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Grupo Supervielle SA (SUPV)
NYSE:SUPV
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Grupo Supervielle SA
(NYSE:SUPV)
81Outperform
Positive Factors
Asset Quality
Asset quality trends were positive with historically low NPLs, lower cost of risk, and a higher reserve coverage ratio.
Loan Growth
Supervielle is growing loans faster than peers, which is seen as a positive given loan growth is among investors’ main focus.
Macroeconomic Environment
The macroeconomic environment in Argentina is normalizing, contributing to a more favorable outlook for banks like Supervielle.
Negative Factors
Capitalization
Supervielle is the bank with the lowest capitalization within the coverage, which is not expected to be an issue in the short term but remains a point to monitor.
Earnings
Pre-tax earnings declined 69% QoQ and 77% YoY, 14% below BofAe on weaker NII and income from securities and a wider loss in the net monetary position.
Return on Equity
Supervielle reported single-digit ROAE impacted by lower gains from investment securities under lower inflation and inferior rates.
Grupo Supervielle SA (SUPV) vs. S&P 500 (SPY)
Market Cap
$1.43B
Dividend Yield0.99%
Average Volume (3M)1.16M
Price to Earnings (P/E)10.0
Beta (1Y)1.14
Revenue Growth-44.77%
EPS Growth-10.25%
CountryUS
Employees3,456
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.32
Shares Outstanding78,996,826
10 Day Avg. Volume833,249
30 Day Avg. Volume1,158,767
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)1.81
Price to Sales (P/S)0.00
P/FCF Ratio1.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.50Price Target Upside6.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Grupo Supervielle SA Business Overview & Revenue Model
Company DescriptionGrupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal and Business Banking, Corporate Banking, Treasury and Finance, Capital Markets and Structuring, and Support Areas segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit cards, debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising personal accidents, protected bag, unemployment, total protection, and pets insurance policies; and asset management and other services, as well as operates as an online broker. As of December 31, 2021, it operates through a network of 298 access points, including 184 bank branches, 10 banking sales and collection centers, 79 points of sales, 20 Tarjeta Automática branches, and 5 Mila branches, as well as 450 ATMs, 230 self-service terminals, and 298 ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is headquartered in Buenos Aires, Argentina.
How the Company Makes MoneyGrupo Supervielle S.A. generates revenue primarily through interest income from its banking operations, which involves loans and credit facilities extended to individuals and businesses. The company also earns fees and commissions from various banking services, such as account management, transaction processing, and advisory services. Additionally, Grupo Supervielle benefits from insurance premiums and asset management fees. Its earnings are further supplemented by strategic partnerships with other financial institutions and businesses, enhancing its product offerings and market reach.
Grupo Supervielle SA Financial Statement Overview
Summary
Grupo Supervielle SA exhibits strong financial health with consistent revenue growth and profitability improvement. The balance sheet reflects low leverage and effective equity usage, while cash flows are solid, supporting operational and strategic flexibility. The company is well-positioned to capitalize on growth opportunities, although it may need to consider strategic use of leverage to enhance growth potential.Income Statement
Grupo Supervielle SA has shown strong revenue growth over the years, with total revenue almost doubling from 2023 to 2024. The gross profit margin remains high at 100% since revenue equals gross profit, indicating efficient cost management. The net profit margin improved significantly from 2023 to 2024, reflecting improved profitability. However, the absence of EBITDA limits some analysis of operational efficiency.85
Very Positive
Balance Sheet
The company demonstrates a solid equity position, with an equity ratio of 18.15% in 2024. The debt-to-equity ratio is low at 0.006, indicating minimal leverage and strong financial stability. Return on equity is healthy, reflecting efficient use of equity capital. However, the banking industry typically carries higher leverage, and a low debt ratio may limit growth opportunities.78
Positive
Cash Flow
Grupo Supervielle SA has displayed robust free cash flow growth and strong operating cash flow, which more than covers net income, signifying good cash generation capability. The free cash flow to net income ratio is favorable, ensuring that the company generates more cash than it reports as profit. However, fluctuations in financing cash flow signal potential variability in capital structure management.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 890.31B | 440.59B | 342.78B | 335.51B | 62.87B | Gross Profit |
| 890.31B | 440.59B | 342.78B | 335.51B | 62.87B | EBIT |
| 389.77B | 90.54B | -10.62B | 4.62B | 6.30B | EBITDA |
| 0.00 | -115.63B | 2.00B | -30.25B | -13.38B | Net Income Common Stockholders |
| 125.18B | 51.62B | -15.65B | -10.52B | 5.28B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 283.29B | 146.06B | 83.54B | 51.23B | 28.56B | Total Assets |
| 4.51T | 2.06T | 2.17T | 760.52B | 376.19B | Total Debt |
| 4.68B | 2.86B | 4.76B | 2.18B | 2.11B | Net Debt |
| -278.61B | -226.24B | -78.78B | -49.05B | -26.44B | Total Liabilities |
| 3.71T | 1.72T | 1.88T | 660.00B | 322.34B | Stockholders Equity |
| 822.61B | 341.38B | 287.32B | 100.43B | 53.81B |
| Cash Flow | Free Cash Flow | |||
| 1.55T | 133.20B | 539.30B | 273.86B | -16.94B | Operating Cash Flow |
| 1.61T | 157.95B | 565.34B | 304.33B | -9.81B | Investing Cash Flow |
| -46.08B | -18.89B | -23.53B | -28.48B | -6.57B | Financing Cash Flow |
| -1.05T | -1.00T | -599.33B | -329.09B | 22.28B |
Grupo Supervielle SA Technical Analysis
Positive
16.46
Price Trends
14.15
Positive
14.96
Positive
11.92
Positive
Market Momentum
0.38
Negative
57.11
Neutral
71.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUPV, the sentiment is Positive. The current price of 16.46 is above the 20-day moving average (MA) of 15.28, above the 50-day MA of 14.15, and above the 200-day MA of 11.92, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUPV.
