset management.
Fundamental Analysis
Financial Performance:
Revenue: $347.24 billion TTM, a 0.53% decrease YoY
Net income: $4.7 billion TTM, a 6.27% increase YoY
EPS: $7.42 TTM, a 6.27% increase YoY
Return on assets: 0.0634% TTM
Return on equity: 0.24% TTM
Valuation:
P/E ratio: 11.01x
P/B ratio: 1.595x
Price to sales ratio: 0.0017x
Technical Analysis
50-day moving average: $69.54
200-day moving average: $55.15
Relative strength index (RSI): 56.32
MACD: Bullish crossover
Short Term Outlook
Technically, the stock is in a bullish trend, with the RSI above 50 and a bullish MACD crossover. The stock is currently trading above its 50-day moving average, indicating short-term momentum. However, the stock is facing resistance at its 200-day moving average, which could limit its upside potential in the near term.
Long Term Outlook
The long-term outlook for Banco Macro is positive. The company has a strong market position in Argentina and is well-positioned to benefit from the country's economic recovery. The company's conservative risk profile and solid financial performance provide a solid foundation for long-term growth.
Analyst Recommendations
Analysts have a mixed outlook on Banco Macro. Out of 6 analysts covering the stock, 1 has a "Buy" rating, 4 have a "Hold" rating, and 1 has a "Sell" rating. The average analyst target price is $85.67, implying a potential upside of 4.8%.
Conclusion
Banco Macro SA B ADR is a solid financial institution with a strong market position in Argentina. The company's conservative risk profile and solid financial performance provide a solid foundation for long-term growth. While the stock is currently trading below its 52-week high, it offers potential upside for investors seeking exposure to the Argentine banking sector.
