Here is why Banco Latinoamericano (NYSE:BLX) can still attract investors

Banco Latinoamericano Price to Book Value is fairly stable at the moment as compared to the past year. Banco Latinoamericano reported Price to Book Value of 0.75 in 2020. Price to Earnings Ratio is likely to rise to 15.42 in 2021, whereas Average Assets are likely to drop slightly above 8.5 B in 2021. While some of us are becoming more passionate about financial services space, it makes sense to break down Banco Latinoamericano De in greater detail. We will evaluate if Banco Latinoamericano shares are reasonably priced going into March. In this post, I will also go over a few different drivers affecting Banco Latinoamericano's products and services, and explain how it may impact Banco Latinoamericano investors.
Published over a year ago
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Reviewed by Vlad Skutelnik

Our trade advice tool can cross-verify current analyst consensus on Banco Latinoamericano and to analyze the company potential to grow in the current economic cycle.
The performance of Foreign Trade Bank in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Foreign Trade's stock prices. When investing in Foreign Trade, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Foreign Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Foreign Trade carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Foreign Trade earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Foreign Trade dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Foreign one year expected dividend income is about USD0.75 per share.
At this time, Foreign Trade's Dividends Paid is fairly stable compared to the past year. Dividend Yield is likely to rise to 0.04 in 2024, whereas Dividend Payout Ratio is likely to drop 0.21 in 2024.
Last ReportedProjected for Next Year
Dividends Paid36.3 M41.7 M
Dividend Yield 0.04  0.04 
Dividend Payout Ratio 0.22  0.21 
Dividend Paid And Capex Coverage Ratio 7.34  6.97 
Investing in dividend-paying stocks, such as Foreign Trade Bank is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Foreign Trade must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Foreign Trade. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Foreign Trade's Liquidity

Foreign Trade financial leverage refers to using borrowed capital as a funding source to finance Foreign Trade Bank ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foreign Trade financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Foreign Trade's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Foreign Trade's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Foreign Trade's total debt and its cash.

Foreign Trade Gross Profit

Foreign Trade Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Foreign Trade previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Foreign Trade Gross Profit growth over the last 10 years. Please check Foreign Trade's gross profit and other fundamental indicators for more details.

An Additional Perspective On Foreign Trade Bank

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Banco Latinoamericano has an asset utilization ratio of 1.31 percent. This suggests that the company is making $0.0131 for each dollar of assets. An increasing asset utilization means that Banco Latinoamericano De is more efficient with each dollar of assets it utilizes for everyday operations.

Banco Latinoamericano has 82 percent chance to finish below $15.96 next week

Current Total Risk Alpha is up to 0.04. Price may slide again. Banco Latinoamericano De has relatively low volatility with skewness of 1.0 and kurtosis of 5.3. However, we advise all investors to independently investigate Banco Latinoamericano De to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Banco Latinoamericano Investment

While other companies under the banks—regional industry are still a bit expensive, Banco Latinoamericano may offer a potential longer-term growth to investors. All things considered, as of the 12th of February 2021, our research shows that Banco Latinoamericano is a rather very steady investment opportunity with a below average chance of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. However, our ongoing 30 days buy-or-sell advice on the company is Strong Sell.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Foreign Trade Bank. Please refer to our Terms of Use for any information regarding our disclosure principles.

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