Grupo Supervielle SA Risk Analysis
Grupo Supervielle SA disclosed 47 risk factors in its most recent earnings report. Grupo Supervielle SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grupo Supervielle SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.43B | 10.01 | 19.64% | 0.99% | -44.77% | -10.25% | |
76 Outperform | $1.14B | 9.05 | 17.21% | 3.40% | 0.94% | -8.61% | |
72 Outperform | $1.39B | 7.07 | 15.82% | 5.36% | 8.33% | 13.48% | |
71 Outperform | $1.32B | 10.13 | 15.54% | 3.48% | -7.38% | -15.58% | |
70 Outperform | $1.47B | 11.07 | 9.84% | 3.49% | 1.26% | ― | |
70 Outperform | $1.46B | 13.20 | 8.68% | 2.98% | 1.63% | -16.82% | |
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% |
* Financial Sector Average
Performance Comparison
SUPV
Grupo Supervielle SA
16.46
9.05
122.13%
BLX
Banco Latinoamericano De Comercio
39.72
10.66
36.68%
PFBC
Preferred Bank
85.01
9.25
12.21%
STBA
S&T Bancorp
38.28
6.68
21.14%
WABC
Westamerica Bancorporation
50.60
2.07
4.27%
NBHC
National Bank Holdings
38.15
2.02
5.59%
Grupo Supervielle SA Earnings Call Summary
Earnings Call Date:Mar 10, 2025
(Q4-2024)
| % Change Since: 32.96%|
Next Earnings Date:May 27, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant growth in the loan book and U.S. dollar deposits, alongside successful digital transformation and solid profitability. However, there were challenges such as a slight increase in the non-performing loan ratio and a decline in peso deposits, with anticipated pressure on net interest margins due to macroeconomic conditions.Q4-2024 Updates
Positive Updates
Strong Loan Book Expansion
The loan book expanded by 27% quarter-over-quarter and 107% year-on-year, significantly outpacing the industry growth of 50%.
Record U.S. Dollar Deposits
U.S. dollar deposits reached record levels, up 178% year-over-year, gaining 80 basis points during the year.
Successful Digital Transformation
Grupo Supervielle completed its digital transformation started in 2020, enhancing its operating model to become a more agile, tech-driven institution.
Invertironline's Strong Performance
Invertironline's customer base grew by 57% year-on-year, with assets under custody reaching $1.7 billion, up 44% year-on-year.
Continued Profitability
Grupo Supervielle delivered an ROE of 15.7% for the year, in line with their target, and achieved a net interest margin of 25%.
Negative Updates
Increased Non-Performing Loan Ratio
The non-performing loan ratio increased slightly to 1.3%, which is still within historically low levels but indicates a minor rise.
Decline in Peso Deposits
Deposits declined 6% year-on-year, reflecting a sharp drop in industry peso deposits in the first quarter of 2024.
Challenges in Maintaining Margins
Net interest margin expected to decrease to a range of 18% to 20% in 2025 due to lower inflation and interest rate levels.
Company Guidance
During Grupo Supervielle's Fourth Quarter and Year End 2024 Earnings Call, the company provided comprehensive guidance for 2025. They expect a loan portfolio expansion of over 60% in real terms, aiming for retail loans to account for 50% of total loans, up from 40% at the end of 2023. Deposits are anticipated to grow by approximately 40%, with a focus on U.S. dollar deposits. The bank's net interest margin is projected to adjust to between 18% and 20%, while maintaining a strong Tier 1 capital ratio of 12% to 13% by year-end. The non-performing loan ratio is expected to converge to normalized levels of 2% to 2.2%. Grupo Supervielle also plans to drive net fee income growth above 10% and maintain a disciplined approach to cost management, targeting real-term expense reductions. Profitability is set to improve progressively, with a targeted annual return on equity of 12% to 15%. The company remains committed to leveraging its digital transformation, expanding its loan portfolio, and enhancing asset quality to drive sustainable growth and profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.